Slide 1: Q3 2016 Aker BP ASA
Q3 2016 AKER BP ASA KARL JOHNNY HERSVIK, CEO ALEXANDER KRANE, CFO 31 OCTOBER 2016
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 Aker BP ASA Merger with BP Norge AS completed September 30, 2016 Production Q3-16 production of 112.6 mboepd including BP Norge • Q3-16 production of 59.8 mboepd booked in P&L Finance Q3-16 EBITDA USD 179 million, EPS 0.31 (USD) Proposed dividend USD 125 million to be
Slide 4: Financials
Financials Q3 2016 < a
Slide 5: Statement of income
FINANCIALS Statement of income Income statement (USD mill) Q3 2016 Q2 2016 FY 2015 Revenues 248 256 1,222 Production costs 32 39 141 Other operating expenses 6 5 52 EBITDAX 210 211 1,029 Exploration expenses 31 36 76 EBITDA 179 175 953 Depreciation 115 120 481 Impairment losses 8 (20) 430 Operating
Slide 6: Statement of financial position
FINANCIALS Statement of financial position Assets Equity and liabilities (USD mill) 30.09.16 30.09.15 (USD mill) 30.09.16 30.09.15 Goodwill Equity 2 579 495 1 858 948 Other intangible assets Other provisions for liabilities incl. P&A 1 701 898 2 400 555 (long) Property, plant and equipment Deferred
Slide 7: Third quarter cash flow
FINANCIALS Third quarter cash flow 88 448 786 178 111 300 251 260 68 End Q2-16 cash Q3 CF Ops Q3 CF Inv Q3 CF Fin* Payment to BP Net cash in 9 months CF Ops 9 months CF Inv End Q3-16 cash DETNOR DETNOR DETNOR p.l.c for W/C BP Norge BP Norge** BP Norge * Including FX effect on cash held ** Including
Slide 8: Funding and liquidity
FINANCIALS Funding and liquidity Third quarter 2016 Undrawn credit Cash & cash equivalents Net interest-bearing debt (book value) of USD 2.38 bn Cash and undrawn debt facilities of USD 1.50 bn 1,50 Dividend restrictions removed from loan agreements 0,71 Financing 1,02 RBL facility increased
Slide 9: Dividends
FINANCIALS Dividends Indicative timeline The Board of Directors proposes dividend payment of USD Late November: Extraordinary General Meeting 125 million, based on 2015 annual accounts • Split equally between December 2016 and March 2017 December 2016: Dividend payment of USD 62.5 million • Co
Slide 10: 2016 guidance
GUIDANCE 2016 guidance Guidance ex. BP Norge Actual Year-to-date Sept 30, 2016 Guidance Aker BP ASA Item FY 2016 (Updated Sept 14, 2016) DETNOR BP Norge AS (Economic exposure)* 2016 CAPEX USD 900 - 920 million USD 626 million USD 14 million USD 910 - 930 million 2016 EXPEX USD 200 – 220 million USD
Slide 11: Operations
Operations Q3 2016 < a
Slide 12: Oil and gas production
PRODUCTION Oil and gas production Net production (boepd) Q3 2016 production of 112.6 mboepd including BP Norge • Production impacted by planned shutdown at Skarv and the Alvheim area Q3 2016 production of 59.8 mboepd booked in P&L • Production efficiency of 83.3% • Strong production from Vilje a
Slide 13: Further developing the Alvheim area
GREATER ALVHEIM AREA Further developing the Alvheim area Key events New projects in the Alvheim area First oil from Viper-Kobra wells expected in November • Subsea campaign about to be completed • Start-up crew to be mobilized this week Transocean Arctic expected to commence drilling in the Alvh
Slide 14: Ivar Aasen project on plan and budget
IVAR AASEN Ivar Aasen project on plan and budget Key events Topside modules successfully installed in July Pre-drilling campaign completed in early July with top quartile performance • Five producers and three water injector finished The living quarters were taken into use in September SURF
Slide 15: Further CAPEX reductions in the third quarter
JOHAN SVERDRUP Further CAPEX reductions in the third quarter Key events Project progressing according to plan: • Most major contracts have been awarded • Platform construction ongoing • Pre-drilling with Deepsea Atlantic ongoing Production capacity of 440 mboepd in phase 1 and 660 mboepd for ful
Slide 16: Stable production with upside potential
VALHALL / HOD HUB Stable production with upside potential Key events Operations efficiency in Q3-16 was 91 percent Maersk Reacher completed a plug and abandon (P&A) program at the drilling platform in July • DP P&A campaign to be continued in 2017 utilizing Maersk Invincible drilling rig, expect
Slide 17: Increased production from WAG injection and tie-ins
ULA / TAMBAR HUB Increased production from WAG injection and tie-ins Key events Operations efficiency in Q3-16 was 75 percent • Negatively impacted by delayed restoring of water alternating gas (WAG) injection capacity Evaluating Tambar infill targets and execution of Tambar gas lift project G
Slide 18: Maturing Snadd towards PDO in 2017
SKARV AREA Maturing Snadd towards PDO in 2017 Key events Operations efficiency in Q3-16 was 74 percent • The operations efficiency was negatively impacted by a 27 days planned shutdown Plan to extend the Snadd test production to secure production for 2017 Low pressure production project comple
Slide 19: 2016 drilling program
EXPLORATION 2016 drilling program Askja/Krafla exploration campaign concluded • Discoveries at Slemmestad and Haraldsplass (sidetrack) • 2016 drilling campaign has proved ~60 mmboe (gross) Dry well at Rovarkula Oil discovery at Langfjellet Filicudi prospect in the Barents Sea to be drilled i
Slide 20: Building a potential new core area
NORTH OF ALVHEIM Building a potential new core area Oil discovery at Langfjellet • Gross oil column of 109 meters • Preliminary estimate of 24 – 74 mmboe • Drilling of sidetrack ongoing • Significant upside potential North of Alvheim* area holds gross mean contingent resources of 160 - 170 mmboe
Slide 21: Acquisition of licenses from Tullow
BUSINESS DEVELOPMENT Acquisition of licenses from Tullow Transaction comprises working interest in eight licenses Strengthens the company’s position in core areas surrounding the Ula, North of Alvheim, Skarv and the Krafla/Askja areas Oda development is a tie-in to the Ula field • Estimated to
Slide 22: Integration project on track towards “Day 1”
AKER BP ASA Integration project on track towards “Day 1” Process Transaction closed with EGM and regulatory approvals September 30th, 2016 Business transition period from closing until “Day 1” Full organizational and operational incorporation on “Day 1” scheduled December 1st, 2016 Integration
Slide 23: Summary and outlook
OUTLOOK Summary and outlook Operations • Ivar Aasen first oil in December • Viper-Kobra first oil in November and start of drilling campaign in the Alvheim area Financing • Proposed dividend of USD 62.5 million in December • Assessment of capital structure in Aker BP going forward Business dev
Slide 24: Aker BP
& AkerBP www.akerbp.com