Aker Bp Asa · OSL:AKRBP
Aker Bp Asa — Q2 2021 Earnings Presentation
28 slides from Aker Bp Asa's earnings presentation, Jul 15, 2021
Slide 1: Second Quarter 2021
Second Quarter 2021 15 July 2021
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 g
Slide 3: Highlights
Highlights Second quarter 2021 Successfully completed maintenance programme Higher prices offset lower volume Ongoing projects on track Strong HSE performance and cost discipline Progressing the project portfolio as planned PDO submitted for Kobra East & Gekko NOAKA approaching concept sel
Slide 4: Production performance
Production performance Oil and gas production (mboepd) Production efficiency (percent) 223 222 208 210 202 199 96 96 191 93 92 94 89 86 84 146 74 127 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Alvheim Ivar Aasen Skarv Ula Valhall Johan
Slide 5: HSSE performance
HSSE performance Total Recordable Injury Frequency 1) CO2 emissions intensity 2) 3.1 6.9 6.3 5.7 2.4 5.0 4.5 4.3 4.2 1.7 1.3 1.2 1.2 1.2 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 1) Total recordable injuries per million exp. hours, rolling 12 months average
Slide 6: Financial performance
Financial performance Production cost (USD/boe) Realised oil and gas prices (USD/boe) 9.1 9.0 63 8.6 8.1 56 7.3 42 39 27 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Capital spend (USD million) Operating cash flow (USD million) 597 1,108 483 900 447 402 364 678 587 176 Q2-20 Q3-20 Q4-
Slide 7: Key performance indicators H1-2021
Key performance indicators H1-2021 SAFETY PRODUCTION PRODUCTION PRODUCTION EMISSIONS FIRST VOLUME COST EFFICIENCY INTENSITY 1.2 210.4 $8.8 82% 4.2kg Total Recordable thousand barrels of per boe produced Aker BP operated CO2 emissions Incidents Frequency (TRIF)1) oil equivalents per day assets, gross
Slide 8: Ongoing projects
Ongoing projects On schedule Hod Jacket installed offshore in July Topside sail-away planned in August Production start planned in Q1-22 Skarv area Production from Gråsel started in June Increased gas capacity on the Skarv FPSO Ærfugl phase 2 on schedule for production start in Q4-21 Joh
Slide 9: PDO submitted for Kobra East & Gekko
PDO submitted for Kobra East & Gekko Adds volume and reduces unit cost and emissions for Alvheim FPSO ~40 mmboe Reserves (gross) USD 1 bn Capex (gross) 65% Aker BP interest <$30/bbl Break-even 2024 First oil 9
Slide 10: Upcoming projects
Upcoming projects Area 2021 2022 2023 2024 2025 2026 2027 Kobra East & Gekko Alvheim Frosk Trell & Trine Ivar Aasen Hanz NOAKA NOAKA Ærfugl phase 2 Skarv Skarv satellites (Ørn, Shrek, Alve Nord, Idun Nord) Hod Valhall infill drilling Valhall Valhall NCP Valhall NCP Johan Sverdrup phase 2 Other (Equi
Slide 11: Upcoming projects
Upcoming projects Aiming to sanction projects with more than 500 mmboe in resources before end-2022 Project Area Net mmboe FID First oil Status Valhall infill wells Valhall 10 2020 2021 Ongoing Frosk Alvheim 10 Q3-2021 2023 PDO to be submitted in Q3-21 Kobra East & Gekko Alvheim 27 Q2-2021 2024 PDO
Slide 12: NOAKA approaching concept select
NOAKA approaching concept select North of Alvheim, Krafla and Fulla Krafla Askja NOA PdQ • UPP, NUI Askja. NUI Krafla Fulla subsea • 8-legged jacket • Gas export • 6-slot Dual drilling template • 16 well slots Frøy NUI • Re-development • 12 well slots Export / power Rind subsea • Oil export • 6-slot
Slide 13: Turning Skarv into an area hub
Turning Skarv into an area hub Alve NE Alve Nord Ærfugl phase 2 on track Gråsel on stream in June Ærfugl Nord Ørn operatorship transfer to Aker BP Aiming for FID for Skarv Satellites1) in 2022 Ørn Idun Nord Maturing new exploration campaign Gråsel Shrek Producing fields Discoveries Aker BP
Slide 14: Exploration 2021
Exploration 2021 4 3 0 Licence Prospect Operator Aker BP Pre-drill Status share mmboe PL 533 Bask 0 Lundin 35 % Dry PL 981 Merckx Ty 1 Lundin 40 % 43 - 304 Expected in Q3 PL 544 Garantiana W 2 Equinor 30 % Discovery 8-23 mmboe PL 858 Stangnestind 3 Aker BP 40 % 13 - 108 Ongoing PL 722 Shenzhou 4 Equ
Slide 15: Financial review
Financial review Second quarter 2021 15
Slide 16: Oil and gas sales
Oil and gas sales Second quarter 2021 Volumes sold Total income Realised prices mmboe USD million USD per boe 1,133 1,124 21.1 19.7 20.1 18.9 139 130 3.1 17.3 17.8 Liquids 3.5 3.6 872 3.0 834 2.8 2.9 97 66 684 111 $66.9 +11% 590 52 41 990 995 15.9 18.0 16.2 16.5 Natural gas 14.5 14.9 709 715 $45.1 +
Slide 17: Production cost
Production cost Second quarter 2021 250 25 Unit production cost USD per boe 200 198 196 200 20 176 167 First half 2021 154 156 158 150 13.4 15.4 13.2 134 142 15 $8.8 100 10 9.1 8.7 9.1 8.6 9.0 Full-year guidance 8.1 7.3 50 5 $8.5-9.0 0 0 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Fo
Slide 18: Income statement
Income statement Second quarter 2021 18
Slide 19: Income statement
Income statement Second quarter 2021 USD million Q2 2021 Q1 2021 Change Comment Comments Total income 1,124 1,133 -1% 1 1. Stable revenues supported by Production costs 158 176 -10% 2 price increases Other operating expenses 9 8 EBITDAX 957 949 +1% 2. Reduction in cost of sold Exploration expenses 1
Slide 20: Cash flow
Cash flow Second quarter 2021 USD million 1,108 Abex Expex Q2-2021 H1-2021 Capex 132 FCF per share FCF per share $1.7 $3.2 -511 -113 -33 597 975 Dividend per share Dividend per share 392 $0.3 $0.6 1) 2) 3) Cash Operating Invest- Free cash Debt Dividends Interest Cash end-Q1 cash flow ments flow chan
Slide 21: Statement of financial position
Statement of financial position USD million Assets 30.06.21 31.03.21 31.12.20 Equity and liabilities 30.06.21 31.03.21 31.12.20 Goodwill 1,647 1,647 1,647 Equity 2,030 1,989 1,987 Other provisions for liabilities Other intangible assets 1,873 1,879 2,043 2,681 2,665 2,650 incl. P&A (long) Property,
Slide 22: Optimising the capital structure
Optimising the capital structure Inaugural EUR bond issued Debt maturity profile USD million EUR 750 million 1.125% Senior Notes (2021/29) Opens a new source of liquidity Last USD high yield bond redeemed Call option exercised at 2.375% premium for the 1,650 USD 750 million Senior Notes 4.75%
Slide 23: Low leverage and superior flexibility
Low leverage and superior flexibility Net interest-bearing debt Liquidity available Capital allocation priorities Excl. leases, USD million USD million 5000 3 4500 4000 2.5 4,819 4,538 1. Maintain financial capacity and 4,392 4,375 3,570 3,554 3,431 investment grade credit rating 3500 4,023 3,180 3,
Slide 24: Cash tax sensitivity
Cash tax sensitivity USD million Payments of 2019 tax Refunds of 2020 tax Payments of 2021 tax1) 500 400 $70 300 200 $70 100 199 200 $65 106 81 100 $65 48 0 (109) (11) $55 (23) $55 -100 (201) -200 -300 -400 -500 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 1) Estimated pay
Slide 25: Guidance summary
Guidance summary First half 2021 PRODUCTION CAPITAL SPEND PRODUCTION COST DIVIDENDS 2021 guidance 210-220 2.2-2.3 8.5-9.0 450 mboepd USD billion USD/boe USD million H1-2021 actuals 210.4 1.0 8.8 225 mboepd USD billion USD/boe USD million 25
Slide 26: Concluding remarks
Concluding remarks Second quarter 2021 26
Slide 27: Building a leading E&P company
Building a leading E&P company Status after the first half of 2021 Operational performance as planned Strong safety record and low emissions Production and cost on schedule Ongoing projects on track Maturing our project portfolio Aiming to sanction 500 mmboe by end-2022 Well under way to d
Slide 28: www.akerbp.com
AkerBP www.akerbp.com