Aker Bp Asa · OSL:AKRBP
Aker Bp Asa — Aker Bp Asa Ord — Q2 2024 Earnings Presentation
25 slides from Aker Bp Asa's earnings presentation, Jul 12, 2024
Slide 1: Second quarter 2024
Second quarter 2024 12 July 2024 Aker BP ASA
Slide 2: Highlights
Highlights Second quarter 2024 Excellent operational performance ▪ High production efficiency and volumes ▪ Low cost and emissions Development projects on track ▪ Fabrication and installation activities well underway ▪ Cost estimates and schedule unchanged Strong financial performance ▪ High underly
Slide 3: Production
Production 1,000 barrels oil equivalents per day (mboepd) 481 450 444 448 444 Skarv Valhall Grieg/Aasen Alvheim Johan Sverdrup Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Production efficiency 97% 93% 93% 93% 95% 3
Slide 4: Johan Sverdrup
Johan Sverdrup A world-class oil field with excellent reservoir properties Industry-leading Industry-leading Aker BP Total original reserves Oil production capacity low production cost low carbon emissions working interest 2.7 755 ~$2 <1 kg 31.6 billion boe mboepd USD/boe CO2/boe percent 4
Slide 5: Johan Sverdrup
Johan Sverdrup Steady production at elevated plateau Johan Sverdrup production Net to Aker BP, mboepd ▪ Continued high production efficiency 300 ▪ Four new production wells online in 1H 250 ▪ Six more production wells to be added in 2H 200 ▪ Planning for retrofit multilaterals next year 150 ▪ Maturi
Slide 6: Production costs
Production costs A strong competitive position Aker BP production cost Industry peers total operational cost1 USD per boe USD per boe, 2023 20 15 12.0 10 7.3 7.2 7.2 6.2 6.1 6.4 5.6 6.0 5 0 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Base op
Slide 7: Decarbonisation
Decarbonisation A global leader in low GHG emissions 140 Decarbonising the business Industry net emission intensity1 120 Aker BP emission intensity, kg CO2e/boe Kg CO2/boe, equity share (2023) 100 5.3 80 3.8 3.2 60 3.0 2.9 2.8 2.8 2.9 2.6 40 20 0 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24
Slide 8: Project execution on track
Project execution on track ▪ Major milestones successfully reached ▪ Fabrication and installation activities well underway ▪ Subsea activities and drilling progressing well ▪ Tyrving start-up planned for October ▪ Total capex estimate in line with plans First subsea structures on Yggdrasil installed
Slide 9: Development projects to drive growth and value creation
Development projects to drive growth and value creation Net volume ~770 mmboe I Net capex USD ~3 billion after tax I Portfolio BE at USD 35-40 per barrel1 Production outlook mboepd ~525 ▪ New area hub with several discoveries2 ▪ Significant upside potential in the area 420-440 Yggdrasil ▪ Capex USD
Slide 10: Aker BP project overview
Aker BP project overview ~770 mmboe net oil and gas volume at net capex of around USD 3 billion after tax Aker BP Production Asset area Field development Gross/net volume Net capex estimate PDO submission ownership start Frosk 80.0% 10/8 mmboe USD 0.2bn 2021 2023 Alvheim Kobra East & Gekko 80.0% 50/
Slide 11: Eventful exploration year so far
Eventful exploration year so far Positive exploration results ▪ Successful Adriana well: Candidate for tie-in to Skarv ▪ Successful Trell North well: Already included in Tyrving ▪ Ringhorne North: Potential tie-in to nearby infrastructure ▪ Frigg Gamma: Successful geopilot in Yggdrasil area The unlo
Slide 12: 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 13: Financial highlights
Financial highlights ▪ Strong performance and underlying cash generation ▪ Optimising the capital structure with successful EUR bond issue ▪ On track to deliver on full-year guidance 13
Slide 14: Sales of oil and gas
Sales of oil and gas Volume sold Realised prices Total income mboepd USD/boe USD million 477 467 461 450 88 3 513 3 556 69 429 84 83 83 3 376 59 63 3 291 60 77 336 398 3 078 326 64 399 301 74 64 60 57 51 409 390 408 398 3 140 3 140 364 2 858 3 011 2 748 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q2-23 Q3-23 Q4-2
Slide 15: Income statement
Income statement USD million Before impairment Q2 2024 Impairments Actual Q1 2024 Actual 461 mboepd (429) Total income 3 377 3 377 3 078 Oil and gas sales Production costs 290 290 211 Other operating expenses 13 13 11 EBITDAX 3 074 3 074 2 855 $80 per boe (78) Exploration expenses 108 108 68 Net rea
Slide 16: Cash flow
Cash flow USD million $-0.28 bn (0.34) Q2-24 Q1-24 Q4-23 Q3-23 Op. CF before tax and WC changes 3 133 2 986 3 204 3 235 Taxes paid (2 086) (1 054) (2 207) (862) Free cash flow (FCF) Changes in working capital1 100 (476) 506 (272) Cash flow – operations 1 147 1 456 1 503 2 101 $-0.45 (0.54) Cash flow
Slide 17: Near-term tax payments
Near-term tax payments Sensitivity for H2-2024 USD million 2 500 Tax instalments ▪ Tax for the year is paid in six bimonthly instalments with six months delay 2 000 ▪ Initial tax estimate for the year is made in Q2, the H2-instalments are then fixed in NOK ▪ Option for voluntary additional payment i
Slide 18: Balance sheet
Balance sheet USD million Assets 30.06.24 31.03.24 31.12.23 PP&E 18 620 17 819 17 450 $6.6 bn ($6.6) Goodwill 13 060 13 143 13 143 Total available liquidity Other non-current assets 3 307 3 207 3 314 Cash and equivalent 3 233 3 215 3 388 Other current assets 1 997 2 053 1 751 32% (32%) Total Assets
Slide 19: Continuously optimising our capital structure
Continuously optimising our capital structure Bond maturities USD/EUR billion Senior notes issued in May ▪ EUR 750 million ▪ 2032 maturity at 4.0% annual fixed coupon 1.75 Strong financial capacity and flexibility ▪ A robust balance sheet 1.00 1.00 ▪ Maintaining financial flexibility 0.84 0.75 0.75
Slide 20: 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 7 6.8 6.8 6.6 6.6 6.1 6 5 4 0.9 3.4 3.1 3 2.6 2.4 2.4 0.6 0.5 2 0.3 3.4 3.4 3.2 3.2 0.3 2.7 1 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.1 0 Q2-23 Q
Slide 21: Dividends
Dividends Strong and resilient cash flow as basis for dividend growth Aker BP value creation plan 2023-2028 Dividends USD billion, accumulated USD per share 2.40 2.20 ▪ Low-cost production gives 20 2.00 Q4 resilient dividend capacity $90/bbl ▪ Distributions shall reflect the 15 Dividend capacity thr
Slide 22: 2024 guidance
2024 guidance Previous Actual New guidance Jan-June guidance Production 410-440 446 420-440 mboepd Production cost ~7.0 6.2 ~7.0 USD/boe Capex ~5.0 2.28 ~5.0 USD billion Exploration ~0.50 0.25 ~0.50 USD billion Abandonment ~0.25 0.14 ~0.25 USD billion 22
Slide 23: Second quarter 2024 - Delivering on the strategy
Second quarter 2024 - Delivering on the strategy Deliver high return Establish the next Return maximum value Operate safely Decarbonise to our shareholders projects on quality, wave of profitable and efficiently our business and our society time and cost growth options 444 mboepd with Equity GHG int
Slide 24: 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 25: www.akerbp.com
AkerBP www.akerbp.com