North Energy ASA (“North Energy” or “Company”) recorded a comprehensive income of NOK 18.3 million in the second quarter of 2018, compared to a comprehensive income of NOK 37.2 million in the corresponding quarter 2017. Last year’s result was impacted by the financial gain of NOK 45.4 million arising from the sale of Interoil bonds, while this quarter’s result is influenced by an increase in market value of the investment portfolio as well as realised gains from sale of selected investments. In addition, the level of operating expenses is materially lower this quarter compared to the second quarter last year.
North Energy’s total financial investment portfolio is gradually increasing and is now reported to NOK 172.2 million, measured at market value. The portfolio consists of industrial holdings, listed financial investments and other financial investments. The industrial holdings includes the Company’s shares in Reach Subsea where North Energy is the major shareholder. The listed financial investments consist of shares in Touchstone Exploration and Polarcus Ltd., amongst others. During the quarter the shares in Polarcus Ltd. has been partially realised with a reported gain of NOK 6.5 million.
The tax settlement for the discontinued petroleum activities in the subsidiary North E&P are still outstanding with the Norwegian Oil Tax Office. North E&P filed the tax return for 2017 with the Norwegian government in October last year and requested for an early tax settlement. However, there are still no indications regarding the timing of the settlement.
The Company is financed with equity of NOK 413 million and, as of 30 June, North Energy had a net cash position of NOK 61.4 million. Including the value of tax losses carried forward in North E&P, the net cash position was NOK 262.1 million. The proceeds to be received from the liquidation of North E&P are depending on the final assessment by the Norwegian Oil Taxation Office.
“We are pleased to see that the investment portfolio is continuously increasing in market value and will continue to evaluate good business opportunities.” says the CEO, Knut Sæberg.
The interim financial report for the second quarter and the first half year 2018 is available below.