Key aspects from the full financial review:
Total income in the second quarter 2021 amounted to MNOK 16.0, (0.0 in 2020). The increase is due to the acquisition of a 5% share in the Polarled gas pipeline with completion 30.11.2020. On an annual basis, delayed start-up of Dvalin has an estimated impact of 18 MNOK on the revenues, meaning MVE had expected approximately 4.5 MNOK more in revenues for the second quarter of 2021.
Operating loss for the period was MNOK 1.4 (10.8 MNOK in 2020), where the improvement from 2020 was caused by an increase in revenues. The total operating expenses amounted to MNOK 17.4 (10.8 MNOK in 2020). The difference is a consequence of increased activity in PL972, the Vette discovery, and depreciations of the Polarled gas pipeline acquired in Q4 2020.
The company currently holds ownership in five exploration licenses on the NCS. Two of these, PL 972 (Vette) and PL 528 (Ivory), are currently being evaluated for development and operation (PDO), while three are being evaluated for their exploration potential. In addition, the company holds a 5% ownership in the Polarled pipeline that transports gas from Aasta Hansteen and surrounding areas to the Nyhamna gas processing plant. The ownership in Polarled is estimated to cover the company’s operational expenses.
The initial budgets for Polarled presented by the operator included tariff income from the Dvalin gas field in 2021. Test production on Dvalin showed elevated levels of mercury. These are levels that do not compromise the Polarled pipeline, but are too high for the Nyhamna Gas Plant, where mercury filters need to be installed. M Vest Energy estimate a negative impact on the revenues for 2021 of approximately 18 MNOK due to the delayed start-up. Planned start-up on Dvalin is H2 2022.
Full interim financial report 2021 Q2: Interim financial report 2021 Q2