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Introduction & Market Context
BlueNord ASA (OB:BNOR) presented its first quarter 2025 results on May 14, highlighting strong operational performance and significant progress on its Tyra project. The company’s shares closed at 606 on May 13, 2025, down 1.14% ahead of the presentation.
The Danish oil and gas producer emphasized its alignment with European energy security objectives, positioning itself as a lower-emissions alternative to imported LNG. With operations centered in Denmark’s supportive regulatory environment, BlueNord continues to benefit from the country’s commitment to maximizing economic recovery before the 2050 end date for oil and gas production.
Quarterly Performance Highlights
BlueNord reported solid operational and financial results for Q1 2025, with total production reaching 29.8 mboe/d. The company’s base assets (Halfdan, Dan, and Gorm) contributed 20.9 mboe/d, while the Tyra field added 8.9 mboe/d as its ramp-up continues.
As shown in the following comprehensive performance overview, the company achieved revenue of $171 million, EBITDA of $80 million, and operating cashflow of $55 million during the quarter:
The company announced a proposed Q1 2025 distribution of $38 million, representing 70% of operating cashflow. This distribution is subject to the RBL Completion Test, which requires an average gas export of 191 mmscf/d over a 30-day period, expected to be met in early June.
BlueNord’s distribution policy aims to return between 50-70% of operating cashflow to shareholders during 2024-2026, as illustrated in this chart:
Tyra Ramp-Up Progress
The Tyra project, a cornerstone of BlueNord’s growth strategy, is nearing completion of its ramp-up phase. Current peak production has reached approximately 26 mboe/d, with expectations of a plateau at around 30 mboe/d. Management noted that 91% of wells are commissioned, but less than 50% are currently on production.
The following chart shows the Tyra production ramp-up progress and expected plateau levels:
CEO Euan Shirlaw highlighted that the wells are delivering above expectations, with higher liquids production than anticipated. The company also noted potential for gas export to increase by approximately 35% before reaching IP compressor capacity constraints.
"We’re seeing strong reservoir performance at Tyra," said Shirlaw. "The plateau production is expected in May 2025, and we’re continuing work to increase Tyra’s production potential by commissioning additional wells and addressing minor issues with valves and chokes."
Financial Performance Analysis
BlueNord’s Q1 2025 financial results reflect the ongoing transition as Tyra volumes increase. Revenue mix is shifting toward gas, though Q1 was impacted by gas penalties due to operational incidents. Operating expenses increased to $89 million, up from $74 million in Q4 2024, primarily due to workovers replacing infill drilling and higher transportation costs associated with increased gas volumes.
The following charts illustrate the company’s earnings highlights for Q1 2025:
The company’s balance sheet remains solid, with a significant increase in cash attributed to a reduction in restricted cash. Available liquidity totaled $684 million at the end of Q1, consisting of $414 million in cash and $270 million in undrawn RBL facilities.
BlueNord’s hedging strategy aims to provide cashflow visibility, with approximately 52% of 2025 oil production and 58% of 2025 gas production hedged. The following chart details the company’s hedge portfolio:
Cost Optimization Initiatives
A key focus of the presentation was BlueNord’s efforts to optimize rig activities and drive significant cost reductions. The company plans to release two rigs in 2025, with the rig for infill drilling to be re-contracted for mid-2026. Additionally, switching to platform-based WROM (Well Repair and Optimization Maintenance) activities is expected to result in substantial capex savings.
The following chart illustrates the financial impact of these optimization efforts:
These initiatives are expected to result in higher near-term cashflow, with deferred Halfdan infill wells generating a net cashflow benefit of $13 million and Gorm WROM modifications adding $11 million to cashflow.
Forward-Looking Statements
BlueNord anticipates a transformational year in 2025, with production expected to more than double compared to 2024 levels. The company projects a significant performance step-change, including a 45% gas weighting, approximately 50% decrease in lifting costs, and 30% reduction in emissions intensity.
The following chart illustrates the expected performance improvements in 2025:
Looking further ahead, BlueNord presented a stable outlook for production, with an attractive organic portfolio supporting robust production of approximately 50 mboe/d during 2025-2030. The company has plans to add above 60 mmboe of resources, focusing on maximizing the use of existing infrastructure.
"Our long-term potential exists to mitigate decline and maintain plateau production levels after Tyra is on stream," said CFO Jacqueline Lindmark Boye. "Decisions to invest further will need to support long-term cashflow generation potential."
With 2P reserves of 194 mmboe and near-term 2C resources of 28 mmboe, BlueNord appears well-positioned to deliver on its commitment to maximizing shareholder returns while maintaining a conservative capital structure.
Full presentation:
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