AKERBP: Update on second quarter 2019 financial results
Aker BP will publish its financial report for the second quarter 2019 on Friday 12 July 2019. The company’s net sales of oil and gas amounted to 140.7 thousand barrels of oil equivalents per day in the quarter.
Oil and gas production and sales
Aker BP’s net production in the second quarter 2019 was 127.3 thousand barrels of oil equivalents per day (mboepd). The production volumes were lower than in the first quarter mainly due to planned maintenance at several fields. Net sold volumes, which are the basis for revenue recognition in the financial statement, were 140.7 mboepd, reflecting 13.4 mboepd in overlift. The production volumes are subject to final re-allocation.
| Asset | Q2-19 | Q1-19 | Q2-18 |
| Alvheim area | 53.1 | 56.8 | 60.1 |
| Ivar Aasen | 19.1 | 22.5 | 23.7 |
| Skarv | 22.7 | 22.6 | 27.6 |
| Ula area | 6.2 | 8.2 | 10.8 |
| Valhall area | 24.5 | 45.8 | 33.7 |
| Other | 1.7 | 2.7 | 1.9 |
| Net production | 127.3 | 158.7 | 157.8 |
| Over/underlift | 13.4 | 3.3 | (6.5) |
| Net sold volume | 140.7 | 162.0 | 151.3 |
Refinancing of bank facility
During the second quarter, the company replaced its previous Reserve Based Lending facility (“RBL”) with new Senior Unsecured Revolving Credit Facilities (“RCF”). The unamortized portion of the costs related to the RBL, amounting to approximately USD 35 million, will be expensed in the second quarter. After tax, this is expected to have a negative impact on net profit of approximately USD 20 million.
Currency effects
The company’s financial results are normally sensitive to changes in USD/NOK currency exchange rate. For the second quarter, the company expects to report a currency loss in the order of USD 10 million.
Disclaimer
The information in this statement is based on a preliminary assessment of the company’s second quarter 2019 financial results. The company has not completed its financial reporting and related review and control procedures. The estimates provided may therefore be subject to change and the financial statements finally approved and released by the company may deviate materially from the information herein.