North Energy ASA (“North Energy” or “Company”) recorded a comprehensive income of NOK 47.7 million in the third quarter of 2021 compared to a comprehensive income of NOK 52.9 million in the same quarter last year. The income reported this quarter is mostly driven by an increase in the market value of the investment in Touchstone Exploration Inc (“Touchstone Exploration”) and a positive share of the result from Reach Subsea ASA (“Reach”).
At the end of the third quarter 2021, North Energy’s total investment portfolio had a market value NOK 334.3 million, up from NOK 287.0 million last quarter. The portfolio consists of industrial holdings, listed financial investments and other financial investments.
The Company’s main industrial investment, Reach Subsea, reported a comprehensive income of NOK 43.8 million in the third quarter of 2021. North Energy consolidates NOK 14.1 million of the result in its financial figures.
Wind Catching Systems AS is developing a new innovative technology for floating offshore wind systems which is progressing according to plan. The wind tunnel testing performed in Milano has been completed during summer 2021 and the results are encouraging. Further engineering work continues throughout 2021 and into 2022 with focus on marine engineering and equipment design to optimize the operating performance.
The Company’s main financial investment, Touchstone Exploration, announced completion of drilling of the Royston-1 exploration well. During testing they encountered substantial hydrocarbons accumulations with an aggregate of 393 gross feet of hydrocarbon pay. After the quarter end, Touchstone Exploration announced the result of the first of three production tests of Royston-1 which confirmed a light oil discovery in the lower part of the well.
The report for the third quarter 2021 is available here.