Aker BP profit helped by production increase

Norwegian E&P player Aker BP more than doubled its profit in the first quarter of 2017 helped by increase in production and oil prices. 

The company’s total operating income in the first quarter was $646 million, higher than the first quarter 2016 and income of $205 million mainly due to inclusion of BP Norge activities following the merger with Det norske.

Net profit for the first quarter 2017 was $69 million, after net financial items of $47 million and a tax expense of $158 million, compared to $32 million net profit in the corresponding period of 2016.

During the quarter, an impairment of $30 million mainly related to technical goodwill from the BP Norge assets was recognized. In the first quarter of 2016 the company recorded a $38 million impairment.

Production in the period was 145.3 thousand barrels of oil equivalent per day (mboepd), versus 60.6 in 1Q 2016, realizing an average oil price of $54 per barrel, as opposed to $37 per barrel in the last year’s quarter. Gas revenues were recognized at market value of $0.21 per standard cubic meter (scm).

At the end of the first quarter, the company had total available liquidity of $2.6 billion, versus $1.2 billion in the same period last year.

The company made no changes to its 2017 guidance. Aker BP expects to produce between 128 and 135 mboepd in 2017 with a production cost of approximately 11 USD/boe. The full year 2017 CAPEX is expected to be between $900 – 950 million, exploration expenditures are expected to be $280 – 300 million and decommissioning costs between $100 – 110 million.

Offshore Energy Today Staff

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