Fubotv earnings beat by $0.10, revenue topped estimates
Introduction & Market Context
BlueNord ASA (OB:BNOR) presented its second quarter 2025 results on July 10, highlighting significant growth driven by the successful ramp-up of its Tyra field. The company, which trades at NOK 522 per share, has positioned itself as a key player in European energy security by enabling Denmark to become a net exporter of natural gas while maintaining lower emissions intensity compared to LNG imports.
The presentation, delivered by CEO Euan Shirlaw and his executive team, emphasized BlueNord’s commitment to "Delivering Growth, Delivering Returns" as the company continues its transformation following the successful completion of the Tyra redevelopment project.
Quarterly Performance Highlights
BlueNord reported substantial quarter-over-quarter improvements across key financial metrics. Revenue jumped to $260 million, a 52% increase from Q1’s $171 million, while EBITDA surged 66% to $133 million compared to $80 million in the previous quarter. The company achieved a positive net result of $19 million for the quarter.
Total (EPA:TTEF) production reached 37.8 mboe/d, with 21.0 mboe/d coming from the base assets (Halfdan, Dan, and Gorm) and 16.8 mboe/d from Tyra. This represents a significant step-up from previous quarters and aligns with the company’s growth strategy.
As shown in the following earnings highlights:
The company’s operating expenses totaled $89 million, which includes ongoing workover activities. However, BlueNord noted that opex is declining on a per barrel basis as Tyra production stabilizes, contributing to improved contribution margins.
Tyra Production Ramp-Up
The Tyra field has emerged as the primary growth driver for BlueNord, with the company announcing that the RBL Completion Test was successfully met in June. Peak production reached approximately 28 mboe/d, exceeding earlier expectations, with the company now targeting a plateau of around 30 mboe/d.
Current production stands at approximately 26 mboe/d with 87% operating efficiency, as the operator focuses on improving process reliability and operational efficiency. The company has revised its Tyra production guidance upward for the remainder of 2025, now expecting 22 mboe/d in Q3 and 26 mboe/d in Q4.
The following chart illustrates the Tyra ramp-up progress:
"Reservoir performance to date has been strong, delivering export volumes from up to c. 70% of Tyra well stock," the company noted in its presentation, adding that the operator is conducting reliability studies to ensure stable operations and high operational efficiency.
Shareholder Returns & Capital Structure
BlueNord emphasized its commitment to returning capital to shareholders, proposing a Q2 distribution of $49 million, representing 70% of Net Operating Cashflow. Additionally, the company announced a share buy-back program of up to $50 million expected to launch on July 14.
The total distributions paid and proposed to date amount to $302 million, including $203 million in paid cash dividends, $49 million in proposed dividends, and $50 million in share buy-backs. The company reaffirmed its distribution policy of 50-70% of Net Operating Cashflow until the end of 2026.
As illustrated in the following visualization of the distribution strategy:
A significant development in BlueNord’s capital structure was the refinancing of the BNOR15 bond, which eliminates share dilution of approximately 16% that would have resulted from mandatory conversion to equity. The refinancing is funded by the issuance of BNOR17, a non-dilutive hybrid bond with a 12% coupon and maturity in 2085.
The company reported strong liquidity of $718 million at the end of Q2, supporting its shareholder return initiatives while maintaining financial flexibility.
Strategic Outlook & Growth Initiatives
BlueNord presented a stable long-term production outlook, highlighting its potential to mitigate decline and maintain plateau production levels after Tyra reaches full capacity. The company’s 2P reserves stand at 194 mmboe, with an additional 28 mmboe in near-term 2C resources.
The company outlined several attractive investment projects, including three planned unmanned platforms focusing on the use of existing infrastructure. These projects aim to bring an additional 65+ mmboe into production with competitive costs: unit technical cost below $20/boe for developments and unit development costs below $13/boe for the infill program.
The following chart demonstrates the company’s long-term production outlook:
BlueNord also emphasized Denmark’s supportive regulatory framework, noting that its operations align with Danish and EU energy security objectives. The company highlighted that Danish oil and gas activities are estimated to deliver state revenues of approximately DKK 55 billion during the next 15 years.
Forward-Looking Statements
Looking ahead, BlueNord expects to maintain its hedging strategy, with approximately 54% of 2025 and 39% of 2026 oil production hedged at an average price of $73.1 per barrel. For gas, about 61% of 2025 and 40% of 2026 production is hedged.
The hedge portfolio details are illustrated here:
Capital expenditure guidance for 2025 remains at $50-60 million, with minimal spending reported in Q2. The company also noted that an organizational restructure completed in Q2 will deliver over $1.5 million per year in G&A savings going forward.
BlueNord’s transformational growth strategy aims to double production while reducing lifting costs by approximately 50% and emissions intensity by about 30%. The company remains focused on leveraging its strong base production while maximizing returns from the Tyra development to deliver sustainable shareholder value.
With its robust financial performance, successful Tyra ramp-up, and commitment to shareholder returns, BlueNord appears well-positioned to execute its strategy of "Delivering Growth, Delivering Returns" through 2025 and beyond.
Full presentation:
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.