OKEA (OKEA) investor relations material

Executive summary

• Q2 2026 was marked by volatile macro conditions, strong early-quarter prices, and extensive planned maintenance, resulting in lower production but record operating income of USD 334 million and a net profit after tax of USD 14 million, with a net cash position of USD 59 million.

• Major project milestones included concept selection for Talisker West and Brage, PDO for Gjøa Nord, and progress on Bestla and Draugen Power from Shore projects.

• Maintenance shutdowns at Brage, Statfjord, and Ivar Aasen were completed, with Garn West South production expected to start mid-August 2026.

• Cash from operations increased to USD 179 million, and total cash balance rose to USD 355 million, including USD 59 million in money-market funds.

Financial highlights

• Total petroleum revenue was USD 313 million, with operating income up 40% year-over-year to USD 334 million, the highest ever.

• EBITDA reached USD 207 million, with a margin of 62%.

• Production volumes averaged 27,000 bpd, down 23% year-over-year due to maintenance, but sales volumes reached 34,400 bpd due to overlifting.

• Realized liquids price increased by 40% to USD 104.2/bbl, with crude sold at a USD 12 premium to market; realized crude oil price was USD 116.9/boe.

• Production expenses were USD 89 million (USD 34.0/boe), with impairments totaling USD 94 million, mainly at Statfjord and Draugen, driven by lower forward prices.

Outlook and guidance

• 2026 production guidance revised to 29,000–32,000 bpd due to Garn West South delay; 2027 guidance increased to 39,000–43,000 bpd.

• CapEx guidance unchanged at USD 300–360 million for 2026 and USD 230–290 million for 2027.

• No further planned maintenance shutdowns until Q2 2027.

• Dividend payments remain on hold during high investment period, with reassessment expected after key project milestones.

• Tax payments of USD 42 million in Q3 and USD 62 million in Q4 2026 are expected.