North Energy ASA – third quarter of 2017 – High investment activity and a strong financial position
North Energy ASA (“North Energy” or “Company”) recorded a net profit of NOK 4.5 million in the third quarter of 2017, compared to a loss of NOK 16 million in the corresponding quarter 2016. The improved result is mainly due to a lower cost base as well as solid results from the Company’s investments.
“North Energy has successfully transformed into a profitable holding company for industrial investments through active ownership. With a low cost base and a solid financial position, we are well positioned to create attractive shareholder returns,” 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. The decision to seize operations on the Norwegian Continental Shelf is a natural consequence of the persistent challenges facing small cap exploration companies.
“The liquidation process has been ongoing during the third quarter, and in October North E&P filed the tax return for 2017 with the Norwegian government and requested for an early tax settlement,” said Knut Sæberg.
North Energy remains in a comfortable financial position. The Company is financed with equity of NOK 400 million, and as of 30 September, North Energy had a net cash position of NOK 71 million. Including the value of tax losses carried forward in North E&P, the net cash position was approximately NOK 272 million. The final proceeds received from the liquidation of North E&P will primarily depend on a final assessment by the Norwegian Oil Taxation Office.
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 held by CEO Knut Sæberg at Tjuvholmen allé 3, Oslo. The presentation will also stream live via webcast.