Aker Bp Asa · OSL:AKRBP
Aker Bp Asa — Det norske oljeselskap — Q2 2016 Earnings Presentation
23 slides from Aker Bp Asa's earnings presentation, Jul 14, 2016
Slide 1: Q2 2016
Q2 2016 DET NORSKE OLJESELSKAP ASA KARL JOHNNY HERSVIK, CEO ALEXANDER KRANE, CFO 14 JULY 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
DET NORSKE Highlights Aker BP ASA Merger with BP Norge AS to create the leading offshore independent E&P company* Production Q2-16 production of 62.4 mboepd, + 3% from Q1-16 Finance Q2-16 EBITDA USD 175 million, EPS 0.03 (USD) USD 1 billion in cash and undrawn debt facilities Development pro
Slide 4: Growth opportunity stemming from long-term collaboration
AKER BP ASA Growth opportunity stemming from long-term collaboration BP has been one of the pioneers of the Aker has over the last decades built a Det norske has proven to be one of the most E&P industry globally and is a well unique oil service hub and world class successful E&P independents throug
Slide 5: Solid footprint covering entire NCS
AKER BP ASA Solid footprint covering entire NCS Skarv Solid base performance and upside potential Alvheim High production efficiency and low operating cost Ivar Aasen On track to first oil Q4-16 Skarv Johan Sverdrup World class development with break even prices below 30 USD/bbl Alvheim Ula/Tambar I
Slide 6: Significant production and cash flow
AKER BP ASA Significant production and cash flow Growth and de-risking of portfolio Illustrative production potential*, mboepd Unique portfolio with potential to reach production above 300 ~250 mboepd from 2023 BP Norge AS Det norske oljeselskap ASA Diversified production 250 • 78% liquids and 2
Slide 7: Creating the leading independent offshore E&P company
AKER BP ASA Creating the leading independent offshore E&P company Unique platform for further growth Unique Combining nimble business practices with IOC capabilities and 175 years of industrial experience capabilities Leveraging Det norske’s improvement agenda and lean initiatives Combined pro
Slide 8: Integration planning on track
AKER BP ASA Integration planning on track Integration topics New executive management team Management and organization Governing systems Emergency preparedness IT systems Karl Johnny Hersvik, Alexander Krane, Eldar Larsen, Chief Executive Officer Chief Financial Officer SVP Operations Clos
Slide 9: Operations
Operations Q2 2016 DETNORSKE
Slide 10: Oil and gas production
PRODUCTION Oil and gas production Net production (boepd) Q2 2016 production of 62.4 mboepd • BoaKamNorth commenced production in May • Strong production from Vilje Q2 2016 production efficiency of 97.0% Q2 2016 realized oil price of USD 49/bbl January to April 2016 combined production from B
Slide 11: Further developing the Alvheim area
GREATER ALVHEIM AREA Further developing the Alvheim area Alvheim area New projects in the Alvheim area The tri-lateral BoaKamNorth well came on stream in May Drilling of Viper-Kobra wells are finalized with good results • Mean post-drill estimates for Viper-Kobra wells of 13 mmboe (gross) versus
Slide 12: Ivar Aasen project on plan and budget
IVAR AASEN Ivar Aasen project on plan and budget Recent events Detailed timeline Construction of topside completed in Singapore 2012 2013 2014 2015 2016 Topside sailed from Singapore in early June H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 Concept selection Production drilling continued ahead of schedule w
Slide 13: Lifting operations about to commence
IVAR AASEN Lifting operations about to commence Ivar Aasen topside has arrived safely in Norway after leaving Singapore in early June Living quarters completed at Stord in June Lifting operations with “Saipem 7000” heavy lift vessel are expected to commence shortly • 5 lifts, including living
Slide 14: Offshore hook-up and commissioning
IVAR AASEN Offshore hook-up and commissioning Topside sailed from Singapore with a very limited carry over scope Det norske and Aibel working as one integrated team with common KPIs and incentives to minimize offshore work hours Safe Zephyrus mobilized from inshore location with personnel and
Slide 15: 2016 drilling program
EXPLORATION 2016 drilling program Askja/Krafla exploration campaign ongoing • Currently drilling Slemmestad sidetrack in Haraldsplass prospect Spud of Rovarkula exploration well with Maersk Interceptor planned in second half of July Langfjellet exploration well to be drilled after Rovarkula •
Slide 16: Awarded three new licenses in 23rd licensing round
EXPLORATION Awarded three new licenses in 23rd licensing round Det norske was awarded all three licences it applied for in the 23rd round, incl. operatorship in Barents SE • Operator in in PL858 (Area B) on Fedinsky flank • Partner in PL857 (Area C) • Partner in PL852 (Munken – Loppa North) Offe
Slide 17: Financials
Financials 2 Q2 2016 DETNORSKE
Slide 18: Statement of income
FINANCIALS Statement of income Income statement (USD mill) Q2 2016 Q1 2016 FY 2015 Revenues 256 205 1,222 Production costs 39 34 141 Other operating expenses 5 5 52 EBITDAX 211 165 1,029 Exploration expenses 36 36 76 EBITDA 175 129 953 Depreciation 120 114 481 Impairment losses (20) 38 430 Operating
Slide 19: Statement of financial position
FINANCIALS Statement of financial position Assets Equity and liabilities (USD mill) 30.06.16 30.06.15 (USD mill) 30.06.16 30.06.15 Goodwill 739 1,134 Equity 378 661 Other intangible assets 927 922 Other provisions for liabilities incl. P&A 484 523 (long) Property, plant and equipment 3,305 2,804 Def
Slide 20: Cash flow and liquidity
FINANCIALS Cash flow and liquidity Cash flow (USDm) Liquidity (USDbn) Second quarter 2016 Operating cash flow impacted by negative working capital Undrawn credit movements in the quarter Cash & cash equivalents 1,23 Net interest-bearing debt (book value) of USD 2.78 bn 127 Cash and undrawn deb
Slide 21: 2016 updated guidance
OUTLOOK 2016 updated guidance DETNOR stand-alone, ex. BP Norge AS Item Year-to-date June 30, 2016 Old guidance New guidance 2016 CAPEX USD 449 million USD 925 – 975 million USD 900 - 920 million 2016 EXPEX USD 100 million USD 160 – 170 million USD 200 – 220 million 55 – 60 mboepd 2016 production 61.
Slide 22: Summary and outlook
OUTLOOK Summary and outlook Operations • Aasen topside heavy lift in July, first oil in December • Alvheim 12-day planned shutdown in August • Three exploration wells planned for Q3-2016 Closing of merger with BP Norge AS • Integration work and organizational synergies • Preparations for day 1
Slide 23: EF TNORSKE
EF TNORSKE www.detnor.no
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