Photo: Aker BP's Hod development illustration; Source: Aker BP

Record output lifts Aker BP profit

Aker BP booked a higher profit in 2Q 2020 on the back of record-high production despite lower income impacted by low oil prices and the coronavirus pandemic.

Total income for the second quarter amounted to $590 million, negatively impacted by low oil prices following the COVID-19 pandemic. In 2Q 2019, Aker BP’s income was $785 million.

Average realised liquids price was $29.9 per barrel, while the realised price for natural gas averaged $0.08 per standard cubic metre (scm).

The sharp drop in oil prices caused an impairment charge of $654 million in the first quarter. Following the partial recovery in spot and forward oil prices observed in the second quarter, the company has reversed certain impairments amounting to $136 million.

Overall, the company reported a net profit of $170 million for the quarter, compared to a net loss of $335 in the previous quarter and compared to a profit of $62 million in 2Q 2019.

The company’s net production in the second quarter was 209.8 thousand barrels of oil equivalents per day (mboepd) compared to 127.3 mboepd in 2Q 2019.

Net sold volume was 232.0 mboepd compared to 140.7 mboepd in 2Q 2019.

The production curtailments imposed by the Norwegian government have been mitigated by strong operational performance and increased capacity at Johan Sverdrup, hence the company maintains its full-year production estimate of 205-220 mboepd.