OKEA third quarter 2024 trading update

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(Trondheim, 24 October 2024) OKEA ASA (OSE: OKEA) will publish its financial report for the third quarter of 2024 on Thursday 31 October at 06:00 (CEST). This trading update is provided to summarise production and sales volumes and related updates for the quarter.

Third quarter 2024 production and sales

 

Unit

Q3 2024

Q2 2024

Total operating income

MNOK

2,926

2,584

Realised liquids price

USD/boe

74.9

79.7

Realised gas price

USD/boe

68.9

65.7

Net production

Boepd

37,261

38,357

Net production – liquids

Boepd

28,938

29,160

Net production – gas

Boepd

8,323

9,197

Third-party volumes available for sale

Boepd

-25

-43

Over/underlift/inventory adjustments

Boepd

3,553

-5,019

Net sold volume*

Boepd

40,789

33,294

Net sold volumes – liquids

Boepd

32,343

24,711

Net sold volumes – gas*

Boepd

8,446

8,583

 

Unit

Q3 2024

Q2 2024

Total liquidity

MNOK

3,864

3,182

Interest bearing bonds

MNOK

2,583

2,614

Other interest bearing liabilities

MNOK

0

472

 

* Includes delivered compensation volumes to Duva and Nova (tie-in to Gjøa)

 

The realised liquids price for the quarter includes an NGL discount of USD 6.6 (4.7) per boe. This is higher than usual due to larger volumes of NGL sold in the quarter and NGL trading at a discount to crude. USD 10.4 (10.4) per boe of the realised gas price was attributable to gain on fixed price contracts. 

Impairments

A net impairment income in the range of NOK 850 – 900 million is expected to be recognised in the quarter.

 

The agreed terms of the announced sale of 15% WI in the Yme licence trigger a reversal of previous  impairments in the range of NOK 1,150 – 1,250 million. The related post-tax effect is in the range of NOK 250 – 275 million.

 

The reversal relating to Yme was partly offset by technical goodwill impairments of the Statfjord area and Ivar Aasen in the range of NOK 300 - 350 million. The technical goodwill impairment was mainly a result of lower forward prices for crude oil at balance sheet date. Technical goodwill arises as an offset to the deferred tax recognised in business combinations and is not tax deductible.

 

Disclaimer
The information contained in this statement is based on a preliminary assessment of the company’s third quarter 2024 financial and operational results and may be subject to change. 

 

Third quarter 2024 financial report to be published on 31 October
OKEA will release its third quarter 2024 results on Thursday 31 October at 06:00 CEST. A presentation of the results will be held on the same day through a webcast and audioconference starting 10:00 CEST (OKEA Webcast Q3 2024 (royalcast.com)). The presentation will be held by Svein J. Liknes (CEO) and Birte Norheim (CFO).

For further information, please contact:  

Birte Norheim, CFO

birte.norheim@okea.no

+47 952 93 321

About OKEA
OKEA ASA is a leading mid- and late-life operator on the Norwegian continental shelf (NCS). OKEA finds value where others divest and has an ambitious strategy built on growth, value creation and capital discipline.

OKEA is listed on the Oslo Stock Exchange (OSE:OKEA).

More information at www.okea.no

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