Aker Bp Asa · OSL:AKRBP
Aker Bp Asa — Q2 2023 Earnings Presentation
26 slides from Aker Bp Asa's earnings presentation, Jul 13, 2023
Slide 1: Second quarter 2023
Second quarter 2023 13 July 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 Second quarter 2023 Field Optimisation Record-high Low cost – Significant oil of capital developments production low emissions discovery structure on track 3
Slide 4: Record-high production
Record-high production 1,000 barrels oil equivalent per day (mboepd) 480.7 452.7 432.0 411.7 181.3 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Johan Sverdrup Grieg & Aasen Valhall Alvheim Skarv Ula 4
Slide 5: Strong performance at Johan Sverdrup
Strong performance at Johan Sverdrup A giant field with excellent reservoir properties Daily oil production since start-up of Johan Sverdrup 720 000 bblpd ▪ Successfully executed development phase 2 ▪ Producing above name-plate capacity of 720,000 bblpd ▪ Long field life (+50 yrs) and a future area
Slide 6: High efficiency and low cost
High efficiency and low cost Production efficiency Production cost Capacity utilisation (operated assets) USD per boe 12.0 96% 95% 93% 96% 80% 7.3 7.2 7.2 5.6 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Base opex Tariff & transport Projects Power & environment tax 6
Slide 7: Safety
Safety Injury frequency (TRIF) 1.9 1.8 1.6 1.6 1.6 1.3 1.2 1.1 1.1 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 TRIF: Total recordable injuries per million exp. hours, rolling 12 months average 7
Slide 8: A global leader in low GHG emissions
A global leader in low GHG emissions Continued progress on decarbonisation 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 2.6 60 40 20 1 0 1 50 100 150 200 250 300 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 100 109 118 12
Slide 9: Project execution progressing according to plan
Project execution progressing according to plan ▪ All major contracts placed ▪ Important milestones achieved ▪ Governmental approvals of all PDOs ▪ Yggdrasil: Common system design freeze in Q2 ▪ PWP-Fenris: System design freeze on schedule for Q3 – Fenris jacket and pre-drill module fabrication star
Slide 10: The projects add significantly to growth and value creation
The projects add significantly to 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 445-470 Project portfolio break-even oil price1 ~25% Project portfolio IRR at $65/bbl oil price 1-2 yea
Slide 11: Aker BP project overview
Aker BP project overview 770 mmboe net oil and gas volume at net capex after tax of around USD 3 billion Aker BP Production Asset area Field development Gross/net volume Net capex estimate PDO submission ownership start Frosk 80.0% 10/8 mmboe USD 0.2bn 2021 2023 Alvheim Kobra East & Gekko 80.0% 50/4
Slide 12: Significant oil discovery in the Yggdrasil area
Significant oil discovery in the Yggdrasil area Øst Frigg will be an integrated part of ongoing project development ▪ Current volume estimate of 53-90 mmboe, twice as large as the original pre-drill estimate ▪ Increases the resource base for the Yggdrasil project by around 10% ▪ Strong field economi
Slide 13: Record-breaking well behind the discovery
Record-breaking well behind the discovery Norway’s longest ever exploration well of nearly 8 200 meters 13
Slide 14: 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% 53-90 mmboe PL114
Slide 15: Financial highlights
Financial highlights ▪ Excellent operations ▪ Cost control and project execution ▪ Optimisation of capital structure 15
Slide 16: Sales of oil and gas
Sales of oil and gas Volume sold Realised prices Total income mboepd USD/boe USD million 4 877 477 281 450 428 69 407 66 3 816 66 1 666 64 3 310 3 291 914 582 399 150 153 2 026 173 409 99 384 342 362 118 626 3 182 45 77 2 887 101 2 712 2 858 87 78 64 128 1 364 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q2-22 Q3-
Slide 17: Income statement
Income statement USD million Before impairment Q2 2023 Impairments Actual Q1 2023 Actual 477 mboepd (450) Total income 3 291 3 291 3 310 Oil and gas sales Production costs 247 247 263 Other operating expenses 13 13 16 EBITDAX 3 031 3 031 3 031 $75 per boe (81) Exploration expenses 27 27 98 Net reali
Slide 18: Cash flow - Second quarter 2023
Cash flow - Second quarter 2023 USD million Q2-23 Q1-23 Q4-22 Q3-22 Operating cash flow before tax 2 938 3 251 3 762 3 602 $-0.7 bn (1.0) Taxes paid (2 817) (1 569) (2 995) (1 241) Free Cash Flow (FCF) Cash flow – operations 121 1 682 807 2 361 Cash flow – investments Free cash flow (776) (705) (708
Slide 19: Cash tax
Cash tax Tax payments - Sensitivity for H1-2024 USD million Process for tax payments 2 500 ▪ Tax for the year is paid in six bimonthly instalments, starting in August, plus final settlement ▪ Initial tax estimate for the year is made in Q2, the 2 000 $90/bbl H2-instalments are then fixed in NOK ▪ Op
Slide 20: Statement of financial position
Statement of financial position USD million Assets 30.06.23 31.03.23 30.06.22 PP&E 16 218 16 220 restated 16 620 $6.1 bn ($6.7) Goodwill 13 554 13 636 14 246 Total available liquidity Other non-current assets 3 248 3 122 3 181 Cash and equivalent Other current assets 2 689 1 603 3 280 1 671 2 154 1
Slide 21: Optimising our capital structure
Optimising our capital structure Bond transactions in June Bond maturities USD/EUR billion ▪ USD 1,500 million in new Senior Notes issued ▪ USD 0.5 billion aggregate principal amount of 5.60% Senior 1.75 Notes due in 2028 ▪ USD 1.0 billion aggregate principal amount of 6.00% Senior Notes due in 2033
Slide 22: Maintaining financial flexibility
Maintaining financial flexibility Net interest-bearing debt Liquidity available2 Excl. leases, USD billion USD billion 7 2 6.7 1.8 6.4 6 6.2 6.1 1.6 5.6 5 1.4 1.2 4 3.7 1 3.1 3 3.3 2.5 0.8 3.0 2.2 2.8 2.7 2.0 0.6 2 0.54 2.2 0.4 1 0.21 0.21 0.22 0.2 0.16 0 0 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q2-22 Q3-22
Slide 23: Strong and resilient cash flow as basis for dividend growth
Strong and resilient cash flow as basis for dividend growth Aker BP value creation plan 2023-2028 Dividends USD billion, accumulated USD per share 2.5 2.20 ▪ Low cost production gives 2.08 20 $90/bbl 2.00 resilient dividend capacity 2.0 ▪ Distributions shall reflect the 15 capacity through the cycle
Slide 24: 2023 guidance
2023 guidance Previous Actual New guidance H1-23 guidance Production 430-460 467 445-470 mboped Opex 7.0-8.0 6.3 6.0-7.0 USD/boe Capex 3.0-3.5 1.3 3.0-3.5 USD billion Exploration 0.4-0.5 0.2 0.4-0.5 USD billion Abandonment 0.1-0.2 0.1 0.1-0.2 USD billion 24
Slide 25: Delivering on the strategy
Delivering on the strategy Deliver high return Establish the next Return maximum value Operate safely Decarbonise to our shareholders projects on quality, wave of profitable and efficiently our business and our society time and cost growth options 96% production efficiency Equity GHG intensity Proje
Slide 26: www.akerbp.com
AkerBP www.akerbp.com