This article first appeared on GuruFocus .
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Production Volumes:34.9 thousand barrels per day, an increase of 13%.
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Sales Volumes:39.1 thousand barrels per day.
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Realized Liquids Price:Increased by 42% from $52.4 to $74.2.
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Average Market Prices for Gas:Increased by 33% from $57.4 to $76.5.
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Total Petroleum Revenue:$264 million, more than doubling compared to the previous quarter.
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Operating Income:$239 million.
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Production Expenses:$91 million, with a cost per barrel reduced to $26.7.
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Reversal of Impairments:$154 million related to Statfjord.
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Net Profit:$36 million.
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Cash and Cash Equivalents:$210 million, with an additional $59 million in money market funds.
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Cash Generated from Operations:$86 million.
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CapEx Guidance for 2026:$300 million to $360 million.
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CapEx Guidance for 2027:$230 million to $290 million.
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Production Guidance for 2026:31,000 to 35,000 barrels per day.
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Production Guidance for 2027:37,000 to 41,000 barrels per day.
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Release Date: April 29, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Okea ASA ( STU:3SX ) achieved a high production efficiency of 96% during the first quarter of 2026.
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The Talisker East well on Brage increased production by 60%, illustrating the importance of new wells.
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The company increased resources on the Talisker West discovery by 9 million barrels, with a break-even cost of less than $10 per barrel.
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Reversal of impairments on Statfjord due to increased forward prices contributed to a strong financial quarter.
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Okea ASA ( STU:3SX ) reported a 13% increase in production volumes, reaching 34.9 thousand barrels per day.
Negative Points
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The company faced commissioning challenges on the Christmas tree, delaying production start to Q3 instead of Q2.
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Unrealized losses on hedged positions amounted to $29 million, impacting other operating income negatively.
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Production expenses remained high at $91 million due to intervention campaigns and maintenance preparations.
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The disappointing performance of the oil hunter well at Statfjord did not meet expectations.
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Dividend payments have been temporarily put on hold due to capital-intensive periods and certain restrictions.
Q & A Highlights
Q: What is the risk of further write-downs of Statfjord with the technical issues and what is the remaining book value of your assets? A: The first oil hunter well did not meet expectations, but future wells are not geologically connected to this one. The main impact on Statfjord will come from restarting electrical submersible pumps, which should increase production. The asset is held at fair value, so there is a risk of further impairments or reversals depending on macro conditions and asset performance.
Q: When can we expect to see a positive net profit after tax on a four-quarter rolling basis, which is necessary for dividend payments? A: We do not expect major future balance sheet adjustments, but Statfjord is held at fair value, so changes in forward prices could affect impairments. We are seeing positive factors for dividends, such as the sale of Mistral and progress on the Bestla project, which could improve dividend visibility in the near future.
Q: Do you expect the negative working capital development seen in Q1 to reverse in Q2? A: It's difficult to guide on working capital as it depends on the timing of sales and invoices. However, revenue from sales not received by March 31 has likely been received in April, but exact figures depend on specific dates.
Q: Can you comment on the realized oil price in the second quarter and your current view on hedging? A: We expect higher realized prices in Q2 if current trends continue. We are cautious about adding more hedges due to high volatility and prefer assessing pure floors with a premium rather than setting ceilings.
Q: What are the plans for exploration wells this year, and what is the rationale for the PL 1255 swap? A: We plan to drill the Alpehumle well this summer, with timing dependent on prior wells. The Mistral North well is no longer planned due to the transaction closing. The PL 1255 swap gives us 50% interest and operatorship, allowing us to control decisions and potentially generate future value.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
