Slide 1: Third quarter 2023
Third quarter 2023 27 October 2023 Aker BP ASA
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
Highlights Third quarter 2023 Good operational performance ▪ Low cost and low emissions ▪ Maintenance activities impacted production volume Project developments on track ▪ Schedule and cost estimates reiterated ▪ KEG in production five months ahead of plan Strong cash flow ▪ Higher realised prices a
Slide 4: Production
Production 1,000 barrels oil equivalent per day (mboepd) 481 453 450 432 412 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Johan Sverdrup Grieg & Aasen Valhall Alvheim Skarv Ula 4
Slide 5: Production cost
Production cost USD per boe 7.3 7.2 7.2 6.0 5.6 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Base opex Tariff & transport Projects Power & environment tax 5
Slide 6: Safety
Safety Injury frequency (TRIF) 1.9 1.8 1.6 1.6 1.6 1.6 1.3 1.1 1.1 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 TRIF: Total recordable injuries per million exp. hours, rolling 12 months average 6
Slide 7: A global leader in low GHG emissions
A global leader in low GHG emissions Decarbonising the business Industry 160 net emission intensity Aker BP emission intensity, kg CO2e/boe Kg CO2/boe equity share (2022)1 140 5.3 120 100 3.8 80 3.2 2.9 2.8 2.6 60 40 20 1 0 50 100 150 200 250 300 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 100 109 118 127 1
Slide 8: Delivery of high-return projects on quality, time and cost
Delivery of high-return projects on quality, time and cost Construction activities well underway and KEG start-up five months ahead of plan 8
Slide 9: Kobra East & Gekko on stream
Alvheim FPSO Kobra East & Gekko on stream Five months ahead of plan ▪ Project executed in two-thirds of the original time schedule ▪ World-class drilling operations main contributor to accelerated development ▪ New record with 13,600m reservoir exposure from a single well ▪ Subsea alliance effective
Slide 10: Project execution progressing according to plan
Project execution progressing according to plan ▪ Key milestones achieved on schedule ▪ Main contracts awarded and capacity secured ▪ Project execution on track with fabrication underway at multiple locations ▪ No serious HSSEQ incidents ▪ Total capex estimate in line with plans Construction of Yggd
Slide 11: Our development projects are driving growth and value creation
Our development projects are driving growth and value creation Lifting Aker BP’s production by 250-300 mboepd in 2028 Production outlook Robust and profitable project portfolio mboepd ~525 $35-40/bbl 455-465 Project portfolio break-even oil price1 ~25% Project portfolio IRR at $65/bbl oil price 1-2
Slide 12: 2023 exploration program
Ferdinand 2023 exploration program Licence Prospect Operator Aker BP Pre-drill Status share mmboe PL867 Gjegnalunden Aker BP 80% 3-9 mmboe PL1141 Styggehøe Aker BP 70% Dry PL554 Angulata Equinor 30% Dry PL919 Ve Aker BP 80% 3-5 mmboe PL873/442 Øst Frigg Beta/Epsilon Aker BP 48%/88% 54-90 mmboe PL114
Slide 13: Financial highlights
Financial highlights ▪ Strong realised prices ▪ Cost control and good project execution ▪ High cash flow 13
Slide 14: Sales of oil and gas
Sales of oil and gas Volume sold Realised prices Total income mboepd USD/boe USD million 4 866 477 281 450 450 428 69 407 60 66 3 816 66 1 666 64 3 513 3 310 3 291 914 336 582 399 150 409 390 99 384 342 362 88 77 3 182 3 140 101 2 887 2 712 2 858 87 78 64 60 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q3-22 Q4-22
Slide 15: Income statement
Income statement USD million Q3 2023 Q2 2023 450 mboepd (477) Total income 3 513 3 291 Oil and gas sales Production costs 252 247 Other operating expenses 12 13 EBITDAX 3 249 3 031 $84 per boe (75) Exploration expenses 74 27 Net realised price EBITDA 3 174 3 004 Depreciation 557 645 Impairments Oper
Slide 16: Cash flow
Cash flow USD million Operating cash flow before tax Q3-23 2 963 Q2-23 2 938 Q1-23 3 251 Q4-22 3 762 $1.2 bn (-0.7) Taxes paid (862) (2 817) (1 569) (2 995) Free cash flow (FCF) Cash flow – operations 2 101 121 1 682 807 Cash flow – investments (944) (776) (705) (708) $1.83 (-1.04) Free cash flow 1
Slide 17: Tax payments
Tax payments Sensitivity for H1-2024 USD million Tax instalments for fiscal year 2023 set in June 2 500 ▪ Q3 and Q4-22 instalments fixed ▪ Based on forecast full-year 2023 performance 2 000 ▪ Opportunity to adjust in Oct-23 and Jan-24 Additional $100/bbl payment 1 500 Adjustment in October 2023 ▪ Fu
Slide 18: Balance sheet
Balance sheet USD million Assets 30.09.23 30.06.23 30.09.22 PP&E 16 123 16 218 restated 15 307 $6.8 bn ($6.1) Goodwill 13 554 13 554 13 193 Total available liquidity Other non-current assets 3 166 3 248 3 057 Cash and equivalent Other current assets 3 375 1 909 2 689 1 603 3 042 2 015 33% (33%) Tota
Slide 19: Maintaining financial flexibility
Maintaining financial flexibility Net interest-bearing debt Leverage ratio1 Liquidity available2 Excl. leases, USD billion USD million 4 6.7 6.8 3.1 6.4 3 6.2 6.1 2.5 1.5 1.5 1.5 3 2.4 2.2 2.0 1.2 1.2 2 2 0.9 1 0.6 0.5 3.3 3.4 3.0 2.8 0.3 2.7 1 0.2 0.2 0.2 0.2 0.2 0.1 0 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23
Slide 20: 10% dividend growth in 2023
10% dividend growth in 2023 Dividends USD per share 2.5 ▪ The Board resolved to pay a quarterly dividend of 2.08 2.20 USD 0.55 per share in the fourth quarter 2023 2.0 2.00 ▪ For Aker BP, distributions shall reflect the 1.5 capacity through the cycle 1.25 1.35 1.18 ▪ Ambition to increase dividends b
Slide 21: 2023 guidance
2023 guidance Previous Actual New guidance YTD-23 guidance Production 445-470 461 455-465 mboped Production cost 6.0-7.0 6.2 6.0-6.5 USD/boe Capex 3.0-3.5 2.2 3.0-3.5 USD billion Exploration 0.4-0.5 0.3 0.4-0.5 USD billion Abandonment 0.1-0.2 0.13 ~0.2 USD billion 21
Slide 22: www.akerbp.com
AkerBP www.akerbp.com