Aker BP ASA: Second quarter 2022 results

FORNEBU, Norway, July 20, 2022 /PRNewswire/ -- Aker BP reports operating profit of USD 1,128 million and net profit of USD 188 million in the second quarter 2022. The acquisition of Lundin Energy's oil and gas activities was completed on 30 June. 

Highlights

• Acquisition of Lundin Energy's oil and gas activities completed
• Launching a decarbonisation plan to be net zero across all operations by 2030
• On track to submit Plans for Development and Operations (PDOs) for around 900 mmboe (net) by the end of the year, with concepts selected for all projects
• Agreement signed with Equinor to assume operatorship of Krafla following PDO submission
• Strong free cash flow of USD 803 million*, net interest-bearing debt of USD 3.8 billion, and cash consideration for the Lundin transaction paid without adding new debt
• Credit rating upgrades from Standard & Poor's, Moody's, and Fitch Ratings
• Quarterly dividend increased by 11 percent to USD 0.525 per share

* Adjusted for consideration paid in the Lundin transaction

Financial summary

The Lundin transaction was completed on 30 June 2022. The transaction and the acquired business have been consolidated in the statement of financial position on a fair value basis per 30 June 2022, and will be included in the income statement as from 1 July 2022.

Comment from Karl Johnny Hersvik, CEO of Aker BP:  

"I'm pleased to report that the Lundin transaction has been completed during the quarter, creating the E&P company of the future. The combined company has a more diversified and robust portfolio, with industry-leading low cost and low carbon emissions assets, and is positioned to deliver profitable growth into the next decade."

"Today we are launching a decarbonisation plan to be net zero across all operations by 2030, which fortifies our position as the leading E&P company, also with respect to our environmental footprint. We remain committed to reducing gross emissions across our operations and we have a clear pathway to reduce absolute emissions to close to zero by 2050."

"Financially, Aker BP is very robust. High oil and gas prices have contributed to strong cash flow, allowing us to complete the Lundin transaction without adding new debt while our credit ratings have been upgraded. Consequently, we are now able to further increase the dividend level."

"We continue to focus on the things we can influence and improve today. In the second quarter we produced 181.3 thousand barrels of oil equivalent per day, impacted by planned maintenance programmes. For the second half of 2022, we expect to more than double our production as we integrate the Lundin assets."

"I'm also pleased to report strong progress on Aker BP's growth agenda. All the planned PDO projects have now passed the concept select milestone and remain on schedule for PDO submission by the end of the year."

"In conclusion, we remain committed to our mission to maximize value creation for our shareholders, and we have never been in a better position to do so."

Conference call and webcast

The company will host a conference call to present its second quarter 2022 results today, 20 July 2022, at 08:30 CEST. The conference call will be available as a webcast on www.akerbp.com. To participate in the conference call, please use the dial-in numbers and passcode below.

Attachments

• Aker BP Second quarter 2022 report
• Aker BP Second quarter 2022 presentation
• Aker BP Strategy update 20 July 2022 (also included in the Second quarter 2022 presentation)

CONTACT:

Investor contacts:
Kjetil Bakken, VP Investor Relations, tel.: +47 91 889 889
Jørgen Torstensen, IR Officer, tel.: +47 95 48 37 07

Media contact: 
Tore Langballe, VP Communications, tel.: +47 907 77 841

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SOURCE Aker BP ASA