OKEA (OKEA) investor relations material

Executive summary

• Solid operational performance with production efficiency up to 97% and stable output of 31.7 kboepd, offsetting planned maintenance through strong results at Brage and Sognefjord East.

• Exploration success at Brage (Talisker discoveries, 16–33 mmboe) expected to extend asset life, with first oil anticipated in 2027 and breakeven below $20/bbl.

• Net loss of $37 million for the quarter, driven by $151 million in impairments mainly on Statfjord and Draugen, despite increased revenues and EBITDA.

• Net cash position improved to $123 million, with cash and equivalents at $377 million and no debt maturities until mid-2028.

Financial highlights

• Petroleum revenue reached $218 million, with operating income of $224 million and EBITDA of $117 million, both up sequentially.

• Production averaged 31,700 boe/d, unchanged from the previous quarter; sales volumes were 36,300 boe/d, including a net overlift of 4,600 boe/d.

• Production expense per boe increased to $24.5 from $23.5, mainly due to maintenance.

• Impairments totaled $151 million pre-tax ($47 million post-tax), mainly related to Statfjord and Draugen.

• Cash from operations surged to $197 million; capital expenditure increased to $103 million, mainly in Bestla, Power from Shore, and Statfjord drilling.

Outlook and guidance

• 2025 production guidance raised to 32,000–33,000 boe/d (from 30,000–32,000 boe/d); 2026 guidance unchanged at 31,000–35,000 boe/d.

• CapEx guidance for 2025 and 2026 remains at $350–380 million and $300–360 million, respectively.

• Dividend payments paused due to high near-term investment; board to revisit dividend policy when appropriate.

• Unit production cost expected to average around $20/boe over time, with no major maintenance planned in the next quarter.

• Cash tax installments estimated at $5–6 million each, with 10 installments per year under new regulations.