Slide 1: Q1 2017 Aker BP ASA
Q1 2017 AKER BP ASA KARL JOHNNY HERSVIK, CEO ALEXANDER KRANE, CFO 28 APRIL 2017
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
AKER BP ASA Highlights Production Q1-17 production of 145.3 mboepd, +15% from Q4-16 Finance Q1-17 EBITDA USD 487 million, EPS USD 0.20 Q1-17 Free cash flow* of USD 168 million (USD 0.50 per share) Quarterly dividend of USD 62.5 million (DPS of USD 0.185) to be disbursed in May Operations I
Slide 4: Financials
Financials Ql 2017 < a
Slide 5: Statement of income
FINANCIALS Statement of income Income statement (USD mill) Q1 2017 Q1 2016 FY 2016 Total operating income 646 205 1,364 Production costs 121 34 227 Other operating expenses 8 5 22 EBITDAX 517 165 1,115 Exploration expenses 30 36 147 EBITDA 487 129 968 Depreciation 184 114 509 Impairment losses 30 38
Slide 6: Statement of financial position
FINANCIALS Statement of financial position Assets Equity and liabilities (USD mill) 31.03.17 31.03.16 (USD mill) 31.03.17 31.03.16 Goodwill Equity 2,455 371 1,818 739 Other intangible assets Other provisions for liabilities incl. P&A 1,664 924 2,325 461 (long) Property, plant and equipment Deferred
Slide 7: Cash flow and liquidity
FINANCE Cash flow and liquidity Cash flow (USDm) Liquidity (USDbn) First quarter 2017 • Free cash flow of USD 168 million Undrawn credit Cash & cash equivalents • Dividend of USD 62.5 million (USD 0.185 per share) paid 2,60 out in February 2,50 • Net interest-bearing debt (book value) of USD 2.33
Slide 8: 2017 Guidance
FINANCE 2017 Guidance No changes made from guidance provided at CMD in January 2017 Guidance Aker BP ASA Actual per Item Comments FY 2017 Q1 2017 CAPEX USD 900 – 950 million USD 214 million - EXPEX USD 280 – 300 million USD 59 million - Expecting Viper-Kobra decline throughout 2017, Production 128 –
Slide 9: Operations
Operations Ql 2017 < a
Slide 10: Oil and gas production
PRODUCTION Oil and gas production Net production* (boepd) Q1 2017 production of 145.3 mboepd (+15% from Q4-16) • Strong production from Viper-Kobra • Ramp-up of Ivar Aasen ahead of expectations Realized oil price of 54 USD/bbl, gas price of 0.21 USD/scm Strong execution focus has ensured high
Slide 11: Further developing the Alvheim area
GREATER ALVHEIM AREA (65.0%*) Further developing the Alvheim area New projects in the Alvheim area Stable and high production in Q1-2017 from Alvheim area • Operational efficiency of 97% • Production cost of 4.3 USD/boe in Q1-2017 Transocean Arctic commenced drilling in the Alvheim area in Decem
Slide 12: Strong performance during first quarter of operation
IVAR AASEN (34.8%) Strong performance during first quarter of operation Key events High uptime and strong production performance during first quarter of operation • 91% uptime (96% ex. 3rd party losses) Production in accordance with agreed delivery commitment on Edvard Grieg Commissioning of r
Slide 13: Johan Sverdrup project progressing according to plan
JOHAN SVERDRUP (11.6%) Johan Sverdrup project progressing according to plan Key events Project progressing according to plan: • Most major contracts have been awarded • Platform construction ongoing on 22 engineering and construction sites globally • Completed pre-drilling of eight oil producers a
Slide 14: Realising upsides
VALHALL (36.0%) / HOD (37.5%) HUB Realising upsides Key events IP Platform drilling program commenced in Q1-17 • 7 wells campaign of which three are planned in 2017 Valhall Flank West project concept selection approved • Planned as unmanned wellhead platform with 12 well slots, tied back to Valh
Slide 15: Tambar re-development approved
ULA (80.0%) / TAMBAR (55.0%) HUB Tambar re-development approved Increased production from Ula/Tambar in Q1-17 due to increased WAG-effects and one additional well available at Tambar Development targeting 27 mmboe (gross) through drilling of two additional infill wells and gas lift • Extends the
Slide 16: Maturing Snadd towards PDO
SKARV AREA (23.8%) Maturing Snadd towards PDO Key events Stable operations and production throughout quarter • 98% operational efficiency in Q1-2017 Test production from Snadd A1H well continues Partnership decision to conduct seismic survey during summer 2017 Snadd project progressing as pl
Slide 17: Exploration activities 2017
EXPLORATION Exploration activities 2017 Discovery at Filicudi, Tonjer dry, Gohta (NE) ongoing Investing in additional seismic • Entered into framework agreement for 4D seismic on existing operated assets with Western Geco • Acquisition of 12,000 km2 3D seismic data from PGS • Acquisition of 7,00
Slide 18: Discovery at the Filicudi (35%) prospect
EXPLORATION Discovery at the Filicudi (35%) prospect Gross resource estimated of 35 – 100 mmboe (gross) • Encountered 129 meters of high quality sandstone reservoir in Jurassic and Triassic targets • Coring, logging, oil and gas sampled from wireline tools Multiple additional prospects identifie
Slide 19: Reorganizing value-chain by alliances
IMPROVEMENT Reorganizing value-chain by alliances Entered into long-term framework agreements with key suppliers for development of fixed facilities offshore • Duration of six years, with options to extend four more years Valhall license has approved use of alliance model for Valhall Flank West
Slide 20: Summary and outlook
OUTLOOK Summary and outlook Operations • Continue drilling in the Alvheim area • Ramp-up of production at Ivar Aasen • IP drilling at Valhall • Commence P&A operations at Valhall • Collect 4D seismic for four areas • Maturation of Snadd, Valhall Flank West and Storklakken towards PDO before year-e
Slide 21: Aker BP
& AkerBP www.akerbp.com