North Energy ASA – Capital discipline and successful investments deliver continued profitability in Q2.
North Energy ASA (“North Energy” or “Company”) recorded a net profit of NOK 5.4 million in the second quarter of 2016.
“Our financial results clearly demonstrate that the extensive measures we have taken to reposition North Energy are showing results. We have strengthened our financial position in spite of the challenging macro environment affecting our industry. Strict capital discipline, coupled with improved business development capacities, are proving to yield positive results” says Knut Sæberg, CEO of North Energy.
North Energy recorded a net profit of NOK 99.5 million for the first half of 2016 compared to a loss of 69.6 million in the corresponding period of 2015.
During the second quarter, North Energy completed the integration of North E&P (formerly Explora Petroleum) with its own exploration division. All exploration activities in the Company are now brought together in the subsidiary North E&P. The Company’s investment activities are held in its subsidiary North Energy Capital. During the quarter, the Company realised an investment in Norwegian Energy Company ASA (Noreco), resulting in a gain of NOK 12.4 million for the quarter and NOK 16.3 million as a total gain from the Noreco investment.
North Energy’s ongoing process to high-grade its licence portfolio resulted in several divestments and relinquishments also in the second quarter. At the end of the quarter, the Company’s active portfolio counted eight licences, of which four licences are in the Barents Sea.
North E&P is currently assessing acreage in the APA 2016 licensing round, and the Company intends to submit an application during the third quarter.
Total assets as per 30 June were NOK 998.2 million. The Company is financed with NOK 418.1 million in equity. As of 30 June 2016, North Energy had a net cash position of NOK 179.3million, including tax receivable less exploration and convertible loan debt.
The interim report and presentation for the second quarter are attached. These can also be accessed at www.northenergy.no.
North Energy will present its results for the second quarter at 09.00 today. The presentation will be given by CEO Knut Sæberg. The venue is Tjuvholmen allé 3, Oslo. The presentation can also be followed via webcast.
For further information:
Knut Sæberg, CEO
Mob: +47 918 00 720 | E-post: email@example.com
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.