Aker BP Posts Higher Than Expected Operating Profit. Cuts Capex Guidance

Nerijus Adomaitis

October 29, 2020

Credit: Aker BP

Credit: Aker BP

Norwegian independent oil firm Aker BP reported on Thursday higher-than-expected operating profits for the third quarter and slightly cut its expected spending for the full year.

Operating profit rose to $242 million from $196 million in the same quarter a year ago, beating a forecast of $234 million in a Refinitiv poll of analysts.

Aker BP narrowed its full-year 2020 production guidance to 210,000-215,000 barrels of oil equivalent per day (boed) from 205,000-220,000 boed previously, after reporting 201,600 boed for the third quarter on Oct. 14.

Its output rose 38% from a year ago thanks to the startup of Norway’s Johan Svedrup oilfield, the largest in western Europe, where Aker BP has an 11.6% stake.

The company controlled by Norwegian billionaire Kjell Inge Roekke and partly owned by BP repeated plans to pay $425 million in dividends for the full year.

Aker BP cut its full-year capital spending guidance to $1.30 billion from $1.35 billion and exploration spending to $300 million from $350 million. 

(Reporting by Nerijus Adomaitis, editing by Terje Solsvik)