Aker Bp Asa · OSL:AKRBP
Aker Bp Asa — Det norske oljeselskap — Q4 2014 Earnings Presentation
30 slides from Aker Bp Asa's earnings presentation, Feb 25, 2015
Slide 1: Q4 2014 Presentation
Q4 2014 Presentation Karl Johnny Hersvik, CEO Alexander Krane, CFO 25 February 2015
Slide 2: Highlights
DET NORSKE Highlights Acquisition of Marathon Oil Norge AS completed Operations Total production of 62.6 mboepd in Q4 2014 Development Projects Bøyla on stream in January – on schedule Ivar Aasen development on schedule Johan Sverdrup PDO submitted Finance and outlook Q4 EBITDA USD
Slide 3: Financials
Financials Q4 2014
Slide 4: Financial highlights
FINANCIALS Highlights Overview Headline figures Q4 Accounts Q4 ‘14 FY 2014 • Inclusion of Marathon Oil Norge Total production • Purchase price allocation (boepd) 54,175 15,630 • Impairment charges Oil price realised 74 78 (USD/bbl) • Change of functional currency to USD Operating 346 464 revenues
Slide 5: Statement of income
FINANCIALS Statement of income Income statement (USD mill) Q4 2014 Q4 2013 FY 2014 Revenues 346 43 464 Production costs 44 17 67 Payroll and payroll-related expenses (10) 1 (17) Other operating expenses 23 1 49 EBITDAX 289 25 365 Exploration expenses 50 93 158 EBITDA 239 (68) 208 Depreciation 104 21
Slide 6: Statement of financial position
FINANCIALS Statement of financial position Assets Equity and Liabilities (USD mill) 31.12.14 31.12.13 (USD mill) 31.12.14 31.12.13 Goodwill 1,187 53 Equity 652 524 Other intangible assets 940 444 Other provisions for liabilities incl. P&A 503 155 (long) Property, plant and equipment 2,549 437 Deferr
Slide 7: Statement of cash flow
FINANCIALS Statement of cash flow Condensed statement of cash flows Q4-2014 USDm One tax payment in December and tax refund for Pre-tax profit (197) 2013 exploration activity disbursed in Q4-2014 Taxes paid (109) Tax refund 191 DD&A + Impairment 423 Investments of USD 255 million in the quarter
Slide 8: Funding and liquidity
FINANCIALS Funding and liquidity Net debt of USD 2 billion Outstanding debt of USD 2.3 billion (bonds and bank debt) at year end 2014 Cash and cash equivalents of ~USD 300 million at year end 2014 USD 3.0 bn RBL facility Drawn USD 2.65 bn at closing, reduced to USD 2.1 bn at year-end for c
Slide 9: Financial risk management
FINANCIALS Financial risk management Loss of Production Insurance A loss of production insurance for Alvheim in place Reducing the impact of an accidental Alvheim FPSO shut-down Increased exposure to market volatility No commodity hedges currently established Some cross-currency swaps ac
Slide 10: Reserves & Production
Reserves & Production Q4 2014
Slide 11: Actual production
PRODUCTION Actual production Net actual production (boepd) Q4 production Q4 2014 production of 62.6 mboepd Production from MONAS not accounted for in the income statement before 15 October 2014 2014 production Total 2014 production was 66.6 mboepd Greater Alvheim accounted for ~97% in 20
Slide 12: Year-end 2014 certified reserves of 206 mmboe
RESERVES Year-end 2014 certified reserves of 206 mmboe Proven & probable reserves (P50), end 2014 Development in P50 reserves (mmboe) 279 484 Aasen incl. Hanz; 71 Bøyla; 15 Volund; 12 2014 RRR of 1.16x Vilje; 11 206 206 mmboe Gina; 7 136 28 Other; 1 24 66 Alvheim; 90 Year-end Acquisitions Production
Slide 13: Development Projects
Development Projects Q4 2014
Slide 14: Bøyla production commenced in January
BØYLA Bøyla production commenced in January Bøyla and the Greater Alvheim Area 19 January, first oil flowed from the Bøyla field to the Alvheim FPSO – on schedule Hooked up with no shut-down on the Alvheim FPSO The first well has produced above 18 mboepd (gross) in its first month of productio
Slide 15: Viper-Kobra and IOR projects
ALVHEIM AREA DEVELOPMENTS Viper-Kobra and IOR projects Viper-Kobra Viper-Kobra and infill wells Recoverable resources of approx. 9 mmboe 90% oil Estimated average daily rate of 7 500 boed (gross) Development project commenced Subsea tie back to the existing Volund manifold via a new extens
Slide 16: Development on track
IVAR AASEN Development on track 2012 2013 2014 2015 2016 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 Concept selection FEED studies PDO approval Unitisation Agreement Construction of jacket Construction of topside Construction of LQ Maersk Interceptor to Norway Drilling of geo-pilots Jacket lifted into place Dril
Slide 17: Drilling programme has commenced
IVAR AASEN Drilling programme has commenced Drilling of the geo-pilots in Ivar Aasen has started First geo-pilot in line with expectations The well was optimized for the drilling of the pilot well, and the target of the Løvstakken prospect was not tested above the oil-water contact The drill
Slide 18: Jacket completed on time, below budget
IVAR AASEN Jacket completed on time, below budget In Q4, the two last sections were rolled-up Construction completed in January 2015 On time and below budget No serious incidents Jacket expected to sail to Norway this spring Installation on Ivar Aasen during Q2 2015
Slide 19: Construction of topside progressing as planned
IVAR AASEN Construction of topside progressing as planned
Slide 20: PDO submitted on 13 February 2015
JOHAN SVERDRUP PDO submitted on 13 February 2015 PDO and PIOs submitted on 13 February 2015 Production start-up: Late 2019 Resources: 1.7-3.0bn boe (80% from Phase 1) Capex: NOK 117bn in Phase 1, NOK 170-220bn in total Phase 1 capex includes: Four bridge-linked platforms (processing plat
Slide 21: Det norske did not sign the unit agreement
JOHAN SVERDRUP Det norske did not sign the unit agreement Ownership interests in Johan Sverdrup should be distributed according to a combination of volume and value The proposal from the operator did not reflect the underlying value in the various licenses in the Johan Sverdrup field Det norsk
Slide 22: Exploration
Exploration Q4 2014
Slide 23: More resources at Krafla
EXPLORATION & APPRAISAL More resources at Krafla Krafla area1, North Sea Krafla North discovery in Q4 2014 and Krafla Main appraisal in Q1 2015 Five discoveries made in PL035/272 since 2011 Recoverable resources in PL035/272 expected to be 140 – 220 mmboe after well results and New picture upd
Slide 24: 2015 drilling activity
EXPLORATION & APPRAISAL 2015 drilling activity 2015 Drilling schedule 2015 wells in the North Sea and the Barents License Prospect Share mmboe Rig Timing PL Krafla North & Transocean 25 % - Q4 14/Q1 15 272/035 Main Leader Maersk PL 001B Løvstakken 35% - Q1 15 Interceptor PL 627 Skirne East 20 % 50-1
Slide 25: Outlook
Outlook ad Q4 2014 DETNORSKE
Slide 26: Investment budget of USD 950-1,000 million
OUTLOOK Investment budget of USD 950-1,000 million Ivar Aasen Johan Sverdrup* Drilling of geo-pilots, construction of topsides and living quarters, misc. project costs Ivar Aasen ~15 % Alvheim area Alvheim: Three infill wells Other Volund: LLI’s for two planned infill wells ~10 % Bøyla:
Slide 27: Cost efficiency programme
OUTLOOK Cost efficiency programme Cost efficiency programme initiated as a response to challenging market environment Drilling & Well Technology Costs to be reduced by USD 100+ mill for 2015 and Field Development Top management to run and own process USD To be concluded by the summer of 2015
Slide 28: Overview of 2015 guidance
OUTLOOK Overview of 2015 guidance Last guidance Current guidance - as of Q3 2014 Financials CAPEX N/A USD 950 – 1,000 million EXPEX N/A USD 115 – 125 million Production cost per boe N/A USD 8 – 10 per boe Operations 2015 production 58 – 63 mboepd 58 – 63 mboepd Ivar Aasen start-up Q4 2016 Q4 2016 Iv
Slide 29: Summary and outlook
OUTLOOK Summary and outlook Financial Continue to optimise the capital structure of the company going forward Development projects Ivar Aasen progressing according to plan Johan Sverdrup PDO submitted, unit agreement not concluded Viper Kobra development has commenced Cost Discipline
Slide 30: Det norske
a DETNORSKE www.detnor.no
Det norske oljeselskap — Q4 2014 Earnings Presentation on 6ix