Slide 1: Q4 2016 Aker BP ASA
Q4 2016 AKER BP ASA KARL JOHNNY HERSVIK, CEO ALEXANDER KRANE, CFO 6 FEBRUARY 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 Q4-16 production of 126.5 mboepd, +14% from Q3-16 Finance Q4-16 EBITDA USD 485 million, EPS -0.20 (USD) Available liquidity of USD 2.5 billion Exploration Awarded 21 licenses (13 as operator) in APA 2016 Development projects First oil at Ivar Aasen in Dece
Slide 4: Financials
Financials Q4 2016 < a
Slide 5: Statement of income
FINANCIALS Statement of income Income statement (USD mill) Q4 2016 Q4 2015 FY 2016 Petroleum revenues 542 218 1,261 Other income 114 36 103 Total income 656 255 1,364 Production costs 121 24 227 Other operating expenses 5 3 22 EBITDAX 529 227 1,115 Exploration expenses 44 19 147 EBITDA 485 208 968 D
Slide 6: Statement of financial position
FINANCIALS Statement of financial position Assets Equity and liabilities (USD mill) 31.12.16 31.12.15 (USD mill) 31.12.16 31.12.15 Goodwill Equity 2,449 339 1,847 768 Other intangible assets Other provisions for liabilities incl. P&A 1,728 938 2,335 476 (long) Property, plant and equipment Deferred
Slide 7: Cash flow and liquidity
FINANCIALS Cash flow and liquidity Cash flow (USDm) Liquidity (USDbn) Fourth quarter 2016 Operating cash flow impacted by negative working capital Undrawn credit movements in the quarter Cash & cash equivalents 2,50 313 Dividend of USD 62.5 million paid out in December 320 Net interest-bearing
Slide 8: Guidance
GUIDANCE Guidance Guidance Aker BP ASA Guidance Aker BP ASA Item FY 2016 2016 actuals FY 2017 (Economic exposure)* CAPEX USD 910 - 930 million USD 878 million USD 900 – 950 million EXPEX USD 240 – 260 million USD 258 million USD 280 – 300 million Production 118 – 120 mboepd 118.2 mboepd 128 – 135 mb
Slide 9: Operations
Operations Q4 2016 < a
Slide 10: Oil and gas production
PRODUCTION Oil and gas production Net production (boepd) Q4 2016 production of 126.5 mboepd • Start-up of Viper-Kobra in November • Start-up of Ivar Aasen in late December • Realized oil price of 52 USD/bbl, gas price of 0.19 USD/scm Aker BP production of 118.2 mboepd during 2016 • 77.4 mboepd b
Slide 11: Further developing the Alvheim area
GREATER ALVHEIM AREA Further developing the Alvheim area Key events New projects in the Alvheim area First oil from Viper-Kobra wells achieved in November • The wells have been performing well since the start-up Transocean Arctic commenced drilling in the Alvheim area in December 2016 • Currentl
Slide 12: Ivar Aasen first oil delivered on plan and budget
IVAR AASEN Ivar Aasen first oil delivered on plan and budget Key events First oil from Ivar Aasen on December 24, 2016 • Successful start up with production according to agreed delivery commitment to Edvard Grieg SURF scope completed in early October Maersk Interceptor returned to the field in
Slide 13: Johan Sverdrup project progressing according to plan
JOHAN SVERDRUP Johan Sverdrup project progressing according to plan Key events Project progressing according to plan: • Most major contracts have been awarded • Hook-up and commissioning contracts for Phase 1 awarded Aibel and Aker Solutions • Platform construction ongoing on 22 engineering and co
Slide 14: Preparations to commence drilling
VALHALL / HOD HUB Preparations to commence drilling Key events Delivered increased production in Q4-16 compared with previous quarter • Mainly due to higher performance form cyclical wells Work ongoing to prepare for commencement of IP Platform drilling program in Q1-17 • 7 wells campaign of whi
Slide 15: Work to increase recovery
ULA / TAMBAR HUB Work to increase recovery Key events Production lower in Q4-16 compared with previous quarter due to delayed restoring of water alternating gas (WAG) injection capacity Maturing Tambar infill targets and execution of Tambar gas lift project Gas from Oda to increase WAG injecti
Slide 16: Maturing Snadd towards PDO
SKARV AREA Maturing Snadd towards PDO Key events Idun and Skarv A low pressure production project completed during Q4-16 • Support slower decline in production profiles Snadd project progressing as planned • Targeting concept selection in Q1-17 • Evaluating a phased development, with phase 1 com
Slide 17: High exploration activity in 2016
EXPLORATION High exploration activity in 2016 2016 drilling campaign proved 83 mmboe (net) 2016 finding cost of ~0.7 USD/boe after tax Drilling on the Langfjellet prospect completed in Q4-16 • Main well encountered oil column of 109 meters • Preliminary estimates 24 – 74 mmboe • Plan to drill
Slide 18: Exploration activities 2017
EXPLORATION Exploration activities 2017 Seven exploration wells planned for 2017 (Four operated) • Tonjer well completed Seismic activity in 2017 • Tendering for 4D seismic on existing operated assets • Reprocessing of seismic for North of Alvheim area Aker BP Pre-drill License Prospect name Ope
Slide 19: Offered 21 new licenses in 2016 APA awards
EXPLORATION Offered 21 new licenses in 2016 APA awards Awarded 21 licenses in the 2016 APA award • Operator for 13 licenses 1 license in the Barents Sea • Strengthening position along the southern flank of the Loppa High 4 licenses in the Norwegian Sea • Strengthening position around Skarv are
Slide 20: Summary and outlook
OUTLOOK Summary and outlook Operations • Infill drilling in the Alvheim area • Start-up of IP drilling campaign at Valhall • Completion of drilling operations at Filicudi • Concept selection for Snadd and Valhall Westflank Financing • Proposed dividend of USD 62.5 million (USD 0.185 per share) t
Slide 21: Aker BP www.akerbp.com
& AkerBP www.akerbp.com