Aker BP said its oil and gas production for the fourth quarter of 2024 rebounded after maintenance in the previous quarter.
Aker BP’s net production for the quarter was 41.3 million barrels of oil equivalent (MMboe), up from 38.2 MMboe in the previous quarter, which corresponds to a daily average of 449,200 barrels of oil equivalent per day (boepd), compared to 414,700 boepd in the third quarter.
Production was driven by strong contributions from Johan Sverdrup and the ramp-up of Tyrving in the Alvheim area of Norway, the company said in its most recent quarterly report.
The company stated that its field development projects are “progressing according to plan” with overall capital expenditure estimates unchanged. Onshore projects were focused on construction activities and assembling topsides and jackets at the yards, while offshore projects such as subsea installation activities are underway, with drilling campaigns being planned and executed.
Production was at the higher end of the guided range, with “operational costs below expectations and all investments in line with the estimates provided at the beginning of the year,” Aker BP noted.
Aker BP CEO Karl Johnny Hersvik said, “In the fourth quarter and throughout 2024, we delivered strong operational performance across all key metrics. Production reached the upper end of our guidance, with strong performance across the portfolio – led by Johan Sverdrup, which delivered a new annual production record. At the same time, we maintained industry-leading cost efficiency and emission intensity. I am also pleased that we remain on track to deliver our project portfolio and grow production into the next decade”.
The company reported fourth-quarter net income of $562 million, compared with $173 million in the previous-year quarter. Total income for the quarter was marked at $3.07 billion, compared with $2.86 billion in the fourth quarter of 2023.
Aker BP paid out dividends of $2.40 per share in 2024, and said it would increase them by five percent to $2.52 per share in 2025.
For 2025, Aker BP said production is expected to range between 390,000 to 420,000 boepd, in line with its long-term plans. Capital expenditures are projected at $5.5 billion to $6.0 billion before tax, while exploration expenses are estimated at approximately $450 million.
Hersvik said, “Over the past decade, Aker BP has undergone a transformation to build a future-fit E&P company. We have developed distinct capabilities that set us apart: a strong performance culture that drives execution excellence, a well-established alliance model that fosters collaboration across the value chain, and a leading position in digitalization that is transforming the way we work. Combined with our world-class asset base, these strengths enable us to deliver industry-leading performance”.
Hersvik continued, “We have a clear pathway to sustain production above 500,000 barrels per day beyond 2030, with ambitions for further growth. With our capabilities, assets, resource base, and technology, we are ideally positioned to drive profitable growth on the Norwegian continental shelf”.
“With another year of strong value creation and cash flow behind us, we enter 2025 in our strongest financial position yet – providing the flexibility to advance our development projects while maintaining attractive dividends to our shareholders. In line with our ambition, we once again increase our dividends in 2025,” he concluded.
Source: By Rocky Teodoro from Rigzone.com