Okea Loss Deepens on Price Rout in Q1

Norwegian independent Okea reported on April 28 a krone 785mn ($75mn) loss for the first quarter, versus a krone 9mn loss a year earlier. Its core earnings (Ebitda) slumped to krone 312mn, from 1.64bn. 

Operating income was down to krone 551mn, from krone 3.02bn, owing to the collapse in oil and gas prices during the quarter. The Oslo-listed company also suffered various charges, including krone 182mn for depreciation and krone 634mn in impairments. As a result it booked a krone 503mn loss from operating activities, compared with a krone 827mn profit a year before. On top of that, it posted a krone 423mn loss from financial items, as a result of krone depreciation.

Okea's sales of liquids fell 28% to 9,772 barrels of oil equivalent/day, while gas sales were down 9% at 5,837 boe/d.

"This quarter’s financial statements reflect the largest economic turmoil in hundred years," Okea CEO Erik Haugane said in a statement. "Okea has a sound cash position, low production expense per barrel of oil  equivalent across our portfolio and a dedicated organisation that will manage the company through these challenging times for Okea and the industry."

The company has asked bondholders for a waiver on its bond covenants, as it was at risk of breaching them during 2020 because of low oil prices. It also warned of a potential delay at the Yme oilfield until 2021.