The revision has been driven by global supply chain challenges that have impacted the extent to which fabrication work on the process module (the "TEG") has been completed in the yard in
Based on the strength of Noreco's underlying business, with three producing hubs that are significantly cash generative in the current environment, the Company is fully funded based on current estimates and with a capital structure that continues to be set to deliver Tyra II based on the revised forecasts.
Process Module: TEG
Seven out of eight modules are already installed offshore and the TEG has been the only remaining module where onshore fabrication is still ongoing. With load-out of the process module beginning this week, the module will leave McDermott's yard in
Offshore Hook-Up and Commissioning
Although
Revised Start-Up of Tyra II
The final stage of the yard fabrication is now complete with seven out of eight modules in place. As a result,
- P10:
- P50:
- P90:
Budget
As a result of the schedule change, the expenditure budget for Tyra II is expected to rise. While the operator is in the process of preparing a formal budget for approval by the DUC partnership,
Noreco's Robust Underlying Business Model
The Company has in H1 2022 delivered strong results and is in a robust financial position. The cash generation from Dan, Gorm and Halfdan is significant and during Q2 2022 the Company delivered revenues of
"Today's news on a revised scheduled for Tyra is disappointing, however we are now entering the last stage of the Tyra Re-development with a good definition of the work scope remaining to achieve first gas. We now have a robust plan built on experience from the initial nine months of offshore hook-up and commissioning and we expect to add more than 500 offshore workers. The complexity of the operations at Tyra will increase and safe operations is our main priority.
The imminent sail-away of the TEG module from
In parallel with delivering Tyra we are working to increase gas production from our producing assets in the DUC. We have seen positive gains from the Halfdan stimulation campaign and for the upcoming infill wells we are prioritising gas rich targets"
"Noreco fully recognises economic, strategic and political importance of achieving Tyra first gas. Our focus will remain on ensuring that the revised project plan, as recently communicated to us by the operator, is secured; we are committed to making an active contribution as we seek to improve offshore HUC performance and expedite first gas from Tyra II.
Our underlying business with the producing Halfdan, Dan and Gorm hubs continues to perform strongly and the extent to which this translates into the generation of meaningful profitability and cashflow was demonstrated in our Q2 2022 results. Against the current market backdrop, we are actively pursuing short-cycle investment opportunities that will enable us to produce more in the near-term. The combination of strong recent results and a positive outlook ensures we remain fully funded despite the expected cost increase for the Project. Our stable and robust capital structure continues to be set to take whatever actions are available to achieve the earliest start-up for Tyra II"
Investor Call
The Company will host an investor call today at
To join the investor call: https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20220803_1
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IMPORTANT NOTICE
FORWARD LOOKING STATEMENTS. Matters discussed in this announcement include forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as "believe," "expect,", "plans", "anticipate," "intends," "estimate," "will," "may," "continue," "should" and similar expressions. Forward-looking statements include statements regarding: objectives, goals, strategies, outlook and growth prospects; future plans, events or performance and potential for future growth; liquidity, capital resources and capital expenditures; economic outlook and industry trends; commodity prices and developments in the Company's markets. The forward-looking statements in this announcement are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in the Company's records and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control. Such risks, uncertainties, contingencies and other important factors could cause the actual results of the Company or the industry to differ materially from those results expressed or implied in this announcement by such forward-looking statements.
No representation is made that any of these forward-looking statements will come to pass or that any forecast result will be achieved and you are cautioned not to place any undue influence on any forward-looking statement. The information, opinions and forward-looking statements contained in this announcement speak only as at its date and are subject to change without notice. The Company does not undertake any obligation to review, update, confirm, or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this announcement.
This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act. The stock exchange announcement was published by
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Contact:
Phone: +47 915 28 501
Email: ct@noreco.com
About
Noreco is a publicly owned company with focus on the oil, gas and offshore industry. The Company's shares are listed on the
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