North Energy ASA (“North Energy” or “Company”) recorded a comprehensive loss of NOK 12.4 million in the third quarter of 2018, resulting in a comprehensive loss of NOK 19.4 million year to date. The loss reported for the quarter is explained by NOK 5 million in operating expenses, and a NOK 7 million net loss from investment activities.
North Energy’s total financial investment portfolio is per end of third quarter NOK 167.7 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 amongst others.
The Company is financed with equity of NOK 400.6 million and, as of 30 September, North Energy had a net cash position of NOK 48.1 million. Including the value of tax losses carried forward in North E&P, the net cash position was NOK 248.6 million.
The tax settlement for the discontinued petroleum activities in the subsidiary North E&P was received on 8th of November with an amount of 234.5 million, including interest. This is in line with expectations. The total tax refund will be settled on 28th of November.
Furthermore, reference is made to Stock Exchange Notice from 24th October 2018 where the Company informs about the notice from OTO regarding a possible change of the tax returns for North E&P from 2014 and 2015. North Energy strongly disputes both the content and the conclusion of the notice.
The interim financial report for the third quarter 2018 is available below.