Aker BP

Earnings Release • Apr 24, 2020

First quarter 2020 trading update

First quarter 2020 trading update

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

Wednesday 6 May 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 first quarter 2020 was 208.1 thousand barrels of

oil equivalents per day ("mboepd"). This represents a new all-time high for Aker

BP, reflecting the continued ramp-up of production from the Johan Sverdrup

field.

Net sold volumes, which are the basis for revenue recognition in the financial

statement, were 207.5 mboepd, reflecting underlift of 0.6 mboepd in the quarter.

The timing of the company's liftings was tilted towards the second half of the

quarter, negatively impacting the average realized oil price.

Volumes (mboepd) Q1-20 Q4-19 Q3-19 2019

Net production 208.1 191.1 146.1 155.9

Overlift/(underlift) (0.6) (6.6) (2.9) 1.8

Net sold volume 207.5 184.5 143.3 157.6

Of which liquids 174.3 151.4 113.4 126.6

Of which natural gas 33.2 33.1 29.8 31.0

Realized prices Q1-20 Q4-19 Q3-19 2019

Liquids (USD/boe) 44.7 64.2 62.0 64.8

Natural gas (USD/scm) 0.14 0.17 0.16 0.18

Oil price hedging

The company has an oil price hedging program in place to mitigate the negative

impact of sharp unexpected drops in the oil price. In the first quarter, gains

from this program amounted to approximately USD 80 million, of which USD 14

million was realized in the quarter. The gains will be recognized as Other

operating income in the income statement for the first quarter 2020 and are

subject to ordinary corporate tax only. Adjusted for the differences in

taxation, the average realized liquids price including hedging gains amounted to

USD 47.9 per boe for the quarter.

Impairments

Due to the sharp reduction in oil prices, the company expects to make non-cash

impairment charges related to both tangible and intangible assets. The

impairments are preliminarily estimated to USD 500-700 million, with a

corresponding tax rate of 50-60 percent.

Financial items

The USDNOK exchange rate increased from 8.8 to 10.4 during the quarter. While

this contributes positively by reducing production costs in USD terms, it has

had a negative effect on the company's financial items. Including net interest

expenses, the net financial items are hence estimated to approximately USD 150

million for the period.

Taxes

The company expects to report a negative pre-tax result for the first quarter

mainly due to the impairments and currency effects. The effective tax rate for

the quarter is estimated to approximately 20 percent, reflecting the limited

deductibility for financial items and impairments, as well as a negative

revaluation of the company's tax balances driven by currency. The cash tax

payments during the first quarter amounted to approximately USD 50 million, in

line with previous guidance.

Conference call and webcast

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

results on 6 May 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 the Aker BP First Quarter 2020

Presentation.

Phone number Norway +47 23 50 02 96

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

Confirmation code 1771551

Disclaimer

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

company's first 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 91 889 889

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.