OKEA provides production update

“Even with implementation of strict Covid-19 precautionary measures and regulations we have managed to maintain a high production above 19 000 boe/d in the first quarter”, says Erik Haugane, CEO of OKEA.

Operating income for the quarter amounted to NOK 551 (764) million. The lower income was due to lower realised prices and lower sold volumes. Earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter amounted to NOK 312 million.

The significant fall in market pricing of petroleum products during the quarter, resulted in non-cash impairments of NOK 634 million mainly relating to technical and ordinary goodwill. The NOK weakened significantly against the US$ during the quarter which resulted in unrealised FX-losses on the outstanding US$ bonds of NOK 518 million partly offset by FX-gains on USD nominated bank deposits. Net financial losses amounted to NOK -423 (-37) million.

The significant unrealised FX-losses and impairments as outlined above, resulted in a net loss before tax for the quarter of NOK -926 million (net profit of NOK 142 million).

“This quarter’s financial statements reflect the largest economic turmoil in hundred years. OKEA has a sound cash position, low production expense per boe across our portfolio and a dedicated organisation that will manage the company through these challenging times for OKEA and the industry”, said Haugane.

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/29042020/okea-provides-update-on-draugen-asset/