Oslo, 4 May 2016
North Energy ASA ("North Energy" or "Company") recorded a net profit of NOK 94.1 million in the first quarter of 2016. A NOK 100.8 million gain from the acquisition of Explora Petroleum AS ("Explora") contributed to North Energy's best quarterly results in its nine-year history.
"I am pleased with our performance in the first quarter. I am particularly pleased that our cost cutting measures are now showing results. We have cut our operating expenses significantly, and we have limited investment commitments ahead of us. This means that we have more financial flexibility to explore further growth opportunities", says Knut Sæberg, CEO of North Energy.
Developments in the oil market have affected the outlook for exploration activities, which has become more challenging in light of a lower oil price regime. As a response to this, North Energy in February decided to broaden the Company's business scope to include activities also within development and production of oil and gas resources and other forms of energy.
"The broadening of our business scope enables us to take a more proactive approach to generating shareholder value in the energy sector", says Sæberg.
To support the Company's expanded business scope, North Energy in April called for an Extraordinary General Meeting to consider a new corporate and management structure. The goal is to strengthen the Company's business model and its commercial platform. A key part of North Energy's new strategy will be to strengthen its management resources. The Company has negotiated an advisory agreement whereby North Energy will outsource certain strategic, financial and business advisory services. The Extraordinary General Meeting will be held on 18 May.
North Energy posted a net profit of NOK 94.1 million for the first quarter. The Company is financed with equity of NOK 417.1 million and on 31 March 2016 had a net cash position of NOK 181.8 million, including tax receivable less exploration and convertible loan debt.
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 given by CEO Knut Sæberg. The venue is Tjuvholmen allé 3, 6th floor, Oslo. The presentation can also be followed via Webcast .
For further information:
Knut Sæberg, CEO
Mob: +47 918 00 720 | E-post: firstname.lastname@example.org