Aker BP — Interim / Quarterly Report 2020

Oct 29, 2020

Third quarter 2020

Aker BP ASA

29 October 2020

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.

Q3-2020 | AKER BP Uniquely positioned for value creation

Continued strong operational performance

• Production on track
• Low cost and low emissions

Building a leading E&P company

• Implementing new operating model
• Bond refinancing further strengthens financial flexibility

Potential to double production at break-evens below \$30

• Tax changes provide unique investment conditions
• Maturing projects with potential to add more than 500 mmboe1)

Key performance indicators Q3-2020 | STRONG OPERATIONAL PERFORMANCE

Q3-2020 | STRONG OPERATIONAL PERFORMANCE On track to deliver on 2020 production guidance

Production efficiency

Aker BP operated assets (percent)

Production

Q3-2020 | STRONG OPERATIONAL PERFORMANCE Industry-leading low carbon intensity

Emissions intensity1) CO2 - kg/boe

Contributing to the energy transition

Produce efficiently to return high value from oil & gas resources to our stakeholders

Minimise emissions

Reduce emissions from our operations focusing on the total footprint

Improve and share

Contribute with data, know-how and technology to other industries

Q3-2020 | LEADING THE INDUSTRY TRANSFORMATION New operating model to improve efficiency and reduce cost

Using the improvement toolbox…

…to build a leading operating model

Q3-2020 | TARGETING PROFITABLE GROWTH Ærfugl startup planned in Q4

…with the remainder of phase II on track for 2021

• Keeping the facilities full
  • Large production increase at Skarv
  • Low break-even project
• Total reserves of 300 mmboe (gross)
  • Extends over 60 kilometers
  • New technology unlocking resources
• Excellent performance by Aker BP's alliances
  • Progress according to cost and schedule
  • Major improvements since PDO

Q3-2020 | TARGETING PROFITABLE GROWTH Development projects well underway

Hod – first oil in Q1-22 Sverdrup phase 2 – first oil in Q4-22

Q3-2020 | TARGETING PROFITABLE GROWTH Uniquely positioned for further organic growth

Resource base provides unmatched opportunity set Aker BP's net reserves and resources per end-2019

Tax changes reduce break-evens and capital commitments Tax deductions for investments on the NCS, percent

Working towards concept selection for NOAKA Q3-2020 | TARGETING PROFITABLE GROWTH

NOAKA: Krafla, Fulla and North of Alvheim 11

Q3-2020 | TARGETING PROFITABLE GROWTH Significant part of our resource base ready for FID by 2022

Potential to double production at low break-evens

Project1)	Area	FID2)	First oil
Valhall infill drilling	Valhall area	2020	2021
Frosk	Alvheim area	2021	2023
Kobra East/Gekko	Alvheim area	2021	2024
Trell & Trine	Alvheim area	2022	2025
Hanz	Ivar Aasen area	2022	2024
Shrek	Skarv area	2022	2025
Ørn	Skarv area	2022	2026
Alve North	Skarv area	2022	2025
Valhall NCP	Valhall area	2022	2025
NOAKA	NOAKA	2022	2027
Garantiana	Other	2022	2025

net resources

break-even

x2 potential to double production

Q3-2020 | TARGETING PROFITABLE GROWTH Allocating capital to maximise value creation

Financial review

Q3-2020 | FINANCIAL REVIEW Oil and gas sales

Q3-2020 | FINANCIAL REVIEW Lifted volumes and realised prices

Crude oil liftings 2020-9M1)

mmbbl

Breakdown of realised liquids prices in Q3 USD/bbl

Income statement Q3 -2020 | FINANCIAL REVIEW

USD million	Q3 2020	Q2 2020	Q3 2019
Total income	684	590	723
Production costs	134	196	167
Other operating expenses	7	15	6
EBITDAX	543	379	550
Exploration expenses	32	50	70
EBITDA	511	329	480
Depreciation	269	286	206
Impairments	-	(136)	78
Operating profit (EBIT)	242	178	196
Net financial items	(51)	(27)	(53)
Profit/loss before taxes	191	151	143
Tax (+) / Tax income ( - )	111	(19)	186
Net profit/loss	80	170	(43)
EPS (USD)	0.22	0.47	(0.12)

Statement of financial position Q3-2020 | FINANCIAL REVIEW

USD million

Assets	30.09.20	30.06.20	31.12.19	Equity and liabilities	30.09.20	30.06.20	31.12.19
Goodwill	1,647	1,647	1,713	Equity	1,929	1,912	2,368
Other intangible assets	2,051	2,054	2,537	Other provisions for liabilities incl. P&A (long)	2,650	2,655	2,645
Property, plant and equipment	7,219	7,175	7,023	Deferred tax	2,563	2,471	2,235
Right-of-use asset	126	137	194	Bonds and bank debt	4,373	3,712	3,287
Receivables and other assets	562	546	652	Lease debt	217	236	313
Calculated tax receivables	71	187	-	Other current liabilities incl. P&A	764	901	1,017
Cash and cash equivalents	819	142	107	Tax payable	-	-	361
Total Assets	12,495	11,889	12,227	Total Equity and liabilities	12,495	11,889	12,227

Value creation ambition supported by strong financial position

Committed long-term liquidity buffer

Available liquidity, USD billion1)

Conservative leverage Leverage ratio2)

Extended debt maturity profile

USD billion (as of 29 Oct 2020)

1) Available liquidity: Undrawn bank facilities and Cash and cash equivalents.

2) Leverage ratio: Net interest-bearing debt divided by EBITDAX last 12 months, excluding effects of IFRS16 Leasing

Cash flow Q3-2020 | FINANCIAL REVIEW

Expecting tax refund for fiscal year 2020 Q3-2020 | FINANCIAL REVIEW

Tax payments and refunds per quarter (USD million)

1) Estimated tax refunds in Q1-21 and Q2-21 are related to fiscal year 2020, assuming different average Brent oil prices for Q4-20 and USDNOK 9.4. The tax refund in Q4-20 is fixed in NOK and may deviate slightly from the indication depending on the USDNOK on the payment dates. The actual amounts for H1-21 will be adjusted after year-end to reflect actual 2020 results. Potential settlements of uncertain tax cases are excluded.

Q3-2020 | FINANCIAL REVIEW Guidance summary

Original 2020 guidance was based on USDNOK 10. Current 2020 guidance is based on actual USDNOK for Q1-Q3 and 9.4 for Q4. For the 2021 indications, USDNOK is assumed at 9.0.

Q3-2020 | AKER BP Priorities

• Drive operational excellence
  • Flawless project execution

Implement new operating model

Reduce emissions from own operations

• Progress NOAKA according to plan
• Mature project portfolio for FID by 2022

Grow

Improve

Execute

Q3-2020 | APPENDIX 2020 exploration programme

License	Prospect	Operator	Aker BP share	Pre-drill mmboe	Status
PL1008	Nidhogg 1	Aker BP	60 %	37 96 -	Discovery 6-15 mmboe
PL719	Sandia 2	Spirit	20 %	23 527 -	Dry
PL533	Bask 3	Lundin	35 %	14 585 -
PL127C	Alve NE 4	Aker BP	88 %	8 25 -	Currently drilling
PL780	Sørvesten 5	Spirit	40 %	15 35 -	Dry
PL981	Mercx Ty 6	Lundin	40 %	22 92 -
PL858	Stangnestind	Aker BP	40 %	13 108 -	Postponed
PL722	Shenzhou	Equinor	20 %	191 505 -	Postponed
PL554	Garantiana W	Equinor	30 %	7 28 -	Postponed
PL442	Liatårnet app.	Aker BP	90 %		Postponed

5

Q3-2020 | APPENDIX Guidance summary

	2020 guidance	2020-9M actual	Comments
Production	210-215 mboepd	206.5 mboepd	Net production excl. over/underlift
Capex	USD ~1.3 billion	USD 1.01 billion	Excl. capitalised interest Incl. share of lease payments
Exploration spend	USD ~300 million	USD 166 million	Incl. share of lease payments
Abandonment spend	USD ~200 million	USD 73 million	Incl. share of lease payments
Production cost per boe	USD ~8	USD 8.4	Per boe produced
Dividends	USD 425 million	USD 354 million