Slide 1: First quarter 2023
First quarter 2023 27 April 2023 Aker BP ASA
Slide 2: Disclaimer
Disclaimer This Document includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this Document are based on current expectations, estimates and projections about globa
Slide 3: Highlights
Highlights ▪ Strong operational performance ▪ Projects on track ▪ High earnings and cash flow ▪ 2023 guidance reiterated 3
Slide 4: Safety is our priority number one
Safety is our priority number one Injury frequency (TRIF) 2.4 1.9 1.8 1.7 1.6 1.6 1.4 1.3 1.2 1.2 1.2 1.1 1.0 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 TRIF: Total recordable injuries per million exp. hours, rolling 12 months average 4
Slide 5: High efficiency and low cost
High efficiency and low cost Production efficiency Production cost Capacity utilisation (operated assets) USD per boe 12.0 96% 95% 93% 11.6 88% 80% 7.3 7.2 7.2 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Base opex Tariff & transport Projects Power & environment tax 5
Slide 6: Record high production
Record high production 1,000 barrels oil equivalent per day (mboepd) 453 432 412 208 181 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Johan Sverdrup Grieg & Aasen Valhall Alvheim Skarv Ula 6
Slide 7: 2023 exploration program
2023 exploration program 2023 exploration wells Licence Prospect Operator Aker BP Pre-drill Status share mmboe PL867 Gjegnalunden Aker BP 80% 3 - 124 3-9 mmboe PL265 P-Graben Equinor 27% 8 - 33 Dry PL1141 Styggehøe Aker BP 70% 10 - 41 Dry PL554 Angulata Equinor 30% 8 - 64 Dry PL919 Ve Aker BP 80% 6
Slide 8: Continued progress on decarbonisation
Continued progress on decarbonisation Emission intensity Main drivers for the reduction Kg CO2e/boe ▪ Increased ownership in low-emission assets 5.0 5.3 following the Lundin transaction from Q3-22 3.8 ▪ Edvard Grieg and Ivar Aasen electrified as part of 3.2 Johan Sverdrup Phase 2 project 2.9 ▪ Conti
Slide 9: Aker BP – a global leader in low CO2 emissions
Aker BP – a global leader in low CO2 emissions Net 160 emission intensity, kg CO /boe equity share (2022) 2 Aker BP’s targets 140 1. Carbon intensity <4 kg CO2e/boe 120 100 2. Methane intensity <0.1 % 80 3. Scope 2 emissions ~0 from 2023 60 4. Absolute CO2 emissions reduced with 40 50% by 2030 and ~
Slide 10: Sales of oil and gas
Sales of oil and gas Volume sold Total income Realised prices mboepd USD million USD/boe 450 4,866 281 428 407 66 66 64 1,666 3,826 3,310 914 171 582 150 216 2,291 153 2,026 45 173 384 362 693 99 342 45 626 3,182 118 2,887 2,712 101 101 87 171 78 128 1,554 1,364 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q1-22 Q
Slide 11: Income statement
Income statement USD million Total income Q1 2023 3 310 Q4 2022 3 826 450 mboepd (428) Production costs 263 286 Oil and gas sales Other operating expenses 16 16 EBITDAX 3 031 3 523 Exploration expenses 98 32 $81 per boe (96) EBITDA 2 933 3 491 Net realised price Depreciation 599 641 Impairments 373
Slide 12: Cash flow - First quarter 2023
Cash flow - First quarter 2023 USD million 3,251 1,569 $1.0 bn (0.08) Free Cash Flow (FCF) 705 $1.55 (0.13) 1,682 Expex/Abex FCF per share Capex 977 348 106 $0.55 (0.525) Dividend per share 523 Operating Taxes paid Operating Investments Free Dividends Interest Change in cash flow cash flow cash flow
Slide 13: Cash tax
Cash tax Tax payments - Sensitivity for 2023 Process for tax payments USD million ▪ Tax for the year is paid in six bimonthly instalments, starting in 3,500 August, plus final settlement ▪ Initial tax estimate for the year is made in Q2, the Aug-Dec 3,000 instalments are then fixed in NOK ▪ Option f
Slide 14: Statement of financial position
Statement of financial position USD million Assets 31.03.23 31.12.22 31.03.22 $6.7 bn ($6.2) restated PP&E 16 220 15 887 10 370 Goodwill 13 636 13 935 1 647 Total available liquidity Other non-current assets 3 122 2 984 1 877 Cash and equivalent 3 280 2 756 2 817 Other current assets 1 671 2 000 1 2
Slide 15: Maintaining financial flexibility
Maintaining financial flexibility Net interest-bearing debt Liquidity available2) Bond maturities Excl. leases, USD billion USD billion USD/EUR billion 7 2 6.7 1.8 6.4 6 6.2 6.2 1.6 5.6 5 1.4 1.2 4 3.7 1 3 3.3 2.5 0.8 3.0 2.8 2.8 2.2 2.0 0.6 2 0.54 2.2 1.75 0.4 1.50 1 0.7 1.00 0.21 0.21 0.75 0.16 0.
Slide 16: Dividends
Dividends Planned quarterly dividends of USD 0.55 per share, equivalent to USD 2.2 per share for 2023 Dividends USD per share 2.5 ▪ Resilient dividend capacity 2.20 2.08 2.0 2.00 ▪ Distributions shall reflect the financial capacity Q4 through the cycle 1.5 1.35 ▪ A quarterly dividend of USD 0.55 per
Slide 17: 2023 guidance reiterated
2023 guidance reiterated Production (mboped) 430-460 Opex (USD/boe) 7.0-8.0 Capex (USDbn) 3.0-3.5 Exploration (USDbn) 0.4-0.5 Abandonment (USDbn) 0.1-0.2 17
Slide 18: Aker BP project overview
Aker BP project overview Alvheim projects Utsira High projects ~770 mmboe Net oil and gas resources Skarv Satellites Valhall PWP-Fenris ~20 USD bn Net investments, before tax Yggdrasil ~3 USD bn Net investments, after tax Figures include PDOs from December 2022 in addition to Kobra East & Gekko, Fro
Slide 19: Projects adding significantly to growth and value creation
Projects adding significantly to growth and value creation Lifting Aker BP’s production by 250-300 mboepd in 2028 Production outlook Robust and profitable project portfolio mboepd ~525 $35-40/bbl 430-460 Project portfolio break-even oil price1 ~25% Project portfolio IRR at $65/bbl oil price 1-2 year
Slide 20: Project execution progressing according to plan
Project execution progressing according to plan ▪ Progress on track ▪ Quality I Schedule I Cost I HSSE ▪ Reaping the benefits of frontloading ▪ Early planning and maturation ▪ Supplier involvement ▪ Secured yard and rig capacity ▪ All major contracts placed ▪ With alliance partners and strategic sup
Slide 21: Aker BP project overview
Aker BP project overview Aker BP Production Asset area Field development Gross/net volume Net capex estimate PDO submission ownership start Kobra East & Gekko 80.0% 50/40 mmboe USD 0.9bn 2021 2024 Alvheim Frosk 80.0% 10/8 mmboe USD 0.2bn 2021 2023 Tyrving 61.3% 25/15 mmboe USD 0.4bn 2022 2025 Hanz 3
Slide 22: Alvheim projects
Alvheim projects Unlocks new volumes, reduces unit cost and secures life-time extension on Alvheim Aker BP Frosk: 80.0% Tie-backs to existing (operator) KEG: 80.0% infrastructure Tyrving: 61.3% Accounts for ca. 50% Partners Vår Energy, of net Alvheim ConocoPhillips, Petoro, volumes in 2024/25 LOTOS
Slide 23: Yggdrasil
Yggdrasil New North Sea area hub by joining forces across licenses Aker BP Hugin: 87.7% Gas ~40% of (operator) Munin: 50.0% estimated volumes Fulla: 47.7% Partners Equinor and Power supply LOTOS Norge from shore Munin Unmanned production platform Volume estimate 650 mmboe (gross) / Hugin A 413 mmboe
Slide 24: Valhall PWP-Fenris
Valhall PWP-Fenris Unlocks new volumes and secures life-time extension on Valhall PWP WP/IP PH Aker BP Valhall: 90.0% Establishes Valhall (operator) Fenris: 77.8% as area gas-hub Partners PGNiG and Pandion Power supply from shore Valhall Volume estimate 230 mmboe (gross) / Minimal emissions 187 mmbo
Slide 25: Skarv Satellites
Skarv Satellites Investments in future flexibility enabling further area development Aker BP Alve North: 68.1% Gas ~70% of (operator) Idun North: 23.8% estimated volumes Ørn: 30.0% Partners Equinor, Wintershall DEA Low operational and PGNiG cost Volume estimate 119 mmboe (gross) / Low incremental Al
Slide 26: Utsira High projects
Utsira High projects Increased capacity utilisation at Ivar Aasen and Edvard Grieg platforms Aker BP Solveig Phase II: 65.0% Adds low-cost (operator) Symra: 50.0% production Hanz: 35.0% Partners Equinor, OMV, Unlocks potential future Wintershall Dea and developments Sval Energi Solveig Volume estima
Slide 27: Summing up
Summing up ▪ Strong operational performance ▪ Projects on track ▪ High earnings and cash flow ▪ 2023 guidance reiterated 27
Slide 28: www.akerbp.com
AkerBP www.akerbp.com