Aker Bp Asa · OSL:AKRBP

Aker Bp Asa — Q4 2017 Earnings Presentation

16 slides from Aker Bp Asa's earnings presentation, Feb 2, 2018

1. Slide 1: Q4 2017 Aker BP ASA

   Q4 2017 AKER BP ASA KARL JOHNNY HERSVIK, CEO ALEXANDER KRANE, CFO 2 FEBRUARY 2018

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: Key events in Q4-17

   AKER BP ASA Key events in Q4-17 Operations  Q4 production 135.6 mboepd – 2017 production 138.8 mboepd  High drilling and maintenance activity  Fatal accident on Maersk Interceptor Financial results  Q4 EBITDA USD 509 million, EPS USD 0.10  Q4 Free cash flow* of USD 235 million (USD 0.68 per sha

4. Slide 4: Oil and gas production

   OPERATIONS Oil and gas production Net production* (boepd)  Q4 production 135.6 mboepd (157.9 pro forma)  2017 production 138.8 mboepd (159.6 pro forma)  Ivar Aasen at plateau – one year ahead of plan • High drilling efficiency • Strong operational performance • Edvard Grieg processing capacity 

5. Slide 5: Three PDOs submitted – significant improvements delivered

   OPERATIONS Three PDOs submitted – significant improvements delivered Ærfugl Valhall Flank West Skogul Volume 197 56 10 (mmboe) +40% +7% -5% gross 275 60 10 CAPEX 10.6 7.2 1.6 (NOKbn) -20% -24% -3% gross 8.5 5.5 1.5 Break-even 32.0 33.9 34.1 oil price -42% -16% -3% (USD/bbl) 18.5 28.5 33.0 Concept se

6. Slide 6: Financials

   Financials Q4 2017 < a

7. Slide 7: Statement of income

   FINANCIALS Statement of income (USD million) Q4 2017 Q4 2016 2017 2016 Total operating income 726 656 2,563 1,364 Production costs 147 121 523 227 Other operating expenses 14 5 28 22 EBITDAX 565 529 2,012 1,115 Exploration expenses 56 44 226 147 EBITDA 509 485 1,786 968 Depreciation 183 160 727 509

8. Slide 8: Statement of financial position

   FINANCIALS Statement of financial position Assets Equity and liabilities (USD million) 31.12.17 31.12.16 (USD million) 31.12.17 31.12.16 Goodwill Equity 2,989 2,449 1,860 1,847 Other intangible assets Other provisions for liabilities incl. P&A 1,982 1,728 2,942 2,335 (long) Property, plant and equip

9. Slide 9: Fourth quarter cash flow and liquidity

   FINANCIALS Fourth quarter cash flow and liquidity Cash flow (USDm)  Strong cash flow in Q4-17 • Free cash flow (ex M&A effects) USD 235 million • Acquisition of Hess Norge AS, sale to Pandion  Attractive M&A deals 308 • Hess Norge acquired for USD 2.0 billion • Included refundable tax loss worth U

10. Slide 10: Guidance

    FINANCIALS Guidance Item 2017 actual 2017 guidance 2018 guidance CAPEX 888 million USD 900 – 950 million USD ~1.3 billion EXPEX 262 million USD 280 – 300 million USD ~350 million Production 138.8 mboepd 135 – 140 mboepd 155 – 160 mboepd Production cost USD 10.3 per boe USD ~10 per boe USD ~12 per bo

11. Slide 11: 2018 plans

    2018 plans

12. Slide 12: Investing to maximize value of existing production hubs

    OPERATIONS Investing to maximize value of existing production hubs High activity in 2018 – maturing more opportunities Alvheim Valhall Ula Ivar Aasen Skarv • Frosk exploration well • 4 IP wells • Tambar wells on • Hanz appraisal • Kvitungen Tumler • Boa wells on stream • Flank West stream • 2 water

13. Slide 13: 2018 exploration schedule

    I K J EXPLORATION E 2018 exploration schedule D H Aker BP Pre-drill License Prospect name Operator share mmboe* Time PL340 Frosk Aker BP 65 % 3 - 21 Q1 A PL790 Raudåsen Aker BP 30 % 9 - 74 Q1 B PL839 Kvitungen Tumler Aker BP 24 % 37 - 269 Q1 C PL659 Svanefjell Aker BP 50 % 17 - 331 Q2 D PL858 Stangn

14. Slide 14: APA 2017 license awards

    EXPLORATION APA 2017 license awards  Awarded 23 new licenses – 14 as operator  Adding growth opportunities • North Sea (3 licenses) • Norwegian Sea (1 license) • Barents Sea (3 licenses)  Strengthening position around existing hubs • Alvheim area (1 license) • Ivar Aasen/Johan Sverdrup area (5 li

15. Slide 15: Priorities going forward

    CONCLUDING REMARKS Priorities going forward  Safe and efficient operations Execute  Excellent project delivery  Relentless focus on cost reductions and Safety productivity gains Improve  Mature projects to below 35 USD/boe break-even  Maximize recovery from existing resource base Grow  Pursue

16. Slide 16: Aker BP

    & AkerBP www.akerbp.com

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