Aker BP — Interim / Quarterly Report 2019

Feb 11, 2020

Fourth quarter 2019

Aker BP ASA

11 February 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.

AKER BP Fourth quarter 2019 highlights

New fields on stream

• Johan Sverdrup
• Valhall Flank West

Strong operational performance

• Record high production efficiency >95%
• Production costs below USD 10 per boe

Business development

• Progressing towards a solution in the NOAKA area
• Deal with PGNiG to strengthen position in Skarv area

Key figures		Q4-19	Q3-19	2019
Production	mboepd	191.1	146.1	155.9
Sales	mboepd	184.5	143.3	157.6
Realized liquids price	USD/bbl	64.2	62.0	64.8
Realized gas price	USD/scm	0.17	0.16	0.18
Total income	USDm	1,003	723	3,347
EBITDA	USDm	745	480	2,286
Operating profit	USDm	491	196	1,327
Net profit (loss)	USDm	112	(43)	141
Effective tax rate	USDm	74%	130 %	87%
EPS	USD	0.31	(0.12)	0.39
DPS	USD	0.52	0.52	0.52

Production overview OPERATIONAL REVIEW

Net production, mboepd

Production efficiency*

100%

4

EXPLORATION 2019 exploration wells

16 wells completed – high success rate

License	Prospect	Operator	Aker BP share	Est. spud	Pre-drill mmboe	Status
PL869	Froskelår Main	Aker BP	60 %	Q1	45 - 153	Discovery 60-130 mmboe
PL857	Gjøkåsen	Equinor	20 %	Q1	26 - 1427	Dry
PL033	Hod Deep West	Aker BP	90 %	Q1	2 - 22	Dry
PL869	Froskelår NE	Aker BP	60 %	Q2	7 23 -	Discovery 2-10 mmboe
PL916	JK	Aker BP	40 %	Q2	100 - 420	Dry
PL814	Freke-Garm	Aker BP	40 %	Q2	16 81 -	Dry
PL777	Hornet	Aker BP	40 %	Q2	14 137 -	Dry
PL502	Klaff	Equinor	22 %	Q2	50 372 -	Non-commercial discovery
PL869	Rumpetroll	Aker BP	60 %	Q2	45 148 -	Non-commercial discovery
PL442	Liatårnet	Aker BP	90 %	Q2	39 331 -	Discovery 80-200 mmboe
PL762	Vågar	Aker BP	20 %	Q3	63 130 -	Dry
PL986	Nipa	Aker BP	30 %	Q3	35 115 -	Dry
PL942	Ørn	Equinor	30 %	Q3	8 40 -	Discovery 50-88 mmboe
PL838	Shrek	PGNIG	30 %	Q3	10 22 -	Discovery 19-38 mmboe
PL782S	Busta	Conoco	20 %	Q3	54 199 -	Discovery 6-63 mmboe
PL019C	Kark	Aker BP	60 %	Q3	15 48 -	Non-commercial discovery

Financial review

FINANCIAL REVIEW Oil and gas sales

Income statement FINANCIAL REVIEW

USD million	Q4 2019	Q3 2019	Q4 2018*	2019	2018*
Total income	1,003	723	916	3,347	3,752
Production costs	154	167	178	720	694
Other operating expenses	19	6	8	35	17
EBITDAX	830	550	731	2,591	3,041
Exploration expenses	85	70	72	306	296
EBITDA	745	480	658	2,286	2,745
Depreciation	255	206	196	812	752
Impairment losses	(1)	78	20	147	20
Operating profit (EBIT)	491	196	442	1,327	1,972
Net financial items	(67)	(53)	(44)	(243)	(171)
Profit/loss before taxes	424	143	398	1,084	1,802
Tax (+) / Tax income (-)	312	186	335	943	1,326
Net profit/loss	112	(43)	63	141	476
EPS (USD)	0.31	(0.12)	0.17	0.39	1.32

Statement of financial position FINANCIAL REVIEW

USD million

Assets	31.12.19	30.09.19	31.12.18*	Equity and liabilities	31.12.19	30.09.19	31.12.18*
Goodwill	1,713	1,713	1,860	Equity	2,368	2,444	2,977
Other intangible assets	2,537	2,571	2,433	Other provisions for liabilities incl. P&A (long)	2,646	2,543	2,581
Property, plant and equipment	7,023	6,614	5,746	Deferred tax	2,235	2,279	1,753
Right-of-use asset	194	215	-	Bonds and bank debt	3,287	2,940	2,018
Receivables and other assets	652	609	614	Lease debt	313	341
Calculated tax receivables	-	-	11	Other current liabilities incl. P&A	1,017	985	828
Cash and cash equivalents	107	5	45	Tax payable	361	195	552
Total Assets	12,227	11,727	10,709	Total Equity and liabilities	12,227	11,727	10,709

Cash flow – fourth quarter 2019 FINANCIAL REVIEW

USD million

Tax payments FINANCIAL REVIEW

USD million

The instalments for 2019 are converted from NOK to USD using an exchange rate of 8.5. The amounts payable in 2020 will be adjusted based on actual income for FY2019.

FINANCIAL REVIEW Guidance summary

	Updated 2019 guidance1)	Actual 2019
Production2)	~155 mboepd	155.9 mboepd
Capex3)	USD 1.6-1.7 billion	USD 1.67 billion
Exploration spend	USD ~550 million	USD 501 million
Abandonment spend	USD ~100 million	USD 109 million
Production cost per boe4)	USD ~12.5	USD 12.4
Dividends	USD 750 million	USD 750 million

¹² 1) Last revision in Q3-2019 report 3) Excl. capitalized interest, incl. payments on lease debt 4) Per produced boe.

FINANCIAL GUIDANCE 2020 Growing production – Reducing spend – Increasing dividends

AKER BP Priorities ahead

Start-up of new wells

Excellent project execution

Keep momentum on improvement agenda

Mature the Aker BP operating model

Mobilize for NOAKA area development Mature recent discoveries

Grow

Improve

Execute