OKEA, a Norwegian oil and fuel firm, sank deeper into the pink within the first quarter of the yr affected by decrease oil and fuel costs and gross sales volumes leading to impairments of over $60 million.
OKEA on Tuesday mentioned its working earnings through the first quarter of 2020 totalled NOK 551 million ($52.2 million), in comparison with NOK 764 million ($72.four million) within the prior-year interval.
According to OKEA, the lower from the earlier yr was primarily attributable to decreased volumes bought from Gjøa and Draugen fields and decrease oil and fuel costs.
The oil firm booked a lack of NOK 785 million ($74.four million)on this yr’s first quarter in comparison with the lack of NOK 9 million ($852,900) in 1Q 2019.
The important fall in market pricing of petroleum merchandise through the quarter resulted in non-cash impairments of NOK 634 million ($60.1 million) primarily regarding technical and odd goodwill.
The NOK weakened considerably towards the USD through the quarter which resulted in unrealised FX-losses on the excellent USD bonds of NOK 518 million partly offset by FX-gains on USD nominated financial institution deposits.
The firm’s complete web manufacturing in 1Q 2020 totalled 19,099 boepd in comparison with 19,498 boepd in 1Q 2019.
Erik Haugane, CEO of OKEA, mentioned: “This quarter’s monetary statements mirror the biggest financial turmoil in hundred years.
“OKEA has a sound money place, low manufacturing expense per boe throughout our portfolio and a devoted organisation that can handle the corporate via these difficult occasions for OKEA and the business”.
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