Aker BP

Earnings Release • Apr 26, 2019

First quarter 2019 Aker BP ASA

26 April 2019

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.

AKER BP First quarter 2019

Strong operational performance

• High production efficiency
• Excellent project execution

Rolling out data-driven innovations

• Smart maintenance
• Improved logistics

Expanding and maturing the resource base

• Continued exploration success
• Accelerating Ærfugl
• New Valhall wells sanctioned

Key figures		Q1-19	Q4-18*	Q1-18*
Production	mboepd	158.7	155.7	158.6
Sales	mboepd	162.0	151.5	167.3
Realized liquids price	USD/bbl	63.9	67.8	67.4
Realized gas price	USD/scm	0.24	0.30	0.28
Total income	USDm	836	916	944
EBITDA	USDm	539	658	691
Operating profit	USDm	287	442	505
Net profit	USDm	10	63	169
Effective tax rate	USDm	96%	84%	63%
EPS	USD	0.03	0.17	0.47
DPS	USD	0.52	0.31	0.31

Grow

Improve

Execute

Production on plan – strong production efficiency OPERATIONAL REVIEW

Production per hub, mboepd Production efficiency per hub

138.8 155.7 158.7 Alvheim Valhall Skarv Ivar Aasen Ula Other

2017 2018 2019-Q1

15.6

60.0

77.4

2014 2015 2016 2017 2018 Q1-19

OPERATIONAL REVIEW The Alvheim story continues

Exploration success and strong operational performance

• Discovery at Froskelår Main
  • Gross volume 60-130 mmboe
• Further maturing the opportunity set
  • Currently drilling Frosk test producer (and Froskelår NE)
  • Completion operation started at Volund sidetrack
  • Rumpetroll exploration well in Q3
  • Skogul development on track drilling in Q3

Production efficiency

OPERATIONAL REVIEW Record uptime at Ivar Aasen

High production efficiency 98%

Improved water injection

• High voidage replacement
• Higher oil/gas ratio
• Mitigates risk related to power supply
• Two new production wells to be drilled this year

Production efficiency

Skarv finds innovative solutions OPERATIONAL REVIEW

Q1 production 22.6 mboepd

• Reduced gas injection due to compressor motor failure
• Temporarily higher gas and lower oil production
• Compressor motor replaced late March
• Xmas tree repairs progressing well
• Good start for Ærfugl-related offshore activities

Production efficiency

7

Ærfugl gets even better OPERATIONAL REVIEW

Further improvement in break -even

• Phase 1 on track for 2020 production start
  • Technology qualification and EPC on plan
  • Preparing for subsea campaign in Q3
  • Drilling to commence in Q4

Phase 2 accelerated

• One of the three wells to be drilled from Idun template
• Optimized well locations
• Production start in 2020/21 (previously 2023)

Break -even oil price for Ærfugl

OPERATIONAL REVIEW Ula preparing for next drilling campaign

OPERATIONAL REVIEW Valhall in growth mode

Increasing production

• Gradually improving production efficiency
• Contribution from new wells

Progressing the project portfolio

• Valhall Flank West project on track
• New 7-well campaign planned from WP platform
• Hod E&A well dry evaluating next steps

Production efficiency

OPERATIONAL REVIEW Johan Sverdrup on track

OPERATIONAL REVIEW Targeting maximum value creation from NOAKA

All numbers based on Aker BP estimates as per January 2019 Break-even defined as the oil price necessary to achieve positive NPV using 10% discount rate

EXPLORATION 2019 exploration program

	License Prospect	Operator	Aker BP share	Est. spud	Pre-drill mmboe	Result
PL869	Froskelår Main	Aker BP	60 %	Q1		Discovery 60-130 mmboe	Completed
PL857	Gjøkåsen	Equinor	20 %	Q1		Dry	Ongoing
PL033	Hod Deep West	Aker BP	90 %	Q1		Dry	Planned
PL869	Froskelår NE	Aker BP	60 %	Q1	- 7 23	Ongoing
PL916	JK	Aker BP	40 %	Q2	- 100 420
PL502	Klaff	Equinor	22 %	Q2	- 50 372
PL942	Ørn	Equinor	30 %	Q2	- 8 40
PL814	Freke-Garm	Aker BP	40 %	Q2	- 16 81
PL777	Hornet	Aker BP	40 %	Q3	- 14 137
PL782S	Busta	ConocoPhillips	20 %	Q3	- 54 199
PL019C	Kark	Aker BP	60 %	Q3	- 15 48
PL762	Vågar	Aker BP	20 %	Q3	- 63 130
PL869	Rumpetroll	Aker BP	60 %	Q3	- 45 148
TBD	NOAKA area	Aker BP		Q3
PL838	Shrek	PGNIG	30 %	Q4	- 10 22

Digitalization demonstrating its value in production optimization CONTINUOUS IMPROVEMENT Using data to create more value

Examples

	Optimizing logistics across the NCS	My boat	One Team
	 Challenge: waste in traditional supply vessel planning
Lean logistics	 Solution: Data sharing tools (exChain) to drive improvement. Platform Supply Vessel frame agreement signed
	 Leaner logistics at Ula and Valhall introduced in Q1. Annual cost improvement: USD 8 million

	Tambar multi-phase pump
Smart	 Challenge: unexpected failures cause downtime
maintenance	 Solution: Predictive analytics on live data to predict failures and take preventive action to avoid losses
	 Estimated value next 5 years: USD 50 million

Financial review

FINANCIAL REVIEW Oil and gas sales – higher volume and lower prices

Q4-2018 figures reflect restated financial statements, see note 21 in the First quarter 2019 quarterly report. 16

Income statement FINANCIAL REVIEW

USD million	Q1 2019	Q4 2018*	Q1 2018*
Total operating income	836	916	944
Production costs	200	178	195
Other operating expenses	7	8	4
EBITDAX	629	731	746
Exploration expenses	90	72	55
EBITDA	539	658	691
Depreciation	183	196	185
Impairment losses	69	20	-
Operating profit/loss (EBIT)	287	442	505
Net financial items	(37)	(44)	(47)
Profit/loss before taxes	249	398	458
Tax (+) / Tax income (-)	239	335	290
Net profit/loss	10	63	169
EPS (USD)	0.03	0.17	0.47

Statement of financial position FINANCIAL REVIEW

USD million

Assets	31.03.19	31.12.18*	31.03.18*	Equity and liabilities	31.03.19	31.12.18*
Goodwill	1,791	1,860	1,860	Equity	2,799	2,977
Other intangible assets	2,483	2,433	1,992	Other provisions for liabilities incl. P&A (long)	2,505	2,581
Property, plant and equipment	5,954	5,746	5,665	Deferred tax	1,867	1,753
Right-of-use asset	225			Bonds and bank debt	2,226	2,018
Receivables and other assets	534	614	722	Lease debt	369
Calculated tax receivables	15	11	1,666	Other current liabilities incl. P&A	784	828
Cash and cash equivalents	114	45	38	Tax payable	567	552
Total Assets	11,117	10,709	11,943	Total Equity and liabilities	11,117	10,709

Cash flow – first quarter 2019 FINANCIAL REVIEW

USD million

FINANCIAL REVIEW Guidance summary

	2019 guidance1)	2019 actual YTD	Comments
Production	155-160 mboepd	158.7 mboepd	Net production excl. over/underlift
Capex	USD ~1.6 billion	USD 343 million	Excl. capitalized interest Incl. payments on lease debt
Exploration spend	USD ~500 million	USD 159 million
Abandonment spend	USD ~150 million	USD 21 million
Production cost per boe	USD ~12.5	USD 13.4	Per produced boe
Dividends	USD 750 million	USD 187.5 million

Concluding remarks

AKER BP Priorities ahead

Safe and efficient operations

Excellent project execution

Lead the digital transformation of E&P

Reorganize value chains with alliances

Apply new technology to drive value creation

High exploration activity

Maturing resources to reserves

Grow

Improve

Execute