OKEA raises lower end of 2026 production guidance to 31,000 barrels per day
Key Facts
OKEA raised the lower end of its 2026 production guidance to 31 thousand barrels of oil equivalent per day, narrowing the range to 31–32 thousand from 29–32 thousand, according to the third-quarter results announced by the company. It attributed the update to strong operational execution during the quarter and the start-up of the Garn West South well. CEO Svein J. Liknes said the company was “well positioned to push 2026 production toward the upper end of the guidance range.” Net production in the third quarter was 29.1 thousand barrels of oil equivalent per day, up from 27.0 thousand in the second quarter. Production efficiency also rose to 89% from 83% in the previous period.
OKEA said production growth compared with the second quarter mainly reflected fewer planned maintenance shutdowns. Maintenance work in the third quarter was concentrated mainly at the Draugen field. In the second quarter, maintenance covered the Brage, Statfjord B and Ivar Aasen fields. This difference in the maintenance schedule provides context for the quarterly production increase, alongside the start-up of Garn West South, which the company linked to its full-year guidance update. Year on year, third-quarter production remained below the level recorded a year earlier, at 29.1 thousand barrels of oil equivalent per day versus 31.7 thousand in the third quarter of 2025.
On financial results, the company posted operating revenue of $332 million in the third quarter, compared with $334 million in the second quarter. Earnings before interest, taxes, depreciation and amortization were $192 million, compared with $207 million in the previous period. Net profit, by contrast, rose to $29 million from $14 million. The company said the increase in the realized natural gas price to $121.3 per barrel of oil equivalent from $88.1 offset more than the effect of lower sales volumes and a decline in realized crude prices. Net sales volumes fell to 33.4 thousand barrels of oil equivalent per day, from 34.4 thousand in the second quarter and 36.3 thousand a year earlier.
Cash flow from operations was $182 million in the third quarter, up from $179 million in the second quarter, while investing activities recorded a net cash outflow of $67 million. At quarter-end, the company had net cash of $180 million, compared with $59 million at the end of the previous quarter. In asset-related items, OKEA recorded impairment losses of $33 million linked to a Statfjord asset. The company attributed the losses to lower volume estimates and higher capital expenditure, partly offset by higher forward prices. These items accompanied an improvement in net profit, while operating revenue and earnings before interest, taxes, depreciation and amortization declined quarter on quarter.
OKEA also revised its 2026 capital expenditure guidance, narrowing the range to $320–340 million from $300–360 million. For 2027, the company raised the range to $260–320 million, compared with previous guidance of $230–290 million. It attributed the planned increase in 2027 spending to the accelerated drilling of the Springmus East production well at Draugen. It left 2027 production guidance unchanged at 39–43 thousand barrels of oil equivalent per day. The company said Bestla is expected to start production before the end of 2026, ahead of schedule and at an expected cost below previous estimates.
The company announced the resumption of quarterly distributions, with a first payment of NOK 2.00 per share in December 2026. It said it intends to maintain quarterly distributions of at least NOK 1.00 per share during 2027. In trading, Investing.com data showed the stock closed at NOK 48.50 in the November 3 session, up 3.97% during the session. Norges Bank’s policy rate was 4.5%, with November 5, 2026 set as the date for its next decision announcement. The available data did not establish the market’s expectations for the rate decision.