Aker Bp Asa · OSL:AKRBP

Aker Bp Asa — Q1 2021 Earnings Presentation

26 slides from Aker Bp Asa's earnings presentation, Apr 28, 2021

  1. Slide 1: First Quarter 2021

    First Quarter 2021 28 April 2021

  2. 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

  3. Slide 3: First quarter 2021 Highlights

    First quarter 2021 Highlights Operations on track  Production on track with low cost and low emissions  Field developments on schedule  P&A campaign successfully completed Maturing next wave of field developments  Frosk and KEG first in line  NOAKA moving towards concept select Strong financial

  4. Slide 4: Production performance

    Production performance Oil and gas production (mboepd) Production efficiency (percent) 223.1 222.2 208.1 209.8 201.6 96 96 191.1 93 93 92 94 89 84 86 158.7 146.1 127.3 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Alvheim Ivar Aasen Skarv

  5. Slide 5: Financial performance

    Financial performance Production cost as planned (USD/boe) Higher realised oil and gas prices (USD/boe) 8.7 9.1 56 8.1 8.6 7.3 41 42 39 27 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Disciplined capital spend (USD million) Record high operating cash flow (USD million) 900 483 436 447

  6. Slide 6: HSSE performance

    HSSE performance Total Recordable Injury Frequency (12 months rolling average) Emissions Intensity (kg CO2 per boe produced) 3.6 3.5 3.5 7.7 7.5 7.6 3.1 6.9 2.4 5.3 5.1 4.2 1.7 4.0 3.8 1.3 1.2 1.2 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q

  7. Slide 7: Ongoing projects

    Ongoing projects On schedule Ærfugl phase 2  Drilling completed  Offshore preparations on track  Production start planned in Q4-21 Johan Sverdrup phase 2  Main process module underway to Norway  Offshore installation of jacket planned in June  On schedule for production start in Q4-22 Hod  Pl

  8. Slide 8: Upcoming projects

    Upcoming projects Aiming to sanction projects with more than 500 mmboe in resources before the end of 2022 Project Area Net mmboe FID First oil Status Valhall infill drilling Valhall 10 2020 2021 Ongoing Frosk Alvheim 10 Q3-2021 2023 Concept selected – FID planned in Q3-21 Kobra East/Gekko Alvheim 3

  9. Slide 9: The Alvheim story continues

    The Alvheim story continues Many projects and active business development Skogul  Kobra East Gekko FID planned in Q2  Frosk FID planned in Q3 Vilje  Continued infill drilling Trell & Trine  Swap deal with Lundin Alvheim  Entered into UK licence P2511 Gekko Volund Froskelår Frosk Bøyla Rumpetrol

  10. Slide 10: NOAKA

    NOAKA North of Alvheim, Krafla and Fulla • On track for concept select in Q3 Resources Aker BP Production start • Close cooperation with partners and suppliers >500 mmboe >60% 2027 • Digital project execution gross avg. interest targeted 10

  11. Slide 11: Valhall plugging campaign successfully completed

    Valhall plugging campaign successfully completed Valhall P&A campaigns (days per well) Strong performance • 30 wells plugged since 2014 in three 120 2014-16 campaigns 2017-18 • Six years ahead of plan and NOK 5 billion 2020-21 100 below original budget Trend • Close to zero emissions with electrifie

  12. Slide 12: Exploration 2021

    Exploration 2021 4 3 Licence Prospect Operator Aker BP Pre-drill Status share mmboe PL 533 Bask Lundin 35 % Dry PL 981 Merckx Ty 1 Lundin 40 % 43 - 304 Expected in Q3 PL 544 Garantiana W 2 Equinor 30 % 7 - 28 Ongoing PL 858 Stangnestind 3 Aker BP 40 % 13 - 108 Q2 - after Shenzhou PL 722 Shenzhou 4 E

  13. Slide 13: Financial review

    Financial review First quarter 2021

  14. Slide 14: Oil and gas sales

    Oil and gas sales First quarter 2021 Oil & gas volume sold (mmboe) Total income (USD million) Realised prices (USD/boe) 21.1 20.1 1,133 19.7 Liquids 18.9 3.1 139 $60.1 +36% 17.3 3.5 3.6 3.0 872 2.8 834 97 66 111 684 590 52 Natural gas 41 $38.5 +21% 18.0 990 15.9 16.2 16.5 14.5 709 715 619 540 Q1-20

  15. Slide 15: Production cost

    Production cost First quarter 2021 Production cost per unit produced 200 198 196 USD/boe 176 167 154 156 Q1-2021 15.4 142 134 13.4 13.2 $8.6 9.1 8.7 9.1 8.6 8.1 7.3 Full year guidance $8.5-9.0 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Prod. cost - produced volumes (USDm) Prod. cost - sol

  16. Slide 16: Income statement

    Income statement First quarter 2021 (USD million) 16

  17. Slide 17: Income statement

    Income statement First quarter 2021 USD million Q1 2021 Q4 2020 Change Comment Comments: Total income 1,133 834 +36% 1 1. Higher oil and gas prices Production costs 176 142 2 2. Higher volume lifted Other operating expenses 8 27 3. Increase driven by field evaluation, EBITDAX 949 664 +43% mainly rel

  18. Slide 18: Cash flow statement

    Cash flow statement First quarter 2021 (USD million) 343 Abex Expex Q1-2021 2020 Capex 113 900 FCF per share FCF per share 76 558 515 $1.55 $1.25 Dividend per share Dividend per share $0.31 $1.18 538 392 Cash Operating Invest- Free cash Dividends Interest Bond Cash Q4-20 cash flow ments 1) flow 2) e

  19. Slide 19: Statement of financial position

    Statement of financial position USD million Assets 31.03.21 31.12.20 31.03.20 Equity and liabilities 31.03.21 31.12.20 31.03.20 Goodwill 1,647 1,647 1,647 Equity 1,989 1,987 1,813 Other provisions for liabilities Other intangible assets 1,879 2,043 2,001 2,665 2,650 2,699 incl. P&A (long) Property,

  20. Slide 20: Refinancing to further improve maturity profile

    Refinancing to further improve maturity profile Bond redeemed Debt maturity profile (USD million) • Call option exercised at 102.9375% of par for the USD 500 million Senior Notes 5.875% (2018/25) RCF facilities extended • Working Capital Facility extended to 2024 (2022) with options for two 1-year e

  21. Slide 21: Superior financial flexibility

    Superior financial flexibility Net debt ex. leases (USD million) Available liquidity (USD million) Debt maturity profile (USD million) 4,819 4,538 4,023 3,742 3,792 3,570 3,554 3,431 3,180 3,271 3,082 2,657 1.46 1.46 1.51 1.24 1.23 1.23 1,000 750 750 500 500 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q4-19

  22. Slide 22: Cash tax sensitivity

    Cash tax sensitivity USD million 300 200 100 199 $65 $65 106 $65 $65 48 81 0 $50 $50 $50 $50 (109) (11) (23) $40 $40 -100 (201) $40 $40 -200 -300 -400 -500 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Payments of 2019 tax Payments of 2020 tax Payments of 2021 tax1) 1) Esti

  23. Slide 23: Guidance summary

    Guidance summary First quarter 2021 PRODUCTION CAPITAL SPEND PRODUCTION COST DIVIDENDS 2021 guidance 210-220 2.2-2.3 8.5-9.0 450 mboepd USD billion USD/boe USD million First quarter actuals 222.2 0.4 8.6 112.5 mboepd USD billion USD/boe USD million 23

  24. Slide 24: Concluding remarks

    Concluding remarks First quarter 2021

  25. Slide 25: Priorities

    Priorities EXECUTE IMPROVE GROW  Safe and efficient operations  New operating model  Mature NOAKA and other  Flawless project execution  Digital project execution projects to FID by end-2022 25

  26. Slide 26: www.akerbp.com

    AkerBP www.akerbp.com

Aker BP — Q1 2021 Earnings Presentation on 6ix