BlueNord ASA

Good morning everyone and thanks for joining us for our Q1 results. It's been a volatile couple of months, so before going into how Blue Nord has performed over the last quarter, I want to start by giving some colour up front on what we think that means for us. If I look back to the turn of the year, we felt like we were well set. We were fully prepared to deliver on our return commitments based on $60 oil. That was ultimately the benefit of the design of our distribution policy. We'd be in good shape regardless of the commodity price environment. The whole point was to have something flexible and therefore resilient. I think it's fair to say that everybody who's going to be listening today is familiar with what's happened since. The conflict in Iran has put energy security back at the top of the agenda and has pushed prices higher. And the same structure that was set up to protect on the downside will now let shareholders fully capture the upside. Higher prices are going to translate directly into higher returns. Now, you're going to be happy to hear that I'm not going to stand in front of you today and tell you that I know where prices go from here. But thankfully, that isn't our job. Our job is firstly to make sure that Blue Nord is positioned for all eventualities. And secondly, to make sure that we're getting everything we can out of the business, regardless of the commodity price environment. And on both those points, I think that we're well set. So firstly, the structure of the distribution policy means that 70% of operating cash flow goes back to you. So when prices rise, shareholders feel it quickly. But it's also important to note that the 30% that we keep also goes further in dollar terms, which means that the balance sheet keeps getting stronger in the background. Turning then to the capital structure. So we've always been proactive in making sure that it reflects both the strength of our balance sheet and the underlying strength of our business. And today we're continuing in that vein. We announced that we intend to have meetings with fixed income investors this week with a view to a possible refinancing of BNOR16. That's the backdrop. Now, if we turn to the next slide, we can start going through how we've performed over the last three months. Before we get into the detail, I want to give a quick reminder of who we are for anyone that might be newer to the story. Blue Nord is an independent E&P focused on Denmark. We're producing over 40,000 barrels of oil equivalent per day through our 36.8% non-operated interest in the DUC. that's operated by Total Energies. What this position gives us is exposure to four hubs, 14 producing fields and resources of around 200 million barrels of oil equivalent. It's a high quality, well diversified portfolio. The base, Dan, Halfdan and Gorm, has been producing for a long time. It's low decline, it's predictable and it does what it's supposed to do quarter after quarter. Tyra remains the growth engine, even though we've already seen that step change in production and cash flow generation that we've been talking about come through, there is more room to run. So you've got stability underneath and momentum on top. That combination, together with our tax loss position, drives not only our cash flow and distribution profiles, it's also what makes us particularly relevant to European energy security. And if we turn to the next slide, we'll talk about that. So if the last few months in particular have taught us anything, it's that where energy, and in this case oil and gas, comes from matters. Producing locally for local use has real benefits, not least less reliance on imports and therefore less geopolitical risk. The DUC sits right at the heart of that. It's the bulk of Danish oil and gas production. And with Tyra back online, Denmark is once again a net exporter of natural gas, contributing directly to EU energy security. But what's Denmark like as a place to operate? Well, the regulation is clear, the fiscal regime is steady, and there's an honest recognition from policymakers that domestic gas has a role to play in the translation. That last point in particular isn't always the case in Europe, so we don't take it for granted. But in that vein, it was genuinely encouraging to see the government signal recently that it would look at extending the DUC license from 2042 out to 2050. Landing that extension will be meaningful for us. It gives more time to produce the volumes that we already have, more time to invest in the projects that we've already identified, and financially, pushing abandonment further out enhances the long-term profile of our business. Now let's turn to the next slide and look at how we intend to make the most out of the position that we have to drive volume. I'm happy to say that the story here is actually pretty simple, and we do like to keep it that way. We've got a stable, low decline production base. We've got Tyra, which has already delivered a step change with more to come. And we've got a clear plan to hold production at or around current levels through at least the end of the decade. That last point leads nicely to one thing that I want to be really clear about. We're focused on value, not volume. Our plan is built on real projects, not the promise of new volumes that need to be found through exploration. But equally, we're not trying to maintain or grow production for the sake of it. Every project that we have has to be genuinely additive. And it's our discipline here that feeds the cash flow story. Higher prices help in the near term, but the structural piece is that we've got a lower cost base and flexibility on CapEx. That's the model. We generate cash, we return as much of it as we sustainably can, and we keep deleveraging in the background. For the scorecard on that, let's turn to the next slide. So distributions are the core pillar of our equity story, returning capital to shareholders. In early 2024, we set a distribution policy that would see us return between 50 and 70% of operating cash flow through to the end of 2026. Since then, we've consistently delivered at the top end of that range. So far, across 2024 and 2025, we've returned over $500 million. And if I include the Q1 distribution that we're proposing today in that total, that takes us past $600 million. Looking forward, the position that we have in 2026 is significantly stronger than we expected it to be when we originally set our current distribution policy. Two reasons. The first is because the Tyra ramp up took longer than we expected, our tax loss position is now set to shield us from hydrocarbon taxes well into 2027. Second, under the existing policy and with higher prices in the near term, the cash we keep, that 30% of operating cash flow, is also bigger in absolute terms. So the balance sheet gets stronger at the same time as returns get larger. It's not one or the other, you get both. And that's also particularly relevant in the context of the potential BNR16 refinancing that we announced this morning. As we keep deleveraging, we want to make sure that we've got the flexibility to set distributions at a level that reflect the strength of the business and the cash flow that it generates. We'll set the distribution policy for 2027 onwards in due course, but I hope the direction of travel is clear to everyone. We'll continue to be a company that targets an attractive return to shareholders, and in setting that policy, we'll continue to take into account four main things. First, our ability to manage our debt commitments, including the hybrid. Second, capital for our investment and operational plans. Third, maintaining a strong liquidity position. And fourth, making sure that we have a sustainable capital structure through the cycle. And with that, let's turn to the next slide and the performance summary for the quarter. Miriam, Catherine and Jacqueline are going to take you through the detail in a moment, so I'm going to keep this as short as I can and just focus on the headlines. It was a good quarter for us, both on operations and financials. Production came in just over 43,000 barrels of oil equivalent per day, about 20 from the base and just under 23 from Tyra. So the base is doing what it always does, producing steadily, and Tyra has already delivered the step change growth that we expected. That said, Tyra does still have further to run, so we're absolutely not declaring victory yet. There's still work to do to get the full potential out of the hub, but the direction of travel is positive. We had fewer unplanned shutdowns this quarter, it's running more steadily, and with the operator focused on fixing some of the identified constraints, we see a clear path to reaching peak production in the second half of the year. That's in line with the 2026 guidance that we set out last quarter. On the financial side, we delivered $318 million of revenue in Q1, just over $200 million of EBITDA and $141 million of net operating cash flow. Because prices rose sharply in March, we did have a working capital build at the end of the quarter, but we'll see that start to come through in Q2. On the capital structure, leverage is down to around 1.7 times and liquidity sits at around $460 million. So finally, the message that I want to leave you here is straightforward. We're delivering, we're generating cash, we're returning it, and the balance sheet is getting stronger. And that's exactly what we plan to keep doing. And with that, I'll hand over to Miriam. Thank you.

Thank you, Johan. And as Johan said, I will now take you through the operational performance for the quarter. Overall, our Q1 performance was driven by three key things. The resilience of our base assets, continued momentum at Tyra, and disciplined execution across the portfolio. We delivered within guidance for the quarter, and importantly, we achieved our highest quarterly production since the restart of Tyra. Dan, Haften and Gorm provided stable and reliable performance, while Tyra continues its progression from stabilization into growth. I will now show how this performance underpins our continued operational momentum and supports a clear pathway to further value creation through 2026. Let me start with an overview of the total production for the quarter. We have delivered consistent production growth over the past five quarters. This reflects both the resilience of our base assets and the continued progress on Tyra. Q1 delivered the highest average quarterly production since Tyra restart at 43.1 thousand barrels of oil equivalent per day. This achievement underlines the progress on operational performance that the operator Total Energies has delivered. Looking ahead, tyre continues to drive near-term production growth, while our base assets remain reliable contributors to overall DOC performance. Targeted maintenance through the year supports stable operations, and our focus remains on maximising asset performance while reducing operating costs. During Q1, our base assets delivered resilient performance, with average production of 20.1 thousand barrels of oil equivalent per day. On GORM, the benefits of Lifetime Extension Programme are now clearly materialising, with operational efficiency exceeding 95% in March. Early in the quarter, GORN production was impacted by lift gas compressor issues and weather-related delays following a generator trip. Once resolved, production stabilized and exceeded expectations towards the end of the quarter. On DAN, underlying production potential remained robust, although realized production was temporarily impacted by compressor-related trips and an internal multiphase flowline leak. These issues were resolved and production recovered as the quarter progressed. Halfdan delivered stable production overall, with short-term reductions linked to vibration issues on a compressor from mid-February. Normal operations were fully restored from mid-March. ROM activities on GORM will commence soon and continue through 2026. The work will be executed cost-effectively from the platform. DAN rightsizing activities have been initiated to reduce OPEX. So looking ahead, we expect stable contributions from the base assets through 2026. Planned maintenance will cause short-term production impacts, but this work is essential to maintain long-term integrity and high operational efficiency. Turning to Tyra. Q1 showed clear operational progress. we delivered a quarter-on-quarter increase in both production and operational efficiency, with average production of 22.9 thousand barrels of oil equivalent per day, the strongest quarterly performance since restart of Tyra. Tyra did experience operational issues during the quarter. Each of them resolved within less than 24 hours. Issues were mainly related to facility work, third-party and weather. And in the stable periods, Tire delivered around 25,000 barrels of oil equivalent per day. In Q4 2025, Tire demonstrated that the facilities can operate with very high reliability, achieving 95% uptime in December. Overall, operational efficiency in the same quarter was 69%, reflecting that not all wells were online and capacity constraints remained. An average operational efficiency of 80% was achieved in Q1, which marks a clear improvement since last quarter and provides a strong foundation for continued performance uplift, reflecting increase in available weld potential and a reduction in capacity constraints. Our focus to unlock full tyre potential is centred on three areas. Firstly, to increase available weld potential. Secondly, to improve processing and export capacity. And thirdly, to rectify reliability issues. Processing conditions have improved, supported by several upgrades to liquids handling, and the operator continues to optimize processing and export. The planned October 25 shutdown materially improves stability, and a further shutdown in June will address key reliability upgrades to the surface system to support more stable operations going forward. The improvement in stability has supported bringing more wells on stream. The March Walk to Work campaign successfully brought five additional wells on stream, materially increasing available well potential. A few operational steps remain to further increase production. I will provide more details on this on the next slide. Overall, we see consistent quarter-on-quarter improvement, underpinning our confidence in Tyre's path to higher stable production and its role as a cornerstone asset. At full capacity, Tyre will also materially improve our cost base, which Jacqueline will cover in more detail later. As highlighted, operational reliability and stability continue to improve, enabling more wells to be brought on stream. A small number of operational impacts to production have been identified, with clear steps defined to further increase production. The production from the Herald East Mid Jurassic Well, Hemtje, is currently constrained by surface choke capacity. The reservoir is performing as expected, but the size of the existing choke limits the flow at surface. This was a known constraint, but we need a shutdown to replace the choke. A larger choke will be installed during the already planned June shutdown. Oil and water challenges related to a small number of wells have been observed. To manage this, some of the wells have been choked or temporarily shut in. This was observed when a few particular wells came on stream. To mitigate this, water treatment optimization is currently underway to restore full capacity. As additional wells are brought online, well slugging has at times affected process stability, requiring wells to be temporarily choked or shut in. Work is ongoing to further strengthen separation robustness and operability. So in summary, these impacts are temporary, operational and surface related, not well or reservoir driven. Mitigation are progressing according to plan and resolving these is a key step in converting improved operational stability into higher, more sustained production. To summarize the TIRA status, operation efficiency has improved more than 10% since Q4 2025. And whilst a few minor production impacts have been identified, there are mitigations underway. Both well and reservoir performance are maintaining robust levels. The operator continues to focus on process stability, reliability and unlocking the full well potential to further drive sustained production growth at TIRA. The plant shutdown in June 2026 will deliver key reliability upgrades to enhance the operational stability. Tyre production has increased quarter-and-quarter since restart, and efforts in this second quarter are expected to further increase production output during the second half of 2026. Our strategy is to maintain momentum, maximize the value of our assets and ensure long-term stability for Tyre. And with this overview of operational performance, I will now hand over to Catherine, our Chief Corporate Affairs Officer, who will take you through the long-term outlook for BlueNord. Thank you.

Thank you very much, Miriam, and good morning to everyone.