Det norske oljeselskap ASA (DETNOR) today reports consolidated revenues of USD
346 million in the fourth quarter 2014 compared to USD 43 million in fourth
quarter 2013. The production in the period was 54.2 thousand barrels of oil
equivalent per day (mboepd) compared to 4.3 mboepd in fourth quarter 2013.
EBITDA amounted to USD 239 (-68) million in the quarter and EBIT was USD -184 (
-201) million, after recording a net impairment charge of USD 319 (112) million.
Net earnings for the fourth quarter were USD -287 (-56) million, translating
into an EPS of USD -1.42 (-0.40).
Due to the current challenging macro environment, the company is taking steps to
strengthen its business to adapt to market conditions and ensure that the
company is in a position to benefit when conditions improve. The company is also
working to increase its financial flexibility. The company is considering
diversifying its capital structure going forward, as well as aligning loan
agreements.
"The drop in oil prices and the challenging macro environment are influencing
our business and the way we work. In response to this, we have initiated a cost
-efficiency programme with an ambition to reduce costs by more than USD 100
million in 2015. Moreover, we are working to increase our financial flexibility
and optimize the capital structure. We have constructive dialogues with our
banks and stakeholders and we are confident that we will be able to fund our
planned developments," says CEO Karl Johnny Hersvik.
Johan Sverdrup
During the quarter, the FEED phase was completed for the Johan Sverdrup
development, leading up to submission of the plan for development and operation
(PDO) in February 2015. This was a major milestone in the project, confirming
the timeline to production start-up in 2019. Following this, Det norske's P50
reserves have more than doubled. The Ministry of Petroleum and Energy is to
conclude on the unitization split.
Ivar Aasen
The Ivar Aasen project continued to move forward in line with expectations, with
construction of the topsides in Singapore and the steel jacket in Sardinia
progressing well. Drilling of geo-pilot wells commenced in January 2015.
Production
Production from the Alvheim fields has been stable and higher than forecast
throughout the entire quarter. The production availability for the Alvheim FPSO
in the fourth quarter was 99.1 per cent, with a production efficiency of 98.8
per cent, which is above target. The production and processing facility on the
Alvheim FPSO was modified in the fourth quarter to receive production from the
Bøyla field. First oil was achieved in January 2015, on schedule.
Production from Jotun, Jette and Varg has been stable during the quarter, except
for a shut in on Jotun for a period in December due to maintenance and upgrades.
Atla was shut in for a period in November and December due to maintenance on
Heimdal.
Exploration
A discovery was made at the Krafla North prospect in the North Sea in December.
Following drilling of the Krafla Main appraisal well in early 2015 and further
evaluation in the licences, the estimate for recoverable resources was increased
to 140-220 million barrels of oil equivalent.
Find the Q4 2014 report and presentation attached. The presentation will take
place at Felix konferansesenter in Oslo at 08:30 a.m. (CET). A live webcast will
be available at our website, www.detnor.no (http://www.detnor.no/en/).
Contacts:
Investor contact: Jonas Gamre, VP Investor Relations, tel.: +47 97 11 82 92
Media contact: Kurt Michelsen, Spokesperson, tel.:+47 41 63 52 44
About Det norske:
Det norske is a fully-fledged E&P company with exploration, development and
production activities on the Norwegian Continental Shelf (NCS). We are building
one of Europe's largest independent E&P companies.
Det norske is the operator of the producing Alvheim field and for the Ivar Aasen
field development. In addition, the company is partner in the Johan Sverdrup
field. Det norske has an active exploration programme on the Norwegian shelf and
an ambitious strategy for growth.
Det norske's headquarters are located in Trondheim, with branch offices in
Stavanger, Oslo and Harstad. Det norske is listed on Oslo Børs with ticker
'DETNOR'. More about Det norske at www.detnor.no/en/.
This information is subject to disclosure requirements pursuant to section 5-12
of the Norwegian Securities Trading Act.