North Energy ASA - Earnings Release 2018

North Energy ASA - first quarter results 2018

Oslo, 31 May 2018

North Energy ASA ("North Energy" or "Company") recorded a comprehensive loss of

NOK 25.3 million in the first quarter of 2018, compared to a comprehensive loss

of NOK 11.5 million in the corresponding quarter 2017. The weaker result is

mainly due to a drop in the market value of Seabird Exploration, an asset in the

Company's portfolio of financial investments, which was reported with a

corresponding gain last quarter.

North Energy's total financial investment portfolio has gradually increased

during the last year and is now reported to NOK 166.6 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 consists of shares in Touchstone

Exploration and Seabird Exploration, amongst others. The shares in Seabird

Exploration has, however, been realized after the quarter end.

The tax settlement for the discontinued petroleum activities in the subsidiary

North E&P are still outstanding with the Norwegian Oil Tax Office and there are

no new indications regarding the timing of the settlement. North E&P filed the

tax return for 2017 with the Norwegian government in October last year and

requested for an early tax settlement.

The Company is financed with equity of NOK 394.7 million and, as of 31 March,

North Energy had a net cash position of NOK 42.6 million. Including the value of

tax losses carried forward in North E&P, the net cash position was NOK 243.3

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.

The interim financial report for the first quarter 2018 is available at the

Company's website, www.northenergy.no.

For further information, please contact:

Knut Sæberg, CEO

Mobile: +47 918 00 720 | E-mail: [email protected]

This information is subject to the disclosure requirements pursuant to section

5 -12 of the Norwegian Securities Trading Act.

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