North Energy’s return to profit driven by Explora Petroleum buy

Image: North Energy
Image: North Energy

Norwegian oil company North Energy on Wednesday reported a net profit for the first quarter of the year, as opposed to a net loss in the same period last year, driven by the acquisition of Explora Petroleum. 

North Energy posted a net profit of NOK 94.1 million for the first quarter of 2016, compared to a loss of NOK 35.6 million in the first quarter last year. In its 1Q 2016 report, the company explained that the improved result was mainly driven by the gain reported on the acquisition of the company North E&P (former Explora Petroleum). Excluding this gain, North Energy had a net loss of NOK 6.7 million.

To remind, North Energy bought Explora Petroleum, an exploration and production company also from Norway, for a cash payment of $2.5 million in December 2015. Following the acquisition, North Energy consolidated its petroleum operations in a single company through transferring its petroleum operations from North Energy to Explora, thereby bringing employees together in a new organisation for the combined company and renaming Explora into North E&P.

According to the company’s report, a NOK 100.8 million gain from the acquisition of Explora Petroleum contributed to its best quarterly results in its nine-year history.

“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.” 

During the quarter, North Energy’s total exploration costs amounted to NOK 6 million, compared to NOK 117.1 million in the corresponding quarter 2015.

The company said that the first quarter of 2015 was impacted by drilling costs on the Tvillingen South and Haribo prospects, while there were no drilling expenses in the first quarter of 2016.

North Energy does not expect to participate in drilling activities in 2016, the company stated.

Offshore Energy Today Staff

Share this article

Follow Offshore Energy Today

Events>

<< Apr 2020 >>
MTWTFSS
30 31 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 1 2 3

Navingo Career Event

The Navingo Career Event is Europe’s biggest career event for the maritime…

read more >

Offshore Technology Conference (OTC) 2020 Postponed

The Offshore Technology Conference (OTC) showcases leading-edge technology for offshore drilling, exploration…

read more >

OWI APAC 2020

Over the two-day conference, 30 expert speakers will share exclusive insight to help drive well work efficiencies through innovative…

read more >

2020 EXPLORATION AND PRODUCTION STANDARDS CONFERENCE ON OILFIELD EQUIPMENT AND MATERIALS

The development of consensus standards is one of API’s oldest and most successful programs.

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply