Aker BP (AKRBP) Q2 2024 earnings summary

Executive summary

• Achieved excellent operational performance in Q2 2024 with 95% production efficiency, high volumes, low costs, and industry-leading low emissions; all major field development projects are progressing on schedule.

• Q2 production reached 444,000 barrels of oil equivalent per day, with full-year guidance updated to 420,000–440,000 barrels per day.

• Strong financial performance underpinned by high cash flow, robust capital structure, and quarterly dividend of $0.60 per share, with ambition to grow dividend by at least 5% per year.

• Major milestones included Fenris jacket installation, Hanz project brought on stream, and technical innovation at Frigg Gamma Delta Geo-Pilot.

• Continued focus on decarbonization, maintaining GHG intensity at 2.9 kg CO2e/boe and commitment to net zero by 2030.

Financial highlights

• Total income for Q2 2024 was $3,377 million, up from $3,078 million in Q1, driven by higher sales volumes and increased realized prices.

• Net profit for Q2 was $561 million, with an effective tax rate of 75%.

• EBITDA reached $2,966 million, operating profit $2,295 million, and EBITDAX $3,074 million.

• Production cost per barrel was $6.4 in Q2, among the lowest in the industry.

• Available liquidity at quarter-end was $6.6 billion, with cash and cash equivalents of $3.2 billion.

Outlook and guidance

• Full-year 2024 production guidance updated to 420,000–440,000 barrels per day, with production cost guidance maintained at ~$7 per barrel.

• CapEx guidance unchanged at ~$5 billion for 2024, with less than half spent by mid-year.

• Exploration and abandonment spend guidance unchanged at ~$500 million and ~$250 million, respectively.

• Maintenance activities in H2 expected to increase unit costs slightly.

• Targeting production of approximately 525,000 barrels per day by 2028.