OKEA Back to Black but Dividends Remain On Hold

OKEA ASA has reported $36 million in net income for the first quarter (Q1), a bounce-back from prior-quarter losses and an increase year-on-year due to higher sales volumes and realized oil prices.

Earnings per share stood at $0.35. However, the Trondheim, Norway-based company said it continues to put dividends "on hold" as it remains "in a period of relatively high spending on value-accretive organic investments". Dividends have not been paid since 2024.

In assurance to shareholders, Oslo-listed OKEA said, "The higher market prices combined with good progress on the Bestla project, and closing of the Mistral divestment are positives in the company's dividend assessments. The company will revert with a dividend plan when it considers to be in a position to distribute".

OKEA, which produces from mid- and late-life fields in the Nordic country's continental shelf, produced 34,888 barrels of oil equivalent a day (boed) in the January-March 2026 quarter. That increased from the average of 30,848 boed in the prior three months and 34,233 boed from Q1 2025, as well as exceeded last year's average of 32,098 boed.

"The increase in production was mainly a result of start-up of the Talisker East well at Brage in January", OKEA said. "In addition, Draugen and Statfjord both delivered increased production as a result of high production efficiency".

Net sales averaged 39,138 boed, up both sequentially and by prior-year comparison. 2025 sales averaged 32,146.

OKEA's realized crude prices increased both quarter-on-quarter and year-on-year to an average of $79.5 per boe. Realized natural gas liquids prices rose quarter-on-quarter but slid year-on-year to $46.4 per boe; realized gas prices, which averaged $76.5 per boe, followed the same trend.

Production expenses dropped quarter-on-quarter but rose year-on-year to $26.7 per boe.

Sales revenue totaled $264 million, contributing to $239 million in operating profit. Operating profit rose quarter-on-quarter but fell year-on-year.

"Other operating income arrived at a net loss of $25 million, mainly driven by an unrealized hedging loss relating to collar hedges on crude, of $29 million", OKEA said.

While the elevated price environment brought about by the war in the Middle East resulted in the highest price realizations for OKEA since early last year, increased forward prices resulted in the hedging loss.

OKEA maintained, "The [derivatives] program continues to provide downside protection for future revenues with certain limits on upsides".

Pre-income tax profit totaled $230 million. The corresponding result for Q4 2025 was a loss of $60 million, while the figure for Q1 2025 was $122 million.

Net cash flow from operations rose quarter-on-quarter but fell year-on-year to $70 million.

OKEA exited Q1 2026 with $210 million in cash and cash equivalents. Other current assets stood at $369 million.

It owed $70 million in income tax payable at the end of the period. Other current liabilities totaled $344 million.

To contact the author, email jov.onsat@rigzone.com