North Energy ASA – Comfortably positioned in a challenging market
North Energy ASA (“North Energy” or “Company”) recorded a net loss of NOK 16.0 million in the third quarter of 2016, compared to a loss of NOK 32.9 million in the corresponding quarter of 2015. Year to date, the Company recorded a profit of NOK 83.5 million, mainly due to a NOK 100 million gain from the acquisition of Explora Petroleum earlier this year. North Energy continues to monitor the market for additional acquisition targets.
“We believe that the current market environment offers interesting opportunities for further consolidation among small to medium sized players. Based on our comfortable financial position, we will continue to monitor the market for value adding transactions for North Energy and our shareholders,” says Knut Sæberg, CEO of North Energy.
During the third quarter, the Company submitted an application in the APA 2016 Licensing Round for acreage in the Hammerfest basin, the most mature part of the Barents Sea. As a consequence of the lowered price regime within the oil and gas sector, North Energy has sold and relinquished large parts of its licence portfolio, as these licences no longer were perceived to include commercially interesting prospectivity. The remaining portfolio does however include interesting commercial potential which will be investigated further.
“We have consistently raised the commercial thresholds throughout our portfolio which has led to a significant reduction in the number of licences. We are, however, left with certain interesting licences, and we will gradually seek to build on this through high quality applications in the Norwegian licensing rounds,” Sæberg added.
In addition to the Company’s exploration activities, North Energy has expanded its business model to include investments in other parts of the energy value chain. As per 30 September, the Company had invested in excess of NOK 40 million in other energy related businesses, through its subsidiary North Energy Capital.
North Energy’s assets as per 30 September were NOK 983.0 million. The Company is financed with NOK 402.0 million in equity. As of 30 September 2016, North Energy had a net cash position of NOK 160.6 million, including tax receivables less exploration and convertible loan debt. The Company does not have any major investment commitments going forward.
The interim report and presentation for the third quarter are attached. These can also be accessed at www.northenergy.no. North Energy will present its results for the third 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.
North Energy 2016 Q3 Interim Report