OKEA ASA

Earnings Release • Jul 16, 2025

OKEA ASA - Second quarter 2025 financial results

OKEA ASA - Second quarter 2025 financial results

(Trondheim, 16 July 2025) - OKEA ASA (OSE: OKEA) delivered operating income of

USD 206 (271) million and EBITDA of USD 98 (183) million in the second quarter

of 2025. The net cash position was USD 42 (120) million. With new wells

sanctioned, guidance has been updated.

(Amounts in parentheses refer to previous quarter)

"I am pleased to report that we completed another quarter with no serious

incidents. We continue to develop our assets, with several milestones achieved

during the last months. On Brage, we continue to drill new wells and production

from Sognefjord East commenced on 1 July. We also spudded the Talisker well

early in July. The Garn West South production well at Draugen has been

sanctioned with production expected already from medio 2026. With the new wells

in our plans, we expect production next year to increase by about 5,000 boepd

and we are lifting our guidance accordingly", stated OKEA CEO, Svein J. Liknes.

Second quarter 2025 summary

Net production was 31.7 (34.2) kboepd. The lower production was mainly due to

delay in drilling of new wells to offset decline at Statfjord.

Sold volumes amounted to 33.0 (39.1) kboepd  The average realised crude price

was USD 68.4 (77.7) per boe. Average realised NGL price was USD 41.2 (47.0)

resulting in an average realised liquids price of USD 63.1 (72.8) per boe. The

average realised price for gas was USD 71.4 (84.4) per boe, of which a gain of

USD 5.6 (loss of -0.6) per boe was attributable to hedging. Total income from

sale of petroleum products amounted to USD 196 (266) million.

Total operating expenses comprised of production expenses at USD 74 (62)

million, corresponding to USD 23.5 (18.6) per boe. The increased cost was mainly

due to maintenance work at Statfjord and Brage and well maintenance at Draugen.

Changes in over-/underlift positions and production inventory resulted in an

expense of USD 8 (13) million as sold volumes exceeded produced volumes.

Impairment of technical goodwill amounted to USD 32 (12) million mainly due to

lower forward prices. Impairment of technical goodwill is a non-cash expense and

is not tax deductible.

Tax expense was USD 26 (101) million and net loss after tax ended at USD 21 (net

profit of 21) million.

Following issuance of the OKEA06 bond in June, cash and cash equivalents

increased to USD 423 (343) million. In addition, USD 41 (24) million was placed

in money market funds. Interest-bearing bond loans amounted to USD 422 (247)

million, comprising the OKEA04, OKEA05 and OKEA06 bonds, which brings the net

cash position to USD 42 (120) million. Repayment of the OKEA04 bond, with

nominal value USD 125 million, was settled in early July.

Updated guidance

Based on the solid production during the first half of the year, and the plans

for the second half, production guidance for 2025 is narrowed towards the high

end of the range, up to 30-32 kboepd from 28-32 kboepd. Based on sanctioning of

new wells (Talisker at Brage and Garn West South at Draugen), production

guidance for 2026 is lifted by 5 kboepd, up to 31-35 kboepd from 26-30 kboepd.

Sanctioning of Garn West South, is a key driver for the increase in capex

guidance for 2025 by USD 30-40 million, to USD 350-380 million from USD 310-350

million. Capex guidance for 2026 remains unchanged at USD 300-360 million.

Webcast and audio conference

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

conference starting 10:00 CEST. 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

Q (https://channel.royalcast.com/landingpage/hegnarmedia/20250716_1/)2 (https://c

hannel.royalcast.com/landingpage/hegnarmedia/20250716_1/)2025

(royalcast.com) (https://channel.royalcast.com/landingpage/hegnarmedia/20250716_1

/)

Dial in details for the audio conference:

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:

Stig Hognestad, VP Investor Relations

stig.hognestad@okea.no

+47 902 59 040

About OKEA

OKEA ASA is a leading mid- and 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