OKEA ASA

Earnings Release • Oct 26, 2023

OKEA ASA - Third quarter 2023 financial results

OKEA ASA - Third quarter 2023 financial results

(Trondheim, 26 October 2023) - OKEA ASA (OSE: OKEA) delivered operating income

of NOK 2,105 (1,707) million and EBITDA of NOK 1,336 (1,167) million in the

third quarter of 2023. Net profit after tax amounted to NOK 32 (69) million.

(Amounts in parentheses refer to previous quarter)

"Production performance in the quarter was good, particularly on our operated

assets. In combination with increased liquids prices, this resulted in solid

total operating income and EBITDA. However, the reduction in reserve estimates

for the Yme field caused an impairment of NOK 475 million which reduced net

profit after tax by NOK 104 million to NOK 32 million for the quarter. We

successfully completed a refinancing in September which extended the maturity of

the outstanding bond debt and added financial flexibility through a revolving

credit facility. Our growth journey continues with the acquisition of 28% WI in

the Statfjord Area from Equinor progressing towards completion in November as

well as the start of production of the Hasselmus gas field in October", said

OKEA CEO Svein J. Liknes.

Third quarter 2023 summary

Net production to OKEA in the third quarter was 23,710 (22,263) boepd. Brage

sustained production above plan, while Draugen, Gjøa, Ivar Aasen and Nova

produced according to plan in the quarter. Technical issues at Yme resulted in

reduced production in July.

Sold volumes in the quarter amounted to 26,689 (22,782) boepd. The increase

compared to previous quarter was mainly due to the high volumes lifted from

Draugen, Brage, Ivar Aasen and Nova.

The average realised liquids price was USD 89.0 (70.1) per boe and the average

realised price for gas was USD 61.9 (81.2) per boe. USD 0.7 (23.3) per boe of

the realised gas price was attributable to gain on fixed price contracts.

Other operating income/loss (-) amounted to NOK -26 (66) million and comprises

tariff income at Gjøa of NOK 26 (35) million, change in fair value of the

contingent consideration to Wintershall Dea of NOK -39 (18) million, income from

joint utilisation of logistic resources of NOK 9 (8) million and a net loss from

financial oil hedging of NOK -26 (5) million.

An impairment charge of NOK 475 (300) million was recognised on the Yme asset.

The impairment was mainly driven by a downward revision of reserves, partially

offset by increased forward prices for oil. As Yme is carried at fair value, any

adjustments to asset performance and/or macro assumptions will result in

impairments or reversal of previous impairments also going forward.

Exploration and evaluation expenses amounted to NOK 34 (124) million. General

and administrative expenses amounted to NOK 46 (47) million and represent OKEA's

share of costs after allocation to license activities.

At the end of the quarter we were net cash positive with cash and cash

equivalents amounting to NOK 2,346 (2,335) million. Interest-bearing bond loans

were NOK 1,300 (1,293) million.

OKEA paid dividend of NOK 104 (104) million in the quarter. The board of

directors has approved a cash dividend of NOK 1.00 per share for the fourth

quarter of 2023 which will be paid in December.

Webcast and audioconference

A presentation of the results will be held today through a webcast and

audioconference starting 10:00 CET. The presentation will be held by Svein J.

Liknes (CEO) and Birte Norheim (CFO).

The webcast can be followed at www.okea.no

or OKEA Webcast Q3 2023

(royalcast.com) (https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/2023102

6_6)

Dial in details for the audioconference:

NO: +47 2195 6342

DK: +45 7876 8490

SE: + 46 8 1241 0952

UK: +44 203 769 6819

US: +1 646-787-0157

PIN Code: 681934

For further information, please contact:

Anca Jalba, VP IR & Communication

anca.jalba@okea.no

+47 410 87 988

About OKEA

OKEA ASA is a leading mid- to late-life operator on the Norwegian continental

shelf (NCS. OKEA finds value where others divest and has an ambitious strategy

built on growth, value creation and capital discipline.

OKEA is listed on the Oslo Stock Exchange (OSE:OKEA)

More information at www.okea.no