Aker BP

Earnings Release • Apr 28, 2021

First Quarter 2021

28 April 2021

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 global economic conditions, the economic conditions of the regions and industries that are major markets for Aker BP ASA's lines of business. These expectations, estimates and projections are generally identifiable by statements containing words such as "expects", "believes", "estimates" or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for Aker BP ASA's businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time in the Document. Although Aker BP ASA believes that its expectations and the Document are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Document. Aker BP ASA is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Document, and neither Aker BP ASA nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use.

First quarter 2021

Highlights

Operations on track

• Production on track with low cost and low emissions
• Field developments on schedule
• P&A campaign successfully completed

Maturing next wave of field developments

• Frosk and KEG first in line
• NOAKA moving towards concept select

Strong financial performance

• Record free cash flow
• Full year guidance unchanged

Production performance

Alvheim Ivar Aasen Skarv Ula Valhall Johan Sverdrup Other

Oil and gas production Production efficiency (percent) (mboepd)

Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21

Financial performance

Disciplined capital spend (USD million) Record high operating cash flow (USD million)

HSSE performance

Total Recordable Injury Frequency Emissions Intensity (kg CO2 per boe produced) (12 months rolling average)

Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21

Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21

6

Ongoing projects

On schedule

Ærfugl phase 2

• Drilling completed
• Offshore preparations on track
• Production start planned in Q4-21

Johan Sverdrup phase 2

• Main process module underway to Norway
• Offshore installation of jacket planned in June
• On schedule for production start in Q4-22

Hod

• Platform construction progressing as planned
• Tie-in preparations initiated at Valhall
• Production start planned in Q1-22

⁷ Main Support Frame for new Johan Sverdrup platform

Upcoming projects

Aiming to sanction projects with more than 500 mmboe in resources before the end of 2022

Project	Area	Net mmboe	FID	First oil	Status
Valhall infill drilling	Valhall	10	2020	2021	Ongoing
Frosk	Alvheim	10	Q3-2021	2023	Concept selected – FID planned in Q3-21
Kobra East/Gekko	Alvheim	30	Q2-2021	2024	Concept selected – FID planned in Q2-21
Trell & Trine	Alvheim	10	2022	2025	Concept studies ongoing
Hanz	Ivar Aasen	5	2022	2024	Concept select planned in Q2-21
Skarv satellites	Skarv	70	2022	2025	Concept studies ongoing
Valhall NCP	Valhall	70	2022	2025	Concept studies ongoing
NOAKA	NOAKA	325	2022	2027	Concept select planned in Q3-21
Garantiana	Other	20	2022	2025	Concept studies ongoing

The Alvheim story continues

Many projects and active business development

• Kobra East Gekko FID planned in Q2
• Frosk FID planned in Q3
• Continued infill drilling
• Swap deal with Lundin
• Entered into UK licence P2511

North of Alvheim, Krafla and Fulla NOAKA

• On track for concept select in Q3
• Close cooperation with partners and suppliers
• Digital project execution

Resources Aker BP Production start

>500 mmboe >60% 2027

gross avg. interest targeted

Valhall plugging campaign successfully completed

Valhall P&A campaigns (days per well)

Strong performance

• 30 wells plugged since 2014 in three campaigns
• Six years ahead of plan and NOK 5 billion below original budget
• Close to zero emissions with electrified rig

Enabled by continuous improvement

• Excellent cooperation with Maersk and Halliburton
• Bismuth technology improves efficiency and reduces risk of methane leaks

Exploration 2021

Licence	Prospect		Operator	Aker BP share	Pre-drill mmboe	Status
PL 533	Bask		Lundin	35 %		Dry
PL 981	Merckx Ty	1	Lundin	40 %	43 - 304	Expected in Q3
PL 544	Garantiana W	2	Equinor	30 %	7 - 28	Ongoing
PL 858	Stangnestind	3	Aker BP	40 %	13 - 108	Q2 - after Shenzhou
PL 722	Shenzhou	4	Equinor	20 %	191 - 505	Ongoing
PL 006C	Gomez	5	DNO	15 %	17 - 57	Expected in Q2
PL 1041	Lyderhorn	6	Aker BP	40 %	6 - 14	Planned start in Q4
PL 167	Lille Prinsen	7	Equinor	10 %	Appraisal	Expected in Q3
PL 442	Liatårnet	8	Aker BP	90 %	Appraisal	Planned in Q3

Financial review

First quarter 2021

Oil and gas sales

First quarter 2021

Liquids Natural gas

Liquids Natural gas Other

Liquids \$60.1 +36%

Natural gas

\$38.5 +21%

Production cost

First quarter 2021

Production cost per unit produced USD/boe

Q1-2021 \$8.6

Full year guidance

\$8.5-9.0

Income statement

First quarter 2021 (USD million)

Income statement

First quarter 2021

USD million	Q1 2021	Q4 2020	Change	Comment
Total income	1,133	834	+36%	1
Production costs	176	142		2
Other operating expenses	8	27
EBITDAX	949	664	+43%
Exploration expenses	71	42		3
EBITDA	878	623	+41%
Depreciation	258	289		4
Impairments	30	55		5
Operating profit (EBIT)	591	278	+113%
Net financial items	(90)	(42)		6
Profit/loss before taxes	501	236	+113%
Tax (+) / Tax income (-)	374	106
Net profit / loss	127	129	-2%
EPS (USD)	0.35	0.36

Comments:

• 1. Higher oil and gas prices
• 1. Higher volume lifted
• 1. Increase driven by field evaluation, mainly related to NOAKA
• 1. Reduced depreciation per unit due to increased reserves and decreased ARO estimates on some fields
• 1. Ula impairment USD 118 million, Ivar Aasen reversal USD 88 million, driven by updated cost and production profiles, partly offset by higher short-term oil and gas price assumptions
• 1. Approx. USD 20 million expensed related to call of bond

Cash flow statement

First quarter 2021 (USD million)

Q1-2021 FCF per share \$1.55 Dividend per share 2020 FCF per share \$1.25 Dividend per share \$1.18

1) Including payments on lease debt

2) Net cash flow from operating activities and investment activities including payments on lease debt

Statement of financial position

USD million

Assets	31.03.21	31.12.20	31.03.20
Goodwill	1,647	1,647	1,647
Other intangible assets	1,879	2,043	2,001
Property, plant and equipment	7,392	7,266	7,061
Right-of-use asset	127	133	171
Receivables and other assets	804	793	524
Calculated tax receivables	-	-	-
Cash and cash equivalents	392	538	323
Total Assets	12,241	12,420	11,727

Equity and liabilities	31.03.21	31.12.20	31.03.20
Equity	1,989	1,987	1,813
Other provisions for liabilities incl. P&A (long)	2,665	2,650	2,699
Deferred tax	2,782	2,642	2,153
Bonds and bank debt	3,474	3,969	3,593
Lease debt	200	216	277
Other current liabilities incl. P&A	678	792	931
Tax payable	452	163	260
Total Equity and liabilities	12,241	12,420	11,727

Refinancing to further improve maturity profile

Bond redeemed

• Call option exercised at 102.9375% of par for the USD 500 million Senior Notes 5.875% (2018/25)

RCF facilities extended

• Working Capital Facility extended to 2024 (2022) with options for two 1-year extensions and committed amount reduced to USD 1.4 (2.0) billion
• Liquidity Facility of USD 2.0 billion extended to 2026 (2025) of which USD 0.35 billion falls due in 2025

Debt maturity profile (USD million)

Superior financial flexibility

1) Adjusted to reflect the reduction in available amount under the Working Capital Facility from USD 2.0 billion to USD 1.4 billion agreed in April 2021.

Cash tax sensitivity

USD million

Guidance summary

First quarter 2021

2021 guidance	PRODUCTION 210-220 mboepd	CAPITAL SPEND 2.2-2.3 USD billion	PRODUCTION COST 8.5-9.0 USD/boe	DIVIDENDS 450 USD million
First quarter	222.2	0.4	8.6	112.5
actuals	mboepd	USD billion	USD/boe	USD million

Concluding remarks

First quarter 2021

Priorities

EXECUTE

• Safe and efficient operations
• Flawless project execution

IMPROVE

• New operating model
• Digital project execution

GROW

Mature NOAKA and other projects to FID by end-2022

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