Noreco reports third quarter 2011 results
(Thomson Reuters ONE) -
Stavanger, 27 October 2011: Norwegian Energy Company ASA (Noreco, OSE:NOR) today
presents its third quarter 2011 results, with a negative EBITDA of NOK 45
million and a net loss of NOK 393 million from continued operations.
Noreco is also pleased to announce that the sale of its interest in the South
Arne field has been completed as the company yesterday received full payment of
NOK 1.1 billion. The transaction is included in the result from discontinued
operations in the third quarter.
Noreco had revenues of NOK 194 million from continued operations in third
quarter 2011, an increase of 10 percent compared to third quarter 2010, driven
by higher oil prices which more than compensated for lower production volumes.
Production in the quarter was 3,428 barrels of oil equivalents per day (boed),
down from 4,101 boed (excluding divested fields) for the corresponding period
the previous year. The reduction is mainly due to lower production regularity.
The achieved oil, gas and NGL prices adjusted for the cost and income from the
put options expiring in the quarter was USD 110 per boe, compared to USD 75 per
boe in third quarter 2010.
EBITDA (earnings before interests, tax, depreciation and amortisation) in third
quarter was negative by NOK 45 million, compared to a negative EBITDA of NOK 30
million in third quarter 2010. Tax amounted to an income of NOK 46 million.
Noreco recorded a net loss of NOK 393 million for the quarter, compared to a net
loss of NOK 60 million in third quarter 2010.
Noreco reported an equity ratio of 24.6 percent at the end of the quarter, which
is below the equity ratio covenant of 25 percent in its bond agreements. The
covenant has to be breached for two consecutive quarters in order to constitute
a default. The company expects an equity ratio above 25 percent in the fourth
quarter as a result of completion of already announced asset sales. This will
also further strengthen the company's liquidity and provide the company with the
necessary financial flexibility to consider additional debt reduction in the
future.
The new Board of Noreco is pleased with the work that has been carried out
during the quarter with the purpose to improve the company's financial position
and streamline its organisation and operations. This work will continue towards
the start of new production next year. It is the Board's opinion that the
company is now well prepared to embark on value creating activities by focusing
on operations, project execution and the company's interesting exploration
program.
The third quarter report and presentation are attached. The documents are also
available for download at www.newsweb.no and www.noreco.com.
Noreco will present the results for third quarter 2011 today at 08:30 CET. The
presentation will be held by CEO Einar Gjelsvik, and will take place at Felix
Kurs og Konferansesenter, Bryggetorget 3, Oslo. The presentation can also be
followed by webcast on Noreco's web page www.noreco.com both live and in
archived version.
Contacts:
Einar Gjelsvik, CEO, +47 99 28 38 56
Kjetil Bakken, VP Investor Relations, +47 91 88 98 89
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
Q3 2011 presentation:
http://hugin.info/138447/R/1558391/481435.pdf
Q3 2011 report:
http://hugin.info/138447/R/1558391/481433.pdf
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other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: NORECO via Thomson Reuters ONE
[HUG#1558391]
Unternehmensinformation / Kurzprofil:
Datum: 27.10.2011 - 06:21 Uhr
Sprache: Deutsch
News-ID 80745
Anzahl Zeichen: 4315
contact information:
Town:
Stavanger
Kategorie:
Business News
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