Slide 1: Third quarter 2020
Third quarter 2020 Aker BP ASA 29 October 2020
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: Uniquely positioned for value creation
Q3-2020 | AKER BP Uniquely positioned for value creation Continued strong operational performance • Production on track • Low cost and low emissions Building a leading E&P company • Implementing new operating model • Bond refinancing further strengthens financial flexibility Potential to doubl
Slide 4: Strong operational performance: key performance indicators
Q3-2020 | STRONG OPERATIONAL PERFORMANCE Key performance indicators SAFETY PRODUCTION LOW HIGH LOW FIRST ON TRACK COST EFFICIENCY EMISSIONS 1.1 201.6 $7.3 86% <5kg Serious incidents Thousand barrels of Production cost Production CO2 emissions frequency (SIF) oil equivalents per day per boe produced
Slide 5: On track to deliver on 2020 production guidance
Q3-2020 | STRONG OPERATIONAL PERFORMANCE On track to deliver on 2020 production guidance Production Production efficiency (mboepd) Aker BP operated assets (percent) Alvheim Ivar Aasen Skarv Ula Valhall Johan Sverdrup 208.1 209.8 95.8 95.6 Other 93.4 92.9 92.0 201.6 191.1 86.5 84.1 158.7 146.1 127.3
Slide 6: Industry-leading low carbon intensity
Q3-2020 | STRONG OPERATIONAL PERFORMANCE Industry-leading low carbon intensity Emissions intensity1) Contributing to the energy transition CO2 - kg/boe Produce efficiently to 26.5 return high value from oil & gas resources to 22.7 Maximise our stakeholders value 17.4 Reduce emissions from our operat
Slide 7: New operating model to improve efficiency and reduce cost
Q3-2020 | LEADING THE INDUSTRY TRANSFORMATION New operating model to improve efficiency and reduce cost Using the improvement toolbox… …to build a leading operating model 7
Slide 8: Ærfugl startup planned in Q4
Q3-2020 | TARGETING PROFITABLE GROWTH Ærfugl startup planned in Q4 …with the remainder of phase II on track for 2021 Keeping the facilities full • Large production increase at Skarv • Low break-even project Total reserves of 300 mmboe (gross) • Extends over 60 kilometers • New technology unlocki
Slide 9: Development projects well underway
Q3-2020 | TARGETING PROFITABLE GROWTH Development projects well underway Hod – first oil in Q1-22 Sverdrup phase 2 – first oil in Q4-22 Photo: Aker BP Illustration: Equinor 9
Slide 10: Uniquely positioned for further organic growth
Q3-2020 | TARGETING PROFITABLE GROWTH Uniquely positioned for further organic growth Resource base provides unmatched opportunity set Tax changes reduce break-evens and capital commitments Aker BP’s net reserves and resources per end-2019 Tax deductions for investments on the NCS, percent 89.6 91.4
Slide 11: Working towards concept selection for NOAKA
Q3-2020 | TARGETING PROFITABLE GROWTH Working towards concept selection for NOAKA Lang- Krafla Askja Fulla Frigg GD Rind Frøy fjellet Gas export to Statpipe Oil export Central UPP – to GOP with power PDQ platform – from shore with power from shore Illustration: Equinor License partners: NOAKA: Krafl
Slide 12: Potential to double production at low break-evens
Q3-2020 | TARGETING PROFITABLE GROWTH Significant part of our resource base ready for FID by 2022 Potential to double production at low break-evens Project1) Area FID2) First oil Valhall infill drilling Frosk Valhall area Alvheim area 2020 2021 2021 2023 > 500 mmboe net resources Kobra East/Gekko Al
Slide 13: Allocating capital to maximise value creation
Q3-2020 | TARGETING PROFITABLE GROWTH Allocating capital to maximise value creation Invest in profitable growth Maintain sufficient Return financial capacity value creation 13
Slide 14: Financial review
Financial review 14
Slide 15: Oil and gas sales
Q3-2020 | FINANCIAL REVIEW Oil and gas sales Volume (mboepd) Realised prices (USD/boe) Total income (USDm) Other operating income Production Sales Liquids Natural gas Petroleum revenues -19% +43% +16% -4% 232.0 42.7 684 209.8 201.6 590 187.7 29.9 +42% 18.8 675 584 13.2 Q2-20 Q3-20 Q2-20 Q3-20 Q2-20
Slide 16: Lifted volumes and realised prices
Q3-2020 | FINANCIAL REVIEW Lifted volumes and realised prices Crude oil liftings 2020-9M1) Breakdown of realised liquids prices in Q3 mmbbl USD/bbl Brent Dated Brent active contract 6.6 0.8 43.8 6.4 6.3 6.0 0.1 42.9 5.4 42.7 -1.1 4.4 4.3 4.0 2.6 Jan Feb Mar Apr May Jun Jul Aug Sep Brent Timing Avera
Slide 17: Income statement
Q3-2020 | FINANCIAL REVIEW Income statement USD million Q3 2020 Q2 2020 Q3 2019 Total income 684 590 723 Production costs 134 196 167 Other operating expenses 7 15 6 EBITDAX 543 379 550 Exploration expenses 32 50 70 EBITDA 511 329 480 Depreciation 269 286 206 Impairments - (136) 78 Operating profit
Slide 18: Statement of financial position
Q3-2020 | FINANCIAL REVIEW Statement of financial position USD million Assets 30.09.20 30.06.20 31.12.19 Equity and liabilities 30.09.20 30.06.20 31.12.19 Goodwill 1,647 1,647 1,713 Equity 1,929 1,912 2,368 Other provisions for liabilities Other intangible assets 2,051 2,054 2,537 2,650 2,655 2,645
Slide 19: Value creation ambition supported by strong financial position
Value creation ambition supported by strong financial position Committed long-term liquidity buffer Conservative leverage Extended debt maturity profile Available liquidity, USD billion1) Leverage ratio2) USD billion (as of 29 Oct 2020) 5 4.8 3.0 3.0 RCF (undrawn) 2.5 2.5 Bonds 4 2.0 2.0 3 1.46 1.5
Slide 20: Cash flow
Q3-2020 | FINANCIAL REVIEW Cash flow CF Operations USD million CF Financing 109 CF Investing 417 -282 -33 -29 -58 -71 819 622 142 Opening Net debt Operations Tax paid Capex & Expex Abex Other Dividends Closing balance drawn before tax Leases balance 20
Slide 21: Expecting tax refund for fiscal year 2020
Q3-2020 | FINANCIAL REVIEW Expecting tax refund for fiscal year 2020 Tax payments and refunds per quarter (USD million) For fiscal year 2018 For fiscal year 2019 For fiscal year 20201) 340 208 212 163 340 106 106 208 212 81 163 48 106 106 81 48 $50 $50 $40 -109 $30 $40 $30 ~200 Q3-18 Q4-18 Q1-19 Q2-
Slide 22: Guidance summary
Q3-2020 | FINANCIAL REVIEW Guidance summary Production Capital spend Production cost mboepd USD billion USD/boe -18% -20% 205-220 210-215 2,200 ~10 200 1,800 ~8 500 200 300 1,500 1,300 2020 2020 2021 2020 2020 2021 2020 2020 2021 Original Current Indicative Original Current Indicative Original Curre
Slide 23: Priorities: Execute, Improve, Grow
Q3-2020 | AKER BP Priorities Drive operational excellence Execute Flawless project execution Improve Implement new operating model Reduce emissions from own operations Progress NOAKA according to plan Grow Mature project portfolio for FID by 2022 The Hod development well underway at the
Slide 24: Appendix
Appendix 24
Slide 25: 2020 exploration programme
Q3-2020 | APPENDIX 2 2020 exploration programme 3 License Prospect Operator Aker BP Pre-drill Status share mmboe PL1008 Nidhogg 1 Aker BP 60 % 37 - 96 Discovery 6-15 mmboe PL719 Sandia 2 Spirit 20 % 23 - 527 Dry PL533 Bask 3 Lundin 35 % 14 - 585 PL127C Alve NE 4 Aker BP 88 % 8 - 25 Currently drillin
Slide 26: Guidance summary
Q3-2020 | APPENDIX Guidance summary 2020 guidance 2020-9M actual Comments Production 210-215 mboepd 206.5 mboepd Net production excl. over/underlift Excl. capitalised interest Capex USD ~1.3 billion USD 1.01 billion Incl. share of lease payments Exploration spend USD ~300 million USD 166 million Inc
Slide 27: Aker BP
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