Aker BP Q1 Swings to Record Operating Profit

By Nerijus Adomaitis
Wednesday, April 28, 2021
(Photo: Aker BP)

Norway's Aker BP posted record first-quarter operating profit and revenue on higher prices and production on Wednesday as the independent oil and gas producer looks to approve several developments this year.

Earnings before interests and tax (EBIT) of $591 million contrasted with a loss of $266 million a year earlier and was close to the $596 million expected by analysts in a Refinitiv poll.

"This is a strong quarter with good production and on-track oilfield developments, and the cash flow is record high," CEO Karl Johnny Hersvik told reporters.

"The cost measures we've been working on for a while are really starting to gain traction," he said.

Production rose 7% to 222,200 barrels of oil equivalent per day (boepd), a new high, while the price per barrel of crude increased to $60.10 from $44.20.

Aker shares fell slightly, trading 1.1% lower on the Oslo Bourse at 0847 GMT and lagging a 0.1% fall in European oil and gas stocks.
Aker BP expects to make final investment decisions for its Kobra East Gekko and Frosk developments in the second and third quarters respectively, aiming to add net reserves of 40 million barrels of oil equivalent.

The company is also on track with concept studies for its biggest potential development, the NOAKA area, and a decision on the concept is planned for the third quarter of 2021, Hersvik said.

Production in the second quarter was expected to be lower due to planned maintenance activities, and the company kept its full year guidance unchanged at 210,000-220,000 boepd.

"The company has the potential to almost double production from current levels at a break-even price of less than $30 (per barrel)," said Citigroup, which rates the shares a "buy".

While it primarily plans to focus on organic growth, with around 10 new projects in its pipeline, Hersvik said he also saw some opportunities to combine this with acquisitions. 


(Reuters; Editing by Terje Solsvik and Jason Neely)

Categories: People & Company News Industry News Finance Europe

Related Stories

Germany’s SEFE Inks Three-Year LNG Supply Deal with ADNOC

Germany’s SEFE Inks Three-Year LNG Supply Deal with ADNOC

TGS to Provide Tech Set to Optimize Northern Lights CCS Operations

TGS to Provide Tech Set to Optimize Northern Lights CCS Operations

Masdar, Iberdrola to Co-Invest $6B in East Anglia THREE Offshore Wind Farm

Masdar, Iberdrola to Co-Invest $6B in East Anglia THREE Offshore Wind Farm

Current News

Iberdrola Picks Up $4.9B to Finance 1.4GW UK Offshore Wind Farm

Perenco Brings Woodside’s Trinidad Oil and Gas Assets Into Its Fold

Vallourec Brings CNOOC, Petrochina as New Clients in Iraq

Germany’s SEFE Inks Three-Year LNG Supply Deal with ADNOC

Subscribe for OE Digital E‑News

Offshore Engineer Magazine