Slide 1: Q2 2017 Aker BP ASA
Q2 2017 AKER BP ASA KARL JOHNNY HERSVIK, CEO ALEXANDER KRANE, CFO 14 JULY 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 Q2-17 production of 142.7 mboepd 2017 full year guidance increased to 135 - 140 mboepd Finance Q2-17 EBITDA USD 395 million, EPS USD 0.18 Q2-17 Free cash flow* of USD 135 million (USD 0.40 per share) Quarterly dividend of USD 62.5 million (DPS of USD 0.185
Slide 4: Financials
Financials Q2 2017 < a
Slide 5: Statement of income
FINANCIALS Statement of income Income statement (USD million) Q2 2017 Q2 2016 FY 2016 Total operating income 595 256 1,364 Production costs 121 39 227 Other operating expenses 3 5 22 EBITDAX 470 211 1,115 Exploration expenses 75 36 147 EBITDA 395 175 968 Depreciation 184 120 509 Impairment losses 0
Slide 6: Statement of financial position
FINANCIALS Statement of financial position Assets Equity and liabilities (USD million) 30.06.17 30.06.16 (USD million) 30.06.17 30.06.16 Goodwill Equity 2,453 378 1,817 739 Other intangible assets Other provisions for liabilities incl. P&A 1,627 927 2,330 484 (long) Property, plant and equipment Def
Slide 7: Cash flow and liquidity
FINANCE Cash flow and liquidity Cash flow Q2 2017 (USD million) Strong cash flow in Q2-17 • Free cash flow of USD 135 million • Repaid USD 190 million on RBL for cash management purposes • Dividend of USD 62.5 million (USD 0.185 per share) paid 312 out in May 447 Net interest-bearing debt (book
Slide 8: Changes to the capital structure
FINANCE Changes to the capital structure Liquidity (USD billion) Obtained corporate credit ratings from S&P (BB+) and Cash Undrawn RBL Undrawn RCF Moody’s (Ba2) Raised USD 400 million senior notes 0,39 0,33 • Fixed interest of 6.0 percent, payable semi-annually 2,60 2,67 • Five years tenure 0,55
Slide 9: Updated 2017 guidance
FINANCE Updated 2017 guidance Actual year-to-date Old guidance New guidance Item per June 30, 2017 2017 full year 2017 full year Production 144.0 mboepd 128 – 135 mboepd 135 – 140 mboepd Production cost USD 9.3 per boe USD ~11 per boe USD ~10 per boe USD 900 – 950 million CAPEX USD 491 million USD 9
Slide 10: Operations
Operations Q2 2017 < a
Slide 11: Oil and gas production
PRODUCTION Oil and gas production Net production* (boepd) Q2-17 production of 142.7 mboepd • 78% liquids / 22% gas • Continued strong production from Viper-Kobra Realized oil price of 51 USD/bbl, gas price of 0.18 USD/scm Gina Krog (3.3%) commenced production on 30 June 2017 *Including FY 2016
Slide 12: Alvheim Area: Continues to beat expectations
ALVHEIM AREA (65.0%*) Continues to beat expectations Continued stable and high production in Q2-17 • Production efficiency of 98% • Production cost of 4.5 USD/boe Ongoing drilling campaign with Transocean Arctic • Two infill wells at Volund completed • Commenced drilling of first of two Boa infi
Slide 13: Valhall / Hod: Drilling program ongoing
VALHALL (36.0%) / HOD (37.5%) Drilling program ongoing Continued high and stable production in Q2-17 • Production efficiency 85% IP Platform drilling program ongoing • Seven wells campaign of which three are planned in 2017 • Strong drillings results to date Maersk Invincible commenced pluggin
Slide 14: Ivar Aasen: Production ramp-up continues
IVAR AASEN (34.8%) Production ramp-up continues Excellent production performance with high uptime • High operational availability of 98.5% • Production efficiency 90% due to power issues Strong drilling performance • D-12 production well drilled at record speed • PDO well programme to be complet
Slide 15: Ula / Tambar: Increased production from WAG injection
ULA (80.0%) / TAMBAR (55.0%) Increased production from WAG injection Increased production from Ula/Tambar in Q2-17 • Mainly due to WAG effects • Production efficiency 69% Tambar development progressing with procurement, engineering and prefabrication Tambar drilling to commence in Q4-17 • Test
Slide 16: Skarv Area: Snadd development progressing as planned
SKARV AREA (23.8%) Snadd development progressing as planned Stable operations and production • 96% production efficiency • Test production from Snadd A1H well continues Seismic survey during summer 2017 Snadd project progressing as planned • Development comprising of six subsea wells tied back
Slide 17: Johan Sverdrup: Development on track
JOHAN SVERDRUP (11.6%) Development on track Project progressing according to plan: • Most major contracts have been awarded • Platform construction ongoing at 22 different sites globally • Construction was approximately 60% complete by end-Q2 • The first steel jacket has been completed • Good dril
Slide 18: Targeting an area solution for NOAKA
NORTH OF ALVHEIM | KRAFLA/ASKJA Targeting an area solution for NOAKA Statoil, LOTOS and Aker BP have agreed to establish an area forum to evaluate a joint area development for North of Alvheim and Krafla/Askja (NOAKA) Two area solutions to be evaluated; • Field hub with processing platform in th
Slide 19: Exploration activities 2017
EXPLORATION Exploration activities 2017 Drilling of the Gohta (NE) and Volund West prospects completed in the second quarter Maersk Interceptor to commence drilling of the Hyrokkin prospect in August, before drilling of the Nordfjellet/Delta prospects Aker BP Pre-drill License Prospect name Oper
Slide 20: Drilling and wells continuous improvement
IMPROVEMENT Drilling and wells continuous improvement Ivar Aasen production and water injector wells Integrated one team approach continue to deliver improvement and outstanding drilling results Meters / dry hole day excluding coring and logging * Valhall IP – G-9 Well • Implemented new well des
Slide 21: 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 productivity gains Improve Mature projects to below 35 USD/boe break-even Stepping up exploration activity in H2 20
Slide 22: Aker BP
& AkerBP www.akerbp.com