The company issues this statement to summarize its production and sales volumes and certain accounting-related topics for the quarter.
Oil and gas production and sales
Oil price hedging
The company is using oil put options for protection of near-term cash flow against sharp drops in the oil price. In the second quarter, the company realized gains on these instruments of
Reversal of impairments
Following the partial recovery in oil prices observed in the second quarter, the company expects to reverse parts of the impairments from the first quarter, amounting to
Financial items
The USDNOK exchange rate decreased from 10.4 to 9.6 during the second quarter. This had a positive effect on financial items. Net financial expenses are hence estimated to approximately
Taxes
The company expects to report a positive pre-tax result for the second quarter. Still, a minor tax credit is expected. This is mainly caused by increased uplift introduced with the temporary changes to Norwegian petroleum tax, and by a positive currency effect on the value of the company's tax balances.
Cash tax payments in the second quarter amounted to
Conference call and webcast
The company will host a conference call to present its second quarter 2020 results on
Contact:
Tel: +47 2350 0296
Disclaimer
The information in this statement is based on a preliminary assessment of the company's second quarter 2020 financial results. The company has not completed its financial reporting and related review and control procedures. The estimates provided may therefore be subject to change and the financial statements finally approved and released by the company may deviate materially from the information herein.
Contact:
Tel: +47 918 89 889
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