Q4 2025 Okea ASA Earnings Call Transcript
Key Points
- Okea ASA (STU:3SX) reported strong production performance, meeting the guidance for the year.
- The company successfully completed the Besler drilling and the Gone West-South project, enhancing their drilling operations.
- Okea ASA (STU:3SX) increased its 2027 production guidance by over 20% and plans to reduce CapEx by nearly 30% compared to 2025.
- The company has a net cash positive position with no debt maturities until mid-2028.
- Okea ASA (STU:3SX) achieved exploration success, adding 33% to its TC resources in 2025, and was awarded three new licenses in the APA 2025.
- The company experienced a net loss in the quarter due to underlift and impairments, primarily from reduced forward prices.
- Sold volumes in the last quarter were significantly lower, leading to an underlift situation.
- Realized crude prices decreased by 12%, and liquids prices dropped by 20% compared to the previous quarter.
- Production expenses increased due to maintenance work and lower production levels, affecting cost per barrel.
- Impairments amounted to $62 million, with $57 million being asset impairments due to reduced forward prices for oil and gas.
Good morning and welcome to the 4th quarter results presentation from OR.
My name is Svenlichne, and I'm joined by Brite Noim, our CFO that will go through the financial part after this one. There will also be a Q&A session after the presentation, and there should be a link on our homepage where you can actually access the data, where you can actually log in.
Summary for the 4th quarter is that it's been a very high activity quarter in all our segments, both when it comes to production, projects, drilling, and also exploration.
We have seen solid execution in all these segments, especially within the drilling operations where we have completed the Besler drilling and have also spread the Gone West-South project, which is, close to Drougen. I can see on the picture here.
We've seen continued strong production performance, so we met the guiding that we had for the year, and the net loss that we have seen during the quarter is impacted by the under lift and impairments, predominantly due to forward prices, which is
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