Q2 2025 Okea ASA Earnings Call Transcript
Key Points
- Okea ASA (OSL:OKEA) achieved strong operational performance with high production efficiency, reaching 31,700 barrels of oil equivalent per day, which is at the high end of their guidance range.
- The company successfully completed the Sognefjord East well, boosting production on Brage to a 10-year high.
- Okea ASA (OSL:OKEA) has commenced drilling of the Talisker exploration and production well, with expected production starting in the first quarter of 2026.
- The Bestla development project is on track, with subsea template installation completed and drilling expected to start between July and August.
- The Draugen Power from Shore project is progressing well, with onshore facilities expected to be operational by mid-next year, significantly reducing CO2 emissions by 2028.
- Okea ASA (OSL:OKEA) faced a technical goodwill impairment of USD 32 million due to reduced forward prices, impacting financial performance.
- Production expenses increased due to maintenance activities and subsea interventions, leading to higher costs per barrel.
- The company experienced lower production from Statfjord due to delays in drilling new wells, affecting overall production levels.
- Market prices for both gas and crude decreased significantly during the quarter, impacting revenue.
- The company reported a net loss of USD 21 million for the quarter, driven by the technical goodwill impairment and lower forward prices.
Good morning, and welcome to the OKEA second quarter results presentation for 2025. My name is Svein Liknes, CEO of OKEA. And as usual, I have my CFO with me, Birte Norheim, who will then do the financing afterwards. There is a link on our homepage where you can post questions or also call in for the Q&A session, which will start immediately after this presentation.
The highlights for the quarter is, again, that has been a very strong operational performance throughout the quarter. We've seen high production efficiency, and we've also seen strong production with 31,700 barrels of oil equivalent per day, which is in the high end of the range we have guided for. This is even though we have seen some lower production from Statfjord to delays in drilling of new wells, which has to be drilled to increase the production as it is declining.
We have also seen the strong production performance on Brage, especially and also Draugen and also Gjoa, which is operated by others, but which has also contributed significantly.
The financial
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