Aker BP (AKRBP) Q2 2025 earnings summary

Executive summary

• Q2 2025 delivered strong operational performance with high production efficiency and industry-leading low emissions, though production declined sequentially due to planned maintenance at Valhall and Ula.

• Field developments and major projects, including Johan Sverdrup Phase 3 and Yggdrasil, remain on track, with significant new oil discoveries at Yggdrasil's Omega Alpha well and East Frigg sanctioned.

• Financial position remains robust, supporting continued dividend payments and resilience to market volatility.

• Production efficiency remained high at 95% portfolio-wide, with key assets like Johan Sverdrup achieving up to nearly 100%.

• The company is narrowing full-year production guidance to 400,000–420,000 barrels per day.

Financial highlights

• Total income for Q2 2025 was $2.6 billion, down from $3.2 billion in Q1 2025, with EBITDA of $2.2 billion.

• Net loss of $324 million in Q2 2025, compared to net profit of $393 million in Q1; EPS of -$0.51, effective tax rate at 75%.

• Operating cost increased to $7.3 per barrel due to lower volumes and currency effects; year-to-date unit cost is $6.9, on track for $7 per barrel full-year guidance.

• Cash flow from operations was $1.2 billion, with free cash flow at -$1.0 billion due to high investment activity.

• Impairments totaled $717 million in Q2, mainly due to lower forward oil and gas prices and technical goodwill.

Outlook and guidance

• Full-year 2025 production guidance updated to 400,000–420,000 barrels per day, with production cost guidance unchanged at ~$7/boe.

• Full-year investment guidance lifted to ~$6.5 billion, reflecting a 6% increase from original estimates; 2025 expected to be the peak investment year.

• Exploration spend for 2025 expected at $450 million pre-tax.

• Dividend plan for 2025 is $2.52 per share, with a 5% annual growth ambition.

• Abandonment spend guidance reduced to ~$100 million.