North Energy ASA – second quarter of 2017 – Improved profit following gain on investments
North Energy ASA (“North Energy” or “Company”) recorded a net profit of NOK 41.1 million in the second quarter of 2017, compared to a profit of NOK 5.4 million in the corresponding quarter 2016. The improved result is mainly due to gain on investments. Over the past year, North Energy has successfully transitioned to become an industrial holding company focused on value creation through energy and energy related investments.
“I am pleased to report that our revised corporate strategy continues to generate substantial shareholder returns, and we expect it will continue to do so going forward,” said Knut Sæberg, CEO of North Energy.
Following an extensive strategic review, the Board of Directors of North Energy in July decided to discontinue the petroleum activities in its subsidiary North E&P and to seek cash reimbursement of the company’s offshore tax losses. With no clear signs of improved market fundamentals for small exploration companies, the Board concluded that it is now in the best interest of the Company’s shareholders that North E&P exits its petroleum activities on the Norwegian Continental Shelf (“NCS”).
“The decision to discontinue operations on the NCS is a natural consequence of the persistent challenges facing small cap exploration companies,” said Sæberg.
North Energy remains in a comfortable financial position. The Company is financed with equity of NOK 403 million, and on 30 June 2017 had a net cash position of NOK 46 million. Including the value of tax losses carried forward in North E&P, the net cash position was approximately NOK 247 million. The final proceeds received from the liquidation of North E&P will depend on closing costs, as well as a final assessment by the Norwegian Oil Taxation Office.
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 held by CEO Knut Sæberg at Tjuvholmen allé 3, Oslo. The presentation will also stream live via webcast.
North Energy Q2 2017 interim report