Reference Date:
Heavy investments for production ready completion of Maromba field, with expected increased production on 2028 (pivotal year). This is not an equity story as it will be very difficult to see any payouts given the existing heavy debt load and 100% dependency of Clarksons projections on 70$/boe price. If the next 2 years the average oil price is lower, then.
Clarksons expect another bond of ~200mUSD on Q1-2026. On 60$/boe price scenario (2026-2030), company still the ability to fully fund all CAPEX and develop all projects, with net cash position of 101MUS at end of 2028 (also remaining within covenant levels).
On 50$/boe price scenario the company would need further funding. Still the company in such a scenario has the ability to postpone investments in Golfinho and Dussafu projects to preserve cash (~700mUSD according to Clarksons can be postponed). Maromba oil is Heavy, so a 7.5$/bbl to Brent is expected on the sale of oil from the field (this is included in the Clarksons price discount assumptions, see slide 23).
Capex and Opex to decrease significantly after from 2027 onwards. 2 bonds: 2024/2029 100m USD Snr Unsecured. (issued @ 100%), bullet, 10%, callable, Norwegian law, Nordic Trustee, Oslo stock exchange.
2029 BOND covenants include:
No dividend payment, repurchase of shares or other distribution or payment to shareholders, other than related to Group’s management incentives program. So this is a pure credit story (opportunistically to be assessed on stress scenario when oil price drop significantly).