Aker BP

Earnings Release • Jul 7, 2020

Second quarter 2020 trading update

Second quarter 2020 trading update

Aker BP will publish its financial report for the second quarter 2020 on Tuesday

14 July 2020. The company issues this statement to summarize its production and

sales volumes and certain accounting-related topics for the quarter.

Oil and gas production and sales

Aker BP's net production in the second quarter 2020 was 209.8 thousand barrels

of oil equivalents per day (mboepd). Net sold volumes, which are the basis for

revenue recognition in the financial statement, were 232.0 mboepd due to

overlift in the period.

Volumes (mboepd) Q2-20 Q1-20 Q4-19 Q3-19

Net production 209.8 208.1 191.1 146.1

Overlift/(underlift) 22.2 (0.6) (6.6) (2.9)

Net sold volume 232.0 207.5 184.5 143.3

Of which liquids 198.2 174.3 151.4 113.4

Of which natural gas 33.8 33.2 33.1 29.8

Realized prices Q2-20 Q1-20 Q4-19 Q3-19

Liquids (USD/boe) 29.9 44.7 64.2 62.0

Natural gas (USD/scm) 0.08 0.14 0.17 0.16

Oil price hedging

The company is using oil put options for protection of near-term cash flow

against sharp drops in the oil price. In the second quarter, the company

realized gains on these instruments of USD 56 million before tax (subject to

ordinary corporate tax). This had a positive cash flow impact in the quarter,

however the effect on the income statement will be slightly negative as the

instruments were already recognized at fair value in the previous quarter.

Adjusted for the differences in taxation, the average realized liquids price

including hedging was equivalent to USD 40.9 per barrel in the second quarter.

Reversal of impairments

Following the partial recovery in oil prices observed in the second quarter, the

company expects to reverse parts of the impairments from the first quarter,

amounting to USD 100-150 million.

Financial items

The USDNOK exchange rate decreased from 10.4 to 9.6 during the second quarter.

This had a positive effect on financial items. Net financial expenses are hence

estimated to approximately USD 30 million for the quarter, including interest

expenses and currency-related effects.

Taxes

The company expects to report a positive pre-tax result for the second quarter.

Still, a minor tax credit is expected. This is mainly caused by increased uplift

introduced with the temporary changes to Norwegian petroleum tax, and by a

positive currency effect on the value of the company's tax balances.

Cash tax payments in the second quarter amounted to USD 81 million.

Conference call and webcast

The company will host a conference call to present its second quarter 2020

results on 14 July 2020 at 08:30 CEST. The conference call will be available as

a webcast on the company's website www.akerbp.com/en.

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

operator at the telephone numbers listed below. Please join the event 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 0296

Phone number United Kingdom +44 (0)330 336 9411

Confirmation code 5804762

Disclaimer

The information in this statement is based on a preliminary assessment of the

company's second quarter 2020 financial results. The company has not completed

its financial reporting and related review and control procedures. The estimates

provided may therefore be subject to change and the financial statements finally

approved and released by the company may deviate materially from the information

herein.

Contacts:

Kjetil Bakken, VP Investor Relations, tel.: +47 918 89 889

Lars Mattis Hanssen, Senior IR Professional, tel.: +47 994 59 460

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.