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• Production Average: 34,200 barrels of oil equivalents per day.

• Sold Volumes: 39,100 barrels of oil equivalents per day.

• Production Expenses: Decreased from $19.7 to $18.6 per barrel.

• Revenue from Petroleum Products: $266 million.

• Operating Income: $271 million.

• Net Profit: $21 million.

• Cash and Cash Equivalents: $343 million.

• Net Cash Position: $120 million.

• Average Realized Liquids Price: $72.8 per barrel.

• Average Realized Gas Price: $84.4.

• Tax Expense: $101 million.

• Effective Tax Rate: 83%.

• Interest-Bearing Bond Loans: $247 million.

• Asset Retirement Obligations: $890 million.

• Cash Generated from Operations: $185 million.

• Investment Activities: $100 million used, including $69 million for Draugen electrification and other projects.

• Guidance for 2025 Production: 28,000 to 32,000 barrels per day.

• Guidance for 2025 CapEx: $310 million to $350 million.

• Warning! GuruFocus has detected 2 Warning Sign with OSL:OKEA.

• List of 52-Week Lows

• List of 3-Year Lows

• List of 5-Year Lows

Release Date: April 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Okea ASA (OSL:OKEA) reported strong operational performance with high production efficiency, averaging 34,200 barrels of oil equivalents per day.

• The company achieved improved financial metrics, with increased revenue and EBITDA, and a strengthened net cash position.

• Okea ASA (OSL:OKEA) made a significant discovery with an estimated resource of 19 million to 44 million barrels of oil equivalent.

• The company is progressing well with its development projects, including the Draugen Power from shore and the Besla project, both on schedule and within budget.

• Okea ASA (OSL:OKEA) maintains a solid liquidity position with a net cash position of $120 million and no debt maturities until September 2026.

Negative Points

• There was a slight reduction in production compared to the previous quarter, partly due to a well shut-in at Draugen.

• The company faces a high effective tax rate of 83%, higher than the expected 78%, due to non-deductible goodwill impairment.

• Okea ASA (OSL:OKEA) has no announced dividend plan due to a large investment program over the next few years.

• The macroeconomic environment, including volatile oil prices, presents uncertainties that require vigilant capital discipline.

• The company has not seen any immediate changes in the M&A environment despite market volatility, potentially limiting acquisition opportunities.

Q & A Highlights

Q: How has the recent drop in oil prices and macroeconomic uncertainty impacted Okea's investment decisions and costs? Are there any changes in M&A opportunities? A: Svein Liknes, CEO: Okea remains focused on being cost-efficient at both high and low oil prices. No changes have been made to long-term projects, which are expected to be value accretive. While the macro environment requires vigilance and capital discipline, no projects have been stopped. The M&A market has not been significantly impacted by recent price changes, but volatility could create opportunities.