Aker Bp Asa · OSL:AKRBP
Aker Bp Asa — Q3 2022 Earnings Presentation
28 slides from Aker Bp Asa's earnings presentation, Oct 26, 2022
Slide 1: Third quarter 2022
Third quarter 2022 26 October 2022
Slide 2: Today's speakers and Disclaimer
Third quarter 2022 Today’s speakers 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, e
Slide 3: The E&P company of the future
The E&P company of the future Created by combining two leading independents World-class assets with high efficiency and low cost Low emissions and clear pathway to net zero Driving transformation through digital and alliances Profitable growth from unique resource base Financial strength &
Slide 4: Highlights
Highlights Third quarter 2022 Excellent operational performance Higher production efficiency Improved safety and lower CO2 intensity Organisational integration completed 1 Oct Progressing the growth portfolio Johan Sverdrup phase 2 on track for first oil in Q4 Preparing for investment deci
Slide 5: Safety – priority number one
Safety – priority number one Injury frequency (TRIF) 1) 2.4 1.9 1.8 1.7 1.6 1.6 1.4 1.3 1.2 1.2 1.2 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 1) Total recordable injuries per million exp. hours, rolling 12 months average 5
Slide 6: Production review
Production review Oil and gas production Production efficiency mboepd Capacity utilisation 412 64 9 51 96% 90% 49 162 88% 210 207 208 87% 181 41 40 45 347 45 80% 42 169 167 163 136 99 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Johan Sverdrup Grieg & Aasen Skarv Liquids Gas Alvheim V
Slide 7: Reducing the maintenance backlog
Reducing the maintenance backlog An example of how Aker BP works to improve production efficiency Maintenance hours overdue 1) Systematic improvement work targeting maintenance backlog Reduced backlog reduces risk of unplanned downtime Reduction by over 40% in total maintenance hours overdue s
Slide 8: A leader in low-emissions oil and gas production
A leader in low-emissions oil and gas production CO2 emissions intensity further reduced Plan to reach net zero across operations by 2030 1) Kg CO2 per boe produced Electrification Edvard Grieg & with power Ivar Aasen to be from shore electrified in December 5.3 >80% 5.2 4.9 4.9 of production 4.7 4.
Slide 9: Johan Sverdrup Phase 2
Johan Sverdrup Phase 2 First oil expected in December Industry-leading Industry-leading Aker BP First oil Production low production cost low carbon emissions working interest Q4 2022 755 <$2 <1 kg 31.6 Phase 2 mboepd in total USD/boe1) CO2/boe Percent 1) Full field production cost/boe with normalise
Slide 10: Project portfolio progressing according to plan
Project portfolio progressing according to plan Alvheim Skarv Frosk on track for first oil in H1 2023 PDO for Skarv Satellites in December Kobra East Gekko in execution – first oil 2024 Laying foundations for next wave of tie-backs Trell & Trine PDO submitted – first oil 2025 with new disc
Slide 11: PDO projects
PDO projects Process towards final investment decisions Status and plan for Aker BP-operated PDO projects Technical work completed All FEEDs finalised in Q3 Project Q1 Q2 Q3 Q4 Readiness reviews ongoing NOAKA Economic evaluations ongoing Price risk on input factors Assess impact of proposed
Slide 12: 2022 exploration program
2022 exploration program Discoveries adding growth opportunities Preliminary estimates of YTD discoveries1) Remaining exploration program 2022 mmboe (Aker BP net share) 3 66 19 Aker BP Pre-drill Licences Prospect Operator Status share P90-P10 PL261 Storjo East Aker BP 70% 14 - 46 30-80 mmboe 38 PL78
Slide 13: Financial review
Financial review Third quarter 2022 13
Slide 14: Production and sales of oil and gas
Production and sales of oil and gas Volumes produced & sold Total income Realised prices mboepd USD million USD/boe 440 4 866 407 390 64 Q3-2022 Q2-2022 1 666 340 290 Liquids Liquids $101.1 $117.5 240 225 216 195 205 2 291 173 2 026 190 32 41 40 45 1 849 347 693 45 1 563 626 140 618 3 182 1 124 346
Slide 15: Record-high prices for natural gas
Record-high prices for natural gas Gas sales, mboepd Gas pricing points Gas prices, USD/boe TTF day ahead NBP day ahead Oil linked TTF day ahead NPB day ahead 64.5 Brent Aker BP realised 350 4% 300 45.0 45.1 40.2 41.2 39.7 250 34 % 31.6 200 62 % 150 100 50 0 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22
Slide 16: Capital spend
Capital spend USD million Abex Expex Capex Capex 597 Q3 first time incl. activities acquired from Lundin 63 554 540 Spend below budget due to phasing and weak NOK 513 16 27 Ramp up in Q4 with FID on several projects 95 143 438 435 122 402 109 16 37 67 Expex 98 116 6 wells drilled in the quar
Slide 17: Production cost
Production cost Lower unit cost in Q3 due to changed production mix and higher production efficiency Production cost Production cost USD million USD/boe 275 Power and environmental taxes 12.0 Opex projects 11.6 Tariffs & transport 218 10.1 Base opex 192 198 9.0 9.0 8.6 171 174 163 7.3 Q1-21 Q2-21 Q3
Slide 18: Income statement
Income statement Third quarter 2022 USD million Q3 2022 Q2 2022 Change Comment Comments Total income 4 866 2 026 2 840 1 1. Gas ~34% and liquids ~65% in Q3 Production costs 236 190 46 Other operating expenses 9 20 (11) 2. Corresponds to USD 13.8/boe EBITDAX 4 621 1 816 2 805 (12.1 in Q2) Exploration
Slide 19: Cash flow
Cash flow Third quarter 2022 USD million Taxes paid (1 241) Q3-2022 Q2-2022 3) WC (945) FCF per share FCF per share 2 361 Expex/Abex Capex (500) 1 861 $2.9 $2.2 (600) Dividend per share Dividend per share (332) (109) 820 $0.53 $0.48 Operating Invest- Free 1) Debt Dividends Interest 2) Change in cash
Slide 20: Statement of financial position
Statement of financial position Assets 30.09.22 30.06.22 Equity and liabilities 30.09.22 30.06.22 PP&E 14 865 15 988 Equity 11 483 12 061 Goodwill 13 193 14 246 Financial Debt 5 198 5 834 Other non-current assets 3 057 3 181 Other long-term liabilities 12 667 13 456 Cash and equivalent 3 042 2 154 T
Slide 21: Superior financial flexibility
Superior financial flexibility 2) Net interest-bearing debt Liquidity available Bond maturities Excl. leases, USD billion USD billion USD/EUR million 6.4 1 750 6.2 3.7 5.6 1 500 5.4 EUR 4.8 USD 4.4 2.6 1 000 2.2 2.2 3.0 750 1.6 2.8 0.85 2.2 500 2.0 0.56 0.7 0.54 1.4 0.33 1.0 0.21 0.12 Q2-21 Q3-21 Q4
Slide 22: Tax guidance
Tax guidance Tax payments - Sensitivity for fiscal year 2022 Tax instalments for fiscal year 2022 set in June USD million Q3 and Q4-22 instalments fixed Based on forecast full-year 2022 performance for combined company $110/bbl 3 000 Opportunity to adjust in Oct-22 and Jan-23 $95/bbl Additiona
Slide 23: Proposed change to temporary tax rules
Proposed change to temporary tax rules Government proposal to reduce uplift from 17.69% to 12.4% for investments made under temporary tax rules New ordinary tax system Temporary rules - 17.69% uplift Proposed change - 12.4% uplift 100.0 100.0 100.0 1.0 1.0 1.0 1.0 90.7 85.5 1.0 1.0 1.0 1.0 1.0 86.9
Slide 24: Operational guidance for second half 2022
Operational guidance for second half 2022 Production Capital spend Production cost mboepd USD billion USD/boe 410-435 410-420 1.7 Abex: 0.1 1.6 376 11.6 Expex Abex: 0.1 0.3 Expex 1.2 0.3 Lundin 181 Lundin 0.3 ~7 ~7 Capex Capex 1.3 1.2 Aker BP Aker BP 0.9 195 H1 Previous H2 Updated H2 H1 Previous H2
Slide 25: Capital allocation priorities stand firm
Capital allocation priorities stand firm Aker BP’s financial frame – designed to drive value creation and shareholder return 1 Financial capacity 2 Profitable growth 3 Return value Maintain financial flexibility and Invest in robust projects Resilient dividend growth in line investment grade credit
Slide 26: Concluding remarks
2* AkerBP Concluding remarks 26
Slide 27: Concluding remarks
Concluding remarks Strong financial performance driven by high operational efficiency and high oil and gas prices Projects on track – production start for Johan Sverdrup phase 2 expected in December Preparing for final investment decisions for major new field development projects by year-end 2
Slide 28: www.akerbp.com
AkerBP www.akerbp.com