Aker BP

Earnings Release • Oct 27, 2023

Third quarter 2023

27 October 2023 Aker BP ASA

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.

Highlights

Third quarter 2023

Good operational performance

• Low cost and low emissions
• Maintenance activities impacted production volume

Project developments on track

• Schedule and cost estimates reiterated
• KEG in production five months ahead of plan

Strong cash flow

• Higher realised prices and cost control
• Dividends of USD 0.55 per share in quarter

Adjustments to full -year guiding

• Production up to 455 -465 mboped
• Production cost down to USD 6.0 -6.5 per boe

Production

1,000 barrels oil equivalent per day (mboepd)

Production cost

USD per boe

Injury frequency (TRIF) Safety

6

TRIF: Total recordable injuries per million exp. hours, rolling 12 months average

A global leader in low GHG emissions

Decarbonising the business

Aker BP emission intensity, kg CO2e/boe

160 Industry net emission intensity

Kg CO² /boe equity share (2022)¹

140

Delivery of high-return projects on quality, time and cost

Construction activities well underway and KEG start-up five months ahead of plan

		Aker BP		Net capex estimate	PDO submission	Production start
	Field development	ownership	Gross/net volume		2021	2023
Asset area		80.0%	10/8 mmboe	USD 0.2bn		2023
	Frosk		50/40 mmboe	USD 0.9bn	2021	2025
Alvheim	Kobra East & Gekko (KEG)	80.0%	25/15 mmboe	USD 0.4bn	2022
	Tyrving	61.3%		USD 0.2bn	2021	2024
	Hanz	35.0%	20/7 mmboe	USD 1.3bn	Dec-22	2027
Edvard Grieg &		50.0%	87/49 mmboe			2026
lvar Aasen	Symra	65.0%				2027
	Solveig Phase II	68.1%	119/51 mmboe	USD 1.0bn	Dec-22	2027
Skarv	Alve North	23.8%			Dec-22	2027
	ldun North					2027
	Ørn	30.0%
	Valhall PWP	90.0%	230/187 mmboe	USD 5.5bn		2027
Valhall	Fenris	77.8%				2027
		87.7%		USD 10.7bn	Dec-22	2027
Yggdrasil	Hugin	50.0%	650/413 mmboe			2027
	Munin	47.7%
	Fulla

Kobra East & Gekko on stream

Five months ahead of plan

• Project executed in two-thirds of the original time schedule
• World-class drilling operations main contributor to accelerated development
• New record with 13,600m reservoir exposure from a single well
• Subsea alliance effectively expedited work accordingly
• Significantly improved project economics

Project execution progressing according to plan

• Key milestones achieved on schedule
• Main contracts awarded and capacity secured
• Project execution on track with fabrication underway at multiple locations
• No serious HSSEQ incidents
• Total capex estimate in line with plans

Our development projects are driving growth and value creation

Lifting Aker BP's production by 250-300 mboepd in 2028

Production outlook

mboepd

Robust and profitable project portfolio

\$35-40/bbl

Project portfolio break-even oil price¹

~25%

Project portfolio IRR at \$65/bbl oil price

1-2 years

Project portfolio payback at \$65/bbl oil price

2023 exploration program

Licence	Prospect	Operator	Aker BP share	Pre-drill mmboe	Status
PL867	Gjegnalunden	Aker BP	80%		3-9 mmboe
PL1141	Styggehøe	Aker BP	70%		Dry
PL554	Angulata	Equinor	30%		Dry
PL919	Ve	Aker BP	80%		3-5 mmboe
PL873/442	Øst Frigg Beta/Epsilon	Aker BP	48%/88%		53-90 mmboe
PL1148	Carmen	Wellesley	10%		56-289 mmboe
PL1005	Rondeslottet	Aker BP	40%		Suspended
PL035	Krafla Mid Statfjord	Aker BP	50%		Dry
PL 984	Norma	DNO	10%		Discovery
PL929	Ofelia appraisal	Neptune	10%	16 - 39	Ongoing
PL272	Surtsey	Aker BP	50%	2 - 16	Ongoing
PL442	Frigg Gamma Delta/Ypsilon	Aker BP	88%	9 - 22	Q4
PL211CS	Adriana appraisal (Dvalin N)	Wintershall Dea	15%	32 - 57	Q4
PL956	Ringhornet Ty	Vår Energi	20%	7 - 27	Q4
PL917	Magellan/Hubert	Vår Energi	40%	16 - 55	Q4
PL261	Storjo West	Aker BP	70%	4 - 32	Q4
PL1170	Ferdinand	Aker BP	35%	31 - 65	Moved to 2024
PL869	Rumpetroll South	Aker BP	80%	10 - 45	Moved to 2024

Financial highlights

• Strong realised prices
• Cost control and good project execution
• High cash flow

Sales of oil and gas

Volume sold mboepd

Realised prices USD/boe

Q3-22 Q4-22 Q1-23 Q2-23 Q3-23

Liquids Natural gas

Total income USD million

Liquids Natural gas Other

Income statement

USD million

	Q3 2023	Q2 2023
Total income	3 513	3 291
Production costs	252	247
Other operating expenses	12	13
EBITDAX	3 249	3 031
Exploration expenses	74	27
EBITDA	3 174	3 004
Depreciation	557	645
Impairments	-	102
Operating profit (EBIT)	2 618	2 257
Net financial items	(53)	(50)
Profit/loss before taxes	2 565	2 207
Tax (+) / Tax income ( - )	1 977	1 811
Net profit / loss	588	397
EPS (USD)	0.93	0.63

450 mboepd (477) Oil and gas sales

\$84 per boe (75)

Net realised price

\$6.0 per boe (5.6)

Production cost

77% (82%) Effective tax rate

Cash flow

USD million

	Q3-23	Q2-23	Q1-23	Q4-22
Operating cash flow before tax	2 963	2 938	3 251	3 762
Taxes paid	(862)	(2 817)	(1 569)	(2 995)
Cash flow – operations	2 101	121	1 682	807
Cash flow – investments	(944)	(776)	(705)	(708)
Free cash flow	1 157	(655)	977	98
Net debt drawn/repaid	(2)	488	-	-
Dividends	(348)	(348)	(348)	(332)
Interest, leasing & misc.	(138)	(75)	(106)	2
Cash flow – financing	(488)	66	(454)	(329)
Net change in cash	669	(589)	523	(231)
Cash at end of period	3 375	2 689	3 280	2 756

\$1.2 bn (-0.7) Free cash flow (FCF)

\$1.83(-1.04)

FCF per share

\$0.55 (0.55)

Dividend per share

Tax payments

Sensitivity for H1-2024

USD million

2 500

Tax instalments for fiscal year 2023 set in June

• Q3 and Q4-22 instalments fixed
• Based on forecast full-year 2023 performance
• Opportunity to adjust in Oct-23 and Jan-24

Adjustment in October 2023

• Full-year tax estimate increased due to high prices
• Voluntary additional payment of NOK 5.5 billion in October
• Avoiding interest and reduce tax overhang from 2023 in 2024

Q4-23 assumptions for H1-24 sensitivity analysis

• Gas prices assumed at USD 13 per mmbtu
• USDNOK rate assumed at 11.0
• Two oil price scenarios illustrated

Balance sheet

USD million

Assets	30.09.23	30.06.23	30.09.22 restated
PP&E	16 123	16 218	15 307
Goodwill	13 554	13 554	13 193
Other non-current assets	3 166	3 248	3 057
Cash and equivalent	3 375	2 689	3 042
Other current assets	1 909	1 603	2 015
Total Assets	38 127	37 312	36 613

Equity and liabilities
Equity	12 524	12 316	11 320
Financial debt	5 754	5 766	5 198
Deferred taxes	10 182	9 725	8 972
Other long-term liabilities	4 090	4 674	4 298
Tax payable	4 070	3 351	5 419
Other current liabilities	1 509	1 480	1 406
Total Equity and liabilities	38 127	37 312	36 613

\$6.8 bn (\$6.1)

Total available liquidity

33% (33%)

Equity ratio

0.19 (0.22)

Leverage ratio¹

1) Net interest-bearing debt divided by twelve months rolling EBITDAX, excluding any impacts from IFRS 16

Maintaining financial flexibility

Net interest-bearing debt Excl. leases, USD billion

4

Leverage ratio¹

Liquidity available² USD million

Investment grade credit ratings

BBB Baa2 BBB

10% dividend growth in 2023

• The Board resolved to pay a quarterly dividend of USD 0.55 per share in the fourth quarter 2023
• For Aker BP, distributions shall reflect the capacity through the cycle
• Ambition to increase dividends by a minimum of 5 percent per year, with additional potential at higher commodity prices
• The dividend policy is designed with the goal of ensuring the company retains its investment grade credit rating

Dividends

2023 guidance

	Previous guidance	Actual YTD -23	New guidance
Production	445	461	455
mboped	-470		-465
Production cost	6.0	6.2	6.0
USD/boe	-7.0		-6.5
Capex	3.0	2.2	3.0
USD billion	-3.5		-3.5
Exploration	0.4	0.3	0.4
USD billion	-0.5		-0.5
Abandonment USD billion	0.1 -0.2	0.13	~0.2

www.akerbp.com