Aker BP (AKRBP) Q2 2024 earnings summary

Executive summary

• Achieved strong operational performance in Q2 2024 with 95% production efficiency, low costs, and industry-leading low emissions; all major field development projects are on track and key milestones reached.

• Oil and gas production averaged 444,000 barrels of oil equivalent per day, with full-year 2024 guidance updated to 420,000–440,000 barrels per day.

• Strong financial position supported by robust cash flow, successful capital structure optimization, and continued attractive dividends.

• Continued focus on decarbonization, maintaining GHG emissions intensity at 2.9 kg CO2e/boe, among the lowest globally.

• Quarterly dividend of USD 0.60 per share paid, with ambition to grow dividend by at least 5% per year.

Financial highlights

• Q2 2024 production reached 444,000 barrels of oil equivalent per day with 95% efficiency; total income was USD 3,377 million, and net profit was USD 561 million.

• EBITDA was USD 2,966 million, operating profit USD 2,295 million, and EPS was USD 0.89.

• Free cash flow was negative at USD -283 million, mainly due to high tax payments and investments.

• Net interest-bearing debt ended at USD 4,104 million; leverage ratio at 0.27, equity ratio at 32%.

• Liquidity position strong with USD 3,233 million in cash and total available liquidity of USD 6.6 billion.

Outlook and guidance

• Full-year 2024 production guidance updated to 420,000–440,000 barrels per day; production cost guidance remains at ~USD 7 per boe.

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

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

• Tax payments for H2 2024 set at approximately USD 1.5 billion, about half of H1, due to higher investment-related deductions.

• Quarterly dividend of USD 0.60 per share to continue.