Aker BP (AKRBP) Q3 2024 earnings summary

Executive summary

• Achieved early and under-budget startup of Tyrving Field, five months ahead of schedule, exemplifying strong project execution and value creation.

• Maintained high production efficiency and low emissions despite planned maintenance, with Q3 production at 450,000 barrels per day, slightly above expectations.

• Upgraded full-year guidance with improved production and cost targets, supported by robust cash flow and continued dividend payments.

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

• All field development projects on schedule and within budget, with four already on stream.

Financial highlights

• Record-high Q3 operating cash flow of $2.8 billion and free cash flow of $2.15 per share, yielding around 10% for the quarter.

• Ended Q3 with $4.1 billion in cash and total available liquidity of $7.5 billion.

• Net profit for the quarter was $173 million after a $304 million non-cash impairment of technical goodwill.

• Total income for Q3 was $2.9 billion; EBITDA reached $2.6 billion with a 91% margin.

• Quarterly dividend of $0.60 per share paid, with approximately 9% dividend growth for the full year 2024.

Outlook and guidance

• Full-year 2024 production guidance raised to 430,000-440,000 barrels per day, at the upper end of the previous range.

• Production cost guidance lowered to ~$6.5 per barrel for the year.

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

• Quarterly dividend of $0.60 per share maintained.

• Production expected to recover in Q4 as maintenance season ends.