OKEA ASA (OSE: OKEA) delivered operating income
of NOK 2,118 (2,105) million and EBITDA of NOK 1,661 (1,336) million in the
fourth quarter of 2023. The year-end cash balance amounted to NOK 2,301 million.
Goodwill impairment of NOK 1,363 million related to Statfjord significantly
impacted the net financial loss of NOK 1,263 (profit of 32) million.
(Amounts in parentheses refer to previous quarter)
"Following excellent performance from our operated assets in particular,
production increased by 27% in the quarter. The positive developments at Draugen
and Brage continue, underlining the capabilities of the OKEA team to create
value as operator of mid to late-life assets. Despite challenging updates on
Statfjord, the transaction with Equinor was closed on 29 December. We still
believe in the potential at Statfjord and have confidence that, as a license
partner, our team will be able to contribute to realising further value at the
field," stated OKEA CEO Svein J. Liknes.
Fourth quarter 2023 summary
Net production to OKEA of 30.1 (23.7) kboepd in the quarter was record high. The
increase of 27% compared to previous quarter mainly related to startup of the
Hasselmus tie-back to Draugen in October and continued good performance from
Talisker and new wells at Brage. A successful recompletion of a production well
increased production at Yme, and production was stable at Gjøa, Ivar Aasen and
Nova. In addition to the volumes included in key figures and income statement,
Statfjord produced 10.9 kboepd net to OKEA in the quarter.
Sold volumes in the quarter amounted to 25.6 (26.7) kboepd. The decrease
compared to previous quarter was mainly due to high underlift positions at Ivar
Aasen and Brage.
The average realised liquids price was USD 83.4 (89.0) per boe and the average
realised price for gas was USD 74.6 (61.9) per boe. USD 5.9 (0.7) per boe of the
realised gas price was attributable to gain on fixed price contracts.
Other operating income/loss (-) amounted to NOK 81 (-26) million and comprises
tariff income at Gjøa of NOK 33 (26) million, change in fair value of the
contingent consideration to Wintershall Dea of NOK 26 (-39) million and a net
gain (loss) from financial oil hedging of NOK 12 (-26) million.
An impairment charge of NOK 1,876 (475) million was recognised in the quarter.
NOK 1,363 (0) million related to impairment of ordinary goodwill on Statfjord
and was mainly a result of reduction in production and reserves estimates. As a
goodwill impairment, there are no associated tax income. NOK 513 (475) million
related to impairment on the Yme asset and was mainly a result of reduced
forward prices for crude oil during the quarter. The related tax income amounted
to NOK 400 (370) million, resulting in a net after tax impact on the Yme
impairment of NOK 113 (104) million.
Exploration and evaluation expenses amounted to NOK 22 (34) million. General and
administrative expenses amounted to NOK 37 (46) million and represent OKEA's
share of costs after allocation to license activities.
Cash and cash equivalents amounted to NOK 2,301 (2,346) million. Interest
-bearing bond loans amounted to NOK 1,246 (1,300) million and relate to the
OKEA04 bond.
OKEA paid dividend of NOK 104 (104) million in the quarter.
2024 guidance is 35 - 40 kboepd for production and NOK 2,800 - 3,300 million for
capex.