OKEA (OKEA) Q3 2025 earnings summary

Executive summary

• Strong operational performance with production at 31.7 kboepd and efficiency up to 97%, offsetting planned maintenance and downtime.

• Exploration success at Brage (Talisker discoveries, 16–33 mmboe) expected to extend asset life, with first oil targeted for 2027.

• Net result impacted by USD 151 million in impairments, mainly on Statfjord and Draugen, resulting in a net post-tax loss of USD 37 million.

• Net cash position improved to USD 123 million, with no debt maturities until mid-2028 and strong liquidity.

Financial highlights

• Petroleum revenue reached USD 218 million, with operating income of USD 224 million and EBITDA of USD 117 million for the quarter.

• Net loss of USD 37 million, driven by USD 151 million in impairments (post-tax impact USD 47 million).

• Cash and cash equivalents at USD 377 million, total liquidity USD 418 million including money market funds.

• Cash generated from operations was USD 197 million; capital expenditure increased to USD 100 million, mainly in Bestla, Power from Shore, and Statfjord.

• Production expenses increased to USD 77 million (USD 24.5/boe) due to maintenance.

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: USD 350–380 million; for 2026: USD 300–360 million.

• Dividend payments temporarily suspended due to high near-term investment; board to revisit when conditions allow.

• Unit production cost expected to average around USD 20/boe medium-term, with no major maintenance planned in the next quarter.