Oslo, 18 October 2023: BlueNord ASA ("BlueNord" or the "Company") today published its third quarter 2023 results. During the quarter, the Company delivered strong operational and financial performance. Tyra II de-risking continued and BlueNord now expects the revised start-up strategy to accelerate plateau production into Q2 2024, delivering greater volumes from Tyra during 2024 than what was previously communicated through the Company’s long-term production outlook.
- Second quarter net hydrocarbon production of 24.7 mboepd, in upper end of quarterly guidance
- Revenues of USD 200 million for the quarter compared to USD 191 million in the previous quarter
- EBITDA in Q3 of USD 106 million, compared to USD 99 million in Q2
- Operating Cash Flow in the quarter of USD 113 million, compared to USD 58 million in the previous quarter
- Total liquidity of USD 506 million at the end of the period, with cash on balance sheet of USD 306 million
- Tyra II start-up now expected in early Q1 2024, which will enable a faster ramp-up than previously assumed and for plateau production to be reached in Q2 2024.
Net hydrocarbon production for the quarter was 24.7 mboepd. This is in upper end of the quarterly guidance range of 24.0 – 25.0 mboepd. The overarching strong production trend seen in the first half of 2023 is continuing with production in October to date at 26.5 mboepd and the outlook for the producing assets is expected to remain strong driven by planned optimisation work. The Halfdan infill well spudded in June is now expected to contribute volumes from early 2024 rather than Q4 2023 as previously expected. Routine flaring has successfully been eliminated in the DUC by re-routing the final stabilization of Halfdan oil from Gorm to Dan
The Tyra Redevelopment project made significant progress during the quarter with several milestones achieved. All subsea work has been completed, reconnecting all the satellite fields to the Tyra hub. Furthermore, leak testing has now been completed on the most complex systems and recent progress has been good on the remaining critical process system required to be completed for export. With more visibility around the path from first gas to plateau production, first gas is now expected in early Q1 2024 and plateau production in Q2 2024. This accelerated ramp-up, which will deliver plateau production earlier than what BlueNord has previously communicated, has been enabled by the revised start-up strategy which will allow more efficient execution of the remaining work necessary to reach plateau before the introduction of hydrocarbons. BlueNord now expects Tyra will deliver greater volumes during 2024 than forecasted in our previously published long-term production outlook. As a result, this profile is now under review and the contribution from Tyra in 2024 is expected to be revised upwards.
Appointment of Jacqueline Lindmark Boye as Chief Financial Officer (previously EVP Finance) and Cathrine Torgersen as Chief Corporate Affairs Officer (previously EVP Investor Relations & ESG), recognising their strong contribution to BlueNord.
"During the third quarter our base assets continued to demonstrate their importance, maintaining strong operational performance throughout and delivering production in the upper range of our guidance for the period. We expect strong production to be a continuing theme, driven by proactive optimization work carried out by the operator. Our focus and commitment to bringing Tyra onstream continues, and we have made substantial recent headway. As we get closer to first gas, it has become clear that completing more work prior to the introduction of hydrocarbons will result in a significantly shorter ramp-up to plateau production. BlueNord is therefore announcing today a revised start-up strategy where we expect to achieve first gas in early Q1 2024 and plateau production in Q2 2024. This will see greater volumes than previously expected being delivered by Tyra in 2024, and consequently our long-term production profile is currently under review. Once onstream, Tyra will help us deliver our goal of producing over 55mboe/d net by 2025 and, in doing so, be positioned to provide a material return of capital to our shareholders," said Euan Shirlaw, Chief Executive Officer of BlueNord.
The report and investor presentation may be downloaded from the Company's website www.bluenord.com or www.newsweb.no.
The Company will host a webcast today at 10:00 CEST.
To join webcast: https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20231018_1
Cathrine F. Torgersen, Chief Corporate Affairs Officer
Phone: +47 915 28 501
This information is considered to be inside information pursuant to the EU Market Abuse Regulation, and is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act. The stock exchange announcement was published by Cathrine Torgersen, Chief Corporate Affairs Officer, BlueNord ASA, at the date and time as set out above.