Q3 2024 Okea ASA Earnings Call Transcript
Key Points
- Okea ASA (STU:3SX) reported strong operational performance with an average production of 37,300 barrels per day, despite planned maintenance.
- The company improved its financial performance, with increased revenue and EBITDA, and a strong net liquidity position.
- Okea ASA successfully sold its non-core EMA asset for USD 15.65 million, resulting in a net impairment income of NOK 871 million.
- The company increased reserves by 2.1 million barrels of oil equivalent due to higher energy content in the Hustle Mills gas.
- Development projects like the Bestla tie-back and the power cable to Draugen are progressing well, with the cable expected to be completed by year-end.
- Production efficiency decreased by 2% due to planned maintenance and a 23-day shutdown of the Costa gas evacuation route.
- The start-up of the Draugen electrification project has been delayed from 2027 to 2028 due to offshore work complexities.
- Okea ASA's production guidance for 2025 and 2026 indicates a decline, with expected production between 28,000 and 32,000 barrels per day in 2025 and 26,000 to 30,000 barrels per day in 2026.
- The company faces challenges with water injection and pressure support at the Nova field, requiring further assessment and potential changes.
- High NGL discount impacted the average realized liquid price, bringing it down to $74.9 per barrel.
Good morning and welcome to the Okea third quarter presentation. My name is Svein Liknes. I'm the CEO of UA and I'm also joined by Birte Norheim, our CFO who will take you through the finance part a little bit later before I come back and take the summary. But before we dive into that, I would like to take you through an operations update and also some general considerations of the quarter at large.
So the highlights in the third quarter is that we have seen very strong operational performance on all our assets in our portfolio, even though we've had planned maintenance on most of them as well. We have been able to maintain strong production of 37,300 per day in in barrels per day in production, which is just slightly below the previous quarter.
We have also done production optimization initiatives on Droon on the hustle field, hustle move was started back in October last year and was a field that was going to deliver 4,400 barrels equivalent and then we increased it to 4,000 and that we have done even more de bottlenecking now, so now we
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