Norwegian Energy Company ASA (Noreco) delivered the Company's best quarterly result ever in Q2 2008, and at the same time enhanced its balance sheet through acquisitions, share issues and refinancing. Operating revenues were 639 million NOK for the quarter, while the operating result was 466 million NOK. A new record for sale of crude oil was set at 138 USD per barrel in July.
"We are of course very pleased to present our first quarter with positive results. The most important for the company however, was the strategic moves we made. During the second quarter we acquired oil production in Denmark, completed two equity offerings, refinanced debt at better terms and positioned Noreco for further growth. We have ambitious growth targets, and are working hard and structured to meet these. In my mind, we reached a number of milestones in the second quarter hat demonstrates that the company is developing in line with the long term plans we have communicated earlier," said CEO Scott Kerr.
Key figures Q2
Operating income was 639 million NOK in Q2 (476 mill NOK in Q1 2008, 0 mill. NOK in Q2 2007).
Driftsresultatet (EBITDA) ble 466 million NOK (273 mill NOK in Q1 2008, -48 mill. NOK in Q2 2007).
Net result was 39 million NOK (-28 mill NOK in Q1 2008, -16 mill. NOK in Q2 2007).
Highlights Q2 2008:
- Successful infill drilling contributed to an increased production in the quarter to 11,550 barrels of oil equivalents per day
- Acquisition of Talisman Oil Denmark Limited supported Noreco's strategy to build a leading independent oil and gas company in the North Sea
- Restructuring of debt portfolio decreases annual interest costs by approximately NOK 60 million
- Strong track record on the ongoing exploration and appraisal drilling program continues, seven out of eight wells to date have been successful
At the current oil prices, Noreco reported that the results for the third quarter will be very strong. The acquisition of Talisman Oil Denmark Ltd. was formally completed on June 18 2008, and the second quarter results only reflected 12 days of income from the acquisition, whereas the third quarter will see the full impact of the acquisition in the results. Noreco is a growth company and aim to continue to create value organically and inorganically. An extensive work program is planned for the second half of 2008, including high impact exploration and important development milestones.