Slide 1: Fourth Quarter 2018
Fourth Quarter 2018 Aker BP ASA Karl Johnny Hersvik, CEO David Torvik Tønne, CFO 6 February 2019
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: 2018 Highlights
AKER BP 2018 Highlights Production, mboepd EBITDA, USDm Record production and high regularity +12% +54% Execute Industry-leading drilling performance 156 2,748 139 1,786 Field developments on track 2017 2018 2017 2018 Digitalization gaining momentum Improve Expanding the alliance model Ear
Slide 4: Fourth quarter 2018 highlights
AKER BP Fourth quarter 2018 highlights Operations Key figures Q4-18 Q4-17 2018 2017 Production increased to 156 mboepd Production mboepd 155.7 135.6 155.7 138.8 New wells on stream at Alvheim and Valhall Field developments on track Realized oil price USD/bbl 64.3 64.6 71.9 56.2 Realized gas pr
Slide 5: Discovery at Froskelår
EXPLORATION Discovery at Froskelår Growing the Alvheim area resource base Preliminary results • Oil and gas • Within pre-drill range of 45-153 mmboe • May straddle UK-Norway border Drilling operation ongoing • Coring and data acquisition • Horisontal sidetrack Way forward • Drill test producer
Slide 6: Record production and high regularity
OPERATIONS Record production and high regularity Production per hub, mboepd Production efficiency per hub Alvheim Valhall Skarv Ivar Aasen Ula Other 2017 2018 97.0% 155.7 158.7 157.8 155.7 92.0% 91.3% 150.6 87.0% 138.8 67.0% 77.4 60.0 15.6 2014 2015 2016 2017 2018 Q1-18 Q2-18 Q3-18 Q4-18 Alvheim Iva
Slide 7: Leading drilling performance
NCS DRILLING EFFICIENCY Leading drilling performance Development wells by operator 2018 Exploration wells by operator 2018 250 250 200 200 metres per day metres per day 150 150 100 100 50 50 - - Aker Aker NCS peers NCS peers BP BP Source: NPD Factpages 7
Slide 8: Improvement program showing tangible results
FIELD DEVELOPMENTS ON TRACK Improvement program showing tangible results Example: Valhall Flank West Facility costs -24% (NOKbn) Engineering (mhr/tonnes) -14% Facility construction duration -28% (months) DG2-DG4 Benchmark Current estimate Source: AkerBP 8
Slide 9: Reducing cost, waste and emissions
LEAN MINDSET Reducing cost, waste and emissions CO2 emissions intensity1) The world’s first offshore lifeboat kg CO2 per boe produced (2017) with electric propulsion 27.2 24.6 24.4 17.8 14.8 13.6 11.1 9.2 8.8 7.2 7.0 Latest design of BMW Li-ion batteries Successful Factory Acceptance Test perfor
Slide 10: Optimizing production with artificial intelligence
DIGITALIZATION GAINING MOMENTUM Optimizing production Digitalization with artificial demonstrating its valueintelligence in production optimization Examples Chalk influx a challenge at Valhall Chalk influx By using machine learning on production data from the Cognite data platform (CDP) the chal
Slide 11: Strategic alliances: Reshaping the value chain
STRATEGIC ALLIANCES Reshaping the value chain Alliances established withpillar as a key alliances in improvement agenda 7 alliances established 10 Subsea alliance projects in execution Set up to deliver full facility and D&W capex scope >NOK 10 bn Subsea and modification alliance scope Modification
Slide 12: Growing the resource base in 2018
OPERATIONAL REVIEW Growing the resource base in 2018 Development in 2P reserves (mmboe) Development in 2C contingent resources (mmboe) 946 914 917 48 56 59 Alvheim area 11% 769 173 NOAKA 33% Skarv area 44 12% Valhall area 31% Valhall Area 32% Johan Sverdrup Ula Area 34% 17% Alvheim Area 8% Other Oth
Slide 13: 2018 exploration highlights
EXPLORATION PL 1031 PL 1030 2018 exploration highlights PL 1028 PL 1026 PL 902 B Value creation from 2018 exploration PL 1022 120-280 APA 2018 awards to Aker BP USD million1) Frosk oil discovery Gekko appraisal ~50 ~40 PL 838 B PL 1005 + firm well mmboe (gross) mmboe (gross) PL 1008 PL 272 B PL 782
Slide 14: 2019 exploration program
Infrastructure Led Exploration (ILX) EXPLORATION Growth exploration 2019 exploration program Gjøkåsen License Prospect Aker BP Pre-drill Operator Vågar share mmboe PL869 Froskelår Main Aker BP 60% 45 - 153 Ørn PL869 Froskelår NE Aker BP 60% 7 - 23 Shrek PL869 Rumpetroll Aker BP 60% 45 - 148 PL033 Ho
Slide 15: New members of Executive Management Team
AKER BP New members of Executive Management Team Lene Landøy, SVP Strategy & Business Development Lene Landøy (born 1979) comes from the position of VP Strategy, Portfolio and Analysis and has been with the company since January 2017. Landøy has a master's degree in finance, from NHH Norwegian Schoo
Slide 16: Financial review
Financial review 16
Slide 17: 2018 financial highlights
FINANCIAL REVIEW 2018 financial highlights USD million Revenues EBITDA Net profit +46% +54% +73% 3,750 2,748 476 2,563 1,786 275 2017 2018 2017 2018 2017 2018 17
Slide 18: Statement of income
FINANCIAL REVIEW Statement of income USD million Q4 2018 Q3 2018 Q4 2017 2018 2017 Total operating income 886 1,000 726 3,750 2,563 Production costs 187 165 147 689 523 Other operating expenses 8 4 14 17 28 EBITDAX 692 830 565 3,044 2,012 Exploration expenses 72 94 56 296 226 EBITDA 619 736 509 2,74
Slide 19: Statement of financial position
FINANCIAL REVIEW Statement of financial position USD million Assets 31.12.18 30.09.18 31.12.17 Equity and liabilities 31.12.18 30.09.18 31.12.17 Goodwill Equity 2,990 3,083 2,989 1,860 1,860 1,860 Other intangible assets Other provisions for liabilities incl. 2,433 1,979 1,982 2,581 3,024 2,942 P&A
Slide 20: Fourth quarter cash flow
FINANCIAL REVIEW Fourth quarter cash flow USD million 1,513 1,500 340 717 463 550 447 127 113 45 30.09.2018 Tax refund Debt Drawn Acquisitions Operations Tax paid Investments Dividends 31.12.2018 repayment on RBL before tax 20
Slide 21: Tax payments
FINANCIAL REVIEW Tax payments USD million 2017 tax 2018 tax 2019 guidance1) $80 $80 Taxes paid Scheduled $70 $70 $80 $80 340 $70 $60 $70 $60 212 163 106 $60 $60 67 69 34 34 $50 $50 $50 $50 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 1) Estimated current tax on income for
Slide 22: Guidance summary
FINANCIAL REVIEW Guidance summary 2018 guidance 2018 actual 2019 guidance1) Production 155-160 mboepd 155.7 mboepd 155-160 mboepd Capex USD 1.25 billion USD 1.20 billion USD 1.6 billion Exploration spend USD 400 million USD 359 million USD 500 million Abandonment spend USD 250 million USD 243 millio
Slide 23: Concluding remarks
Concluding remarks 23
Slide 24: Priorities ahead
AKER BP Priorities ahead Dividend plan (USD million) Execute Safe and efficient operations Excellent project execution 1150 1050 950 850 Lead the digital transformation 750 Improve Reorganize value chains with alliances Apply new technology to drive value creation 450 250 High exploratio
Slide 25: Aker BP
& AkerBP www.akerbp.com