Slide 1: Q3 2017 Aker BP ASA
Q3 2017 AKER BP ASA KARL JOHNNY HERSVIK, CEO ALEXANDER KRANE, CFO 30 OCTOBER 2017
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
AKER BP ASA Highlights Production Q3-17 production of 131.9 mboepd Expecting to reach upper half of 135 - 140 mboepd production guidance for 2017 Finance Q3-17 EBITDA USD 395 million, EPS USD 0.33 Q3-17 Free cash flow* of USD 445 million (USD 1.32 per share) Quarterly dividend of USD 62.5
Slide 4: Acquisition of Hess Norge AS
AKER BP ASA Acquisition of Hess Norge AS Illustrative production potential*, mboepd net Cash consideration of 2.0 USDbn (effective date 1/1-17) 350 Aker BP Aker BP (sanctioned) (non-sanctioned) • Interest in Valhall (64.05%) and Hod (62.50%) fields 300 • After-tax value of tax loss carry forward U
Slide 5: Financials Q3 2017
Financials Q3 2017 < a
Slide 6: Statement of income
FINANCIALS Statement of income (USD million) Q3 2017 Q3 2016 FY 2016 Total operating income 596 248 1,364 Production costs 134 32 227 Other operating expenses 3 6 22 EBITDAX 459 210 1,115 Exploration expenses 64 31 147 EBITDA 395 179 968 Depreciation 175 115 509 Impairment losses 1 8 71 Operating pr
Slide 7: Statement of financial position
FINANCIALS Statement of financial position Assets Equity and liabilities (USD million) 30.09.17 30.09.16 (USD million) 30.09.17 30.09.16 Goodwill Equity 2,502 2,579 1,817 1,858 Other intangible assets Other provisions for liabilities incl. P&A 1,615 2,590 2,308 2,400 (long) Property, plant and equip
Slide 8: Third quarter cash flow and liquidity
FINANCIALS Third quarter cash flow and liquidity Cash flow (USDm) Liquidity (USDbn) Strong cash flow in Q3-17 Undrawn credit • Free cash flow of USD 445 million Cash & cash equivalents • Includes positive one-off tax effect of USD 264 million 2.7 2.6 Robust balance sheet per 30 September 285 • N
Slide 9: Dividends set to increase
FINANCIALS Dividends set to increase Cash flow coverage Sustained strong cash flow in 2017 • USD 746 million free cash flow year-to-date Dividends • USD 188 million paid in dividends 730 Cash flow from investing activities Dividends set to increase Cash flow from operating activities • USD 62.5
Slide 10: 2017 guidance
FINANCIALS 2017 guidance Actual year-to-date Item 2017 full year guidance per September 30, 2017 USD 900 – 950 million CAPEX 663 million (no change) USD 280 – 300 million EXPEX 196 million (no change) 135 – 140 mboepd Production 140 mboepd (top half of range) USD ~10 per boe Production cost USD 9.9
Slide 11: Operations Q3 2017
Operations Q3 2017 < a
Slide 12: Oil and gas production
PRODUCTION Oil and gas production Net production* (boepd) * Including FY 2016 production from BP Norge AS ** Subject to government approval, effective date 01.01.2017 12
Slide 13: The chalk giant
VALHALL (100%*) / HOD (100%*) The chalk giant The Valhall field center consists of six separate steel platforms, including a process/accommodation platform installed in 2013 Two unmanned flank platforms (North and South) Q3-17 production 11.6 mboepd (13.7 mboepd in Q2-17) • Planned maintenance
Slide 14: Preparing for further increase in Valhall reserves
VALHALL (100%*) / HOD (100%*) Preparing for further increase in Valhall reserves Valhall/Hod in place volumes are about 3.8 bn boe • 1 billion barrels produced per Jan 2017 • Ambition to produce at least 500 mmboe more Applying new technology to increase field recovery • Multilateral wells • New
Slide 15: Further development of the Alvheim area
ALVHEIM AREA (65.0%*) Further development of the Alvheim area Q3-17 production 68.9 mboepd (72.5 mboepd in Q2-17) • SAGE outage and planned ESD test • Production efficiency of 96% in Q3 (98% in Q2-17) Production started from two new Volund infill wells • Project delivered ahead of schedule and b
Slide 16: Preparing for the next steps
IVAR AASEN (34.8%) Preparing for the next steps Q3-17 production 16.6 mboepd (17.3 mboepd in Q2-17) • Excellent production performance with high uptime • High operational availability of 97% (98.5% in Q2-17) • Production efficiency 82% due to Edvard Grieg power issues Development scope in PDO co
Slide 17: Making Tambar great again
ULA (80.0%) / TAMBAR (55.0%) Making Tambar great again Drilling two new wells at Tambar Q3-17 production 8.6 mboed (9.9 mboepd in Q2-17) • Volatile production due to WAG effects • Production efficiency 68% (69% in Q2-17) Tambar development on track • Two new production wells • New gas lift modul
Slide 18: Approaching PDO for Snadd
SKARV AREA (23.8%) Approaching PDO for Snadd Q3-17 production 24.5 mboepd (29.3 mboepd in Q2-17) • Planned maintenance and three wells shut in • Snadd test producer shut in due to production permit reached • 87% production efficiency (96% in Q2-17) Rig operation to recomplete wells is ongoing
Slide 19: Development on track
JOHAN SVERDRUP (11.6%) Development on track Riser platform jacket being installed by Thialf Project progressing according to plan: • Construction was approximately 70% complete by end-Q3 • The first steel jacket has been installed on the field • Drilling platform modules integrated on barge in Nor
Slide 20: MMO activity to prolong field life
PROJECTS MMO activity to prolong field life Ula Tambar Valhall & Hod • Oda Tie-In to Ula • Ula Power • Tambar Artificial Lift • Topside modifications for tie-in of West Flank platform • Ula lifeboat project • North Flank Water Injection Skarv/Snadd Alvheim Ivar Aasen • Turret mods for Snadd tie-back
Slide 21: Improvement program starting to show results
IMPROVEMENT Volund infill project subsea alliance Improvement program starting to show results Volund infill project delivered 30% below budget -33% Strategic partnerships to align incentives • Alliances established for subsea and two fixed facilities • Drilling & wells and MMO alliance being es
Slide 22: 2017 drilling schedule
EXPLORATION 2017 drilling schedule Drilling on Hyrokkin and Nordfjellet/Delta completed in the third quarter Drilling on Hufsa ongoing, to be followed by Hurri Preparing for high-impact Barents Sea campaign in 2018 Aker BP Pre-drill License Prospect name Operator Time share mmboe* JS Unit Tonj
Slide 23: Closing remarks
OUTLOOK Closing remarks Efficient and safe operations Execute Deliver PDO on Snadd, Valhall Flank West and Storklakken before year-end Relentless focus on cost reductions and Safety productivity gains Improve Mature projects to below 35 USD/boe break-even Stepping up exploration activity G
Slide 24: Aker BP
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