OKEA (OKEA) Q2 2024 earnings summary

Executive summary

• Achieved strong operational performance in Q2 2024 with production at 38,400 boepd, at the high end of guidance, and EBITDA of NOK 1.6 billion; net profit was NOK 87 million.

• Draugen field maintained stable output; Brage production upsets resolved and new wells commenced; Bestla PDO submitted; Draugen power from shore and infill drilling at Brage and Statfjord progressing as planned.

• Liquidity strengthened by issuing a USD 125 million (NOK 1.3 billion) senior secured bond and increasing the revolving credit facility.

• No serious incidents at operated assets; safety metrics improved.

Financial highlights

• Total operating income was NOK 2,584 million in Q2 2024, with NOK 2,442 million from petroleum sales.

• EBITDA reached NOK 1,617 million; net profit was NOK 87 million, impacted by NOK 267 million in impairments.

• Production expenses were NOK 879 million (NOK 229 per boe), reflecting high activity and lower production.

• Cash and cash equivalents at quarter-end were NOK 3,182 million.

• Net interest-bearing debt was NOK -97 million at quarter-end, reflecting strong liquidity after the bond issue.

Outlook and guidance

• 2024 production guidance narrowed to 36,000–40,000 boepd; major turnarounds scheduled for H2 2024 at Kårstø, Brage, Draugen, and Ivar Aasen.

• CapEx guidance narrowed to NOK 3.2–3.6 billion, with about one third allocated to infill and production drilling.

• Tax payments for H2 2024 estimated at NOK 349 million per installment, with 2025 tax outflows expected to be significantly lower.

• Focus remains on value creation in the current portfolio, M&A, and organic growth near existing hubs.