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In March, small oil firm Okea introduced it might purchase a 28 % stake within the Statfjord space from Equinor for $220 million, or 2.35 billion kroner.
The transaction was the biggest since Okea CEO Svein J. Liknes began a couple of years in the past and introduced that the expansion fee would decide up. For Okea, the acquisition would nearly double manufacturing.
The transaction was initially anticipated to shut on November 30, however Okea has now knowledgeable Equinor that the deadline will likely be postponed. That is evident from a inventory alternate report on Thursday.
In view of the necessity for operator Equinor to submit up to date information and forecasts for the revised 2024 nationwide price range, Okea has now acquired data indicating that the remaining volumes for the Statfjord area are 10-15 % decrease than the revised nationwide price range estimate price range for 2023. As well as, this ends in greater price estimates.
“Preliminary assessments of the up to date projections point out a big decline in honest worth and a big write-down might due to this fact doubtless be needed after the acquisition closes,” Okea wrote.
“Will battle for a cheaper price”
Sparebank 1 Market analyst Teodor Sveen-Nilsen despatched an evaluation to shoppers on Thursday night wherein he lowered the worth goal from NOK 55 to NOK 50 as a direct results of the announcement. The Okea fare is now NOK 37.
The article continues under the commercialOkea’s inventory alternate assertion states that the corporate has an ongoing dialogue with Equinor on this matter and can hold the market knowledgeable. Sveen-Nilsen hints that authorized proceedings might end result from this, however on the identical time emphasizes that he doesn’t know the content material of the settlement and its authorized facets.
“We assume that Okea will battle for a cheaper price, whereas Equinor will argue that the sphere has already been offered and the client will bear the danger after signing the settlement. Both approach, it looks as if a constructive earnings forecast for authorized and monetary advisors.”
Sveen-Nilsen says that there are nonetheless many questions on precisely how unhealthy it’s, however that the information is clearly destructive. He has adjusted the manufacturing estimate in Statfjord downwards by 12.5 %, i.e. the midpoint of the figures offered by Okea on Thursday night, whereas he estimates that the funding estimate (capex) has been elevated by 25 %. The worth of Statfjord’s possession share will likely be adjusted downwards by 20 %.
Much more depreciation
Within the third quarter, Okea recorded a write-down of NOK 475 million associated to the Yme area, after decreasing the corporate’s share of reserves from an estimate of seven.6 million barrels of oil, equal to five.5-6 .5 million.
It isn’t the primary time that the oil firm has needed to write down the worth of the Yme area, which is operated by the Spanish Repsol. The sector has had manufacturing points because it was re-constructed and restarted within the fall of 2021, and Okea has taken a number of write-offs since then.
Within the third quarter, pre-tax revenue amounted to NOK 460 million, in comparison with NOK 738 million in the identical quarter final yr.
Okea was based in 2015 by Ola Borten Moe, Knut Evensen, Erik Haugane and Anton Tronstad in Trondheim. The corporate has a market worth of NOK 3.8 billion.(Circumstances)Copyright Dagens Næringsliv AS and/or our suppliers. We want you to share our instances through hyperlinks that lead on to our pages. Copying or different use of all or a part of the contents might solely be made with written permission or as permitted by legislation. For additional circumstances see right here.
Okea postpones multi-billion greenback deal: “vital” write-downs might happen
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