Successful turnaround and proposed dividend
North Energy ASA (“North Energy” or “Company”) continued its restructuring project throughout the fourth quarter of 2016. The Company’s financial position going into 2017 is solid, having no major investment commitments and a solid net cash position. The successful turnaround of the Company led the Board to propose a NOK 0,25 per share cash dividend, to be resolved at an extraordinary general meeting in February.
“2016 was a successful turnaround year for North Energy. We delivered on our restructuring and cost savings plan, while demonstrating the significant value potential inherent in our revised business strategy. Together, these achievements made for a very good year for North Energy”, said CEO Knut Sæberg.
Through investments in both Explora Petroleum and Norwegian Energy Company (Noreco) in 2016, North Energy demonstrated that its revised business strategy can create significant value. With a low cost base and healthy financial position, the Company will continue to evaluate the market for potential value-adding transactions.
“We continue to monitor the market for new investments, with a focus on strategic opportunities where we can exercise substantial influence and control. The recent investment in Reach Subsea is an example of this, and we expect new transactions will follow in 2017,” Sæberg said.
North Energy recorded a net profit of NOK 80.8 million for the full-year of 2016, compared to a net loss of NOK 126.1 million in 2015. A more than 80 per cent reduction in the Group’s overall cost base, combined with significant gains on investments, were the main factors behind the financial turnaround.
For the fourth quarter of 2016, North Energy posted a net loss of NOK 2.7 million. The Company is in a solid financial position, with a net cash base in excess of NOK 150 million at year-end 2016. North Energy’s equity ratio stood at 88 per cent.
The interim report and presentation for the fourth quarter are attached.
For further information:
Knut Sæberg, CEO
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