Slide 1: Second Quarter 2018
Second Quarter 2018 Aker BP ASA Karl Johnny Hersvik, CEO Alexander Krane, CFO 13 July 2018
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 Oil & gas production, mboepd net Operations 180 Stable production of 158 mboepd 160 Field developments on track Strong P&A performance 140 120 Finance Q2 EBITDA USD 735 million, EPS USD 0.38 100 Q2 free cash flow USD 211 million (0.59 per share) 80 Quarterly divide
Slide 4: Financials
Financials Second Quarter 2018
Slide 5: Statement of income
FINANCIALS Statement of income (USD million) Q2 2018 Q2 2017 H1 2018 H1 2017 FY 2017 Total operating income 975 595 1,864 1,241 2,563 Production costs 164 121 337 242 523 Other operating expenses 1 3 5 11 28 EBITDAX 810 470 1,522 988 2,012 Exploration expenses 75 75 130 106 226 EBITDA 735 395 1,392
Slide 6: Statement of financial position
Statement of financial position Assets Equity and liabilities (USD million) 30.06.18 31.03.18 30.06.17 (USD million) 30.06.18 31.03.18 30.06.17 Goodwill Equity 3,064 3,110 2,453 1,860 1,860 1,817 Other intangible assets Other provisions for liabilities incl. 1,986 1,992 1,627 2,992 2,955 2,330 P&A (
Slide 7: Second quarter cash flow and liquidity
FINANCIALS Second quarter cash flow and liquidity Cash flow (USDm) Strong operating cash flow • Production on plan • Higher oil and gas prices • Production cost USD 11.4 per boe Capital spending within plan • Capex USD 276 million (ex. capitalized interest) 403 • Expex USD 86 million • Abex USD
Slide 8: 2018 Guidance
FINANCIALS 2018 Guidance Item Actual YTD per 30 June 2018 Updated 2018 guidance USD ~1.3 billion CAPEX* USD 512 million (no change) USD ~425 million EXPEX USD 166 million (previous ~350) 155 – 160 mboepd Production 158 mboepd (no change) USD ~12 per boe Production cost USD 11.8 per boe (no change) U
Slide 9: Operations
Operations Second Quarter 2018
Slide 10: Keeping Alvheim busy
ALVHEIM AREA (~65%) Keeping Alvheim busy Alvheim FPSO – a high performer • High production efficiency (95 percent in Q2) • Main priority: Add resources to secure continued high capacity utilisation Continued high field development activity • Two new Boa wells contributed positively in Q2 • Appra
Slide 11: Developing the Frosk discovery
ALVHEIM AREA (~65%) Developing the Frosk discovery A new chapter in the Alvheim story Frosk proved 30-60 mmboe oil • Located near Bøyla which is tied back to Alvheim • Provides an ideal basis for profitable expansions Three more wells planned • Targeting net unrisked resources of ~ 40-140 mmboe
Slide 12: Full speed ahead at Valhall
VALHALL AREA (90%) Full speed ahead at Valhall Valhall Flank West under construction • Engineering near complete • Valhall field centre modifications well underway P&A program ahead of schedule • Rig to be released earlier than plan • Reduced time = reduced cost Valhall Flank North Water Injec
Slide 13: Turning around Ula for the future
ULA (80%) / TAMBAR (55%) Turning around Ula for the future Revitalise Ula as an area oil hub Preparing for new growth • Several new drilling targets identified • Converting Ula DP to add capacity and flexibility Tambar development project on track • Two new wells on production • Gas lift schedul
Slide 14: Water injectors completed
IVAR AASEN (34.8%) Water injectors completed Two new water injectors successfully completed • Supporting the longer term production profile Hanz appraisal well commenced 30 June • The well will also test the Slengfehøgda exploration prospect Onshoring the Ivar Aasen control room • Aker BP is o
Slide 15: Skarv continues to deliver
SKARV AREA (23.8%) Skarv continues to deliver Solid production despite technical challenges • Restarted second well after Xmas tree replacement • Two wells currently shut in • Efficient maintenance after equipment failures Ærfugl progressing as planned • Contracts awarded • Fabrication activitie
Slide 16: Second topside successfully installed at Johan Sverdrup
JOHAN SVERDRUP (11.6%) Second topside successfully installed at Johan Sverdrup Photo: Bo Randulff / Equinor 16
Slide 17: NOAKA – field of the future
NORTH OF ALVHEIM / ASKJA / KRAFLA NOAKA – field of the future Common area development is the preferred solution Aker BP recommends a central processing hub Aker BP’s ambition is to make NOAKA the first energy positive field development on the NCS Targeting concept selection in 2018 17
Slide 18: The future is now
DIGITAL TRANSFORMATION The future is now Digital technologies are changing the way we work Cognite’s Industrial Data Platform • Digital twins of Aker BP assets • Live and historical sensor data instantly available • Enabling new and improved business models Digital tools in place at Ivar Aasen •
Slide 19: Exploration is back
EXPLORATION Exploration is back Targeting new organic growth Stepping up drilling activity • Cost-effective access to new resources • Near-field discoveries increase value of existing assets • Frontier exploration to create new growth opportunities Focused license portfolio • Success in licensin
Slide 20: Priorities going forward
AKER BP ASA Priorities going forward Safe and efficient operations Execute Excellent project delivery Relentless focus on cost reductions and Safety productivity gains Improve Mature projects to below 35 USD/boe break-even Maximize recovery from existing resource base Grow Pursue organic
Slide 21: AkerBP
AkerBP www.akerbp.com