Aker BP (AKRBP) Q3 2024 earnings summary

Executive summary

• Achieved early production start at Tyrving Field, five months ahead of schedule and below budget, demonstrating strong project execution and cost discipline.

• Q3 operational performance marked by high production efficiency, low costs, and low emissions, with production of 450,000 barrels per day, slightly above expectations.

• Maintained strong financial position with record-high cash flow from operations ($2.8 billion) and robust liquidity ($4.1 billion cash, $7.5 billion total liquidity).

• Upgraded full-year production and cost guidance, with major projects and exploration progressing on schedule.

• Issued new 10- and 30-year bonds, extending average debt maturity by three years and optimizing capital structure.

Financial highlights

• Total Q3 income: $2.9 billion; EBITDA: $2.6 billion (91% margin); net profit: $173 million after $304 million impairment.

• Production cost per barrel averaged $6.1–$6.6 in Q3; full-year guidance lowered to ~$6.5 per barrel.

• Free cash flow of $2.15 per share; quarterly dividend of $0.60 per share; free cash flow yield ~10%.

• Net debt reduced to $2.5–$3.4 billion; leverage ratio at 0.2–0.21, well below internal target.

• Exploration expenses dropped to $40 million, reflecting lower dry well costs.

Outlook and guidance

• Full-year 2024 production guidance raised to 430,000–440,000 barrels per day; production cost guidance lowered to ~$6.5 per barrel.

• Capex and exploration spend maintained at ~$5 billion and ~$500 million, respectively.

• Project portfolio expected to expand production to over 500,000 barrels per day by 2028.

• Quarterly dividend of $0.60 per share maintained; ambition to grow dividends by at least 5% annually.