North Energy ASA (“North Energy” or “Company”) recorded a comprehensive loss of NOK 25.3 million in the first quarter of 2018, compared to a comprehensive loss of NOK 11.5 million in the corresponding quarter 2017. The weaker result is mainly due to a drop in the market value of Seabird Exploration, an asset in the Company’s portfolio of financial investments, which was reported with a corresponding gain last quarter.
North Energy’s total financial investment portfolio has gradually increased during the last year and is now reported to NOK 166.6 million, measured at market value. The portfolio consists of industrial holdings, listed financial investments and other financial investments. The industrial holdings includes the Company’s shares in Reach Subsea where North Energy is the major shareholder. The listed financial investments consists of shares in Touchstone Exploration and Seabird Exploration, amongst others. The shares in Seabird Exploration has, however, been realized after the quarter end.
The tax settlement for the discontinued petroleum activities in the subsidiary North E&P are still outstanding with the Norwegian Oil Tax Office and there are no new indications regarding the timing of the settlement. North E&P filed the tax return for 2017 with the Norwegian government in October last year and requested for an early tax settlement.
The Company is financed with equity of NOK 394.7 million and, as of 31 March, North Energy had a net cash position of NOK 42.6 million. Including the value of tax losses carried forward in North E&P, the net cash position was NOK 243.3 million. The proceeds to be received from the liquidation of North E&P are depending on the final assessment by the Norwegian Oil Taxation Office.
The interim financial report for the first quarter 2018 is available below.