Okea Swings Back To Profit In Q2

Norway’s Okea chalked up a kroner 367mn ($42.3mn) operating profit for the second quarter, reversing kroner 19mn ($2.2mn) loss in the corresponding three months of last year.

The private equity-backed producer’s improved performance came on the back of a surge in production thanks to its purchase of stakes last year in the Draugen and Gjoa fields from Shell.

Oil and gas production averaged 20,045 boe/day in April through June, up from only 358 boe/day a year earlier, the company reported on July 17. This caused revenues to soar to kroner 1.04bn ($121mn) in the quarter, from just kroner 28mn ($3.3mn).

Earnings before interest, tax, debt and amortisation (Ebitda) came to kroner 594mn ($69.2mn), compared with a year-ago loss of kroner 13mn ($1.5mn).

Supported by shareholders Thailand’s Bangchak Corp. and investment firm Seacrest Capital, Okea is looking to build up a portfolio of smaller offshore Norwegian fields that have been passed up by larger operators. It currently has stakes in three producing fields on Norway’s continental shelf, along with two more in development.

This week’s earnings report is Okea’s first since its initial public offering at the Oslo stock exchange in June. The company raised kroner 315mn ($36.7mn) from the listing, which was less than half of what it had planned.