Aker Bp Asa · OSL:AKRBP
Aker Bp Asa — Aker Bp Asa Ord — Q3 2024 Earnings Presentation
28 slides from Aker Bp Asa's earnings presentation, Oct 30, 2024
Slide 1: Third quarter 2024
Third quarter 2024 30 October 2024 Aker BP ASA
Slide 2: Highlights
Highlights Third quarter 2024 Excellent operational performance ▪ High production efficiency and volumes despite scheduled maintenance ▪ Low cost and emissions maintained ▪ Upgraded full-year guidance with improved production and cost targets Development projects on track ▪ Fabrication, installation
Slide 3: Production
Production Q3 impacted by scheduled maintenance 1,000 barrels oil equivalents per day, mboepd 450 444 448 444 415 Skarv Valhall Grieg/Aasen Alvheim Johan Sverdrup Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Production efficiency 93% 93% 93% 95% 88% 3
Slide 4: Johan Sverdrup
Johan Sverdrup World-class oil field Production Near-term plans mboepd (gross) 800 ▪ High production efficiency ▪ Finalise drilling campaign 600 ▪ Opex ~$2 USD/boe ▪ Retrofit multilaterals 400 ▪ Emissions below 1 kg CO2e/boe ▪ Phase 3 concept select 200 0 Q4-19 2020 Q4-19 2021 Q1-22 Q3-20 Q2-21 2022
Slide 5: 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 6.4 6.6 6.0 6.1 5.6 5 0 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
Slide 6: 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 2.6 2.6 2.4 40 20 0 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q
Slide 7: Field developments driving growth and value creation
Field developments driving growth and value creation High returns and low break-evens in investment-friendly tax system Production outlook mboepd ▪ New area hub with several discoveries ~525 ▪ Significant exploration upside potential Yggdrasil ▪ Capex USD 10.7bn (pre-tax) 430-440 Net ~415 mmboe ▪ Ne
Slide 8: Projects on track
Projects on track Successful From pre- Focus on Total capex installation fabrication to quality and estimate in line activities yard assembly schedule with plans 8
Slide 9: Successful Tyrving start-up
Successful Tyrving start-up Efficient execution I Ahead of schedule I Below budget ▪ Delivered through our alliance model, fostering collaboration with suppliers toward shared goals and incentives Alvheim FPSO ▪ World-class drilling and subsea performance ▪ Estimated gross recoverable resources ~25
Slide 10: Aker BP project overview
Aker BP project overview Four projects already on stream - Combined below budget and ahead of schedule 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% 50/40
Slide 11: Targeting the next growth phase
Targeting the next growth phase Develop existing resources I M&A I Exploration Reserves and resources billion boe 4 ILX potential, net risked 3 3P reserves 2C resources 2 1 2P reserves 0 Reported reserves Currently identified potential 11
Slide 12: Exploration strategy
Exploration strategy Aker BP operator Establishing new growth options Aker BP partner Uniquely positioned on the NCS ▪ Second largest player with over 200 licences ▪ Present in all key NCS regions ▪ Operator of ~70% Driving innovation ▪ Technology development driving efficiency and success rates ▪ D
Slide 13: Drilling ahead
Drilling ahead High-impact wells and emerging opportunities Significant exploration potential Pre-drill volume estimates (mid-point, mmboe gross) Skarv area – building on recent successes ▪ Multiple discoveries under evaluation for development (Adriana, Lunde and Storjo) ▪ Three firm wells scheduled
Slide 14: Near-term exploration programme
Near-term exploration programme Aker BP operator Aker BP partner Aker BP Pre-drill Licence Prospect Operator Status share mmboe Elgol PL261 Storjo Aker BP 70% 21-67 mmboe PL1086 Falstaff DNO 20% 20 - 95 Ongoing PL1185 Kvernbit Equinor 20% 10 - 65 Ongoing PL211CS Sabina (appraisal) Wintershall Dea 15
Slide 15: Financial highlights
Financial highlights ▪ Record-high cash flow generation ▪ Further improved financial position ▪ Positive revisions to full-year guidance ▪ Dividend of USD 0.60 per share 15
Slide 16: Sales of oil and gas
Sales of oil and gas Volume sold Realised prices Total income mboepd USD/boe USD million 467 461 450 88 3 513 3 556 429 84 83 83 3 376 59 63 80 60 391 336 398 3 078 326 64 2 858 46 301 74 271 64 60 57 51 390 408 398 3 140 3 140 364 3 011 345 2 748 2 548 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q3-23 Q4-23 Q1-2
Slide 17: Income statement
Income statement USD million Q3 2024 Q2 2024 Before Before Total income impairment 2 858 Impairments Actual 2 858 impairment 3 377 Impairments Actual 3 377 391 mboepd (461) Production costs 186 186 290 290 Oil and gas sales Other operating expenses 19 19 13 13 EBITDAX 2 652 2 652 3 074 3 074 Explora
Slide 18: Technical goodwill explained
Technical goodwill explained Accounting effect arising from M&A transactions Illustrative example of goodwill formation and impairments Step 1 Step 2 Step 3 The M&A Deferred tax leads to The balance transaction technical goodwill sheet Deferred tax Technical goodwill ▪ Technical goodwill, allocated
Slide 19: Cash flow
Cash flow USD million Q3-24 Q2-24 Q1-24 Q4-23 Op. CF before tax and WC changes Net taxes paid 2 595 3 133 2 986 3 204 $2.8 bn (1.5) (424) (2 086) (1 054) (2 207) Cash flow from operations Changes in working capital1 586 100 (476) 506 Cash flow from operations 2 757 1 147 1 456 1 503 Cash flow from i
Slide 20: Near-term tax payments
Near-term tax payments Sensitivity for H1-2025 USD million 2 500 Tax instalments 2 000 ▪ Tax for the year is paid in six bimonthly instalments with six months delay ▪ Initial tax estimate for the year is made in Q2, the 1 500 H2-instalments are then fixed in NOK $80/bbl ▪ Voluntary additional paymen
Slide 21: Balance sheet
Balance sheet USD million Assets 30.09.24 30.06.24 31.12.23 PP&E 19 803 18 620 17 450 Goodwill 12 757 13 060 13 143 $7.5 bn ($6.6) Other non-current assets 3 362 3 307 3 314 Total available liquidity Cash and equivalent 4 147 3 233 3 388 Other current assets 1 625 1 997 1 751 Total Assets 41 693 40
Slide 22: 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 8 8.0 7.5 7 7.0 6.8 6.8 6.6 6.6 1.2 6 6.0 5 5.0 0.9 4 4.0 3.4 4.1 3 2.6 2.5 0.6 3.0 3.4 3.4 2.4 2.4 0.5 3.2 3.2 2 2.0 0.3 0.3 0.2 0.2 0
Slide 23: Optimising the capital structure
Optimising the capital structure New 10-year and 30-year USD senior notes issued 1 October 2024 Bond maturities Longer maturity at attractive terms USD/EUR billion Aligning debt maturities with longevity 10 8% of business profile ▪ Issued USD 1.5 billion notes split equally between 10 and 30 years 8
Slide 24: Value creation and distributions
Value creation and distributions Strong and resilient cash flow as basis for dividend growth Aker BP value creation plan 2023-2028 Dividends USD billion, accumulated USD per share ▪ Strong and resilient dividend 20 capacity $90/bbl ▪ Distributions reflect financial 15 2.40 capacity through the cycle
Slide 25: 2024 guidance
2024 guidance Previous Actual New guidance Jan-Sept guidance Production 420-440 436 430-440 mboepd Production cost ~7.0 6.3 ~6.5 USD/boe Capex ~5.0 3.5 ~5.0 USD billion Exploration ~0.50 0.38 ~0.50 USD billion Abandonment ~0.25 0.22 ~0.25 USD billion 25
Slide 26: Delivering on the strategy
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 Production YTD GHG intensity Projects progressing Mu
Slide 27: 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 28: www.akerbp.com
AkerBP www.akerbp.com