BlueNord (BNOR) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered strong operational and financial performance, with production at the top end of guidance and robust earnings.

• Tyra II restart is imminent, expected between November 15–30, 2024, with ramp-up to plateau production and significant growth anticipated in 2025.

• Major HEMJ well discovery is expected to extend plateau production and support long-term output.

• Shareholder distributions of 50%-70% of net operating cash flow are planned for 2024–2026, starting after Tyra reaches plateau.

• Transformation from investment phase to value delivery, with a focus on capital returns and a conservative balance sheet.

Financial highlights

• Q3 2024 revenue was $170.2 million, nearly flat sequentially, with EBITDA up 18% to $85 million and net profit of $11 million, reversing a prior quarter loss.

• Operating cash flow before tax rose to $92 million, up from $57 million in Q2.

• Liquidity improved to $511 million, including $241 million cash and $270 million undrawn RBL capacity.

• OpEx for Q3 was $74 million, with OpEx per BOE reduced to $31.

• Positive free cash flow supported by Tyra redevelopment and drilling investments.

Outlook and guidance

• Tyra II restart expected between November 15–30, 2024, with plateau production targeted by year-end.

• Q4 2024 production guidance: base assets 23–25 MBOE/day, Tyra 4–11 MBOE/day, total 27–36 MBOE/day.

• Long-term production profile targets 55,000 BOE/day on average in 2025 and >40,000 BOE/day in 2030.

• Policy to distribute 50–70% of net operating cash flow as shareholder returns for 2024–2026.