BLUENORD ASA

“The local European market has become increasingly reliant on imported LNG, which is costly and carries a much higher environmental footprint. That position is reflected in recent pricing and gas storage levels in Europe during the colder winter months.”

Annual report 2024A · The company itself

“The Company’s main business is to produce and sell oil and gas, therefore future revenues, cash flow, profitability, financing, and rate of growth depend substantially on prevailing prices of oil and gas. Because oil and gas are globally traded the Company is unable to control or predict the prices it receives for the oil and gas it produces.”

Annual report 2024A · The company itself

“• Hydrocarbons produced from specific fields may also have a premium or discount in relation to benchmark prices, such as Brent, which may vary over time. • The majority of the natural gas produced by the Company is sold at Trading Hub Europe (THE) prices. THE closely follows the Dutch Title Transfer Facility (TTF) price. The Company is more exposed to additional price volatility deriving from proposed responses by the European Commission, as seen with the proposed Market Correcting Mechanism, however, this has not recurred in 2024.”

Annual report 2024A · The company itself

“• Assumptions on which the reserves estimates are determined include geological and engineering estimates (which have inherent uncertainties), historical production, the assumed effects of regulation by governmental agencies and estimates of future commodity prices and operating costs including the cost of CO .”

Annual report 2024A · The company itself

“BlueNord future capital requirements will be determined based on several factors, including production levels, commodity prices, future expenditures that require funding, and the development of the Company’s capital structure. To the extent the Company’s operating cash flow is insufficient to fund the business plan at any time, additional external capital may be required.”

Annual report 2024A · The company itself

“This decline in revenue reflects substantially lower gas prices (down 86.1 percent after hedging) and reduced oil volumes (down 4.9percent).”

Annual report 2024A · The company itself

“These negative factors were partially mitigated by increased gas volumes (up 17.7percent) as the Tyra hub restarted in late 2024, and higher oil prices (up 9.8percent after hedging).”

Annual report 2024A · The company itself

“The volatility in prices has been significant and management is continuously assessing the market to mitigate commodity price volatility. The Company has during 2024 entered into fixed-price swap contracts for additional oil and gas volumes from 2024 to 2026.”

Annual report 2024A · The company itself

“Identified risk Description of risk Potential impacts Potential financial impacts The climate scenario in which the risk is most relevant Time horizon Mitigation strategy Transition to lower emission technology Gas has a role and opportunity in the transition. In the long term, the need for oil and gas will change/ decrease.”

Annual report 2024A · The company itself

“Identified risk Description of risk Potential impacts Potential financial impacts The climate scenario in which the risk is most relevant Time horizon Mitigation strategy Changes in gas demand The transition to a zero-emissions society is expected to decrease the demand for gas in the long run. The speed of transition is uncertain.”

Annual report 2024A · The company itself

“• Declining demand based on new technology. For instance, electric vehicles, heat pumps, an increasingly circular economy and less use of plastic. • Decreased revenues.”

Annual report 2024A · The company itself

“We will seek to lower overall emissions by producing more gas in Europe, for Europe, which will offset carbon-intensive sources of energy such as coal and imported LNG.”

Annual report 2024A · The company itself

“BlueNord can choose to invest in more gasweighted projects or CCS value chain projects depending on how the market is evolving. Currently, the market for gas remains attractive and continues to be a value fuel along with oil.”

Annual report 2024A · The company itself

“BlueNord is providing Europe with the energy it needs today, tomorrow, and in the net zero future 2nd largest Oil and gas producer in Denmark Revenue $702m Net cash flow from operating activities $309m EBITDA $354m (cash and undrawn facilities) $521m Financial highlights BlueNord is a strategically important European oil and gas company, specialising in the production and development of resources that support the energy transition towards net zero.”

Annual report 2024A · The company itself

“Tyra secures energy supplies by producing 2.8 billion cubic metres of gas per year for Denmark and Europe, while reducing emissions by 30 percent compared to old facilities.”

Annual report 2024A · The company itself

“The Company had revenues of USD 702.0million in 2024 (2023: USD 795.0million) mainly related to oil and gas sales from the DUC fields.”

Annual report 2024A · The company itself

“All reported information is relating to BlueNord ASA activities within the extractive industries on the Danish continental shelf. • Total net investments amounted to USD 236.3 million, as specified in the cash flow analysis in the Financial Statements. • Sales income (petroleum revenues) in 2024 amounted to USD 702.0 million, as specified in the Financial Statements. • Total production in 2024 was 9.2 million barrels of oil equivalent.”

Annual report 2024A · The company itself

“Piped oil and gas, with lower emissions intensity than LNG volumes imported from overseas, supports an orderly energy transition. By supplying hydrocarbons with approximately one-third of the carbon footprint of imported LNG, we can displace higher-emissions imported hydrocarbons, contributing to a more sustainable energy future.”

Annual report 2024A · The company itself

“The Company’s main business is to produce and sell oil and gas, therefore future revenues, cash flow, profitability, financing, and rate of growth depend substantially on prevailing prices of oil and gas. Because oil and gas are globally traded the Company is unable to control or predict the prices it receives for the oil and gas it produces.”

Annual report 2024A · The company itself

“• Assumptions on which the reserves estimates are determined include geological and engineering estimates (which have inherent uncertainties), historical production, the assumed effects of regulation by governmental agencies and estimates of future commodity prices and operating costs including the cost of CO .”

Annual report 2024A · The company itself

“BlueNord future capital requirements will be determined based on several factors, including production levels, commodity prices, future expenditures that require funding, and the development of the Company’s capital structure. To the extent the Company’s operating cash flow is insufficient to fund the business plan at any time, additional external capital may be required.”

Annual report 2024A · The company itself

“These negative factors were partially mitigated by increased gas volumes (up 17.7percent) as the Tyra hub restarted in late 2024, and higher oil prices (up 9.8percent after hedging).”

Annual report 2024A · The company itself

“The volatility in prices has been significant and management is continuously assessing the market to mitigate commodity price volatility. The Company has during 2024 entered into fixed-price swap contracts for additional oil and gas volumes from 2024 to 2026.”

Annual report 2024A · The company itself

“BlueNord can choose to invest in more gasweighted projects or CCS value chain projects depending on how the market is evolving. Currently, the market for gas remains attractive and continues to be a value fuel along with oil.”

Annual report 2024A · The company itself

“BlueNord is providing Europe with the energy it needs today, tomorrow, and in the net zero future 2nd largest Oil and gas producer in Denmark Revenue $702m Net cash flow from operating activities $309m EBITDA $354m (cash and undrawn facilities) $521m Financial highlights BlueNord is a strategically important European oil and gas company, specialising in the production and development of resources that support the energy transition towards net zero.”

Annual report 2024A · The company itself

“The Company had revenues of USD 702.0million in 2024 (2023: USD 795.0million) mainly related to oil and gas sales from the DUC fields.”

Annual report 2024A · The company itself

“All reported information is relating to BlueNord ASA activities within the extractive industries on the Danish continental shelf. • Total net investments amounted to USD 236.3 million, as specified in the cash flow analysis in the Financial Statements. • Sales income (petroleum revenues) in 2024 amounted to USD 702.0 million, as specified in the Financial Statements. • Total production in 2024 was 9.2 million barrels of oil equivalent.”

Annual report 2024A · The company itself

“Piped oil and gas, with lower emissions intensity than LNG volumes imported from overseas, supports an orderly energy transition. By supplying hydrocarbons with approximately one-third of the carbon footprint of imported LNG, we can displace higher-emissions imported hydrocarbons, contributing to a more sustainable energy future.”

Annual report 2024A · The company itself

“• Assumptions on which the reserves estimates are determined include geological and engineering estimates (which have inherent uncertainties), historical production, the assumed effects of regulation by governmental agencies and estimates of future commodity prices and operating costs including the cost of CO .”

Annual report 2024A · The company itself

“High/increased CO tax. Opportunities defined with greatest potential: 1.”

Annual report 2024A · The company itself

“• The Company is subject to legislation in relation to the emission of carbon dioxide, methane, nitrous oxide, and other greenhouse gases (GHGs). • Environmental legislation is evolving in a manner expected to result in stricter standards and enforcement, larger fines and liability, and potentially increased investments and operating costs. • With all its assets being on the Danish continental shelf the Company is highly exposed to changes in Danish law. • CO costs and the Danish CO duty are an ongoing exposure and incorporated in the Company future forecasts and estimates.”

Annual report 2024A · The company itself

“Future projects like Ruby aim to further reduce emissions through CCS.”

Annual report 2024A · The company itself

“In addition, we would be evaluating other growth opportunities in the North Sea, both CCS and geographical expansion of our production.”

Annual report 2024A · The company itself

“We will seek to lower overall emissions by producing more gas in Europe, for Europe, which will offset carbon-intensive sources of energy such as coal and imported LNG.”

Annual report 2024A · The company itself

“We will also invest in emissions reduction initiatives for existing producing assets, and in activities that support a net zero society.”

Annual report 2024A · The company itself

“Changes in obligations arising from operating in markets that are subject to a high degree of regulatory, legislative and political intervention and uncertainty Exploration and development activities in Denmark are dependent on receipt of government approvals and permits to develop assets. There is no assurance that future political conditions in Denmark will not result in the government adopting new or different policies and regulations relating to exploration, development, operation, and ownership of oil and gas, environmental protection, or labour relations.”

Annual report 2024A · The company itself

“The Company had revenues of USD 702.0million in 2024 (2023: USD 795.0million) mainly related to oil and gas sales from the DUC fields.”

Annual report 2024A · The company itself

“Recognising that hydrocarbons will remain a part of the energy mix for the foreseeable future, BlueNord is dedicated to playing an active role in the energy transition. BlueNord’s strategy focuses on producing affordable and reliable energy for Denmark and the wider EU, while managing climate-related risks and opportunities.”

Annual report 2024A · The company itself

“BlueNord is active in the Danish North Sea with a 36.8 percent non-operated working interest in the DUC The Danish Underground Consortium (DUC) comprises fifteen fields, three export pipelines (owned by Ørsted) and significant infrastructure. Oil and gas are produced from four operational hubs, and overall the DUC accounts for nearly 90 percent of the oil and gas produced in Denmark.”

Annual report 2024A · The company itself

“The Company has operatorship and an 80 percent interest in one exploration licence related to investigating the potential for onshore CO storage in Denmark.”

Annual report 2024A · The company itself

“CarbonCuts A/S was registered as a legal entity in August 2022, specifically to explore the opportunity of CO storage in the Rødby area, the Ruby Project. CarbonCuts A/S is a wholly-owned subsidiary of the BlueNord Group, which has funded its activities since October 2022.”

Annual report 2024A · The company itself

“The Company intends to finance future investments with net cash flow from operating activities and borrowings under its RBL facility and other equity and debt facilities.”

Annual report 2024A · The company itself

“However, any unexpected changes that result in lower revenues or increased costs may necessitate the raising of additional external capital. There can be no guarantee that, if required, BlueNord would be able to access the debt or equity markets on favourable terms, or if necessary be able to adequately restructure or refinance its debt.”

Annual report 2024A · The company itself

“Key to the company’s capital efficiency and capital return requirement is the continued access to financial markets, as was demonstrated during the year by the success of our refinancing of our RBL and bond issue.”

Annual report 2024A · The company itself

“BlueNord maintains a strong relationship with its banking syndicate through continual engagement to underpin its borrowing position and has an active investor relations strategy to support access to the capital markets.”

Annual report 2024A · The company itself

“This in turn enables us to deliver on three key priorities: maximising distributions to shareholders, maintaining a conservative balance sheet and allocating capital to attractive organic growth opportunities.”

Annual report 2024A · The company itself

“We will maximise the value of BlueNord, with near-term shareholder returns and maintaining a conservative balance sheet prioritised, while reinvesting where attractive. • First distribution announced, distribution plan for 2025 and 2026 developed. • Capital structure reset completed, with enhanced USD 1.4 billion reserves based lending facility (RBL) in place, maturity extended, new BNOR16 bond issued, and repayment of BNOR14.”

Annual report 2024A · The company itself

“During the year the Company outlined its planned distributions policy, which aims to distribute between 50 and 70 percent of net operating cash flow between 2024 and 2026. Thereafter the desire is to maintain a meaningful returns profile.”

Annual report 2024A · The company itself

“While creating value for stakeholders, BlueNord helps to deliver the energy security that millions of people depend on in today’s changing world.”

Annual report 2024A · The company itself

“• Due to the conflict in Ukraine new regulations have been imposed by the EU, United States, United Kingdom and other governments, which affect the export and import of oil and gas to and from the Russian market. • Trade restrictions on the Russian market could increase the importance of oil and gas fields in Europe, including in Denmark. Such an increase in importance could result in governments adopting new regulations that could affect the assets and the operations of the Group.”

Annual report 2024A · The company itself

“It is also enabling BlueNord to play a meaningful role in delivering energy security and in supporting the energy transition in Denmark and Europe with a reliable, low-cost and low emission, local source of piped gas.”

Annual report 2024A · The company itself

“A business model with purpose Our purpose is to provide Europe with the energy it needs – for today, tomorrow and in the net zero future to come.”

Annual report 2024A · The company itself

“We achieve this by balancing the demands of energy security against the needs of the energy transition. We will make measured investments where it is economically attractive to do so, which will in turn help to ensure energy prices are affordable for residential and business consumers.”

Annual report 2024A · The company itself

“Tyra secures energy supplies by producing 2.8 billion cubic metres of gas per year for Denmark and Europe, while reducing emissions by 30 percent compared to old facilities.”

Annual report 2024A · The company itself

“• Inability to have people safely Offshore. • Inability to transport people and equipment, as this is done by helicopter and supply ships. • Weakened production capacities due to shortage of supplies, employees and possible damage to the equipment. • Reduced revenue and increased costs associated with asset repair and additional labour. Potential impact on production.”

Annual report 2024A · The company itself

“Chronic physical risks refer to longer-term shifts in climate patterns, such as sustained higher temperatures that may cause sea level rise or chronic heat waves. Identified risk Description of risk Potential impacts Potential financial impacts The climate scenario in which the risk is most relevant Time horizon Mitigation strategy Rising sea levels Sea levels may rise due to expanding ocean volumes from temperature increases and from melting glaciers and ice sheets. • High waves which hit the infrastructure on the platform causing damage. • Increased cost due to adaption of platforms in order to handle rising sea level.”

Annual report 2024A · The company itself

“BlueNord is already part of a strictly regulated sector that operates in harsh weather conditions. Many precautions and adaptations are therefore already in place and could be a competitive advantage.”

Annual report 2024A · The company itself

“Recognising that hydrocarbons will remain a part of the energy mix for the foreseeable future, BlueNord is dedicated to playing an active role in the energy transition. BlueNord’s strategy focuses on producing affordable and reliable energy for Denmark and the wider EU, while managing climate-related risks and opportunities.”

Annual report 2024A · The company itself

“Beyond the DUC, our vendors are primarily located in the Nordic and North European regions. They offer consultancy, legal and financial services, which are considered to involve minor risk.”

Annual report 2024A · The company itself

“The local European market has become increasingly reliant on imported LNG, which is costly and carries a much higher environmental footprint. That position is reflected in recent pricing and gas storage levels in Europe during the colder winter months.”

Annual report 2024A · The company itself

“We achieve this by balancing the demands of energy security against the needs of the energy transition. We will make measured investments where it is economically attractive to do so, which will in turn help to ensure energy prices are affordable for residential and business consumers.”

Annual report 2024A · The company itself

“Identified risk Description of risk Potential impacts Potential financial impacts The climate scenario in which the risk is most relevant Time horizon Mitigation strategy New products To reach the climate targets and reduce carbon emissions internationally, CCS technologies need to be deployed on a large scale and will be increasingly important. • CCS represents a benefit for the climate which does not involve the sacrifice of crucial energy sources. • Increased interest from new investors and easier access to capital. Most relevant in NZE.”

Annual report 2024A · The company itself

“BlueNord is providing Europe with the energy it needs today, tomorrow, and in the net zero future 2nd largest Oil and gas producer in Denmark Revenue $702m Net cash flow from operating activities $309m EBITDA $354m (cash and undrawn facilities) $521m Financial highlights BlueNord is a strategically important European oil and gas company, specialising in the production and development of resources that support the energy transition towards net zero.”

Annual report 2024A · The company itself

“Commodity price fluctuations could reduce the Company’s ability to refinance its outstanding credit facilities and could result in a reduced borrowing base under credit facilities available to the Company, including the RBL facility.”

Annual report 2024A · The company itself

“The capital structure put in place reflects the Company’s strategy to maintain a level of diversity and its continued support from lenders. It is also in keeping with the Company’s aim to maintain a target net debt to EBITDA ratio of 1.5 on a through-cycle basis.”

Annual report 2024A · The company itself

“Fluctuations in commodity prices could also lead to impairment of the Company’s assets. • While volatility and uncertainty remain in the commodity market, global supply risks have been managed through 2024. Geopolitical risk continues to have an impact but markets have tended to adapt to this situation over the short-term.”

Annual report 2024A · The company itself

“• Due to the conflict in Ukraine new regulations have been imposed by the EU, United States, United Kingdom and other governments, which affect the export and import of oil and gas to and from the Russian market. • Trade restrictions on the Russian market could increase the importance of oil and gas fields in Europe, including in Denmark. Such an increase in importance could result in governments adopting new regulations that could affect the assets and the operations of the Group.”

Annual report 2024A · The company itself

“The Group is exposed to market fluctuations in foreign exchange rates. Significant fluctuations in exchange rates between euros and Danish kroner to US dollars may materially adversely affect the reported results. • Revenues are in US dollars for oil and in euros for gas, while operational costs, taxes and investments are primarily in US dollars, euros and Danish kroner.”

Annual report 2024A · The company itself

“With Tyra coming onstream, delivering a more balanced portfolio of oil to gas, this means more revenue will be euro-denominated, thus reducing currency exposure on costs in euros and Danish kroner. • The Company’s financing is primarily in US dollars.”

Annual report 2024A · The company itself

“• Declining demand based on new technology. For instance, electric vehicles, heat pumps, an increasingly circular economy and less use of plastic. • Decreased revenues.”

Annual report 2024A · The company itself

“BlueNord may be negatively affected by adverse market perception as it depends on a high level of integrity to maintain the trust and confidence of investors, DUC participants, public authorities, and counterparties. Any mismanagement, fraud or failure to satisfy fiduciary or regulatory responsibilities, or negative publicity resulting from other activities, could materially affect the Company’s reputation, as well as its business, access to capital markets and commercial flexibility.”

Annual report 2024A · The company itself

“BlueNord is active in the Danish North Sea with a 36.8 percent non-operated working interest in the DUC The Danish Underground Consortium (DUC) comprises fifteen fields, three export pipelines (owned by Ørsted) and significant infrastructure. Oil and gas are produced from four operational hubs, and overall the DUC accounts for nearly 90 percent of the oil and gas produced in Denmark. The three pipelines secure exports from the hubs to the Danish mainland and international markets.”

Annual report 2024A · The company itself

“The Group is exposed to market fluctuations in foreign exchange rates. Significant fluctuations in exchange rates between euros and Danish kroner to US dollars may materially adversely affect the reported results. • Revenues are in US dollars for oil and in euros for gas, while operational costs, taxes and investments are primarily in US dollars, euros and Danish kroner.”

Annual report 2024A · The company itself

“Beyond the DUC, our vendors are primarily located in the Nordic and North European regions. They offer consultancy, legal and financial services, which are considered to involve minor risk.”

Annual report 2024A · The company itself