Fourth quarter 2020 trading update

TRONDHEIM, Norway, Jan. 21, 2021 /PRNewswire/ -- Aker BP will publish its financial report for the fourth quarter 2020 on Thursday 4 February 2021. 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 produced 223.1 thousand barrels of oil equivalents per day (mboepd) in the fourth quarter. The increase from the previous quarter was driven by new wells on production at Ærfugl and Alvheim, by higher production from Johan Sverdrup, and by generally lower maintenance activity. Average production for the year 2020 ended at 210.7 mboepd, in line with previous guidance.

Status on 2020 guidance

Aker BP routinely issues guidance for production and certain financial measures. The following table shows the preliminary 2020 numbers, compared to the guidance which was provided in the third quarter 2020 presentation. For definitions of these financial measures, please see the company's third quarter 2020 report.

Exploration spend ended below guidance as the Bask and Merckx exploration wells were delayed to 2021. Production cost was negatively impacted by a stronger NOK than expected in the fourth quarter.

Liquidity and net debt

At the end of 2020, net interest-bearing debt amounted to USD 3.6 billion including lease debt. Available liquidity was USD 4.5 billion, consisting of USD 0.5 billion in cash equivalents and USD 4.0 billion in undrawn credit facilities. 

Impairments

Due to updated accounting assumptions, the company expects to make non-cash impairment charges of approximately USD 55 million before tax, mainly related to tangible assets. 

Conference call and webcast

Aker BP's fourth quarter report will be released on 4 February 2021 at 07:00 CET, and will be made available on the company's website: www.akerbp.com/en. 

The company will host its annual Capital Markets Update from 08:30 CET the same day, through a webcast which will be available at the company's website. The presentation will be followed by a conference call with Q&A. The conference call will also be streamed as part of the webcast. Dial-in details will be provided later.

Disclaimer

The information in this statement is based on a preliminary assessment of the company's fourth 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 from the information herein.

Contacts:

Kjetil Bakken, VP Investor Relations, tel.: +47 918 89 889

Ole-Johan Faret, Press Spokesman, tel.: +47 402 24 217

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SOURCE Aker BP ASA