Aker BP reports operating profit of USD 1,128 million and net profit of USD 188
million in the second quarter 2022. The acquisition of Lundin Energy's oil and
gas activities was completed on 30 June.
Highlights
· Acquisition of Lundin Energy's oil and gas activities completed
· Launching a decarbonisation plan to be net zero across all operations by
2030
· On track to submit Plans for Development and Operations (PDOs) for around
900 mmboe (net) by the end of the year, with concepts selected for all projects
· Agreement signed with Equinor to assume operatorship of Krafla following PDO
submission
· Strong free cash flow of USD 803 million*, net interest-bearing debt of USD
3.8 billion, and cash consideration for the Lundin transaction paid without
adding new debt
· Credit rating upgrades from Standard & Poor's, Moody's, and Fitch Ratings
· Quarterly dividend increased by 11 percent to USD 0.525 per share
* Adjusted for consideration paid in the Lundin transaction
Financial summary
unit 2022-Q2 2022-Q1 2021-Q2
Production mboepd 181.3 208.2 198.6
Total income USD 2 026 2 291 1 124
million
EBITDA USD 1 749 2 007 855
million
Net profit USD 188 537 154
million
Net interest USD 3 835 877 2 818
-bearing million
debt
Earnings per USD 0.52 1.49 0.43
share
Dividend per USD 0.48 0.48 0.31
share
The Lundin transaction was completed on 30 June 2022. The transaction and the
acquired business have been consolidated in the statement of financial position
on a fair value basis per 30 June 2022, and will be included in the income
statement as from 1 July 2022.
Comment from Karl Johnny Hersvik, CEO of Aker BP:
"I'm pleased to report that the Lundin transaction has been completed during the
quarter, creating the E&P company of the future. The combined company has a more
diversified and robust portfolio, with industry-leading low cost and low carbon
emissions assets, and is positioned to deliver profitable growth into the next
decade."
"Today we are launching a decarbonisation plan to be net zero across all
operations by 2030, which fortifies our position as the leading E&P company,
also with respect to our environmental footprint. We remain committed to
reducing gross emissions across our operations and we have a clear pathway to
reduce absolute emissions to close to zero by 2050."
"Financially, Aker BP is very robust. High oil and gas prices have contributed
to strong cash flow, allowing us to complete the Lundin transaction without
adding new debt while our credit ratings have been upgraded. Consequently, we
are now able to further increase the dividend level."
"We continue to focus on the things we can influence and improve today. In the
second quarter we produced 181.3 thousand barrels of oil equivalent per day,
impacted by planned maintenance programmes. For the second half of 2022, we
expect to more than double our production as we integrate the Lundin assets."
"I'm also pleased to report strong progress on Aker BP's growth agenda. All the
planned PDO projects have now passed the concept select milestone and remain on
schedule for PDO submission by the end of the year."
"In conclusion, we remain committed to our mission to maximize value creation
for our shareholders, and we have never been in a better position to do so."
Conference call and webcast
The company will host a conference call to present its second quarter 2022
results today, 20 July 2022, at 08:30 CEST. The conference call will be
available as a webcast on www.akerbp.com (https://www.akerbp.com/en). To
participate in the conference call, please use the dial-in numbers and passcode
below.
Phone number Norway: +47 2350 0347
Phone number UK: +44 (0) 330 165 3641
Participant passcode: 59 23 27
Attachments
· Aker BP Second quarter 2022
report (https://mb.cision.com/Public/1629/3602911/a0782042da8dd086.pdf)
· Aker BP Second quarter 2022
presentation (https://mb.cision.com/Public/1629/3602911/b5e75d728a46d87e.pdf)
· Aker BP Strategy update 20 July
2022 (https://mb.cision.com/Public/1629/3602911/bfbf668f3872994c.pdf) (also
included in the Second quarter 2022 presentation)
Investor contacts:
Kjetil Bakken, VP Investor Relations, tel.: +47 91 889 889
Jørgen Torstensen, IR Officer, tel.: +47 95 48 37 07
Media contact:
Tore Langballe, VP Communications, tel.: +47 907 77 841
About Aker BP:
Aker BP is an independent E&P company with exploration, development and
production activities on the Norwegian Continental Shelf. Aker BP is the
operator of Alvheim, Edvard Grieg, Ivar Aasen, Skarv, Valhall, Hod, Ula and
Tambar. The company is also a partner in the Johan Sverdrup field. Aker BP is
headquartered at Fornebu, Norway, and is listed on the Oslo Stock Exchange under
the ticker 'AKRBP'. More about Aker BP at www.akerbp.com.
This information is considered to be inside information pursuant to the
EU Market Abuse Regulation and is subject to the disclosure requirements
pursuant to Section 5-12 the Norwegian Securities Trading Act.
This stock exchange release was published by Kjetil Bakken, VP Investor
Relations, Aker BP ASA, on 20 July 2022 at 07:00 CEST.