Aker Bp Asa · OSL:AKRBP
Aker Bp Asa — Aker Bp Asa Ord — Q1 2024 Earnings Presentation
21 slides from Aker Bp Asa's earnings presentation, Apr 24, 2024
Slide 1: First quarter 2024
First quarter 2024 24 April 2024 Aker BP ASA
Slide 2: Highlights
Highlights First quarter 2024 High operational performance ▪ Increased production ▪ Low cost and low emissions Development projects on track ▪ Hanz in production ▪ Accelerated start-up for Tyrving Strong financial position ▪ Stable underlying cash flow ▪ Full-year guiding unchanged 2
Slide 3: Production
Production 1,000 barrels oil equivalent per day (mboepd) 481 453 450 444 448 Skarv Alvheim Valhall Grieg/Aasen Johan Sverdrup Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Production efficiency1 94% 97% 93% 93% 93% 1) Total portfolio (operated and non-operated) 3
Slide 4: Operating cost
Operating cost Aker BP production cost Industry peers total operational cost1 USD per boe USD per boe, 2023e 20 7.2 6.2 15 6.0 6.1 5.6 Power & environment Projects 10 Tariff & transport 5 Base opex 0 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 1) Source Wood Macken
Slide 5: A global leader in low GHG emissions
A global leader in low GHG emissions 140 Decarbonising the business Industry net emission intensity Aker BP emission intensity, kg CO2e/boe 120CO /boe, equity share (2023)1 Kg 2 100 5.3 80 3.8 3.2 60 3.0 2.9 2.8 2.8 2.6 40 20 0 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 1 0% 20% 40% 60% 80% 100
Slide 6: Safety
Safety Injury frequency (TRIF)1 Serious incident frequency (SIF)1 2.7 2.8 2.5 2.4 1.7 0.5 0.4 0.4 0.3 0.3 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 1) TRIF: Total recordable injuries per million working hours, rolling 12 months average. SIF: Serious incident frequency per million w
Slide 7: Development projects to drive growth and value creation
Development projects to drive growth and value creation Net volume 800 mmboe I Net capex USD ~3 billion after tax I Portfolio BE at USD 35-40 per barrel1 Production outlook mboepd ~525 ▪ New hub with several discoveries ▪ Upside potential in the area 410-440 Yggdrasil ▪ Capex USD 10.7 (pre-tax) Net
Slide 8: Project execution progressing according to plan
Project execution progressing according to plan Moving from engineering and procurement phase to construction ✓ Key milestones achieved and main contracts placed ✓ Fabrication well underway ✓ Sub-sea and drilling progressing well ✓ Capex estimate in line with plans ✓ Tyrving start-up accelerated to
Slide 9: The Hanz field in production
The Hanz field in production Subsea development to the Ivar Aasen platform1 ✓ Investment decision in Dec-21 Edvard Grieg Ivar Aasen ✓ Peak production of gross ~20 mboepd ✓ Unique recycling of subsea equipment Hanz ✓ Innovative cross-flow well for water injection 1) Operated by Aker BP (35%). Partner
Slide 10: 2024 exploration program
Ferdinand Hassel 2024 exploration program Aker BP operator Aker BP partner Licence Prospect Operator Aker BP Pre-drill Status share mmboe Elgol PL102G Trell North* Aker BP 61% 3-8 mmboe PL1138 Ametyst Harbour Energy 30% 6-19 mmboe PL956 Ringhorne North Vår Energi 20% 13-23 mmboe PL211CS Adriana* Win
Slide 11: Financial highlights
Financial highlights ▪ High prices and low costs ▪ Underlift and working capital build in the quarter ▪ Strong financial flexibility maintained 11
Slide 12: Sales of oil and gas
Sales of oil and gas Volume sold Realised prices Total income mboepd USD/boe USD million 477 467 450 450 69 429 99 59 66 60 64 88 84 83 3 513 3 556 77 3 310 3 291 336 398 3 078 78 582 399 301 74 64 60 409 390 408 384 51 364 3 140 3 140 2 712 2 858 2 748 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q1-23 Q2-23 Q3-2
Slide 13: Income statement
Income statement USD million Q1 2024 Q4 2023 429 mboepd (467) Before Actual impairment Impairments Actual Oil and gas sales Total income 3 078 3 556 3 556 Production costs 211 298 298 Other operating expenses 11 17 17 $78 per boe (82) EBITDAX 2 855 3 241 3 241 Net realised price Exploration expenses
Slide 14: Cash flow
Cash flow USD million $0.34 bn (0.5) Q1-24 Q4-23 Q3-23 Q2-23 Op. CF before tax and WC changes 2 986 3 204 3 235 2 731 Taxes paid (1 054) (2 207) (862) (2 817) Free cash flow (FCF) Changes in working capital1 (476) 506 (272) 207 Cash flow – operations 1 456 1 503 2 101 121 $0.54 (0.73) Cash flow – in
Slide 15: Near-term tax payments
Near-term tax payments Sensitivity for H2-2024 USD million 2 500 Tax instalments for fiscal year 2023 ▪ Tax for the year is paid in six bimonthly instalments with six months delay 2 000 ▪ Q2-24 instalments now fixed based on full-year 2023 performance 1 500 $100/bbl Assumptions for H2-24 sensitivity
Slide 16: Balance sheet
Balance sheet USD million Assets 31.03.24 31.12.23 31.03.23 PP&E 17 819 17 450 16 220 $6.6 bn ($6.8) Goodwill 13 143 13 143 13 636 Total available liquidity Other non-current assets 3 207 3 314 3 122 Cash and equivalent 3 215 3 388 3 280 Other current assets 2 053 1 751 1 671 32% (32%) Total Assets
Slide 17: Maintaining financial flexibility
Maintaining financial flexibility Net interest-bearing debt Leverage ratio1 Liquidity available2 Excl. leases, USD billion Targeting below 1.5 over time USD billion 4 6.7 6.8 6.8 3.1 6.6 3 6.1 2.6 3 2.4 2.4 2.0 1.2 2 2 0.9 1 0.6 0.5 3.3 3.4 3.4 3.2 0.3 2.7 1 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.1 0 Q1-23 Q
Slide 18: Dividends
Dividends Planned quarterly dividends of USD 0.60 per share, equivalent to USD 2.40 per share for 2024 Dividends USD per share 2.5 2.40 2.20 ▪ Resilient dividend capacity 2.00 Q4 2.0 ▪ Distributions shall reflect the financial capacity through the cycle 1.5 1.35 Q3 ▪ A quarterly dividend of USD 0.60
Slide 19: 2024 guidance unchanged
2024 guidance unchanged Q1-24 2024 actuals guidance Production (mboped) 448 410-440 Opex (USD/boe) 6.1 ~7.0 Capex (USDbn) 1.0 ~5.0 Expex (USDbn) 0.08 ~0.50 Abex (USDbn) 0.06 ~0.25 19
Slide 20: 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 21: www.akerbp.com
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