North Energy ASA (“North Energy” or “Company”) recorded a comprehensive loss of NOK 20.8 million in the second quarter of 2021 compared to a comprehensive income of NOK 52.0 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”).
In April, the General Assembly of North Energy approved a dividend of NOK 0.45 per share, in total NOK 52.8 million. The dividend was paid to shareholders later in April. The Company’s cash position as per end of second quarter 2021 is reported at NOK 57.6 million.
The Company’s main industrial investment, Reach Subsea, reported a comprehensive income of NOK 15.9 million in the second quarter of 2021. North Energy consolidates NOK 5.1 million of the result in its financial figures. In addition, North Energy received dividend of NOK 6.9 million from the associated company.
During the quarter, Touchstone Exploration released an operational update with results from a pressure buildup test on Cascadura Deep. The results were in-line with expectations and confirmed the significant potential of the Cascadura structure. Furthermore, the company aims to bring the Coho-1 discovery onto production towards the end of the year. The two Cascadura wells are expected to come into production in the first half of 2022. Touchstone Exploration started in August 2021 the drilling of the Royston well, the largest structure on the Ortoire block.
At the end of the second quarter 2021, North Energy’s total investment portfolio had a market value NOK 287.0 million, down from NOK 304.0 million last quarter. The portfolio consists of industrial holdings, listed financial investments and other financial investments. The industrial holdings include the Company’s shares in Reach Subsea where North Energy is the major shareholder. In April, North Energy, together with Ferd AS, invested additional NOK 10 million each in Wind Catching Systems AS which is developing an innovative technology for floating offshore wind systems. The listed financial investments consist of shares in Touchstone Exploration amongst others.
The report for the second quarter 2021 is available here.