Euan Shirlaw: Good morning, everyone, and welcome to BlueNord's Q3 Results Presentation. As I am sure everyone listening is aware, things are a little bit different for BlueNord today. While this may be our final presentation as an independent company, we are going to stick to the format that has worked for us in the past. We will go through BlueNord's performance in the usual way, with Miriam, Cathrine, and Jacqueline taking you through the detail. As always, you can submit questions as we go, and we will come back and answer them at the end. Before we do any of that, let's turn to the first slide and spend a few minutes on the merger with Vår Energi and why we believe it is the right next step for our business.
Euan Shirlaw: If I cast my mind back to 1 August 2019, we had just completed the acquisition of Shell's Danish assets, and it was my first day as CFO. At that point, there was really only one objective for us, and that was to get through the Tyra redevelopment. We knew that it was going to be tough. We probably just did not know that it was going to be COVID tough. Getting through was not just an operational issue. It was also making sure that we had the funding and the balance sheet to see it through. Over time, that focus then broadened out from just getting Tyra done to making sure that we were focused on what Tyra meant for us as a company afterwards.
Euan Shirlaw: When I became CEO in 2022, it was about also making sure that we allocated the cash that the business would generate properly. What that meant in practice was returning it to the shareholders who had supported us along the way. If I look back now, I think that it is fair to say, at least from my perspective, that as a company, we really did deliver on both of those objectives. I think that is a helpful backdrop when we then go to think about the merger. Seven years on, BlueNord is a very different business. Tyra is back in production. We have a high-quality, long-life asset base with significant opportunities ahead of us. Importantly, we have also returned close to $800 million to our shareholders in a little over 12 months.
Euan Shirlaw: While we have demonstrated that we can be successful as an independent company, we are still a relatively concentrated business with assets focused in Denmark, and that is where the relevance of the merger comes in. Our assets are a natural fit with Vår's, both geographically and geologically. Bringing the two businesses together gives us greater scale, more diversification, and a stronger balance sheet. We believe that puts the business in a much better position to manage the cycle, invest in the assets, and deliver long-term returns for our shareholders. If we just turn onto the next slide, you can get a sense of the scale of that combination. As you can see, together, BlueNord and Vår is expected to create the largest independent oil and gas company in Europe, with the DUC becoming Vår's fifth hub.
Euan Shirlaw: In terms of where the transaction stands today, our shareholders approved the merger in August, and since then, we have been working with Vår to satisfy the remaining conditions, including the necessary regulatory and government approvals. We continue to expect completion around the end of the year, subject, of course, to those conditions. Until then, our focus remains solely on running BlueNord as we always have. I think the results that we are reporting today demonstrate that. Overall, BlueNord delivered a strong Q3 with a significant improvement in Tyra performance and solid financial results. Starting with production, we averaged 43.6 thousand BOE per day, in line with guidance, with 26,000 coming from Tyra. Tyra really was the operational highlight for us. Following the June maintenance campaign, we have seen a real step change in performance.
Euan Shirlaw: We have had production days approaching 30,000 BOE net to BlueNord, alongside record gross gas exports above 250 million cubic feet per day. Importantly, we have also seen much more stable operations. When we have had issues and the field has shut down, we have had the ability to get the field up much more quickly, and we have had far fewer shutdowns than we have seen previously. Looking forward, we have guided Q4 production of between 42 and 49 thousand barrels a day, and Miriam will take you through that operational detail shortly. Turning to financials, revenue was $346 million, with adjusted EBITDA of $221 million. We also saw a meaningful reduction in operating costs compared to Q2. Net operating cash flow was around $70 million, reflecting working capital moves and tax payments in the period. We ended Q3 with liquidity of $392 million.
Euan Shirlaw: Jacqueline will talk about the financial side in more detail shortly. Finally, on shareholder distributions, under the merger plan, we will not, as an independent company, be declaring any further BlueNord dividends before completion. However, the plan does provide for cash compensation to our shareholders for qualifying Vår dividends ahead of completion. With that, I will hand over to Miriam for the operational review, followed by Cathrine, and then Jacqueline for the financials, and then I will come back at the end to sum up. Thank you. Miriam?
Miriam Jager Lykke: Thank you, Euan. As Euan mentioned, I will now take you through our operational performance for the quarter. Q3 showed the benefit of the work completed earlier in the year. Production reached the highest quarterly level since restart, as Tyra production stepped up after the June shutdown, and the base assets delivered through planned maintenance. The base assets delivered within our guidance range despite temporary integrity constraints on Dan and Gorm, which were resolved by the end of the quarter. At Tyra, production increased significantly compared with Q2, reflecting the benefits of the improvements delivered during the planned June maintenance. Q3 also marked a new milestone in operational stability, achieving the most consecutive days without shutdown since restart. Tyra also delivered within our guidance range. I will now show you an overview of total production for the quarter.
Miriam Jager Lykke: Q3 production reached 43,000 barrels of oil equivalent per day, the highest quarterly level since Tyra restart. That compares with 43.1 in Q1, the previous high, and 37.2 in Q2, when planned shutdowns at Gorm and Tyra impacted the production. Tyra was a key driver, increasing from 19.3 in Q2 to 26 in Q3. The base assets contributed 17,000 barrels of oil equivalent per day, delivering through planned maintenance. This quarter, Tyra delivered a step change in performance. Following the planned June shutdown, we saw record production days close to 30,000 barrels of oil equivalent per day and gas export at maximum capacity. We exited the quarter at approximately 50,000 barrels of oil equivalent per day, giving us strong momentum going into Q4. Let me now take you through what lies behind this performance, starting with the base assets.
Miriam Jager Lykke: In Q3, our base assets produced 17,000 barrels of oil equivalent per day within the 17 to 19 guidance range in a quarter with planned maintenance and some integrity constraints. Planned maintenance at the Halfdan hub was safely completed, running from late July to late August, with full rates resumed afterwards. Halfdan remained stable with high efficiency above 95% in September. On Gorm, July production was limited by lift gas constraints during compressor maintenance and was stable thereafter. The Well Three campaign is progressing, with three of the six well intervention completed, with gains still to be confirmed. The campaign is expected to unlock additional production potential. On Dan, the integrity constraints were resolved by quarter end, and Kraka returned in August after the manifold replacement and was shut in again for a period in September for corroded flowline repair.
Miriam Jager Lykke: The repairs are complete, and production was back towards expected levels by quarter end. Looking ahead, Q4 is positioned for stronger base asset production with limited planned maintenance. The only planned activity is a partial shutdown on Gorm in November for compressor maintenance. This is supporting a guidance range of 18 to 20,000 barrels of oil equivalent per day in Q4. Turning to Tyra, the planned June shutdown delivered key production and reliability improvements, and the benefits are now clearly visible. As presented previously, our focus has been on three key areas: increasing available well potential, improving processing capacity and export capability, and strengthening operational reliability. The shutdown scope was designed to address constraint in each of these areas, and it was executed safely and successfully.
Miriam Jager Lykke: Starting with well potential, the Harald debottlenecking, including the choke replacement and the rerouting of well production, was the main driver of the step change in Tyra production after the shutdown. On processing capacity, the shutdown rectified the underlying causes of reduced performance of the Tyra LP separator. Maximum gross gas export has increased from about 215 to around 250 million standard cubic feet per day, and gas production rates are now around export capacity level. The shutdown also delivered reliability improvements, and we have seen fewer unplanned shutdowns, and recovery from production upsets is now faster. The successful pigging of the Harald pipeline in September was the first milestone to unlock production from Lulita. Overall, the message is that the benefits from all the work carried out on Tyra are now being realized. Net production reached a daily record close to 30,000 barrels of oil equivalent per day.
Miriam Jager Lykke: The highest production day, week, and months since startup were all achieved in Q3. In summary, the shutdown delivered the improvements needed to remove constraints, and Tyra is now operating at a significantly higher and more stable level. To summarize the Tyra status, we continue to see solid progress at Tyra. Q3 production reached 26,000 BOE per day, and well and reservoir performance remain robust. Q3 also set the record for most consecutive days without a shutdown. Further process optimization is underway to support higher and more stable production. Separation is still to be optimized, particularly in relation to emulsions, and a field trial to optimize this is ongoing. Upcoming activity is an inspection of the Harald-to-Tyra condensate pipeline in December, with production impact reflected in the guidance.
Miriam Jager Lykke: Together with the improvements already delivered, these support our expectation of more stable operations and high production levels in Q4, with guidance of 24,000 to 29,000 BOE per day. Our strategy remains clear: Maintain momentum, maximize the value of our assets, and deliver the full long-term potential of Tyra. I will now hand over to Cathrine, our Chief Corporate Affairs Officer, who will take you through the long-term outlook for BlueNord. Thank you.
Cathrine Torgersen: Thank you, Miriam, and good morning to everyone. Speaking to the opportunity set and future of BlueNord will be a bit shorter this time. However, there are a few messages related to the license and the future high-graded projects I want to touch upon. BlueNord's current and future production is of great strategic importance, not only from an energy security perspective, but also as a direct source of revenue to the Danish economy. Oil and gas revenues support the Danish welfare society through tax revenues, both from the companies and also through its state-owned entity, Nordsøfonden, which has a 20% interest in the DUC. Since the beginning of this year, the Danish Ministry of Climate, Energy and Utilities have been exploring a potential extension of the DUC license to 2050. We believe it is important that Denmark now decides to take a responsible and pragmatic approach.
Cathrine Torgersen: It needs to recognize its role in the European energy markets. Today, EU is highly dependent on imported energy. Almost 60% of the current oil and gas consumption is imported from other countries. Of those volumes, only 37% of the imported gas and 21% of the imported oil comes from democratic countries. The current escalated geopolitical uncertainty really underlines the strategic importance of having reliable European energy supply. Danish oil and gas production continues to play this role in supporting regional energy security, providing stable, lower emission, and domestically sourced volumes that reduce reliance on imported alternatives. Denmark has now the opportunity to make a tangible contribution in reducing Europe's dependence on imported energy.
Cathrine Torgersen: Regardless of the ongoing discussions related to the license specifically, we still have a strong set of high-graded projects, which are set to boost production medium and longer term, and also support the new updated production profile of Vår Energi. These are a combination of right-sized development projects and infill wells. For the development projects, I will start with Halfdan North and Valdemar South. Both have been reworked to simplify the complexity of each project and also to reduce CapEx significantly. This means that even though you develop the projects in ways which deliver slightly less volumes, each barrel is going to be more profitable compared to the original plan. While we continue to see a very strong commodity price environment today, these projects are also well set for future and can sustain any low-price scenario.
Cathrine Torgersen: The third project, which is most likely the first one to be sanctioned by the DUC, is going to be Tyra North. Tyra North is a tieback to the new Tyra facilities, further utilizing the efficient and new processing facilities, which we aim to backfill to the greatest extent possible. Tyra North is a material project volume-wise, and it is set to deliver almost 20 million barrels net to the company. We are step-by-step progressing towards FID, and the last quarter, we finalized the FDP, which is also an important step in obtaining the governmental approval. For all the three projects, we expect unit technical cost to be less than $20, which includes both CapEx and the incremental OpEx. We also have a program of infill wells and a jackup rig expected to commence work next year. It is going to carry out the drilling campaign in the DUC.
Cathrine Torgersen: We have two planned wells on Halfdan, one on Valdemar, and two on Svend. Lastly on the page, you will also see the infill wells, which we have named Additional Potential. These are mostly wells on the Tyra hub, where we see a great potential for infill drilling as the Tyra hub carries a significant potential, which was unlocked by the first gas. With that, and I think for the very last time, I am going to leave the word to Jacqueline, who will take you through our financials. Thank you.
Jacqueline Lindmark Boye: Thank you, Cathrine. So now I will take you through the financial results for the quarter and how the operational activities that you have just heard about translate into strong financial performance. This quarter, we have seen stable Tyra production and combined with an elevated commodity price environment that is translating into strong earnings and revenue, which we expect to convert into cash in the coming quarters. With that context, let us start with the headline financial performance for Q3. At a headline level, Q3 demonstrates the financial strength of the business. Revenue was $346 million, which is our highest quarter ever. With Tyra demonstrating stability after the planned shutdown in Q2, production is much closer to the expected levels. This was combined with elevated commodity prices for most of the quarter, so we also see an EBITDA that was also at a record level of $220 million.
Jacqueline Lindmark Boye: The operating cash flow performance is lagging this quarter at $70 million, and this is due in large part to working capital effects. Of course, that is on the timing of receipts on the revenue side, which we expect to see partly reverse in Q4. The cash flow performance is to some extent also the reverse of what we saw in Q2, where we actually saw a positive impact on that working capital effect. This is due to the volatility in commodity prices that we see quarter-on-quarter. But in addition, we also had a large tax payment, and this relates to settlement of a number of prior years matters, and that was $72 million. We are expecting that to be partly offset with a tax receipt that is expected in Q4.
Jacqueline Lindmark Boye: Excluding the working capital and tax payments, operating cash flow was $212 million. Now to the balance sheet. This does remain robust. We had liquidity closing the quarter at $392 million, of which $261 million is undrawn RBL facility, and net leverage ended the quarter at 1.65 times. Overall, this quarter shows the strength of the underlying assets when producing stably, with record earnings that will convert to cash in the following quarters and a strong financial position heading into the final quarter for the year. I will now go into more detail on the key drivers of this result, and will start with the realized pricing and our hedging position. Our hedging program continues to provide downside protection for pricing, which provides cash flow visibility and reduces the impact of volatility.
Jacqueline Lindmark Boye: We have placed minimal new hedges during this quarter, given the current business position and the commodity price market. For the last quarter of 2026, we remain around the same level with 66% of forecast oil volumes and 68% of forecast gas volumes hedged through swaps and collars. The next driver of financial performance is the cost base. Here on costs, the headline is that, as we expected, the unit operating costs have come down since Q2 and are heading towards the target level again. The decrease this quarter shows a more normalized level with the Tyra shutdown completed in Q2 and stable production for most of the quarter. Therefore, Q3 costs are closer to expectations on an absolute level for the business, and production was also closer to normalized, meaning lifting costs and OpEx per BOE are on the path to the target again.
Jacqueline Lindmark Boye: That operating leverage is what converts stable production into operating cash flow, which is on the next slide. In Q3, net cash flow from operating activities was $70 million, and that was after the working capital movements. The quarter was impacted by working capital, as I mentioned earlier, of $71 million, and this is demonstrating the timing of cash receipts in a rising commodity price environment. In addition, also as mentioned, the tax payment of $72 million was made in the quarter and will be offset partly by a tax receipt expected in the next quarter. Taking that into account, when we look at cash flow before the working capital and the tax payment, it was at $212 million.
Jacqueline Lindmark Boye: The next part of the equation is capital intensity. With Tyra redevelopment complete, CapEx has stepped down materially, and we continue to maintain the lower forecast CapEx outlook with a range for 2026 of $40 to $50 million, with an expectation towards the lower end. We still expect 2027 to 2030 to be around $100 to $150 million per year. This is also including maintenance CapEx and of course, remains subject to project sanction and timing. This brings us to the liquidity position at the end of the quarter. We closed Q3 with a liquidity position of $392 million, and this includes $261 million of undrawn RBL capacity. The bridge on this slide shows the main movements. This is from Q2 to Q3, and you can see it includes the payment of our Q2 dividend. Capital management overall remains disciplined.
Jacqueline Lindmark Boye: We actually have minimal change in this quarter, and the leverage is at 1.65 times at the end of Q3. To close the financial performance section, Q3 demonstrates strong revenue and earnings driven by stable production from Tyra and elevated commodity prices. The benefit of this performance will be realized through cash flow in future quarters, and will continue to underpin a strong financial position. With that, I'll hand back to Euan to take us through the final section of our presentation
Euan Shirlaw: Thank you very much, Jacqueline. Before we move to questions, I think I'll just come back to where we started. We've come a long way since 2019, and I think we can look back on what we achieved with real satisfaction. Tyra's been redeveloped, brought back into production. We've returned substantial cash to our shareholders, and the business today is in a very different position from where it was in 2019 or 2020. As we've discussed, we do believe that the next chapter for these assets is better pursued as part of a larger company with greater scale, diversification, and financial strength. We continue to expect the merger to close around the end of this year, subject to the remaining conditions, and until then, our focus is very much on running the business and working towards completion.
Euan Shirlaw: I'd like to thank everyone at BlueNord for what they've delivered, particularly over the last few months, and of course, our shareholders for their continued support. Finally, I'd just like to say that it's been a real pleasure and a privilege to run BlueNord over this period, and hopefully we'll have the chance to work together again in whatever form. Thank you very much. I'll pause now. We'll wait for any final questions to come in, and then we'll come back to answer them. Thank you.
Cathrine Torgersen: Okay. Thank you. We have only received one question. We have, however, received several very nice messages from analysts and shareholders, so thank you for those. I am going to read off the one question, though, and this is for Jacqueline. How do you think around hedging in the period until closing of the Vår deal?
Jacqueline Lindmark Boye: Yeah, we obviously have quite a large hedge book right now, so there really is not a need from a business perspective to put on additional hedges. Equally, that is something that we do not need to do a lot on in this current commodity price environment. So you can expect it to unwind as is.
Cathrine Torgersen: That was it. Thank you, everyone, for listening in this morning. Goodbye.
Euan Shirlaw: Thank you.
Jacqueline Lindmark Boye: Thanks all.
Jacqueline Lindmark Boye: Thank you.
