OKEA (OKEA) Q4 2023 earnings summary

Executive summary

• Record Q4 net production of 30,082 boepd, up 27% QoQ; FY2023 production was 24.6 kboepd, above guidance of 23–24 kboepd.

• Q4 EBITDA was NOK 1,661m; NOK 1,876m of impairments contributed to a NOK 1,263m net loss.

• The 28% Statfjord area working-interest acquisition closed on 29 December; Q4 production included 10,862 boepd net from Statfjord.

Financial highlights

• Q4 operating income was NOK 2,118m, including NOK 2,037m from petroleum sales; EBITDA was NOK 1,661m versus NOK 1,336m in Q3.

• Q4 operating cash flow was NOK 1,720m, versus NOK 748m in Q3; investment cash outflow was NOK 1,450m, including NOK 920m paid for Statfjord.

• FY2023 operating income was NOK 8,885m and EBITDA NOK 5,756m, versus NOK 6,653m and NOK 4,793m in 2022.

• Q4 impairments comprised NOK 1,363m on Statfjord and NOK 513m on Yme; the Statfjord goodwill impairment was not tax deductible.

Outlook and guidance

• 2024 production guidance is 35–40 kboepd, a stated 40–60% increase versus 2023 production.

• 2024 capex guidance is NOK 2,800–3,300m, covering wells, Statfjord life extension, Draugen power from shore and Brage infill; excludes capitalised interest, exploration and unsanctioned projects.

• Planned turnarounds: Draugen for one week in Q1, Statfjord for three weeks in Q2, and Brage and Ivar Aasen for three weeks each in Q3.

• Three tax instalments of NOK 715m each were due in February, April and June 2024; no dividend was proposed for 2024.