OSLO, Norway – BlueNord ASA (“BlueNord” or the “Company”) has released its first quarter results for 2024, showcasing strong operational and financial performance. The highlight of the quarter was the successful achievement of first gas from the Tyra II project, marking a significant milestone. The project is now entering a new phase of ramp-up, with plateau production expected in the fourth quarter of 2024.
Operational Success
BlueNord exceeded expectations with a net hydrocarbon production of 23.5 mboepd during the first quarter, surpassing the quarterly guidance of 22.0-23.0 mboepd. This impressive performance can be attributed to proactive optimization work that effectively mitigated the natural decline. The company’s 2P Reserves reached 185.6 mmboe, with a notable Reserves Replacement Ratio of 135%. In addition, the commencement of production from the Halfdan Tor NE infill well further contributed to the positive operational results.
Milestone Achievement: Tyra II
The Tyra Redevelopment project achieved a major milestone during the first quarter, as the first gas from the new facilities was successfully achieved on March 22, 2024. Although challenges with the IP compressor were identified during the ramp-up phase, BlueNord is currently assessing alternative solutions to mitigate these issues. Gas export is expected to resume in July, with volumes gradually increasing throughout the third quarter. Plateau production is anticipated by the fourth quarter, positioning BlueNord to transform Denmark from a net importer to a net exporter of natural gas.
Financial Performance
BlueNord reported revenues of USD 169 million for the first quarter, reflecting the strong underlying base production of the company. The company achieved EBITDA of USD 88 million and operating cash flow of USD 88 million, resulting in a robust liquidity position with USD 308 million available. BlueNord’s plan to re-set the capital structure progressed well, with the ongoing refinancing of the RBL at an advanced stage. The company expects to close a revised facility of over USD 1.3 billion by the end of May.
Looking Ahead
Euan Shirlaw, Chief Executive Officer of BlueNord, expressed great enthusiasm for the company’s achievements and future prospects. With the successful restart of the Tyra project and the improved production outlook, BlueNord is poised to more than double its production and significantly increase free cash flow. The company remains committed to shareholder distributions and is confident in its ability to deliver on its long-standing promises. The progress made in refinancing the RBL indicates a positive outlook for BlueNord and reflects the strength of the business.
For more information, the full report and investor presentation can be downloaded from BlueNord’s website.
Contact
Contact Cathrine F. Torgersen, Chief Corporate Affairs Officer, for further inquiries.
This information has been released by BlueNord ASA in accordance with the EU Market Abuse Regulation and the Norwegian Securities Trading Act.
BlueNord ASA has reported strong first-quarter performance in 2024, with significant operational and financial achievements. One of the highlights of the quarter was the successful achievement of first gas from the Tyra II project, which is expected to transform Denmark from a net importer to a net exporter of natural gas. The project is now entering a new phase of ramp-up, with plateau production anticipated in the fourth quarter of 2024.
In terms of operational success, BlueNord exceeded expectations with a net hydrocarbon production of 23.5 mboepd during the first quarter, surpassing the quarterly guidance. This impressive performance can be attributed to proactive optimization work that effectively mitigated the natural decline. The company’s 2P Reserves reached 185.6 mmboe, with a notable Reserves Replacement Ratio of 135%. Additionally, the commencement of production from the Halfdan Tor NE infill well contributed to the positive operational results.
The Tyra Redevelopment project achieved a major milestone by successfully achieving first gas from the new facilities. However, challenges with the IP compressor were identified during the ramp-up phase. BlueNord is currently assessing alternative solutions to mitigate these issues, with gas export expected to resume in July. Volumes are projected to gradually increase throughout the third quarter, leading to plateau production by the fourth quarter.
Financially, BlueNord reported revenues of USD 169 million for the first quarter, reflecting the strong underlying base production of the company. The company achieved EBITDA of USD 88 million and operating cash flow of USD 88 million. This has resulted in a robust liquidity position, with USD 308 million available. BlueNord’s plan to re-set the capital structure is progressing well, with the ongoing refinancing of the RBL at an advanced stage. The company expects to close a revised facility of over USD 1.3 billion by the end of May.
Looking ahead, CEO Euan Shirlaw expressed great enthusiasm for BlueNord’s achievements and future prospects. With the successful restart of the Tyra project and the improved production outlook, BlueNord is poised to more than double its production and significantly increase free cash flow. The company remains committed to shareholder distributions and is confident in its ability to deliver on its long-standing promises. The progress made in refinancing the RBL indicates a positive outlook for BlueNord and reflects the strength of the business.
For more information, the full report and investor presentation can be downloaded from [BlueNord’s website](https://www.bluenord.com).
Contact Cathrine F. Torgersen, Chief Corporate Affairs Officer, for further inquiries.
This information has been released by BlueNord ASA in accordance with the EU Market Abuse Regulation and the Norwegian Securities Trading Act.