Oslo, 10 May 2017
North Energy ASA ("North Energy" or "Company") recorded a net loss of NOK 9.8 million in the first quarter of 2017. In the first quarter of 2016, the Company booked a NOK 101 million gain from the acquisition of Explora Petroleum, which led to a record net profit of NOK 94.1 million. The Company is expanding beyond its NCS E&P activities, and going forward the Company's financial results will depend more on the development of its acquisitions and divestments than what has historically been the case.
"Over the past year, North Energy has successfully transitioned into an industrial holding company focused on value creation through energy and energy related investments. Our new corporate strategy has already generated substantial shareholder returns, and we expect it will continue to do so going forward," said Knut Sæberg, CEO of North Energy.
In a separate note made yesterday, North Energy announced the sale of bonds for a cash consideration of USD 2 million and 7.5 million shares in Andes Energia (AEN). Based on this, the current market value of the mentioned shares is approximately USD 5.6 million, making the total consideration worth around USD 7.6 million. Compared to the original investment of NOK 18.2 million this translates to an unrealised financial gain of NOK 47 million, again highlighting the value potential of the Company's revised corporate strategy. North Energy has an average lock-up of approximately 6 months on the AEN-shares.
Challenging conditions in the oil market, and the lower oil price regime, have affected the outlook for exploration activities. In response, North Energy has divested significant parts of its licence portfolio. A potential rebuild of the portfolio will require an improvement of market fundamentals.
Following the restructuring of North Energy over the last two years, the Company has strengthened its management resources and expanded its competency outside the energy sector. Going forward the Company expects the energy sector to be a continued area of focus, but will also evaluate investment opportunities across other industries and sectors if attractive opportunities should arise. This is the background for the proposed amendment to the Company's Articles of Association, as outlined in a separate stock exchange announcement earlier today.
The overall objective of the proposed amendments to the Company's Articles of Association is to strengthen North Energy and its ability to generate attractive returns for its shareholders. With respect to potential future acquisitions, North Energy will, in accordance with the current strategy, continue to focus on opportunities where the Company can identify value through active ownership, financial capabilities and industry resources.
North Energy remains in a comfortable financial position. The Company is financed with equity of NOK 365.6 million, and on 31 March 2017 had a net cash position of NOK 56 million.
The interim report and presentation for the first quarter are attached. These can also be accessed at www.northenergy.no.
North Energy will present its results for the first quarter at 09.00 today. The presentation will be held by CEO Knut Sæberg at Tjuvholmen allé 3, 6th floor, Oslo. The presentation will also stream live via webcast .
For further information, please contact: Knut Sæberg, CEO Mobile: +47 918 00 720 | E-mail: knut.saeberg@northenergy.no
This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.
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