Aker BP

Earnings Release • Apr 26, 2019

Aker BP first quarter 2019 results

Aker BP first quarter 2019 results

Aker BP delivered strong operational performance and exploration success in the

first quarter. The company's field develop­ments progressed as planned and

remain on track for first oil from Johan Sverdrup and Valhall Flank West later

this year. The company paid a dividend of USD 187.5 million (USD 0.52 per share)

in the quarter.

The company's net production in the first quarter was 158.7 (158.6) thousand

barrels of oil equivalents per day ("mboepd"). Net sold volume was 162.0 (167.3)

mboepd. Total income amounted to USD 836 (944) million for the quarter.

Petroleum revenues and production costs for the comparative period have been

restated following a change in accounting principle as de­scribed in Note 1 to

the interim financial statements.

Average realised liquids price was USD 63.9 (67.4) per barrel, while the

realised price for natural gas averaged USD 0.24 (0.28) per standard cubic metre

("scm"). Total income was negatively affected by USD 26 million in value

adjustments on the compa­ny's oil price hedging positions.

Production costs for the oil and gas sold in the quarter amounted to USD 200

(195) million. Production cost per produced barrel oil equivalents ("boe")

amounted to USD 13.4 (12.1). Exploration expenses amounted to USD 90 (55)

million. Total cash spend on exploration was USD 159 (80) million. The company

participated in three exploration wells in the quarter, of which the Froskelår

well was a discovery.

Depreciation was USD 183 (185) million, equivalent to USD 12.8 (13.0) per boe.

Impairments amounted to USD 69 (0) million re­lated to technical goodwill,

driven by changes in expected cost and production profiles for future

developments in the Ula area.

Profit before taxes amounted to USD 249 (458) million. Tax ex­pense was USD 239

(290) million, representing an effective tax rate of 96 per cent. The main

reason for the high effective tax rate was the impairment of technical goodwill

which is not de­ductible for tax purposes. Net profit was USD 10 (169) million.

Investments in fixed assets amounted to USD 364 (257) million in first quarter.

All field development projects, including Johan Sverdrup, Valhall Flank West and

Ærfugl, progressed according to plans.

Net interest-bearing debt was USD 2.5 (3.0) billion at the end of the quarter,

including USD 0.4 billion in lease debt recognized in the financial statement

due to implementation of IFRS 16 Leases. Total available liquidity at the end of

the quarter was USD 3.0 (3.5) billion.

In February, the company paid a quarterly dividend of USD 0.5207 (NOK 4.41) per

share. The Board has resolved to pay a quarterly dividend of USD 187.5 million

(USD 0.5207 per share) in May 2019.

Presentation, webcast and conference call details

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

www.akerbp.com.

A live webcast will be available on our website from 08:30 (CEST).

To access the conference call, please contact the conference call operator at

the participant telephone numbers listed below. Please call in 5 minutes prior

to the scheduled start time and provide the confirmation code (6680507) or ask

for the Aker BP First Quarter 2019 Presentation.

+--------------+-------------------+

|Location |Phone Number |

+--------------+-------------------+

|Norway |+47 2100 2610  |

+--------------+-------------------+

|United Kingdom|+44 (0)330 336 9105|

+--------------+-------------------+

AkerBP Q1 2019 (https://mb.cision.com/Public/1629/2797488/91c69ecbcb52c092.pdf)

2019-Q1

presentation (https://mb.cision.com/Public/1629/2797488/badca06888e2ca34.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.