OKEA (OKEA) Q4 2024 earnings summary

Executive summary

• Q4 2024 delivered strong operational performance, with annual production reaching 39,100 boe and capex below guidance.

• High production efficiency was maintained, with Draugen and Brage showing notable improvements.

• Portfolio optimization included the sale of Yme and acquisition of eight new exploration licenses, two as operator.

• Major development projects, including Draugen Power from Shore and Bestla, are progressing on schedule.

• No recordable injuries in the quarter, with a significant reduction in total recordable injury frequency.

Financial highlights

• Operating income for Q4 was NOK 2,262 million, with petroleum revenue of NOK 2,183 million and EBITDA of NOK 1,645 million.

• Net profit after tax was NOK 68 million, with an effective tax rate of 90%.

• Cash and cash equivalents stood at NOK 3,279 million, with a net cash position of NOK 735 million.

• Net financial expense was NOK 262 million, mainly from an unrealized currency loss of NOK 225 million.

• Production expenses were NOK 805 million, or NOK 217 per barrel.

Outlook and guidance

• 2025 production guidance is 28,000–32,000 boepd; 2026 guidance is 26,000–30,000 boepd.

• CAPEX guidance for 2025 is NOK 3.2–3.7 billion and for 2026 is NOK 3.2–3.8 billion.

• Bestla is expected to contribute 10,000 boepd from 2027.

• Presentation currency will change to USD from Q1 2025.

• Three tax installments of NOK 550 million each are due in 1H 2025.