Q2 2024 Okea ASA Earnings Call Transcript
Key Points
- Okea ASA (OSL:OKEA) reported solid operational performance with production of 38,400 barrels of oil equivalent per day, within the high range of their guidance.
- The Draugen field continues to deliver consistent production, and the power from shore project is progressing as planned, positioning Draugen for future production until 2040.
- The company has strengthened its liquidity position with the issuance of a $125 million senior secured bond, OKEA05, which was more than twice oversubscribed.
- Okea ASA (OSL:OKEA) reported a positive safety trend, with a decrease in both serious incident frequency and total recordable incident frequency.
- The Bestla PDO was submitted, and the project is expected to add 10,000 barrels of oil equivalent per day to Okea ASA (OSL:OKEA) when it comes into production in 2027, with a breakeven of around $40 per BOE.
- Okea ASA (OSL:OKEA) experienced a one-week unplanned shutdown at Brage due to a gas cooler issue, impacting production.
- The company had a planned shutdown at Statfjord A that lasted longer than expected, affecting production efficiency.
- Okea ASA (OSL:OKEA) reported a net impairment of NOK267 million related to Statfjord and Yme, driven by reduced forward prices for crude oil and risking of less matured projects.
- Production expenses were high at NOK229 per barrel, mainly due to high activity levels on several assets combined with lower production.
- The company is not paying dividends in 2024 and has not provided a clear timeline for resumption, subject to bond terms and future financial performance.
Good morning. My name is Svein Liknes. I'm the CEO of OKEA, and welcome to the presentation of the second-quarter results for OKEA.
As usual, I also have Birte Norheim, our CFO, with me. So I will take you through an operational status first, and then she will take you through the financial section. I will get back for a quick summary before we jump into the Q&A session thereafter.
There is a link and also some numbers on our homepage that you can use to post questions. So I hope that as many as possible of you can actually join us for the Q&A session thereafter.
The high level for the second quarter of 2024 for OKEA is that we've had solid operational performance on our assets, both our operated assets and also partner-operated assets. I will go through in more detail a bit later on each asset.
So this has resulted in production of 38,400 barrels of oil equivalent per day. And this is, as you can see, also in the high range of what we have guided. So we have decided to narrow the guided range from 35,000 to 40
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