Aker BP

Earnings Release • Oct 19, 2018

Aker BP third quarter 2018 results

Aker BP third quarter 2018 results

Aker BP (OSE:AKERBP) reports total income of USD 1,000 million and operating

profit of USD 548 million for the third quarter 2018. Net profit was USD 125

million and earnings per share were USD 0.35. The company paid a dividend of USD

0.3124 (NOK 2.53) per share in the quarter.

The company's net production in the third quarter was 150.6 (131.9) thousand

barrels of oil equivalents per day ("mboepd"). For the first nine months,

production was 155.6 mboepd, and the company still expects full-year production

to be within the previously communicated range of 155-160 mboepd.

Record high revenue

Revenues were positively impacted by increased oil and gas prices. Average

realised prices were USD 78 (55) per barrel of oil, and USD 0.30 (0.20) per

standard cubic metre ("scm") of natural gas.

Production costs amounted to USD 165 (134) million or USD 11.9 (11.1) per barrel

oil equivalents ("boe"). For the first nine months, production cost per boe

averaged USD 11.8, and remains in line with the company's estimate of around USD

12 per boe for the full year.

Successful appraisals

Exploration expenses amounted to USD 94 (64) million. This was driven by three

dry exploration wells, as well as seismic acquisitions and field evaluation

expenses. The appraisal wells at Gekko and Hanz were successful. The company's

estimated exploration spend for 2018 has been revised down to USD 400 million

(previously USD 425 million).

Operating profit (EBIT) was USD 548 (219) million, after depreciation of USD 189

(175) million or USD 13.6 (14.5) per boe. Net financial expenses were USD 58 (9)

million, while taxes amounted to USD 365 (97) million. Net profit was USD 125

(112) million for the third quarter.

Reduced capex estimate

Investments in fixed assets amounted to USD 340 (226) million, driven by field

development projects across the company's portfolio. The Aker BP-operated field

developments of Ærfugl, Valhall Flank West and Skogul as well as the Johan

Sverdrup development are all progressing according to plan. The company's capex

estimate for 2018 has been reduced from around USD 1.3 billion to around USD

1.25 billion.

Abandonment payments ("abex") amounted to USD 72 (27) million, driven by a

campaign to plug and abandon old wells on the Valhall field. This campaign has

now been completed, within the revised abex estimate of USD 250 million for

The company's net interest-bearing debt was USD 2.85 billion at the end of the

third quarter. Total available liquidity was USD 3.7 billion. In August, the

company paid a quarterly dividend of USD 112.5 million or USD 0.3124 per share.

The Board has resolved to pay the same amount in dividend in November.

Strengthening Aker BP's position in core areas

In July, Aker BP entered into an agreement to acquire 11 licences, including

four discoveries, from Total E&P Norge for USD 205 million. In October, the

company entered into an agreement to acquire 77.8 percent of the King Lear

discovery from Equinor for USD 250 million. Both transactions are subject to

approval by Norwegian authorities.

Presentation and webcast

The full report and presentation are attached and can also be found on

www.akerbp.com.

Aker BP third quarter 2018

report (http://mb.cision.com/Public/1629/2648566/af5e0e8ffcbdd919.pdf)

2018-Q3

Presentation (http://mb.cision.com/Public/1629/2648566/981c4a07a948cac6.pdf)

Investor contact:

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

Media contact:

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 a fully-fledged 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

'AKERBP'. More about Aker BP at www.akerbp.com.

This information is subject to disclosure requirements pursuant to section 5-12

of the Norwegian Securities Trading Act.