BlueNord has published its third quarter results for 2024. The third quarter of the year delivered strong operational performance with base production at the top end of the Company’s quarterly guidance. This supported the overall financial performance of the Company. In addition, BlueNord completed the reset of its capital structure with the successful placement and settlement of a new 5-year senior unsecured bond issue of USD 300 million and full redemption of BNOR14 bonds of USD 175 million.
Highlights:
- Third quarter net hydrocarbon production of 26.1 mboepd, with base production at 25.0 mboepd which is at the top end of the Company’s quarterly base production guidance of 23.0-25.0 mboepd
- Revenues of USD 170 million for the quarter and EBITDA of USD 85 million
- Cash Flow from Operations of USD 92 million compared to USD 57 million in the second quarter
- Total liquidity of USD 511 million at the end of the period, with cash on balance sheet of USD 241 million
- Onshore repair of both Tyra II transformers successfully completed followed by offshore lifts back onto the TEG and plateau production expected to be reached by the end of 2024
- Upward revision of Q4 2024 Tyra II production guidance of 4.0-11.0 mboepd
- Positive preliminary results of the HEMJ well which will be completed and brought on production in connection with the Tyra start-up
- Kristin Færøvik and João Saraiva e Silva elected as new Board Members at the EGM on 16 September 2024
Operational:
The overarching strong production trend from previous years continued in the quarter, mainly driven by excellent performance of the base assets. In addition, the Harald field had stable production of 1.1 mboepd during Q3, delivering a net production of 26.1 mboepd. Following the spudding of the Harald East Middle Jurassic ('HEMJ') well this summer, BlueNord announced on 29 October that the preliminary results of the well were positive and that it will be completed and brought on production in connection with the Tyra II start-up. The potential volume of the well will be assessed when it is on production, which is expected by the end of 2024.
Tyra II:
During the third quarter, HUC activities continued and all wells are now unplugged, with commissioning 96% complete on TEG. Export from Harald was successfully resumed 15 July 2024, with stable production throughout the quarter. In addition, the first transformer was delivered offshore in August and has been reintegrated, and the second transformer was delivered offshore in October and is in the process of being reintegrated. Maximum technical capacity on Tyra is expected between 15-30 November, followed by production ramp-up to plateau level, also expected in Q4 2024. Based on this, the Company now expects production from Tyra II in Q4 2024 of 4.0 – 11.0 mboepd.
Financial:
The Company continues to deliver solid financial results, supported by the stable contribution of the producing assets. During the quarter, BlueNord also completed the capital structure reset with the successful placement and settlement of a new 5-year senior unsecured bond issue of USD 300 million and full redemption of BNOR14 bonds of USD 175 million. Following the capital structure reset, BlueNord is in position to deliver on its distribution policy once Tyra II has reached plateau production.
'BlueNord has delivered strong operational and financial performance throughout the third quarter of 2024, achieving key milestones that lay a strong foundation for the future. We produced on average 26.1 mboe/d, with 25.0 mboe/d coming from our base assets that continue to deliver at the top end of our expectations. The preliminary results from the Harald East Middle Jurassic well, spudded in June 2024, are promising and exceed our pre-drill expectations. Together with the imminent restart of Tyra II, this will provide important gas volumes to Denmark and to Europe. With both the compressors repaired and lifted back onto the processing facilities on Tyra II, we expect gas export from Tyra to resume imminently and plateau production to be reached in Q4 of this year. As we head into the final stretch of the year, where we expect Tyra to be at plateau and with all our financial covenants now aligned with our distribution policy, we are well positioned to initiate the material return of capital to shareholders,' said Euan Shirlaw, Chief Executive Officer of BlueNord.
Source: BlueNord
