Buy Or Sell Opportunity • May 27
Now 23% undervalued Over the last 90 days, the stock has risen 31% to kr36.95. The fair value is estimated to be kr47.70, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.2% over the last 3 years. Meanwhile, the company became loss making. Buy Or Sell Opportunity • May 07
Now 21% undervalued Over the last 90 days, the stock has risen 42% to kr37.60. The fair value is estimated to be kr47.44, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.2% over the last 3 years. Meanwhile, the company became loss making. Reported Earnings • May 02
First quarter 2026 earnings released: EPS: US$0.35 (vs US$0.20 in 1Q 2025) First quarter 2026 results: EPS: US$0.35 (up from US$0.20 in 1Q 2025). Revenue: US$238.9m (down 10% from 1Q 2025). Net income: US$36.4m (up 71% from 1Q 2025). Profit margin: 15% (up from 8.0% in 1Q 2025). Revenue is forecast to grow 7.7% p.a. on average during the next 3 years, compared to a 1.4% decline forecast for the Oil and Gas industry in Norway. Over the last 3 years on average, earnings per share has fallen by 24% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. New Risk • Apr 30
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 52% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 52% per year for the foreseeable future. Minor Risk Share price has been volatile over the past 3 months (8.2% average weekly change). Price Target Changed • Apr 30
Price target increased by 8.6% to kr44.80 Up from kr41.25, the current price target is an average from 5 analysts. New target price is 14% above last closing price of kr39.20. Stock is up 140% over the past year. The company is forecast to post earnings per share of US$0.99 next year compared to a net loss per share of US$0.53 last year. New Risk • Apr 02
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Norwegian stocks, typically moving 6.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Recent Insider Transactions • Mar 31
Insider recently sold kr254k worth of stock On the 26th of March, Eivind Boyum sold around 6k shares on-market at roughly kr39.80 per share. This transaction amounted to 100% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Despite this recent sale, insiders have collectively bought kr315k more than they sold in the last 12 months. Recent Insider Transactions • Mar 22
Insider recently sold kr226k worth of stock On the 17th of March, Olav Roksvaag sold around 6k shares on-market at roughly kr37.00 per share. This transaction amounted to 16% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Despite this recent sale, insiders have collectively bought kr436k more than they sold in the last 12 months. Buy Or Sell Opportunity • Feb 05
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 27% to kr25.95. The fair value is estimated to be kr21.49, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 9.5% over the last 3 years. Meanwhile, the company became loss making. Announcement • Feb 04
OKEA ASA Reports Impairment of Oil and Gas Assets and Technical Goodwill for the Fourth Quarter of 2025 OKEA ASA reported Impairments of oil and gas assets for the fourth quarter of 2025. For the quarter, the company reported Impairments of oil and gas assets of USD 57 (133) million on Statfjord and technical goodwill of USD 5 (18) million on Gjøa/Nova and Draugen were mainly due to lower forward prices. Reported Earnings • Feb 04
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: US$0.53 loss per share (down from US$0.32 profit in FY 2024). Revenue: US$783.7m (down 19% from FY 2024). Net loss: US$54.7m (down 262% from profit in FY 2024). Combined production Oil equivalent production: 11.716 MMboe (1.249 MMboe in FY 2024) Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 90%. Revenue is forecast to stay flat during the next 3 years compared to a 4.7% decline forecast for the Oil and Gas industry in Norway. Over the last 3 years on average, earnings per share has fallen by 34% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings. Announcement • Feb 04
OKEA ASA Provides Production Guidance for the Year 2026 and 2027 OKEA ASA provided Production guidance for the year 2026 and 2027. Production guidance for 2026 remains unchanged at 31 - 35 kboepd.
Production guidance for 2027 is introduced at 37 - 41 kboepd, reflecting start-up of Bestla in early 2027. Price Target Changed • Jan 30
Price target increased by 8.3% to kr26.00 Up from kr24.00, the current price target is an average from 4 analysts. New target price is 11% above last closing price of kr23.45. Stock is up 18% over the past year. The company is forecast to post earnings per share of US$0.17 for next year compared to US$0.32 last year. Announcement • Jan 27
OKEA ASA Provides Impairment Guidance for the Fourth Quarter of 2025 OKEA ASA provides impairment guidance for the fourth quarter of 2025. For the period, the company expects to recognise non-cash impairment charges in the range of USD 50 million to USD 70 million mainly due to reduced forward prices. Recent Insider Transactions • Nov 20
Employee Representative Director recently bought kr403k worth of stock On the 17th of November, Sverre Nes bought around 18k shares on-market at roughly kr22.40 per share. This transaction amounted to 54% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought kr1m more in shares than they have sold in the last 12 months. Recent Insider Transactions • Nov 09
Vice President of Legal recently bought kr259k worth of stock On the 5th of November, Marit Vik-Langlie bought around 13k shares on-market at roughly kr19.98 per share. This transaction amounted to 11% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought kr596k more in shares than they have sold in the last 12 months. Announcement • Nov 05
OKEA ASA Updates Production Guidance for 2025 and Reaffirms Production Guidance for 2026 OKEA ASA updated production guidance for 2025 and reaffirmed production guidance for 2026. For 2025, the company based on continued solid production, production guidance is increased and narrowed to 32-33 kboepd from 30-32 kboepd. For 2026, production guidance remain unchanged at 31-35 kboepd. Reported Earnings • Nov 05
Third quarter 2025 earnings released Third quarter 2025 results: Revenue: US$224.0m (down 20% from 3Q 2024). Net loss: US$37.0m (down 241% from profit in 3Q 2024). Revenue is expected to fall by 12% p.a. on average during the next 3 years compared to a 4.2% decline forecast for the Oil and Gas industry in Norway. Over the last 3 years on average, earnings per share has fallen by 36% per year but the company’s share price has only fallen by 23% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Oct 18
Consensus EPS estimates fall by 20% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from US$4.10 to US$3.26 per share. Revenue forecast steady at US$8.53b. Net income forecast to grow 12% next year vs 15% growth forecast for Oil and Gas industry in Norway. Consensus price target down from kr24.00 to kr23.00. Share price fell 3.6% to kr17.36 over the past week. Major Estimate Revision • Oct 12
Consensus EPS estimates increase by 19% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate increased from US$3.46 to US$4.11. Revenue forecast unchanged at US$8.46b. Net income forecast to grow 18% next year vs 25% growth forecast for Oil and Gas industry in Norway. Consensus price target of kr24.00 unchanged from last update. Share price fell 2.8% to kr18.00 over the past week. Major Estimate Revision • Sep 16
Consensus EPS estimates fall by 36% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from US$8.63b to US$8.46b. EPS estimate also fell from US$6.03 per share to US$3.89 per share. Net income forecast to grow 18% next year vs 30% growth forecast for Oil and Gas industry in Norway. Consensus price target of kr24.00 unchanged from last update. Share price was steady at kr18.00 over the past week. Announcement • Aug 25
OKEA ASA Announces Oil Discovery in the Talisker Exploration Well At the Brage Field OKEA ASA announced oil discoveries in the Talisker exploration well at the Brage field (PL 055). The discoveries were made in the Cook and Statfjord formations and are considered commercial with preliminary estimates of gross recoverable resources in the range of 16 - 33 mmboe combined. In addition, appraisal of hydrocarbons encountered in the Brent group is expected completed during Fourth Quarter 2025. The Talisker exploration well (31/4-A-15 B), a 10.223 meter long well, was drilled from the Brage platform in the North Sea. Discoveries were made in the Cook andStatfjord formations and are consider commercial with preliminary estimates of gross recoveredable resources in the range of 2 - 7 mmboe in the Cook formation and 14 - 26 mmboe in the Statfjord formation respectively. In addition, hydrocarbons were encountered in two thin sandstones in the Brent group which will be further appraised by the upcoming well paths, expected completed during Fourth Quarter 2020. Price Target Changed • Aug 20
Price target decreased by 23% to kr23.75 Down from kr31.00, the current price target is an average from 4 analysts. New target price is 35% above last closing price of kr17.58. Stock is down 21% over the past year. The company is forecast to post earnings per share of US$0.58 for next year compared to US$0.32 last year. New Risk • Jul 23
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 26% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. This is currently the only risk that has been identified for the company. Announcement • Jul 16
OKEA ASA Provides Updated Production Guidance for the Year 2025 OKEA ASA provided updated production guidance for the year 2025 . Based on the solid production during the first half of the year, and the plans for the second half, production guidance for 2025 is narrowed towards the high end of the range, up to 30-32 kboepd from 28-32 kboepd. Price Target Changed • Jun 11
Price target decreased by 7.2% to kr30.80 Down from kr33.20, the current price target is an average from 5 analysts. New target price is 73% above last closing price of kr17.78. Stock is down 25% over the past year. The company is forecast to post earnings per share of US$0.64 for next year compared to US$0.32 last year. Major Estimate Revision • May 08
Consensus EPS estimates fall by 10% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from US$9.48b to US$9.04b. EPS estimate also fell from US$7.43 per share to US$6.66 per share. Net income forecast to grow 2.3% next year vs 11% decline forecast for Oil and Gas industry in Norway. Consensus price target of kr31.60 unchanged from last update. Share price was steady at kr16.10 over the past week. New Risk • Apr 30
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 7.7% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to kr16.02, the stock trades at a forward P/E ratio of 2x. Average forward P/E is 5x in the Oil and Gas industry in Norway. Total loss to shareholders of 49% over the past three years. New Risk • Apr 04
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 21% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. This is currently the only risk that has been identified for the company. Reported Earnings • Apr 04
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: kr3.69 (up from kr9.00 loss in FY 2023). Revenue: kr11.0b (up 26% from FY 2023). Net income: kr383.3m (up kr1.32b from FY 2023). Profit margin: 3.5% (up from net loss in FY 2023). Oil reserves Proven reserves: 51.3 MMbbls Combined production Oil equivalent production: 14.225 MMboe (8.974 MMboe in FY 2023) Revenue missed analyst estimates by 2.7%. Earnings per share (EPS) also missed analyst estimates by 35%. Revenue is expected to fall by 11% p.a. on average during the next 3 years compared to a 3.2% decline forecast for the Oil and Gas industry in Norway. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 52 percentage points per year, which is a significant difference in performance. Announcement • Mar 26
OKEA ASA Reports Conclusion of Operations At Horatio Exploration Well OKEA ASA reported that Drilling operations on the 35/6-6 Horatio exploration well, operated by OMV (Norge) AS, have concluded. The well was characterised as a dry well and has been plugged and abandoned. Recent Insider Transactions • Mar 17
Non-executive Chairman of the Board recently bought kr338k worth of stock On the 11th of March, Chaiwat Kovavisarach bought around 20k shares on-market at roughly kr16.89 per share. This transaction amounted to 49% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Chaiwat has been a buyer over the last 12 months, purchasing a net total of kr464k worth in shares. Announcement • Mar 05
OKEA ASA Announces A Discovery in the Pl1119 Mistral Exploration Well 6406/6-7S Located in the Southern Norwegian Sea OKEA ASA announced a discovery in the PL1119 Mistral exploration well 6406/6-7S located in the southern Norwegian sea. Preliminary estimates of recoverable oil equivalents are between 3 and 7 million standard cubic meters (MSm3), corresponding to 19 and 44 million barrels. The well was drilled to a vertical depth of 4,024 meters and encountered a 47 meters thick gas/condensate column in a 99 meters thick middle Jurassic sandstone with good reservoir properties. A comprehensive data acquisition has been carried out to assess the reservoir and fluid properties. The PL1119 licence group will now evaluate the commerciality of the discovery by studying options for effective development using existing infrastructure in the area. The licence group comprises Equinor Energy AS (operator, 50% WI), Pandion Energy AS (20% WI), DNO Norge AS (10% WI) and OKEA ASA (20% WI). Announcement • Mar 04
OKEA ASA - Discovery Confirmed in Mistral Exploration Well OKEA ASA announces a discovery in the PL1119 Mistral exploration well 6406/6-7S located in the southern Norwegian sea. Preliminary estimates of recoverable oil equivalents are between 3 and 7 million standard cubic meters (MSm3), corresponding to 19 and 44 million barrels. The well was drilled to a vertical depth of 4,024 meters and encountered a 47 meters thick gas/condensate column in a 99 meters thick middle Jurassic sandstone with good reservoir properties. A comprehensive data acquisition has been carried out to assess the reservoir and fluid properties. The PL1119 licence group will now evaluate the commerciality of the discovery by studying options for effective development using existing infrastructure in the area. Announcement • Feb 27
OKEA ASA Announces Finn Haugan Resigned as A Member of the Board of Directors, Effective 1 March 2025 OKEA ASA announced that Finn Haugan has informed the company that he resigns from his position as a member of the board of directors, effective 1 March 2025. OKEA appreciates his considerable contribution to the company and wishes him well in the future. Announcement • Jan 30
OKEA ASA Provides Production Guidance for the Year 2025 and 2026 OKEA ASA provided production guidance for the year 2025 and 2026. Production guidance for 2025 and 2026 is unchanged at 28-32 kboepd and 26-30 kboepd respectively. Announcement • Dec 17
OKEA ASA and Equinor Energy AS Announce Drilling Operation in PL 1014 (Arkenstone) Temporarily Suspend OKEA ASA announced drilling operations on the NO 6610/7-3 exploration well operated by Equinor, have been temporarily suspended after shallow gas was encountered during the drilling operations. Two pilot wells were drilled to assess the presence of shallow gas above the reservoir. Shallow gas was encountered, and the drilling operations have been temporarily suspended. The wells were drilled from the semi-submersible rig, Deepsea Atlantic. Both pilot wells have been securely plugged with cement, and the partners in the license will focus on well engineering to ensure that the Arkenstone well can be drilled safely, accounting for the shallow gas zone in the upper layers of the formation. PL 1014 (Arkenstone) is located approximately 100 km north-east of the Norne field, at a water depth of around 230 metres. Equinor Energy AS (operator) holds 80% WI, and OKEA holds 20% WI in the PL 1014 license. Announcement • Dec 12
OKEA ASA, Annual General Meeting, May 13, 2025 OKEA ASA, Annual General Meeting, May 13, 2025. Announcement • Dec 01
Lime Petroleum AS completed the transaction of 15% stake in Yme Field from OKEA ASA (OB:OKEA). Lime Petroleum AS entered into an agreement to acquire 15% stake in Yme Field from OKEA ASA (OB:OKEA) for $15.7 million on September 23, 2024. All related decommissioning costs to be transferred to Lime. In addition, Lime will pay OKEA a post-tax consideration of $9.2 million in 2027, which will be repaid to Lime in four 25% tranches upon completion of four pre-defined stages of abandonment at the field, operated by Repsol Norge AS. The transaction is conditional upon Norwegian Governmental Approval. The acquisition will be financed through cash at hand. Upon completion Lime will increase its share in the Yme Field from 10% to 25%. The transaction is expected to be completed by the end of 2024, with an effective date of January 1, 2024.
Lime Petroleum AS completed the transaction of 15% stake in Yme Field from OKEA ASA (OB:OKEA) on November 29, 2024. The Transaction has been approved by the relevant Norwegian authorities and all related obligations, including decommissioning costs, have been transferred to Lime. In addition, Lime will pay OKEA a post-tax consideration of $9.2 million in 2027 which will be repaid to Lime in four 25% tranches upon completion of four predefined stages of abandonment of the field. Reported Earnings • Nov 01
Third quarter 2024 earnings released: EPS: kr2.67 (vs kr0.31 in 3Q 2023) Third quarter 2024 results: EPS: kr2.67 (up from kr0.31 in 3Q 2023). Revenue: kr2.93b (up 37% from 3Q 2023). Net income: kr277.4m (up kr245.0m from 3Q 2023). Profit margin: 9.5% (up from 1.5% in 3Q 2023). Revenue is expected to fall by 14% p.a. on average during the next 3 years compared to a 4.9% decline forecast for the Oil and Gas industry in Norway. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 79 percentage points per year, which is a significant difference in performance. Announcement • Oct 05
OKEA ASA Narrows Production Guidance for the Full Year 2024 OKEA ASA narrowed production guidance for the full year 2024. for the year, the company expects production of somewhat to 36 – 40 kboepd from 35 – 40 kboepd. Announcement • Sep 24
Lime Petroleum AS entered into an agreement to acquire 15% stake in Yme Field from OKEA ASA (OB:OKEA) for $15.7 million. Lime Petroleum AS entered into an agreement to acquire 15% stake in Yme Field from OKEA ASA (OB:OKEA) for $15.7 million on September 23, 2024. All related decommissioning costs to be transferred to Lime. In addition, Lime will pay OKEA a post-tax consideration of $9.2 million in 2027, which will be repaid to Lime in four 25% tranches upon completion of four pre-defined stages of abandonment at the field, operated by Repsol Norge AS. The Transaction is conditional upon Norwegian governmental approval. The Acquisition will be financed through cash at hand. Upon completion Lime will increase its share in the Yme Field from 10% to 25%. The completion is expected to be completed before year-end 2024, with an effective date of January 1, 2024.
. Reported Earnings • Jul 18
Second quarter 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2024 results: EPS: kr0.84 (up from kr0.66 in 2Q 2023). Revenue: kr2.44b (up 49% from 2Q 2023). Net income: kr87.4m (up 27% from 2Q 2023). Profit margin: 3.6% (down from 4.2% in 2Q 2023). Revenue exceeded analyst estimates by 1.4%. Earnings per share (EPS) missed analyst estimates by 43%. Revenue is expected to fall by 11% p.a. on average during the next 3 years compared to a 4.9% decline forecast for the Oil and Gas industry in Norway. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 88 percentage points per year, which is a significant difference in performance. Reported Earnings • Apr 11
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: kr9.00 loss per share (down from kr6.45 profit in FY 2022). Revenue: kr8.74b (up 37% from FY 2022). Net loss: kr935.4m (down 240% from profit in FY 2022). Oil reserves Proven reserves: 59.2 MMbbls Combined production Oil equivalent production: 8.974 MMboe (6.109 MMboe in FY 2022) Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 139%. Revenue is expected to fall by 9.6% p.a. on average during the next 3 years compared to a 5.0% decline forecast for the Oil and Gas industry in Norway. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has increased by 24% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Feb 08
Full year 2023 earnings released: kr9.00 loss per share (vs kr6.45 profit in FY 2022) Full year 2023 results: kr9.00 loss per share (down from kr6.45 profit in FY 2022). Revenue: kr8.88b (up 39% from FY 2022). Net loss: kr935.4m (down 240% from profit in FY 2022). Revenue is expected to fall by 9.5% p.a. on average during the next 3 years compared to a 4.6% decline forecast for the Oil and Gas industry in Norway. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has increased by 16% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Feb 08
OKEA ASA Provides Production Guidance for the Year 2024 OKEA ASA provided production guidance for the year 2024. The company's 2024 guidance is 35 kboepd - 40 kboepd for production. Major Estimate Revision • Feb 02
Consensus EPS estimates increase from loss to kr0.379 profit The consensus outlook for fiscal year 2023 has been updated. 2023 forecast for profit of -kr1.63 instead of a loss of kr0.379 per share previously. Revenue forecast unchanged at kr8.87b. Oil and Gas industry in Norway expected to see average net income growth of 20% next year. Consensus price target of kr38.00 unchanged from last update. Share price was steady at kr23.52 over the past week. Major Estimate Revision • Jan 19
Consensus EPS estimates increase by 11%, revenue downgraded The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast fell from kr9.29b to kr9.09b. EPS estimate rose from kr6.33 to kr7.05. Net income forecast to grow 73% next year vs 23% growth forecast for Oil and Gas industry in Norway. Consensus price target down from kr46.40 to kr41.00. Share price fell 12% to kr23.28 over the past week. Price Target Changed • Jan 15
Price target decreased by 11% to kr42.20 Down from kr47.40, the current price target is an average from 5 analysts. New target price is 66% above last closing price of kr25.38. Stock is down 26% over the past year. The company is forecast to post earnings per share of kr6.31 for next year compared to kr6.45 last year. Valuation Update With 7 Day Price Move • Dec 05
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to kr30.50, the stock trades at a forward P/E ratio of 3x. Average forward P/E is 5x in the Oil and Gas industry in Norway. Total returns to shareholders of 291% over the past three years. Upcoming Dividend • Nov 24
Upcoming dividend of kr1.00 per share at 11% yield Eligible shareholders must have bought the stock before 01 December 2023. Payment date: 15 December 2023. Payout ratio is a comfortable 64% and this is well supported by cash flows. Trailing yield: 11%. Within top quartile of Norwegian dividend payers (8.8%). In line with average of industry peers (11%). Major Estimate Revision • Nov 02
Consensus EPS estimates fall by 14% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from kr9.58b to kr9.33b. EPS estimate also fell from kr7.98 per share to kr6.87 per share. Net income forecast to grow 114% next year vs 29% growth forecast for Oil and Gas industry in Norway. Consensus price target down from kr47.75 to kr46.40. Share price rose 12% to kr39.52 over the past week. Announcement • Oct 27
OKEA ASA Announces Dividend, Payment Date of 15 December 2023 (On or About) OKEA ASA announced dividend of NOK 1.00 per share, Last day including right of 30 November 2023, Ex-date of 1 December 2023, Record date of 4 December 2023 and Payment date of 15 December 2023 (on or about). Reported Earnings • Oct 27
Third quarter 2023 earnings released: EPS: kr0.31 (vs kr1.01 in 3Q 2022) Third quarter 2023 results: EPS: kr0.31 (down from kr1.01 in 3Q 2022). Revenue: kr2.11b (flat on 3Q 2022). Net income: kr32.4m (down 69% from 3Q 2022). Profit margin: 1.5% (down from 4.9% in 3Q 2022). Revenue is expected to fall by 3.8% p.a. on average during the next 3 years compared to a 11% decline forecast for the Oil and Gas industry in Norway. Over the last 3 years on average, earnings per share has increased by 66% per year but the company’s share price has increased by 72% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Oct 19
OKEA ASA Announces Impairment Charge for the Quarter OKEA ASA announced that impairment charge on the Yme asset to be recognised in the financial statements for the quarter is estimated to NOK 450 - 500 million (NOK 100 - 110 million after tax). Announcement • Oct 06
OKEA ASA Announces First Gas from Hasselmus OKEA ASA announced production from the Hasselmus gas discovery commenced on 1 October 2023. As a subsea tie-back to the Draugen platform, Hasselmus is expected to add 4,400 barrels of oil equivalents per day in production at plateau. The Hasselmus project is expected to recover approximately 1.65 GSm3 of natural gas and will restart export of associated gas and NGL from Draugen. The Hasselmus gas discovery is located on the western edge of the Trondelag platform in the Norwegian Sea, 7 km northwest of the Draugen platform. A single well (6407/9-9 T2) was drilled on the Hasselmus structure by A/S Norske Shell in 1999 which encountered a 16 meters gas column and a 6.8 meters oil column in high quality sands at a depth of 1,700 meters. Buying Opportunity • Oct 04
Now 23% undervalued Over the last 90 days, the stock is up 15%. The fair value is estimated to be kr45.14, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 58% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 42% in 2 years. Earnings is forecast to grow by 92% in the next 2 years. Major Estimate Revision • Sep 03
Consensus revenue estimates increase by 11% The consensus outlook for revenues in fiscal year 2023 has improved. 2023 revenue forecast increased from kr9.14b to kr10.2b. EPS estimate increased from kr7.82 to kr8.53 per share. Net income forecast to grow 75% next year vs 19% growth forecast for Oil and Gas industry in Norway. Consensus price target broadly unchanged at kr46.75. Share price was steady at kr39.28 over the past week. Upcoming Dividend • Aug 25
Upcoming dividend of kr1.00 per share at 10% yield Eligible shareholders must have bought the stock before 01 September 2023. Payment date: 15 September 2023. Payout ratio is a comfortable 57% and this is well supported by cash flows. Trailing yield: 10%. Within top quartile of Norwegian dividend payers (8.9%). Lower than average of industry peers (12%). Reported Earnings • Jul 14
Second quarter 2023 earnings released: EPS: kr0.66 (vs kr0.27 in 2Q 2022) Second quarter 2023 results: EPS: kr0.66 (up from kr0.27 in 2Q 2022). Revenue: kr1.71b (up 36% from 2Q 2022). Net income: kr68.9m (up 148% from 2Q 2022). Profit margin: 4.0% (up from 2.2% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 4.6% p.a. on average during the next 3 years, compared to a 12% decline forecast for the Oil and Gas industry in Norway. Over the last 3 years on average, earnings per share has increased by 85% per year but the company’s share price has only increased by 54% per year, which means it is significantly lagging earnings growth. Announcement • Jul 13
OKEA ASA Announces Cash Dividend for the Third Quarter 2023, Payable on or About 15 September 2023; Provides Dividend Guidance for the Fourth Quarter of 2023 OKEA ASA announced cash dividend for the third quarter 2023. Dividend amount: NOK 1.00 per share. Ex-date: 1 September 2023. Record date: 4 September 2023. Payment date: 15 September 2023 (on or about). Date of approval: 12 July 2023.The board is also reaffirming its intention to distribute NOK 1.00 per share in the fourth quarter of 2023 for a total intended dividend payment of NOK 4.00 per share in 2023. Future dividend payments in 2023 may be revised due to changes in the market environment, company situation and/or value accretive opportunities available.