BlueNord (BNOR) Q4 2024 earnings summary

Executive summary

• Announced a $215 million shareholder distribution for 2024, representing 70% of operating cash flow and marking the start of a capital returns program, subject to RBL completion test.

• Achieved strong operational and financial performance in Q4 2024, with production ramp-up at Tyra II hub and robust base asset output.

• Tyra II restart in November 2024 led to significant production growth, with current output at 19,000 boe/d net, exit rate of 15,000 boe/d in December, and expected to reach plateau in early 2025.

• Harald East Middle Jurassic (HEMJ) well discovery exceeded expectations, adding 33 million boe gross reserves and extending Tyra plateau by at least 10 months.

• Liquidity position closed at $521 million, supporting a strong outlook for 2025.

Financial highlights

• Q4 2024 revenue was $193 million, up from $170 million in Q3; full-year revenue reached $702 million.

• Q4 EBITDA was $109 million, up 29% from the previous quarter.

• Operating cash flow before tax was $146 million in Q4 and $383 million for the year; net cash flow from operating activities was $95 million in Q4.

• Net loss for Q4 was $76 million, mainly due to non-cash items including fair value movements on convertible bonds and FX on tax losses.

• OPEX for Q4 was $54 million (with RUM adjustment), averaging $30/boe; production expenses were $71.9 million ($22.8/boe) due to capitalisation of WROM costs.

Outlook and guidance

• 2025 production guidance: base assets stable at 22 Mboe/d in H1, increasing in H2; Tyra II expected to reach and maintain plateau at 30 Mboe/d net, with total production guidance of 45-56 mboe/d.

• Distribution policy for 2024–2026 targets 50–70% of net operating cash flow, with a target to pay at the upper end if possible.

• Hedging covers 42% of 2025 oil and 39% of 2025 gas volumes, with ongoing additions as market conditions allow.

• Direct field operating expenditure expected to decrease below $13/boe in first full year of Tyra II production.

• Long-term production profile supported by organic projects, aiming for over 40 mboe/d in 2030.