Aker BP

Earnings Release • Oct 28, 2021

Third quarter 2021 results

Third quarter 2021 results

Aker BP delivered record high revenues in the third quarter, driven by high oil

and gas prices and continued stable operations. The company continued maturing

its project portfolio, including the NOAKA project where the development concept

has been selected and the resource estimate has been increased. Based on a

historically strong financial position, the company has decided to increase its

quarterly dividends from November 2021.

· I am pleased to report another record quarter for Aker BP, where the

combination of good operational performance and higher oil and gas prices

contribute to the strong financial results, says CEO Karl Johnny Hersvik.

· Aker BP is in a very strong financial position. This provides us with a

unique starting point for our significant investment programme for the years to

come, and at the same time grow the dividends to our shareholders.

· We continue our relentless work to progress our portfolio of new field

development projects. And for NOAKA, which is the largest of these projects, a

development concept has been selected which allows for an upgraded resource

estimate, Hersvik concludes.

Third quarter 2021 summary

Aker BP reported total income of USD 1,563 (1,124) million and operating profit

of USD 849 (614) million for the third quarter 2021. Net profit was USD 206

(154) million. The company paid a dividend of USD 112.5 million (USD 0.3124 per

share) in the quarter. The Board has resolved to pay a dividend of USD 150

million (USD 0.4165 per share) in the fourth quarter 2021.

The company's net production in the third quarter was 210.0 (198.6) thousand

barrels of oil equivalents per day (mboepd). The increase was driven by

completion of planned maintenance and project activities at the company's

producing assets in the previous quarter. Net sold volume was 224.8 (195.1)

mboepd. The average realised liquids price increased to USD 71.5 (66.9) per

barrel, while the average realised price for natural gas increased to USD 91.3

(45.1) per barrel of oil equivalents (boe).

Production costs for the oil and gas sold in the quarter increased to USD 209

(158) million due to increased volume sold. The average production cost per

produced unit remained stable at USD 9.0 (9.0) per boe. Exploration expenses

amounted to USD 97 (102) million. Depreciation was USD 247 (240) million,

equivalent to USD 12.8 (13.3) per boe. Impairments amounted to USD 154 million,

driven by revisions of future production and cost profiles for the Ula area.

This resulted in operating profit of USD 849 (614) million. After net financial

expenses of USD 47 (62) million, profit before taxes ended at USD 802 (552)

million. Tax expenses amounted to USD 596 (399) million, and net profit was USD

206 (154) million for the quarter.

The company continued progressing its portfolio of field development projects

according to plan. During the third quarter, the development concept has been

selected for the NOAKA area, and the resource estimate for the development has

been increased to 600 mmboe. Moreover, the PDO for Frosk in the Alvheim area was

submitted to the authorities. Capital expenditure amounted to USD 378 (391)

million in the quarter.

At the end of the third quarter 2021, Aker BP had total available liquidity of

USD 4.8 (4.4) billion. Net interest-bearing debt was USD 2.3 (2.8) billion,

including 0.2 (0.2) billion in lease debt.

In July, the company disbursed dividends of USD 112.5 million, equivalent to USD

0.3124 per share, reflecting an annualized dividend level of USD 450 million.

The Board has resolved to increase the annualized dividend level to USD 600

million effective from fourth quarter 2021, and hence to pay a quarterly

dividend in November 2021 of USD 150 million, equivalent to USD 0.4165 per

share. This will bring total dividend payments in 2021 to USD 487.5 million,

compared to the previous plan of USD 450 million communicated in February.

Webcast and conference call details

The third quarter report and presentation are attached to this announcement and

can also be found on www.akerbp.com/en. The company will host a conference call

today at 08:30 CEST, available as a webcast on the company's website.

To participate in the conference call, please contact the conference call

operator at the telephone numbers listed below. Please join the event 5-10

minutes prior to scheduled start time and provide the confirmation code or ask

for Aker BP's quarterly presentation.

Phone number Norway:  +47 2350 0501

Phone number UK: +44 (0) 330 336 9434

Confirmation code: 9288390

Attachments

Aker BP 2021-Q3

Report.pdf (https://mb.cision.com/Public/1629/3442033/aed68e94423248d8.pdf)

Aker BP 2021-Q3

Presentation.pdf (https://mb.cision.com/Public/1629/3442033/ab5fa07200b54b5f.pdf)

Investor contacts:

Kjetil Bakken, VP Corporate Finance and Investor Relations, tel.: +47 91 889 889

Jørgen Torstensen, Senior IR Professional, tel.: +47 95 48 37 07

Media contacts:

Tore Langballe, VP Communications, tel.: +47 907 77 841

Ole-Johan Faret, Press Spokesman, tel.: +47 402 24 217

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, 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 Corporate Finance

and Investor Relations, Aker BP ASA, on 28 October 2021 at 07:00 CEST.