Results for the fourth quarter 2021

North Energy ASA (“North Energy” or “Company”) recorded a comprehensive loss of NOK 24.1 million in the fourth quarter of 2021 compared to a comprehensive income of NOK 70.5 million in the same quarter last year. The loss reported this quarter is mostly driven by a decrease in the market value of the investment in Touchstone Exploration Inc (“Touchstone Exploration”) partly offset by a positive share of the result from Reach Subsea ASA (“Reach”).

At the end of the fourth quarter 2021, North Energy’s total investment portfolio had a market value NOK 326.6 million, down from NOK 334.3 million last quarter. The portfolio consists of industrial holdings, listed financial investments and other financial investments.

In December the Company acquired new shares for NOK 9 million in Chariot Ltd. through a private placement. Chariot Ltd. is an Africa-based transitional energy company aiming to be a provider of cleaner energy across the Africa continent.

The Company’s main industrial investment, Reach Subsea, reported a comprehensive income of NOK 23.3 million in the fourth quarter of 2021. North Energy consolidates NOK 7.4 million of the result in its financial figures. After quarter end Reach Subsea reported that it has received an offer from a strategic partner seeking to provide NOK 150 million in new equity and co-operate on the commercialization of Reach Remote. The Board of Reach Subsea is positive to the offer and will seek to finalise an agreement which, if concluded, will make North Energy and the strategic partner joint major shareholders of Reach Subsea.

Wind Catching Systems AS, another industrial investment, is a company developing a new innovative technology for floating offshore wind systems with the potential to produce electricity at a significant lower cost compared to traditional wind turbines. Engineering work continues in 2022 with focus on marine engineering and equipment design to optimize the operating performance.

The Company’s main financial investment, Touchstone Exploration, announced during the fourth quarter the result of the production tests on the Royston-1 exploration well, confirming light oil discovery in all sections of the well. The company plan to perform an extended production test during the first quarter 2022 designed to assess optimal flowing conditions to maximize production and data collection.

The report for the fourth quarter 2021 is available here.