OKEA (OKEA) Q4 2025 earnings summary

Executive summary

• High operational activity in Q4 2025, with strong execution in drilling and development projects, including Bestla and Garn West South, and production at 30.8 kboepd, slightly down due to downtime and natural decline.

• Net loss of USD 18 million in Q4 2025, impacted by underlift and impairments from lower forward prices.

• Successful exploration in 2025 added 33% to 2C resources, with key discoveries at Brage (Talisker West, Fensfjord) and Mistral Sør, and three new APA 2025 license awards.

• Lifetime of Brage extended to 2035 and Draugen to 2040+, with electrification and efficiency improvements ongoing.

• Major projects, including Bestla and Power from Shore, progressed on schedule, with Bestla production expected in early 2027.

Financial highlights

• Produced volumes: 30.8 kboepd in Q4; sold volumes: 20.4 kboepd, with significant underlift, mainly at Draugen.

• Total operating income: USD 107 million in Q4, down from USD 224 million in Q3, mainly due to underlift and lower realized prices.

• Production expenses: USD 87 million (USD 28.8/boe), up due to maintenance and lower volumes.

• Impairments totaled USD 62 million, mainly from reduced forward prices; net loss for the quarter was USD 18 million.

• Cash and equivalents: USD 252 million at year-end, with net cash positive position of USD 13 million.

Outlook and guidance

• 2025 production finished at 32.1 kboepd, within guidance; 2026 guidance: 31–35 kboepd; 2027: 37–41 kboepd (>20% increase from 2025).

• Capex for 2025 was USD 362 million; 2026 guidance: USD 300–360 million; 2027: USD 230–290 million (midpoint down ~30% vs. 2025).

• Bestla startup in early 2027 is the main driver of production growth.

• Dividend payments are temporarily on hold; board to revisit when financial position allows.