Higher oil and gas prices lift Aker BP profit

Skarv FPSO; Image courtesy of Aker BP

Norwegian oil company Aker BP more than doubled its profit in the second quarter of 2018 helped by an increase in production and higher oil and gas prices. 

Skarv FPSO; Image courtesy of Aker BP

Aker BP on Friday reported total operating income of $975 million for the second quarter of this year compared to $595 million in 2Q 2017.

Operating profit for the second quarter 2018 was $552 million versus $210 million in the prior-year.

Net profit was $136 million for the second quarter 2018 compared to a profit of $60 million in the corresponding period in the previous year.

The company’s net production in the second quarter was 157.8 thousand barrels of oil equivalents per day (mboepd), an increase compared to 142.7 thousand in the prior-year quarter. The increase was primarily a result of the acquisition of Hess Norge in December 2017. The company remains on track to reach its full-year production estimate of 155-160 mboepd.

Revenues were positively impacted by increased oil and gas prices. Average realized prices were $76 per barrel of oil, and $0.28 per standard cubic meter (scm) of natural gas versus $51 and $0.18 in the previous year.

Production costs amounted to $164 million or $11.4 per barrel oil equivalents (boe). Exploration expenses amounted to $75 million.

The company’s capex estimate for 2018 remains unchanged at around $1.3 billion.

The company’s net interest-bearing debt was $3 billion at the end of the second quarter. Total available liquidity was $3.6 billion.