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OKEA ASA
Quarterly Report • Apr 29, 2025
3701_rns_2025-04-29_b5722cb6-c1ce-49aa-84b1-119a57e1ef75.pdf
Quarterly Report
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Quarterly report Q1 2025
First quarter 2025
Highlights and key figures 1
Figures in brackets refer to previous quarter
34.2 271 183 (35.9) (205) (149) 1
Cash from operations Capital expenditure Leverage ratio USD million USD million Net debt / EBITDA
(78) (70) (0.11)
Production Operating income EBITDA kboepd USD million USD million
135 69 0.10
1 Production for Q4 2024 excludes volumes from Yme due to closing of the sales transaction at the end of November 2024. Effective date of the transaction was 1 January 2024.
Operational performance
- Solid operations with no serious incidents in the quarter
- Good production performance at 34.2 (35.9 excl. Yme) kboepd
- The longest well ever drilled from a fixed installation on the NCS was drilled from Brage. 10,023 meters was drilled at Prince, demonstrating the potential to add reserves at low cost
Financial performance
Portfolio development
- Petroleum revenues of USD 266 (198) million
- Production expenses of USD 18.6 (19.7) per boe
- EBITDA of USD 183 (149) million
- Net profit after tax of USD 21 (6) million
- Positive net cash position of USD 120 (65) million
- Discovery made on the Mistral exploration well; prelim. est. resources of 19-44mmboe
- Drilling at Prince completed in April; volume and commerciality assessments expected completed in the second quarter
- Acquired 35% WI in the Tverrdal prospect, located in the Brage area
- Bestla development project progressing according to plan. Topside design and subsea template fabrication completed
- Key milestones delivered on the Power from Shore project at Draugen
Message from the CEO
I am pleased to report continued strong operational performance with no serious incidents in the first quarter of 2025.
We continue to build our portfolio and further strengthened our position in the greater Brage area through the farm-in to a 35% WI in the Tverrdal prospect. In addition, we made a discovery from the Mistral exploration well located between Draugen and Aasgard with preliminary estimated resources of 19-44 million boe.
Our activity level on development projects remains high. The Bestla project is progressing well with all key milestones on schedule. Preparatory work at Draugen relating to the Power from Shore project is nearing completion and start of equipment installation is scheduled to commence in the second quarter.
As a result of two large projects ongoing, the company is in a period with a relatively high investment level. The Bestla project will add 10 kboepd in production net to OKEA from 2027. The electrification project is an important enabler in extending the lifetime of Draugen by reducing production expenses, increasing gas export and enhancing operational stability. In addition, the project will result in a reduction of CO2 emissions from the Draugen field by 200,000 tonnes per year. These investments will add value when the projects are completed and requires investments in the near term. In line with the company's first capital allocation principle of maintaining a healthy balance sheet, dividend payments have been temporarily put on hold.
I am proud of our accomplishments in the first quarter with high activity levels in all parts of the organisation. We will continue the work to combine strong operational results with disciplined investments for the purpose of maximising value creation for our stakeholders, focusing on what we can control during these times with a very volatile market.
Svein J. Liknes Chief Executive Officer
Financial review
OKEA's functional currency is Norwegian kroner (NOK). For the first time in this Q1 2025 report, OKEA will apply US dollars (USD) as presentation currency. All figures in these financial statements are presented in USD.
For presentation purposes, balance sheet items are translated from functional currency to USD using spot rates at the balance sheet date. Items within profit or loss and other comprehensive income are translated from functional currency to USD using average exchange rates for the periods presented or actual rates at the time of the transactions if significantly different. For share capital and share premium, actual exchange rates at the time of the transactions are applied.
Statement of comprehensive income
| Amounts in USD million | Q1 2025 | Q4 2024 | Q1 2024 | 2024 |
|---|---|---|---|---|
| Total operating income | 271 | 205 | 330 | 1,050 |
| Total operating expenses | -158 | -118 | -214 | -587 |
| Profit/loss (-) before income tax | 122 | 64 | 103 | 426 |
| Net profit / loss (-) | 21 | 6 | -5 | 36 |
| EBITDA 2 | 183 | 149 | 205 | 690 |
| EBITDAX | 192 | 163 | 210 | 731 |
| NOK/USD period average exchange rate | 11.07 | 11.02 | 10.51 | 10.74 |
Total operating income of USD 271 (205) million comprise:
- Petroleum revenues of USD 266 (198) million. The increase was mainly due to an overlift with total sold volumes amounting to 39,066 (29,204) boepd. The realised crude price averaged USD 77.7 (76.7). 12% (12%) of the volumes sold was NGLs which are trading at a discount to crude with an average price of USD 47.0 (48.6) per boe. The quarterly average realised liquids price amounted to USD 72.8 (69.2) per boe. The average realised natural gas price amounted to USD 84.4 (80.0) per boe, of which a loss of USD 0.6 (0.2) per boe was attributable to hedging.
- Other operating income of USD 5 (7) million mainly related to net tariff income at Gjøa and Statfjord of USD 4 (4) million.
Total operating expenses of USD 158 (118) million comprises:
- Production expenses of USD 62 (73) million, corresponding to USD 18.6 (19.7) per boe.
- Changes in over-/underlift positions and production inventory resulting in an expense of USD 13 (income of 33) million as sold volumes exceeded produced volumes.
- Depreciation of USD 57 (62) million mainly comprising unit of production depreciation of oil and gas properties of USD 57 (61 ) million.
- Impairments of technical goodwill of USD 12 (0) million mainly due to a reduction in forward prices.
- Exploration and evaluation expenses of USD 9 (13) million. The decrease was mainly due to purchase of seismic of USD 10 million in previous quarter, partly offset by dry-well write-off on Horatio of USD 5 million in the current quarter.
- General and administrative expenses of USD 5 (3) million.
Net profit/ loss (-) of USD 21 (6) million comprises:
- Profit from operating activities of USD 114 (88) million.
- Net financial income of USD 8 (expense of 24) million, of which a net gain of USD 12 (net loss of 20) million relate to foreign exchange, and USD 3 (3) million relate to net expensed interest.
- Tax expenses of USD 101 (58) million resulted in an effective tax rate of 83% (90%). The effective tax rate exceeded the marginal tax rate of 78% due to impairment of goodwill not being tax-deductible partly offset by net financial income only being subject to the onshore tax rate (22%).
Net profit for the quarter was USD 21 (6) million and profit per share amounted to USD 0.21 (0.06).
2 Definitions of alternative performance measures are available on page 47 of this report
Statement of financial position
| Amounts in USD million | 31.03.2025 | 31.12.2024 | 31.03.2024 |
|---|---|---|---|
| Goodwill | 140 | 142 | 190 |
| Oil and gas properties | 659 | 597 | 660 |
| Other non-current assets | 459 | 424 | 412 |
| Cash and cash equivalents | 343 | 289 | 197 |
| Other current assets | 273 | 291 | 262 |
| TOTAL ASSETS | 1,874 | 1,743 | 1,722 |
| Equity | 128 | 98 | 63 |
| Interest bearing bond loans | 247 | 246 | 123 |
| Other long-term liabilities | 1,038 | 956 | 1,023 |
| Income tax payable | 186 | 143 | 218 |
| Other current liabilities | 276 | 299 | 295 |
| TOTAL EQUITY AND LIABILITIES | 1,874 | 1,743 | 1,722 |
| NOK/USD exchange rate at the reporting date | 10.55 | 11.36 | 10.8 |
OKEA's functional currency is NOK. Assets and liabilities held in other currencies than USD will be impacted by developments in the NOK/USD exchange rate. The effect of such changes in USD balances in the statement of financial position are presented as translation differences in the notes to the financial statements.
Other key changes are commented in the following.
Goodwill of USD 140 (142) million comprises USD 125 (128) million in technical goodwill and USD 15 (14) million in ordinary goodwill. Reference is made to note 11 for further information.
Oil and gas properties amounted to USD 659 (597) million. The increase was due to investments in the Power from Shore project on Draugen, the Bestla project, and production drilling at Brage and Statfjord, partly offset by depreciation.
Other non-current assets of USD 459 (424) million mainly comprise asset retirement reimbursement rights of USD 404 (389) million relating to Equinor's, Shell's and Harbour Energy's obligations to cover decommissioning costs for Statfjord, Draugen and Gjøa, and Brage respectively. USD 38 (17) million relate to capitalised exploration and evaluation assets.
Cash and cash equivalents amounted to USD 343 (289) million.
Other current assets of USD 273 (291) million mainly comprise trade and other receivables of USD 166 (183) million, spare parts, equipment and inventory of USD 63 (68) million and a placement of excess liquidity in money-market funds of USD 24 (22) million.
Interest bearing bond loans of USD 247 (246) million comprise the OKEA04 and OKEA05 bonds.
Other long-term liabilities of USD 1,038 (956) million mainly comprise asset retirement obligations of USD 869 (818) million. Asset retirement obligations are partly offset by the asset retirement reimbursement rights outlined above.
Income tax payable amounted to USD 186 (143) million.
Other current liabilities of USD 276 (299) million mainly comprise trade and other payables of USD 245 (267) million.
Statement of cash flows
| Amounts in USD million | Q1 2025 | Q4 2024 | Q1 2024 | 2024 |
|---|---|---|---|---|
| Cash and equivalents at the beginning of the period | 289 | 344 | 226 | 226 |
| Net cash flow from / used in (-) operations | 135 | 78 | 123 | 397 |
| Net cash flow from / used in (-) investments | -96 | -101 | -136 | -408 |
| Net cash flow from / used in (-) financing activities | -7 | -8 | -9 | 93 |
| Effect of exchange rate fluctuation on cash held | 22 | -23 | -7 | -21 |
| Cash and cash equivalents at the end of the period | 343 | 289 | 197 | 289 |
Net cash flows from operating activities of USD 135 (78) million account for taxes paid of USD 50 (61) million mainly relating to one (two) tax instalments paid for 2024. The increase in cash flows from operating activities were mainly due to higher sold volumes.
Net cash flows from investment activities of USD -96 (-101) million mainly relate to investments in oil and gas properties of USD 69 (70) million and capitalised expenditure relating to exploration wells of USD 32 (13) million. Previous quarter USD 19 million was used on business development activities mainly related to closing of the Yme transaction.
Net cash flows from financing activities of USD -7 (-8) million mainly relate to interests paid of USD 6 (6) million.
Cash and cash equivalents ended at USD 343 (289) million. Reference is made to note 18 for further details. In addition to the cash balance, USD 24 (22) million in excess liquidity was placed in money-market funds classified as other current assets.
Financial risk management
OKEA addresses financial risk by use of derivatives and fixed price contracts to manage exposures to fluctuations in commodity prices and foreign exchange rates.
Financial hedging arrangements on foreign exchange exposure, CO2 quotas and oil and gas options are recognised at market value on each balance sheet date.
Hedging positions on crude oil and gas production as per the date of this report:
| Crude oil | Q2 2025 | Q3 2025 | Q4 2025 |
|---|---|---|---|
| Price [USD/bbl] (floors/ceilings) | 65 / 85 | 65 / 85 | 65 / 85 |
| Hedged share (net a/tax) | 29% | 26% | 12% |
| Gas | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 |
|---|---|---|---|---|
| Physical deliveries at average fixed price [p/th] | 116 | 113 | N/A | N/A |
| Financial hedge - price [p/th] (floors/ceilings) | 70 / 170 | 70 / 170 | 80 / 197 | 80 / 197 |
| Combined hedged share (net a/tax) | 59% | 57% | 24% | 24% |
Operational review
Operational summary
Operational performance was good with no serious incidents in the quarter. Production was 34,233 (35,888 ex. Yme) boepd. Production expenses amounted to USD 18.6 (19.7) per boe.
Production at Draugen was impacted by shut-in of one well due to scale build-up. Production at Brage, Statfjord, Gjøa area and Ivar Aasen was relatively stable.
| Unit | Q1 2025 | Q4 2024 | Q1 2024 | 2024 | |
|---|---|---|---|---|---|
| Total net production 3 | Boepd | 34,233 | 37,765 | 42,107 | 38,865 |
| 3rd party volumes available for sale 4 | Boepd | -183 | -200 | 0 | -67 |
| Change in O/U lift | Boepd | 5,016 | -8,361 | 4,476 | -1,344 |
| Total net sold volume | Boepd | 39,066 | 29,204 | 46,583 | 37,454 |
| Production expense per boe5 | USD | 18.6 | 19.7 | 18.9 | 20.4 |
| Realised crude oil price | USD/boe | 77.7 | 76.7 | 85.8 | 82.5 |
| Realised NGL price | USD/boe | 47.0 | 48.6 | 42.0 | 46.0 |
| Realised liquids price | USD/boe | 72.8 | 69.2 | 82.0 | 77.2 |
| Realised gas price | USD/boe | 84.4 | 80.0 | 55.1 | 67.4 |
Production efficiency is calculated as actual production of main product divided by the total of actual production of main product, scheduled deferment and unscheduled deferment. Deferment is the reduction in production caused by a reduction in available production capacity.
3 In 2024, activities from the 15% WI in Yme were included in the statement of comprehensive income and key figures until closing date at the end of November 2024. Effective date of the transaction was 1 January 2024. OKEA's share of volumes excluding Yme was 35,888 boepd in the fourth quarter.
4 Net compensation volumes from Duva and Nova received and sold (tie-in to Gjøa)
5 Definitions of alternative performance measures are available on page 47 of this report
OKEA operated assets
Draugen (operator, 44.56%)
| Unit | Q1 2025 | Q4 2024 | Q1 2024 | 2024 | |
|---|---|---|---|---|---|
| Production | Boepd | 9,447 | 10,085 | 10,592 | 9,377 |
| Change in O/U lift | Boepd | 1,520 | -6,655 | -2,235 | -2,191 |
| Total net sold volume | Boepd | 10,967 | 3,429 | 8,357 | 7,185 |
| Production efficiency | % | 87% | 93% | 90% | 90% |
Production volumes were somewhat reduced due to shut-in of a well in mid-December as a result of scale build-up. A well intervention campaign was completed late April and the well is expected to be back in production in the second quarter.
Construction work for the Power from Shore project is ongoing and on schedule for completion in 2028.
Brage (operator, 35.2%)
| Unit | Q1 2025 | Q4 2024 | Q1 2024 | 2024 | |
|---|---|---|---|---|---|
| Production | Boepd | 5,800 | 6,269 | 7,638 | 6,694 |
| Change in O/U lift | Boepd | 2,882 | -4,030 | 6,290 | 618 |
| Total net sold volume | Boepd | 8,682 | 2,239 | 13,928 | 7,312 |
| Production efficiency | % | 96% | 94% | 96% | 94% |
Production volumes were somewhat reduced due to natural decline.
Exploration drilling in the Prince prospect was completed in April and hydrocarbons have been encountered. Volume assessments are ongoing with initial indications that recoverable volumes are lower than pre-drill estimates. Assessments on volumes and commerciality are expected completed in the second quarter.
Drilling of a production well in Sognefjord East commenced in the second quarter.
Partner operated assets
Statfjord area (partner, 28%)
| Unit | Q1 2025 | Q4 2024 | Q1 2024 | 2024 | |
|---|---|---|---|---|---|
| Production | Boepd | 10,839 | 11,144 | 11,256 | 11,477 |
| Change in O/U lift | Boepd | -2,330 | 1,799 | 25 | 710 |
| Total net sold volume | Boepd | 8,508 | 12,943 | 11,281 | 12,187 |
| Production efficiency | % | 89% | 91% | 89% | 90% |
Production volumes were slightly reduced mainly due to an unplanned shutdown at platform C for five days in January.
Collaboration with operator Equinor to improve production efficiency and drilling performance continues. A new drilling strategy has been approved for the Statfjord unit, targeting enhancing long-term production.
As previously reported, OKEA has initiated legal actions against Equinor Energy AS in accordance with the SPA regulations. The case is progressing, however there are currently no material developments in the case to report.
Gjøa & Nova (partner, 12% & 6%)
| Unit | Q1 2025 | Q4 2024 | Q1 2024 | 2024 | |
|---|---|---|---|---|---|
| Production | Boepd | 6,090 | 6,158 | 6,362 | 6,136 |
| Change in O/U lift | Boepd | 22 | 2,597 | -2,313 | -422 |
| Total net sold volume | Boepd | 6,112 | 8,755 | 4,049 | 5,714 |
| Production efficiency | % | 99% | 99% | 91% | 93% |
Production volumes were in line with previous quarter with continued high production efficiency.
A fourth water injector has been drilled at Nova which has enhanced production. The water injection system at Nova has now reached design rates which is expected to stabilise the production. Increased water cut and reservoir complexity remain challenges at Nova and mitigating initiatives are continuously assessed and implemented
Several tie-in candidates are approaching Gjøa as potential host.
Ivar Aasen (partner, 9.2385%)
| Unit | Q1 2025 | Q4 2024 | Q1 2024 | 2024 | |
|---|---|---|---|---|---|
| Production | Boepd | 2,057 | 2,231 | 2,816 | 2,290 |
| Change in O/U lift | Boepd | 2,740 | -1,592 | 1,955 | 20 |
| Total net sold volume | Boepd | 4,797 | 639 | 4,771 | 2,310 |
| Production efficiency | % | 96% | 95% | 99% | 94% |
Production at Ivar Aasen remains stable with high production efficiency. Optimisation of the water injection continues to enhance oil production from multiple wells.
The IOR 2026 campaign is progressing as planned towards a DG3 in the second quarter of 2025.
Development projects
Draugen – Power from Shore (operator, 44.56%)
The Power from Shore development has progressed well during the quarter. Trenching and rock installation for protection of the installed power cable from shore to Draugen is close to completion. Offshore construction activities is currently ramping up towards full capacity and the construction of onshore facilities are progressing according to plan
The project will result in average annual reduction of CO2 emissions of 200,000 tonnes from Draugen and 130,000 tonnes from Njord as well as an average annual reductions of NOx emissions of 1,250 tonnes from Draugen and 520 tonnes from Njord. The project will also result in reduced production expenses, increased gas export, and extend the economic life of the Draugen field.
Project completion is expected in 2028.
Bestla (operator, 39.2788%)
The Bestla project is progressing according to plan with all key milestones on schedule.
The subsea template fabrication has been completed and is planned installed in the second quarter. The first deck installations are scheduled to commence in the second quarter. Preparations for drilling in the third quarter are on track.
The Bestla field will be developed as a two-well tie-back to the Brage field and contains estimated gross recoverable reserves of 24 million boe. Plateau production is expected within the first year of production by about 10 kboepd net to OKEA.
First production is expected in the first half of 2027.
Exploration licences
In January 2025, OKEA was awarded eight new production licences on the Norwegian continental shelf in the APA 2024 licencing round. All awarded licences are located near assets in OKEA's portfolio. OKEA is operator for two of the licences which are in the vicinity of Draugen and Brage respectively.
OKEA's key focus in 2025 is to further strengthen the position in core areas by building a portfolio of prospects in the Norwegian Sea and North Sea basins with a target to drill up to four exploration wells per year.
In the first quarter, the following activities took place:
- The PL1119 (20% WI) Mistral well is an ILX exploration well operated by Equinor and located in the Norwegian sea, between Draugen and Aasgard. The Mistral well was spudded in December 2024 and completed in the first quarter. Preliminary estimates of recoverable oil equivalents are 3-7 million standard cubic meters (MSM3), corresponding to 19-44 million barrels. The PL1119 licence group are in the process of evaluating the commerciality of the discovery by studying options for effective development.
- The PL055 (35.2% WI, operator) Prince exploration well, located at the Brage field, was completed in April and hydrocarbons have been encountered. Volume assessments are ongoing with initial indications that recoverable volumes are lower than pre-drill estimates. Assessments of volumes and commerciality are expected completed in the second quarter.
- The PL1109 Horatio exploration well (10% WI), operated by OMV, was completed during the first quarter. The well was classified as dry and has been permanently plugged and abandoned.
- The PL1014 Arkenstone well (20% WI) is a high-risk/high-reward opportunity operated by Equinor and located in the Northern Norwegian Sea. The Arkenstone well was spudded in December 2024. Shallow gas was encountered in the upper layers of the formation and the drilling operation was temporarily suspended. Work to ensure a new and robust well design is ongoing.
• In March, OKEA entered into an agreement with Aker BP to acquire a 35% WI in the southern part of PL1102/ PL1102B, containing the Tverrdal prospect. Tverrdal is located approximately 13 km north of the Brage platform and the farm-in further strengthens OKEA' position in the greater Brage area. PL1102/PL1102B licenses are applying for a carveout dividing the licence into a northern and southern part. The agreement with Aker BP is to acquire a 35% WI in the southern part, subject to governmental approval of the carveout.
QHSSE and ESG
Preventing harm to people's health and the environment is a key priority, and work to ensure safe working conditions is a continuous focus in OKEA.
No serious incidents were recorded in the first quarter of 2025. The SIF remained unchanged compared to previous quarter. The TRIF rate increased following two recordable incidents. None of the incidents resulted in any time lost.
There were no serious acute spills or hydrocarbon leakages from OKEA-operated assets during the quarter. The GHG emissions intensity increased to 28 kg CO2e per boe produced and the locally committed spend remains high at 98%.
| Key QHSSE indicators | Unit | Q1 2025 Q4 2024 Q1 2024 | 2024 | ||
|---|---|---|---|---|---|
| Total recordable injury frequency 12 M rolling avg | Per mill. work hours |
2.2 | 1.1 | 7.0 | 1.1 |
| Serious incident frequency 12 M rolling avg | Per mill. work hours |
1.1 | 1.1 | 0.6 | 1.1 |
| Serious acute spills to to sea (A-B) | Count | 0 | 0 | 0 | 0 |
| Hydrocarbon leakages (>0.1 kg/s) | Count | 0 | 0 | 0 | 0 |
| Equity share GHG emissions intensity | Kg CO2 / boe |
28 | 25 | 24 | 25 |
| Share of female recruitment 12 M yearly target | Percent | 30 | 30 | 26 | 30 |
| Share of locally committed spend | Percent | 98 | 94 | 99 | 97 |
Subsequent events Guidance Outlook
- An exploration well in the Prince prospect on Brage was completed in April and hydrocarbons have been encountered. Volume assessments are ongoing with initial indications that recoverable volumes are lower than predrill estimates. Assessments on volumes and commerciality are expected completed in the second quarter.
- The decision in early April by OPEC to increase oil production from May and the import tariffs announced by the US in early April, have caused turmoil in global markets. This may have continued effect on petroleum prices, interest rates, FX rates, availability of funding etc. that may impact OKEA's financial performance. At balance sheet date, OKEA is in a net cash position of USD 120 million and has no debt maturities until September 2026. In addition, parts of future production has been secured at fixed prices or through collars to secure against possible fall in petroleum prices. Please see section Financial Risk Management for details. Sensitivities for impairment under other macro assumptions is presented in Note 12 Impairment.
Production guidance unchanged
- Production guidance for 2025 of 28 32 kboepd
- Production guidance for 2026 of 26 30 kboepd
Capex guidance unchanged
• Capex guidance for 2025 of USD 310 - 350 million
• Capex guidance for 2026 of USD 300 - 360 million Capex guidance does not include capitalised interest and exploration spending
Other
- Two remaining tax instalments relating to 2024 payable in Q2 2025, each amounting to approximately USD 50 million
- The company is in a period of relatively high spending on organic investments near term which will add value over time. In line with the company's first capital allocation principle of maintaining a healthy balance sheet, dividend payments have been temporarily put on hold. The board will revert with a dividend plan when it considers to be in a position to distribute
OKEA has a clear ambition to deliver competitive shareholder returns through disciplined value-accretive growth, and the strategy continues to focus on three growth levers:
- actively pursuing upside potential in the company's current portfolio,
- pursuing mergers and acquisitions to add new legs to the portfolio, and
- considering organic projects either adjacent to existing hubs or pursuing new hubs, dependent on financial headroom and attractive risk-reward
The board of directors considers that the company is well positioned to continue to execute on the strategy and deliver value to shareholders going forward.
6
Financial statements with notes Q1 2025
Statement of comprehensive income
| Amounts in USD '000, unaudited | Note | Q1 2025 | Q4 2024 | Q1 2024 | 2024 |
|---|---|---|---|---|---|
| Revenues from crude oil and gas sales | 6 | 266,395 | 198,185 | 325,378 | 1,025,873 |
| Other operating income / loss (-) | 6, 25 | 5,051 | 7,173 | 5,077 | 23,775 |
| Total operating income | 271,446 | 205,358 | 330,455 | 1,049,648 | |
| Production expenses | 7 | -61,754 | -73,034 | -79,853 | -308,538 |
| Changes in over / underlift positions and production inventory | 7 | -12,851 | 33,067 | -36,593 | 2,956 |
| Exploration and evaluation expenses | 8 | -9,393 | -13,287 | -4,730 | -41,528 |
| Depreciation, depletion and amortisation | 10 | -57,263 | -61,746 | -73,971 | -268,213 |
| Impairment (-) / reversal of impairment | 10, 11, 12 | -11,941 | 0 | -15,045 | 41,440 |
| General and administrative expenses | 13 | -4,589 | -2,825 | -3,898 | -12,862 |
| Total operating expenses | -157,791 | -117,825 | -214,089 | -586,746 | |
| Profit / loss (-) from operating activities | 113,655 | 87,534 | 116,365 | 462,902 | |
| Finance income | 14 | 7,155 | 8,057 | 5,261 | 27,781 |
| Finance costs | 14 | -10,921 | -11,447 | -11,653 | -49,660 |
| Net exchange rate gain / loss (-) | 14 | 12,239 | -20,412 | -7,262 | -15,109 |
| Net financial items | 8,472 | -23,802 | -13,653 | -36,988 | |
| Profit / loss (-) before income tax | 122,127 | 63,731 | 102,712 | 425,915 | |
| Taxes (-) / tax income (+) | 9 | -100,799 | -57,567 | -107,414 | -390,406 |
| Net profit / loss (-) | 21,327 | 6,165 | -4,702 | 35,508 |
Table continues on the next page
Statement of comprehensive income - continues
| Amounts in USD '000, unaudited Note |
Q1 2025 | Q4 2024 | Q1 2024 | 2024 |
|---|---|---|---|---|
| Other comprehensive income, net of tax: | ||||
| Items that may be reclassified to profit or loss in subsequent periods - foreign currency translation differences | 8,465 | -7,567 | -4,027 | -9,175 |
| Items that will not be reclassified to profit or loss in subsequent periods - remeasurements pensions, actuarial gain / loss (-) | 0 | 190 | 0 | 190 |
| Total other comprehensive income, net of tax | 8,465 | -7,377 | -4,027 | -8,985 |
| Total comprehensive income / loss (-) | 29,793 | -1,212 | -8,729 | 26,524 |
| Weighted average no. of shares outstanding basic | 103,910,350 | 103,910,350 | 103,910,350 | 103,910,350 |
| Weighted average no. of shares outstanding diluted | 103,910,350 | 103,910,350 | 103,910,350 | 103,910,350 |
| Earnings per share (USD per share) - Basic | 0.21 | 0.06 | -0.05 | 0.34 |
| Earnings per share (USD per share) - Diluted | 0.21 | 0.06 | -0.05 | 0.34 |
Statement of financial position
| Amounts in USD '000, unaudited | Note | 31.03.2025 | 31.12.2024 | 31.03.2024 |
|---|---|---|---|---|
| ASSETS | ||||
| Non-current assets | ||||
| Goodwill | 11,12 | 140,327 | 142,074 | 189,666 |
| Exploration and evaluation assets | 11 | 38,070 | 16,519 | 19,690 |
| Oil and gas properties | 10 | 658,808 | 596,959 | 660,122 |
| Furniture, fixtures and office equipment | 10 | 1,750 | 3,350 | 4,666 |
| Right-of-use assets | 10 | 15,021 | 14,657 | 17,715 |
| Asset retirement reimbursement right | 15 | 404,486 | 389,409 | 370,424 |
| Total non-current assets | 1,258,461 | 1,162,967 | 1,262,282 | |
| Current assets | ||||
| Trade and other receivables | 17,25 | 166,026 | 182,679 | 178,852 |
| Financial investments | 27 | 24,366 | 22,374 | 0 |
| Spare parts, equipment and inventory | 20 | 63,117 | 68,400 | 77,025 |
| Asset retirement reimbursement right, current | 15 | 19,945 | 17,601 | 6,614 |
| Cash and cash equivalents | 18 | 342,553 | 288,807 | 197,219 |
| Total current assets | 616,007 | 579,861 | 459,711 | |
| TOTAL ASSETS | 1,874,469 | 1,742,828 | 1,721,993 |
Table continues on the next page
Statement of financial position - continues
| Amounts in USD '000, unaudited Note |
31.03.2025 | 31.12.2024 | 31.03.2024 |
|---|---|---|---|
| EQUITY AND LIABILITIES | |||
| Equity | |||
| 16 Share capital |
1,229 | 1,229 | 1,229 |
| Share premium | 180,615 | 180,615 | 180,615 |
| Other paid in capital | 2,166 | 2,166 | 2,166 |
| Retained earnings / loss (-) | -571 | -21,899 | -62,300 |
| Foreign currency translation differences | -55,789 | -64,254 | -59,106 |
| Total equity | 127,651 | 97,858 | 62,605 |
| Non-current liabilities | |||
| 19 Asset retirement obligations |
869,102 | 818,435 | 848,894 |
| Pension liabilities | 6,169 | 5,423 | 5,923 |
| 24 Lease liability |
13,501 | 12,948 | 15,755 |
| 9 Deferred tax liabilities |
139,977 | 110,809 | 93,811 |
| 26 Other provisions |
9,567 | 8,854 | 18,310 |
| 22 Interest bearing bond loans |
246,512 | 246,426 | 122,813 |
| 23 Other interest bearing liabilities |
0 | 0 | 40,726 |
| Total non-current liabilities | 1,284,829 | 1,202,895 | 1,146,233 |
| Current liabilities | |||
| 21,25 Trade and other payables |
244,552 | 266,823 | 271,758 |
| Other interest bearing liabilities, current | 0 | 0 | 4,970 |
| 9 Income tax payable |
185,802 | 143,436 | 218,348 |
| 24 Lease liability, current |
4,247 | 4,252 | 4,647 |
| 19 Asset retirement obligations, current |
21,082 | 18,162 | 8,267 |
| Public dues payable | 6,306 | 9,401 | 5,165 |
| Total current liabilities | 461,989 | 442,075 | 513,155 |
| Total liabilities | 1,746,818 | 1,644,969 | 1,659,388 |
| TOTAL EQUITY AND LIABILITIES | 1,874,469 | 1,742,828 | 1,721,993 |
Statement of changes in equity
| Amounts in USD `000 | Share premium Other paid in capital | Retained earnings/ | Translation | ||||
|---|---|---|---|---|---|---|---|
| Share capital | loss (-) | adjustments | Total equity | ||||
| Equity at 1 January 2024 | 1,229 | 180,615 | 2,166 | -57,597 | -55,079 | 71,334 | |
| Net profit / loss (-) for the period | 0 | 0 | 0 | -4,702 | 0 | -4,702 | |
| Total other comprehensive income / loss (-) for the period | 0 | 0 | 0 | 0 | -4,027 | -4,027 | |
| Equity at 31 March 2024 | 1,229 | 180,615 | 2,166 | -62,300 | -59,106 | 62,605 | |
| Equity at 1 April 2024 | 1,229 | 180,615 | 2,166 | -62,300 | -59,106 | 62,605 | |
| Net profit / loss (-) for the period | 0 | 0 | 0 | 40,211 | 0 | 40,211 | |
| Total other comprehensive income / loss (-) for the period | 0 | 0 | 0 | 190 | -5,148 | -4,958 | |
| Equity at 31 December 2024 | 1,229 | 180,615 | 2,166 | -21,899 | -64,254 | 97,858 | |
| Equity at 1 January 2025 | 1,229 | 180,615 | 2,166 | -21,899 | -64,254 | 97,858 | |
| Net profit / loss (-) for the period | 0 | 0 | 0 | 21,327 | 0 | 21,327 | |
| Total other comprehensive income / loss (-) for the period | 0 | 0 | 0 | 0 | 8,465 | 8,465 | |
| Equity at 31 March 2025 | 1,229 | 180,615 | 2,166 | -571 | -55,789 | 127,651 |
Statement of cash flows
| Amounts in USD `000, unaudited | Note | Q1 2025 | Q4 2024 | Q1 2024 | 2024 |
|---|---|---|---|---|---|
| Cash flow from operating activities | |||||
| Profit / loss (-) before income tax | 122,127 | 63,731 | 102,712 | 425,915 | |
| Income tax paid/received | 9 | -49,690 | -61,141 | -67,441 | -293,226 |
| Depreciation, depletion and amortization | 10 | 57,263 | 61,746 | 73,971 | 268,213 |
| Impairment / reversal of impairment | 10, 11, 12 | 11,941 | 0 | 15,045 | -41,440 |
| Expensed exploration expenditures temporary capitalised | 8, 11 | 5,169 | 0 | 6 | 15,682 |
| Accretion asset retirement obligations/reimbursement right - net | 14, 15, 19 | 2,975 | 2,843 | 2,986 | 12,160 |
| Asset retirement costs from billing (net after reimbursement) | 15, 19 | -72 | -849 | -450 | -2,235 |
| Gain from sales of licences | 6 | -110 | -4,435 | 0 | -4,435 |
| Interest expense | 14 | 2,699 | 3,929 | 3,104 | 15,752 |
| Gain / loss on financial investments | 14 | -54 | -279 | 0 | -368 |
| Change in fair value contingent consideration | 6, 26 | 207 | -126 | 864 | -2,767 |
| Change in trade and other receivables, and inventory | 38,123 | -25,581 | -65,553 | -79,967 | |
| Change in trade and other payables | -40,009 | 16,454 | 52,472 | 64,197 | |
| Change in foreign exchange interest bearing debt and other non-current items | -15,331 | 21,521 | 5,695 | 19,914 | |
| Net cash flow from / used in (-) operating activities | 135,237 | 77,813 | 123,409 | 397,395 |
Table continues on the next page
Statement of cash flows - continues
| Amounts in USD `000, unaudited | Note | Q1 2025 | Q4 2024 | Q1 2024 | 2024 |
|---|---|---|---|---|---|
| Cash flow from investment activities | |||||
| Investment in exploration and evaluation assets | 11 | -31,581 | -12,505 | -214 | -13,229 |
| Business combinations, cash paid | 26 | 0 | -896 | -59,622 | -64,754 |
| Investment in oil and gas properties | 10, 14 | -68,766 | -69,627 | -76,095 | -287,891 |
| Investment in furniture, fixtures and office machines | 10 | 0 | -552 | -23 | -590 |
| Cash used on (-) / received from financial investments | 29 | 0 | 0 | 0 | -23,349 |
| Proceeds from sales of licences | 4,037 | -17,860 | 0 | -17,860 | |
| Net cash flow from / used in (-) investment activities | -96,311 | -101,439 | -135,954 | -407,672 | |
| Cash flow from financing activities | |||||
| Net proceeds from borrowings | 22 | 0 | 0 | 0 | 122,636 |
| Repayment of other interest bearing liabilities | 23 | 0 | -1,188 | -1,595 | -5,260 |
| Interest paid | -5,999 | -6,222 | -6,804 | -20,840 | |
| Payments of lease debt | 24 | -721 | -759 | -796 | -3,115 |
| Net cash flow from / used in (-) financing activities | -6,720 | -8,169 | -9,195 | 93,421 | |
| Net increase/ decrease (-) in cash and cash equivalents | 32,206 | -31,796 | -21,740 | 83,144 | |
| Cash and cash equivalents at the beginning of the period | 288,807 | 343,899 | 226,218 | 226,218 | |
| Effect of exchange rate fluctuation on cash held | 21,540 | -23,296 | -7,259 | -20,555 | |
| Cash and cash equivalents at the end of the period | 342,553 | 288,807 | 197,219 | 288,807 |
Notes to the interim financial statement
1 General and corporate information
These financial statements are the unaudited interim condensed financial statements of OKEA ASA for the first quarter of 2025.
OKEA ASA ("OKEA" or the "company") is a public limited liability company incorporated and domiciled in Norway, with its main office located in Trondheim. The company's shares are listed on the Oslo Stock Exchange under the ticker "OKEA".
OKEA is a leading mid- and late-life operator on the Norwegian continental shelf (NCS).
2 Basis of preparation
The interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting. The interim financial statements should be read in conjunction with the annual financial statements for 2024. The annual financial statements for 2024 were prepared in accordance with IFRS® Accounting Standards (IFRS) as adopted by the European Union (EU) and in accordance with the additional requirements following the Norwegian Accounting Act.
All figures in the financial statements are presented in USD. OKEA's functional currency is NOK, but the company has from Q1 2025 chosen to present its financial statements in USD, primarily as this is the common presentation currency among upstream oil & gas companies. Comparative information for previous periods previously presented in NOK have been restated to USD to conform the current years presentation.
For presentation purposes, balance sheet items are translated from functional currency to presentation currency using spot rates at the balance sheet date. Items within profit or loss and other comprehensive income are translated from functional currency to presentation currency using average exchange rates for the periods presented, or rates at the dates of the transactions if significantly different. For share capital and share premium historical exchange rates are used.
The interim financial statements were authorised for issue by the company's board of directors on 28 April 2025.
3 Accounting policies
The accounting policies adopted in the preparation of the interim financial statements are consistent with those followed in the preparation of the annual financial statements for 2024. New standards, amendments and interpretations to existing standards effective from 1 January 2025 did not have significant impact on the financial statements.
4 Critical accounting estimates and judgements
The preparation of the interim financial statements entails the use of judgements, estimates and assumptions that affect the application of accounting policies and the amounts recognised as assets and liabilities, income and expenses. The estimates, and associated assumptions, are based on historical experience and other factors that are considered as reasonable under the circumstances. The actual results may deviate from these estimates. The material assessments underlying the application of the company's accounting policies, and the main sources of uncertainty, are the same for the interim financial statements as for the annual accounts for 2024.
5 Business segments
The company's only business segment is development and production of oil and gas on the Norwegian continental shelf.
6 Income
Breakdown of petroleum revenues
| Amounts in USD `000 | Q1 2025 | Q4 2024 | Q1 2024 | 2024 |
|---|---|---|---|---|
| Sale of liquids | 191,175 | 122,565 | 272,890 | 793,572 |
| Sale of gas | 75,220 | 75,621 | 52,489 | 232,300 |
| Total petroleum revenues | 266,395 | 198,185 | 325,378 | 1,025,873 |
| Sale of liquids (boe) | 2,624,367 | 1,751,321 | 3,295,885 | 10,271,410 |
| Sale of gas (boe) | 891,559 | 935,405 | 943,191 | 3,436,712 |
| Total sale of petroleum in boe7 | 3,515,925 | 2,686,726 | 4,239,075 | 13,708,122 |
Other operating income
| Amounts in USD `000 | Q1 2025 | Q4 2024 | Q1 2024 | 2024 |
|---|---|---|---|---|
| Gain / loss (-) from put/call options, oil | -269 | -1,262 | -1,477 | -1,923 |
| Gain / loss (-) from forward contracts, gas | 0 | 0 | 0 | -360 |
| Gain / loss (-) from put/call options, gas | 992 | -878 | 0 | 0 |
| Gain / loss (-) from forward contracts, CO2 quotas | -119 | 202 | -106 | 201 |
| Change in fair value contingent consideration (see note 26) | -207 | 126 | -864 | 2,767 |
| Tariff income | 4,477 | 4,364 | 7,427 | 17,438 |
| Sale of licences | 110 | 4,435 | 0 | 4,435 |
| Joint utilisation of logistics resources | 66 | 185 | 96 | 1,216 |
| Total other operating income/loss (-) | 5,051 | 7,173 | 5,077 | 23,775 |
7 Barrels of oil equivalents
7 Production expenses & changes in over/underlift positions and production inventory
Production expenses
| Amounts in USD `000 | Q1 2025 | Q4 2024 | Q1 2024 | 2024 |
|---|---|---|---|---|
| From licence billings - producing assets | 50,261 | 60,069 | 67,318 | 258,015 |
| Other production expenses (insurance, transport) | 9,978 | 11,589 | 10,831 | 44,602 |
| G&A expenses allocated to production expenses | 1,516 | 1,377 | 1,704 | 5,921 |
| Total production expenses | 61,754 | 73,034 | 79,853 | 308,538 |
Changes in over/underlift positions and production inventory
| Amounts in USD `000 | Q1 2025 | Q4 2024 | Q1 2024 | 2024 |
|---|---|---|---|---|
| Changes in over / underlift positions | -2,020 | 24,436 | -31,634 | 10,295 |
| Changes in production inventory | -10,831 | 8,631 | -4,959 | -7,339 |
| Total changes income / loss (-) | -12,851 | 33,067 | -36,593 | 2,956 |
8 Exploration and evaluation expenses
| Amounts in USD `000 | Q1 2025 | Q4 2024 | Q1 2024 | 2024 |
|---|---|---|---|---|
| Share of exploration and evaluation expenses from participation in licences excluding dry well impairment, from billing | 2,861 | 2,974 | 2,086 | 9,828 |
| Share of exploration expenses from participation in licences, dry well write off, from billing | 5,169 | 0 | 6 | 15,682 |
| Seismic and other exploration and evaluation expenses, outside billing | 1,164 | 10,205 | 2,443 | 15,234 |
| G&A expenses allocated to exploration expenses | 199 | 108 | 195 | 784 |
| Total exploration and evaluation expenses | 9,393 | 13,287 | 4,730 | 41,528 |
9 Taxes
Income taxes recognised in the income statement
| Amounts in USD `000 | Q1 2025 | Q4 2024 | Q1 2024 | 2024 |
|---|---|---|---|---|
| Change in deferred taxes current year | -21,114 | -22,738 | -11,898 | -112,413 |
| Taxes payable current year | -79,598 | -34,829 | -95,516 | -277,710 |
| Tax payable adjustment previous year | -111 | 0 | 0 | -283 |
| Change in deferred taxes previous year | 24 | 0 | 0 | 0 |
| Total taxes (-) / tax income (+) recognised in the income statement | -100,799 | -57,567 | -107,414 | -390,406 |
Reconciliation of income taxes
| Amounts in USD `000 | Q1 2025 | Q4 2024 | Q1 2024 | 2024 |
|---|---|---|---|---|
| Profit / loss (-) before income taxes | 122,127 | 63,731 | 102,712 | 425,915 |
| Expected income tax at tax rate 78.004% | -95,264 | -49,713 | -80,120 | -332,230 |
| Permanent differences, including impairment of goodwill | -12,369 | 5,148 | -21,670 | -42,931 |
| Effect of uplift | 1,351 | 1,530 | 1,589 | 5,821 |
| Financial and onshore items | 5,280 | -14,583 | -7,190 | -20,156 |
| Change valuation allowance | 517 | 28 | -23 | -106 |
| Adjustments previous year and other | -314 | 24 | 0 | -804 |
| Total income taxes recognised in the income statement | -100,799 | -57,567 | -107,414 | -390,406 |
| Effective income tax rate | 83% | 90% | 105% | 92% |
Specification of tax effects on temporary differences, tax losses and uplift carried forward
| Amounts in USD `000 | 31.03.2025 | 31.12.2024 | 31.03.2024 |
|---|---|---|---|
| Tangible and intangible non-current assets | -497,687 | -436,805 | -455,351 |
| Provisions (net ARO), lease liability, pensions and gain/loss account | 392,890 | 365,489 | 405,477 |
| Interest bearing loans | -1,763 | -824 | -545 |
| Current items (spareparts and inventory) | -33,418 | -38,668 | -43,391 |
| Tax losses carried forward, onshore 22% | 28 | 543 | 475 |
| Valuation allowance (uncapitalised deferred tax asset) | -28 | -543 | -475 |
| Total deferred tax assets / liabilities (-) recognised | -139,977 | -110,809 | -93,811 |
Specification of tax payable
| Amounts in USD `000 | Total |
|---|---|
| Tax payable at 1 January 2025 | 143,436 |
| Tax paid | -49,690 |
| Tax payable adjustment previous year | 111 |
| Tax payable current year recognised in the income statement | 79,598 |
| Foreign currency translation effects | 12,347 |
| Tax payable at 31 March 2025 | 185,802 |
Total deferred tax assets / liabilities (-)
| Amounts in USD `000 | |
|---|---|
| Deferred tax assets / liabilities (-) at 1 January 2025 | -110,809 |
| Deferred tax current year recognised in the income statement | -21,114 |
| Change in deferred taxes previous year | 24 |
| Deferred taxes from business combinations | 1,295 |
| Foreign currency translation effects | -9,373 |
| Total deferred tax assets / liabilities (-) 31 March 2025 | -139,977 |
10 Tangible assets and right-of-use assets
| Amounts in USD `000 | Oil and gas properties |
Furniture, fixtures and office machines |
Right of use assets |
Total | |
|---|---|---|---|---|---|
| Assets under development |
Assets in production |
||||
| Cost at 1 January 2025 | 131,925 | 1,055,622 | 7,957 | 31,594 | 1,227,098 |
| Additions | 31,371 | 40,350 | 0 | 0 | 71,722 |
| Reclassification from inventory | 0 | 128 | 0 | 0 | 128 |
| Removal and decommissioning asset | 0 | 508 | 0 | 0 | 508 |
| Disposals | 0 | 0 | -5,356 | 0 | -5,356 |
| Foreign currency translation effects | 11,540 | 82,078 | 342 | 2,397 | 96,357 |
| Cost at 31 March 2025 | 174,836 | 1,178,686 | 2,942 | 33,991 | 1,390,456 |
| Accumulated depreciation and impairment at 1 January 2025 | 0 | -590,588 | -4,607 | -16,938 | -612,133 |
| Depreciation | 0 | -56,563 | -193 | -508 | -57,263 |
| Disposals | 0 | 0 | 3,781 | 0 | 3,781 |
| Additional depr. of IFRS 16 Right-of use assets presented net in the income statement related to leasing contracts entered into as | |||||
| licence operator | 0 | 0 | 0 | -205 | -205 |
| Foreign currency translation effects | 0 | -47,564 | -174 | -1,320 | -49,057 |
| Accumulated depreciation and impairment at 31 March 2025 | 0 | -694,714 | -1,192 | -18,970 | -714,877 |
| Carrying amount at 31 March 2025 | 174,836 | 483,971 | 1,750 | 15,021 | 675,579 |
11 Goodwill, exploration and evaluation assets
| Amounts in USD `000 | Exploration and evaluation |
Technical | Ordinary | |
|---|---|---|---|---|
| assets | goodwill | goodwill Total goodwill | ||
| Cost at 1 January 2025 | 16,519 | 232,624 | 157,996 | 390,620 |
| Additions | 31,581 | 0 | 0 | 0 |
| Disposals8 | -7,060 | 0 | 0 | 0 |
| Expensed exploration expenditures temporarily capitalised | -5,169 | 0 | 0 | 0 |
| Foreign currency translation effects | 2,199 | 17,646 | 11,985 | 29,631 |
| Cost at 31 March 2025 | 38,070 | 250,270 | 169,981 | 420,251 |
| Accumulated depreciation and impairment at beginning of period | 0 | -104,926 | -143,620 | -248,546 |
| Impairment | 0 | -11,941 | 0 | -11,941 |
| Foreign currency translation effects | 0 | -8,543 | -10,894 | -19,437 |
| Accumulated impairment at 31 March 2025 | 0 | -125,409 | -154,515 | -279,924 |
| Carrying amount at 31 March 2025 | 38,070 | 124,860 | 15,467 | 140,327 |
8 Sale of 10% interest in PL1119 Mistral to DNO Norge AS
12 Impairment / reversal of impairment
Tangible and intangible assets are tested for impairment / reversal of impairment whenever indicators are identified and at least on an annual basis. Impairment is recognised when the book value of an asset or cash generating unit exceeds the estimated recoverable amount. The recoverable amount is the higher of the asset's fair value less costs to sell and value in use and is estimated based on discounted future cash flows. The discount rate applied represents the weighted average cost of capital (WACC).
Technical goodwill arises as an offsetting account to the deferred tax recognised in business combinations and is allocated to each Cash Generating Unit (CGU). Technical goodwill will be impaired during the life-time of the CGU and is a non-cash expense. As reserves are produced, depreciation of the oil and gas properties (CGU) reduces deferred tax and exposes technical goodwill for impairment.
Fair value assessments of the company's right-of-use (ROU) asset-portfolio are included in the impairment test.
Valuation of oil and gas properties and goodwill are inherently uncertain due to the judgemental nature of the underlying estimates.
Key assumptions applied in the impairment test at 31 March 2025 stated in real terms:
| Year | Oil USD/BOE | Gas GBP/ therm |
Currency rates USD/NOK |
|---|---|---|---|
| 2025 | 73.2 | 1.0 | 10.6 |
| 2026 | 68.2 | 0.9 | 10.6 |
| 2027 | 68.4 | 0.7 | 10.4 |
| 2028 | 74.8 | 0.7 | 10.0 |
| From 2029 | 75.0 | 0.7 | 10.0 |
Other assumptions
For oil and gas reserves future cash flows are calculated on the basis of expected production profiles and estimated proven and probable remaining reserves limited by ecomonic cut-off.
Future capex, opex and abandonment cost are calculated based on expected production profiles and the best estimate of related cost. The nominal discount rate applied for estimating fair values is 10% post tax.
The long-term inflation rate is assumed to be 2%.
Total cost for CO2 comprises Norwegian CO2 tax and cost of the EU Emission Trading System and is estimated to gradually increase from NOK 1,806 per tonne in 2025 towards a long term price of NOK 2,000 (real 2020) per tonne from 2030 in line with price estimates presented by the Norwegian authorities in late 2021. NOx prices are estimated to increase from approximately NOK 18 per kg in 2025 to a level of approximately 27 NOK per kg from 2030.
Impairment testing of technical goodwill, ordinary goodwill, fixed assets and ROU assets
Based on the company's impairment assessments, impairments of technical goodwill on Statfjord CGU of USD 4,920 (0) thousand, on Ivar Aasen CGU of USD 2,559 (0) thousand, and on Gjøa/Nova CGU of USD 4,462 (0) thousand were recognised in the quarter. No impairments on ordinary goodwill, fixed assets or ROU assets were required in the three month period ending at 31 March 2025.
| Amounts in USD `000 | Alternative calculations of pre tax impairment/reversal (-) |
Increase / decrease (-) of pre tax impairment |
||||
|---|---|---|---|---|---|---|
| Change | Increase in assumption |
Decrease in assumption |
Increase in assumption |
Decrease in assumption |
||
| Oil and gas price | +/- 10% | 0 | 75,431 | -11,941 | 63,490 | |
| Currency rate USD/NOK | +/- 1.0 NOK | 885 | 57,280 | -11 | 45,339 | |
| Discount rate | +/- 1% point | 13,174 | 9,646 | 1,233 | -2,295 | |
| Environmental cost (CO2 and NOx) |
+/- 20% | 20,960 | 6,005 | 9,019 | -5,936 |
13 General and administrative expenses
| Amounts in USD `000 | Q1 2025 | Q4 2024 | Q1 2024 | 2024 |
|---|---|---|---|---|
| Salary and other employee benefits expenses | 27,059 | 28,314 | 25,995 | 106,724 |
| Consultants and other operating expenses | 14,480 | 14,616 | 15,478 | 58,878 |
| Allocated to operated licences | -35,235 | -38,621 | -35,675 | -146,036 |
| Allocated to exploration and production expenses | -1,714 | -1,484 | -1,899 | -6,705 |
| Total general and administrative expenses | 4,589 | 2,825 | 3,898 | 12,862 |
14 Financial items
| Amounts in USD `000 | Q1 2025 | Q4 2024 | Q1 2024 | 2024 |
|---|---|---|---|---|
| Interest income | 2,179 | 3,425 | 690 | 9,066 |
| Unwinding of discount asset retirement reimbursement right (indemnification asset) | 4,922 | 4,353 | 4,571 | 18,347 |
| Gain on financial investments | 54 | 279 | 0 | 368 |
| Finance income | 7,155 | 8,057 | 5,261 | 27,781 |
| Interest expense and fees from loans and borrowings | -5,655 | -6,578 | -3,903 | -22,379 |
| Capitalised borrowing cost, development projects | 2,956 | 2,649 | 799 | 6,627 |
| Other interest expense | -1 | -2 | -570 | -1,758 |
| Unwinding of discount asset retirement obligations | -7,897 | -7,196 | -7,557 | -30,507 |
| Other financial expense | -324 | -320 | -422 | -1,642 |
| Finance costs | -10,921 | -11,447 | -11,653 | -49,660 |
| Exchange rate gain / loss (-), interest-bearing loans and borrowings | 18,080 | -21,278 | -10,200 | -24,017 |
| Net exchange rate gain / loss (-), other | -5,842 | 865 | 2,938 | 8,908 |
| Net exchange rate gain / loss (-) | 12,239 | -20,412 | -7,262 | -15,109 |
| Net financial items | 8,472 | -23,802 | -13,653 | -36,988 |
15 Asset retirement reimbursement right
| Amounts in USD `000 | Total |
|---|---|
| Asset retirement reimbursement right at 1 January 2025 (indemnification asset) | 407,010 |
| Changes in estimates | 0 |
| Effect of change in the discount rate | -17,471 |
| Asset retirement costs from billing, reimbursement from Shell and Harbour Energy | -277 |
| Unwinding of discount | 4,922 |
| Foreign currency translation effects | 30,247 |
| Asset retirement reimbursement right at 31 March 2025 (indemnification asset) | 424,431 |
| Of this: | |
| Asset retirement reimbursement right, non-current | 404,486 |
| Asset retirement reimbursement right, current | 19,945 |
| Asset retirement reimbursement right at 31 March 2025 (indemnification asset) | 424,431 |
Asset retirement reimbursement right consists of a receivable from the seller Shell from OKEA's acquisition of Draugen and Gjøa assets in 2018, a receivable from the seller Harbour Energy (previously Wintershall Dea) from OKEA's acquisition of the Brage asset in 2022, and a receivable from the seller Equinor from OKEA's acquisition of the Statfjord asset in 2023.
Receivable from the seller Shell from OKEA's acquisition of Draugen and Gjøa assets in 2018:
The parties have agreed that the seller Shell will cover 80% of OKEA's share of total decommissioning costs for the Draugen and Gjøa fields up to a predefined after-tax cap amount of USD 78 million (2025 value) subject to Consumer Price Index (CPI) adjustment. The present value of the expected payments is recognised as a pre-tax receivable from the seller.
In addition, the seller has agreed to pay OKEA a fixed amount of USD 46 million (2025 value) subject to a CPI adjustment according to a schedule based on the percentage of completion of the decommissioning of the Draugen and Gjøa fields.
The net present value of the receivable is calculated using a discount rate of 5.2% (4.2%).
Receivable from the seller Harbour Energy from OKEA's acquisition of the Brage asset in 2022:
The parties have agreed that Harbour Energy will retain responsibility for 80% of OKEA's share of total decommissioning costs related to the Brage Unit, limited to an agreed pre-tax cap of USD 167 (2025 value) million subject to index regulation.
The net present value of the receivable is calculated using a discount rate of 5.0% (5.3%).
Receivable from the seller Equinor from OKEA's acquisition of the Statfjord assets in 2023:
The parties have agreed that Equinor will retain responsibility for 100% of OKEA's share of total decommissioning costs related to Statfjord A.
The net present value of the receivable is calculated using a discount rate of 4.4% (5.2%).
16 Share capital
| Ordinary shares | |
|---|---|
| Outstanding shares at 1 January 2025 | 103,910,350 |
| New shares issued during 2025 | 0 |
| Number of outstanding shares at 31 March 2025 | 103,910,350 |
| Nominal value NOK per share at 31 March 2025 | 0.10 |
| Share capital NOK at 31 March 2025 | 10,391,035 |
| Nominal value USD per share at 31 March 2025 | 0.01 |
| Share capital USD at 31 March 2025 | 1,229,272 |
17 Trade and other receivables
| Amounts in USD `000 | 31.03.2025 | 31.12.2024 | 31.03.2024 |
|---|---|---|---|
| Accounts receivable and receivables from operated licences | 16,120 | 13,730 | 22,193 |
| Accrued revenue | 59,990 | 67,788 | 81,138 |
| Prepayments | 8,500 | 8,757 | 18,672 |
| Working capital and overcall, joint operations/licences | 58,069 | 56,456 | 42,119 |
| Underlift of petroleum products | 16,754 | 30,696 | 11,730 |
| VAT | 1,380 | 3,567 | 1,955 |
| Accrued interest income | 1,716 | 909 | 616 |
| Other receivables | 318 | 295 | 311 |
| Fair value put/call options, gas | 650 | 0 | 0 |
| Fair value put/call options, oil | 0 | 73 | 0 |
| Fair value forward contracts, foreign exchange | 2,215 | 0 | 0 |
| Fair value forward contracts, CO2 quotas | 313 | 408 | 118 |
| Total trade and other receivables | 166,026 | 182,679 | 178,852 |
No provisions have been recognised for bad debt on receivables.
18 Cash and cash equivalents
| Amounts in USD `000 | 31.03.2025 | 31.12.2024 | 31.03.2024 |
|---|---|---|---|
| Bank deposits, unrestricted | 263,380 | 195,667 | 188,409 |
| Bank deposit, time deposit | 66,856 | 79,758 | 0 |
| Bank deposit, restricted, employee taxes | 2,462 | 4,304 | 2,153 |
| Bank deposit, restricted, deposit office leases | 1,632 | 1,517 | 1,575 |
| Bank deposit, restricted, other | 8,222 | 7,561 | 5,083 |
| Total cash and cash equivalents | 342,553 | 288,807 | 197,219 |
In addition to the cash and cash equivalents, USD 24.4 (22.4) million was placed in money-market funds. Reference is made to note 27.
19 Asset retirement obligations
Provisions for asset retirement obligations represent the future expected costs for close-down and removal of oil equipment and production facilities. The provision is based on the company's best estimate. The net present value of the estimated obligation is calculated using a discount rate of 4.1% (year end 2024: 3.7%). The assumptions are based on the economic environment at balance sheet date. Actual asset retirement costs will ultimately depend upon future market prices for the necessary works which will reflect market conditions at the relevant time. Furthermore, the timing of the close-down is likely to depend on when the field ceases to produce at economically viable rates. This in turn will depend upon future oil and gas prices, which are inherently uncertain.
For recovery of costs of decommissioning related to assets acquired from Shell, Harbour Energy (previously Wintershall Dea) and Equinor, reference is made to note 15.
| Amounts in USD `000 | Total |
|---|---|
| Provisions at 1 January 2025 | 836,598 |
| Changes in estimates | 0 |
| Effects of change in the discount rate | -16,963 |
| Asset retirement costs from billing | -349 |
| Unwinding of discount | 7,897 |
| Foreign currency translation effects | 63,001 |
| Asset retirement obligations at 31 March 2025 | 890,184 |
| Of this: | |
| Asset retirement obligations, non-current | 869,102 |
| Asset retirement obligations, current | 21,082 |
| Asset retirement obligations at 31 March 2025 | 890,184 |
20 Spare parts, equipment and inventory
| Amounts in USD `000 | 31.03.2025 | 31.12.2024 | 31.03.2024 |
|---|---|---|---|
| Inventory of petroleum products | 19,344 | 28,540 | 32,623 |
| Spare parts and equipment | 43,773 | 39,860 | 44,402 |
| Total spare parts, equipment and inventory | 63,117 | 68,400 | 77,025 |
21 Trade and other payables
| Amounts in USD `000 | 31.03.2025 | 31.12.2024 | 31.03.2024 |
|---|---|---|---|
| Trade creditors | 32,053 | 40,481 | 29,939 |
| Accrued holiday pay and other employee benefits | 17,037 | 20,626 | 10,930 |
| Working capital, joint operations/licences | 134,762 | 121,483 | 133,301 |
| Overlift of petroleum products | 7,626 | 20,242 | 40,692 |
| Accrued interest bond loans | 4,816 | 4,816 | 507 |
| Other provisions, current (see note 26) | 7,370 | 6,687 | 6,230 |
| Prepayments from customers | 8,578 | 18,768 | 11,478 |
| Fair value put/call options, gas | 0 | 363 | 0 |
| Fair value put/call options, oil | 176 | 0 | 530 |
| Fair value forward contracts, foreign exchange | 0 | 667 | 0 |
| Loan from shareholder OKEA Holdings Ltd | 0 | 0 | 138 |
| Accrued consideration from acquisitions of interests in licences | 70 | 446 | 0 |
| Other accrued expenses | 32,065 | 32,244 | 38,015 |
| Total trade and other payables | 244,552 | 266,823 | 271,758 |
22 Interest bearing bond loans
In May 2024, the company issued a USD 125 million secured bond loan (OKEA05). Maturity date for OKEA05 is May 2028, and the interest rate is fixed at 9.125% p.a. with semi-annual interest payments. OKEA05 was issued at par value.
In September 2023, the company completed a refinancing of the OKEA03 bond loan, with original maturity in December 2024, by issuing a USD 125 million secured bond loan (OKEA04). Maturity date for OKEA04 is September 2026, and the interest rate is fixed at 9.125% p.a. with semi-annual interest payments. OKEA04 was issued at par value.
During 2025 the company has been in full compliance with the covenants under the bond agreements.
The financial covenants of OKEA04 and OKEA05 comprise:
- Leverage Ratio (Total Debt Liquid Assets) / 12-mth rolling EBITDA of no more than 1.75x
- Minimum Liquidity of USD 37.5 million
| Amounts in USD `000 | Bond loan OKEA05 |
Bond loan OKEA04 |
Total |
|---|---|---|---|
| Interest bearing bond loans at 1 January 2025 | 122,923 | 123,502 | 246,426 |
| Amortisation of transaction costs | 135 | 206 | 341 |
| Foreign exchange movement | -9,040 | -9,040 | -18,080 |
| Foreign currency translation effects | 8,889 | 8,937 | 17,826 |
| Interest bearing bond loans at 31 March 2025 | 122,908 | 123,604 | 246,512 |
| Specification of interest bearing loans: | |||
| Interest bearing bond loans, non-current | 122,908 | 123,604 | 246,512 |
| Interest bearing bond loans, current | 0 | 0 | 0 |
| Interest bearing bond loans at 31 March 2025 | 122,908 | 123,604 | 246,512 |
| Interest bearing bond loans at 1 January 2025 | 122,923 | 123,502 | 246,426 |
| Cash flows: | |||
| Gross proceeds from borrowings | 0 | 0 | 0 |
| Total cash flows: | 0 | 0 | 0 |
| Non-cash changes: | |||
| Amortisation of transaction costs | 135 | 206 | 341 |
| Foreign exchange movement | -9,040 | -9,040 | -18,080 |
| Foreign currency translation effects | 8,889 | 8,937 | 17,826 |
| Interest bearing bond loans at 31 March 2025 | 122,908 | 123,604 | 246,512 |
23 Other interest bearing liabilities
To enhance the financial flexibility, OKEA has a Revolving Credit Facility (RCF) which is available for working capital purposes. The RCF has a limit of USD 37.5 million until March 2026, and thereafter reduces to USD 25 million until November 2027. No draw downs have been made on the RCF.
24 Leasing
| Amounts in USD `000 | Total |
|---|---|
| Lease liability at 1 January 2025 | 17,199 |
| Accretion lease liability | 374 |
| Payments of lease debt and interest | -1,095 |
| Foreign currency translation effects | 1,269 |
| Total lease debt at 31 March 2025 | 17,748 |
| Break down of lease liability | |
| Short-term (within 1 year) | 4,247 |
| Long-term | 13,501 |
| Total lease liability | 17,748 |
| Undiscounted lease liabilities and maturity of cash outflows | |
| Within 1 year | 4,320 |
| 1 to 5 years | 12,455 |
| After 5 years | 9,962 |
| Total | 26,737 |
The company has entered into operating leases for office facilities. In addition, as operator of the Draugen field, the company has on behalf of the licence entered into operating leases for logistic resources such as supply vessel with associated remote operated vehicle (ROV), base and warehouse for spare parts and hence these lease debts are recognised on a gross basis.
Lease payments related to leasing contracts entered into as an operator of the Draugen field are presented on a gross basis.
25 Commodity contracts
| Amounts in USD `000 | 31.03.2025 | 31.12.2024 | 31.03.2024 |
|---|---|---|---|
| Premium commodity contracts | 576 | 46 | 387 |
| Accumulated unrealised gain/loss (-) commodity contracts included in other operating income / loss(-) | -103 | -337 | -917 |
| Short-term net derivatives included in assets/liabilities (-) | 473 | -291 | -530 |
OKEA uses derivative financial instruments (put and call options) to manage exposures to fluctuations in commodity prices. Put options are purchased to establish a price floor for a portion of future production of petroleum products. In some cases, a price ceiling is established by selling call options, to reduce the net hedging premium. The contracts are recognised at fair value.
In addition, OKEA has entered into non-financial contracts with physical delivery of gas in 2025 at fixed prices. At 31 March 2025, the outstanding contracts are 19.3 million therms of gas with delivery in Q2 2025 - Q3 2025 at fixed prices in the range of 91.5 - 123.8 GBp/therm. These contracts are not recognised in the balance sheet, but recognised as revenue at the agreed price at the time of delivery of the gas.
26 Other provisions
| Amounts in USD `000 | Total |
|---|---|
| Provision at 1 January 2025 | 15,542 |
| Changes in fair value | 207 |
| Foreign currency translation effects | 1,189 |
| Other provisions at 31 March 2025 | 16,937 |
| Specification of other provisions: | |
| Other provisions, non-current | 9,567 |
| Other provisions, current (classified within trade and other payables) | 7,370 |
| Other provisions at 31 March 2025 | 16,937 |
Other provisions consists of provisions for additional contingent consideration from OKEA's acquisition of the Brage, Ivar Aasen and Nova assets in 2022, and from OKEA's acquisition of the Statfjord asset in 2023.The provisions for contingent consideration is measured at fair value with changes in fair value recognised in the income statement. The fair value is estimated using an option pricing methodology, where the expected option payoff is calculated at each future payment date and discounted back to the balance date.
Additional contingent consideration for the acquisition of the Brage, Ivar Aasen and Nova assets in 2022:
OKEA shall pay to Harbour Energy an additional contingent consideration based on an upside sharing arrangement subject to oil price level during the period 2022-2024. The final payment is accrued for per 31 March 2025 and expected to be paid in June 2025.
Additional contingent consideration for the acquisition of the Statfjord asset in 2023:
OKEA shall pay to Equinor an additional contingent consideration with contingent payment terms applicable for 2023-2025 for certain thresholds of realised oil and gas prices.
27 Financial investments
| Amounts in USD `000 | 31.03.2025 | 31.12.2024 | 31.03.2024 |
|---|---|---|---|
| Investments in money-market funds | 24,366 | 22,374 | 0 |
| Total financial investments | 24,366 | 22,374 | 0 |
28 Fair value of financial instruments
It is assessed that the carrying amounts of financial assets and liabilities, except for interest bearing bond loans, are approximately equal to their respective fair values.
For the interest bearing bond loans OKEA04 and OKEA05, with a total issue amount of USD 250 million, total fair value is estimated to USD 257 million at 31 March 2025. OKEA04 and OKEA05 are listed on the Oslo Stock Exchange. The fair value is based on the latest quoted market prices (level 2 in the fair value hierarchy according to IFRS 13) as per balance sheet date.
Put/call options oil, put/call options gas, forward contracts CO2 quotas and forward contracts foreign exchange are carried in the statement of financial position at fair value. The fair values are based on quoted market prices at the balance sheet date (level 2 in the fair value hierarchy).
29 Events after the balance sheet date
An exploration well in the Prince prospect on Brage was completed in April and hydrocarbons have been encountered. Volume assessments are ongoing with initial indications that recoverable volumes are lower than pre-drill estimates. Assessments on volumes and commerciality are expected completed in the second quarter.
The decision in early April by OPEC to increase oil production from May and the import tariffs announced by the US in early April, have caused turmoil in global markets. This may have continued effect on petroleum prices, interest rates, FX rates, availability of funding etc. that may impact OKEA's financial performance. At balance sheet date, OKEA is in a net cash position of USD 120 million and has no debt maturities until September 2026. In addition, parts of future production has been secured at fixed prices or through collars to secure against possible fall in petroleum prices. Please see section Financial Risk Management for details. Sensitivities for impairment under other macro assumptions is presented in Note 12 Impairment.
Alternative performance measures
Reconciliations
| EBITDA | Q1 2025 | Q4 2024 | Q1 2024 | 2024 |
|---|---|---|---|---|
| Amounts in USD million | 3 months | 3 months | 3 months | 12 months |
| Profit / loss (-) from operating activities | 114 | 88 | 116 | 463 |
| Add: depreciation, depletion and amortisation | 57 | 62 | 74 | 268 |
| Add: impairment | 12 | 0 | 15 | -41 |
| EBITDA | 183 | 149 | 205 | 690 |
| EBITDAX | Q1 2025 | Q4 2024 | Q1 2024 | 2024 |
|---|---|---|---|---|
| Amounts in USD million | 3 months | 3 months | 3 months | 12 months |
| Profit / loss (-) from operating activities | 114 | 88 | 116 | 463 |
| Add: depreciation, depletion and amortisation | 57 | 62 | 74 | 268 |
| Add: impairment / reversal of impairment | 12 | 0 | 15 | -41 |
| Add: exploration and evaluation expenses | 9 | 13 | 5 | 42 |
| EBITDAX | 192 | 163 | 210 | 731 |
| Production expense per boe | Q1 2025 | Q4 2024 | Q1 2024 | 2024 |
|---|---|---|---|---|
| Amounts in USD million | 3 months | 3 months | 3 months | 12 months |
| Productions expense | 62 | 73 | 80 | 309 |
| Less: processing tariff income | -4 | -4 | -7 | -17 |
| Less: joint utilisation of resources | 0 | 0 | 0 | -1 |
| Divided by: produced volumes (boe) | 3,081 | 3,474 | 3,832 | 14,225 |
| Production expense USD per boe | 18.6 | 19.7 | 18.9 | 20.4 |
| Leverage ratio | |||
|---|---|---|---|
| Amounts in USD million | 31.03.2025 | 31.12.2024 | 31.03.2024 |
| Net debt | |||
| Interest bearing bond loans | 247 | 246 | 123 |
| Other interest bearing liabilities (pre reclass) | 0 | 0 | 46 |
| Income tax payable (pre reclass) | 186 | 143 | 218 |
| Less:Cash and cash equivalents | -343 | -289 | -197 |
| Less:Investments in money-market funds | -24 | -22 | 0 |
| Net debt | 65 | 79 | 190 |
| 12 months rolling EBITDA | 667 | 690 | 722 |
| Leverage ratio | 0.10 | 0.11 | 0.26 |
| Net interest-bearing debt | |||
|---|---|---|---|
| Amounts in USD million | 31.03.2025 | 31.12.2024 | 31.03.2024 |
| Interest bearing bond loans | 247 | 246 | 123 |
| Other interest bearing liabilities | 0 | 0 | 41 |
| Other interest bearing liabilities, current | 0 | 0 | 5 |
| Less:Cash and cash equivalents | -343 | -289 | -197 |
| Less:Investments in money-market funds | -24 | -22 | 0 |
| Net debt / (cash) position | -120 | -65 | -29 |
| Net interest-bearing debt excl. other interest bearing debt | |||
|---|---|---|---|
| Amounts in USD million | 31.03.2025 | 31.12.2024 | 31.03.2024 |
| Interest bearing bond loans | 247 | 246 | 123 |
| Less:Cash and cash equivalents | -343 | -289 | -197 |
| Less:Investments in money-market funds | -24 | -22 | 0 |
| Net debt / (cash) position excl. other interest bearing liabilities | -120 | -65 | -74 |
Definitions
EBITDA
EBITDA is defined as earnings before interest and other financial items, taxes, depreciation, depletion, amortisation and impairments.
EBITDAX
EBITDAX is defined as earnings before interest and other financial items, taxes, depreciation, depletion, amortisation, impairments and exploration and evaluation expenses.
Production expense per boe
Production expense per boe is defined as production expense less processing tariff income and joint utilisation of resources income for assets in production divided by produced volumes. Expenses classified as production expenses related to various preparation for operations on assets under development are excluded.
Capital expenditure
Capital expenditure (Capex) is defined as investment in oil and gas properties as shown in investment activities in the statement of cash flows.
Leverage ratio
Leverage ratio means the ratio of net debt to EBITDA. Net debt includes tax payable.
Net interest-bearing debt
Net interest-bearing debt is book value of interest-bearing loans, bonds and other interest-bearing liabilities excluding lease liability (IFRS 16) less cash and cash equivalents.
Net interest-bearing debt excl. other interest bearing liabilities
Net interest-bearing debt excl. other interest bearing liabilities is book value of interest-bearing bond loans less cash and cash equivalents.
Contact OKEA:
[email protected] +47 73 52 52 22
IR contacts: Birte Norheim, CFO
[email protected] +47 952 93 321
Stig Hognestad, VP Investor Relations
[email protected] +47 902 59 040
Kongens gate 8 Tordenskioldsgate 8-10 Kongsgårdbakken 1-3 Råket 2 Espehaugen 32 7011 Trondheim 0160 Oslo 4005 Stavanger 6516 Kristiansund 5258 Bergen
Trondheim Oslo Stavanger Kristiansund Bergen