Aker BP Posts $324 mln Q2 loss on impairments, low prices, higher costs

Investing.com -- Aker BP (OL:AKRBP) on Tuesday reported a net loss of $324 million for the second quarter of 2025, compared with a profit of $316 million in the first quarter. 

The loss was attributed to $717 million in non-cash impairments linked to technical goodwill on Johan Sverdrup, Valhall, Grieg Aasen and Alvheim, driven by lower forward price assumptions for oil and gas.

Revenue totaled $2.58 billion, slightly below Visible Alpha consensus of$2.62 billion and near RBC Capital Markets’ estimate of $2.57 billion. 

EBITDA was $2.22 billion, in line with RBC and just under the $2.27 billion consensus. EBIT before impairments reached $1.63 billion, close to consensus expectations.

Production averaged 415 mboepd, down from 441 mboepd in the previous quarter due to planned maintenance at Valhall and Ula. 

Net sold volume was 413.8 mboepd. Realised liquids prices dropped 11% to $66.9 per boe, while natural gas fell 19% to $68.7 per boe.

Operating cash flow, excluding working capital, came in at $767 million, below the $864 million consensus. 

RBC attributed the miss to unrealised gains on derivatives. Net interest-bearing debt rose to $4.6 billion from $3.2 billion in the previous quarter, reflecting lower cash generation and continued high investment. Total (EPA:TTEF) net cash outflow for the quarter was $1.6 billion.

Capital spending increased amid continued progress on development projects. Aker BP confirmed that all major projects, including Yggdrasil, Valhall PWP-Fenris and Skarv Satellites, remain on schedule for 2026–2027 start-up. 

However, investment estimates have been revised upward by about 6%, or roughly $1.2 billion, due to inflation, labor costs and currency effects. 

RBC estimated a post-tax impact on free cash flow of $150 million to $200 million. Exploration expenses totaled $60 million, with total exploration spending at $110 million. 

Aker BP confirmed an oil discovery in the Omega Alfa well in the Yggdrasil area and reported a dry well at Rondeslottet.

Dividends for the quarter were $0.63 per share, with the same amount planned for the third quarter, maintaining an annualized payout of $2.52 per share.

Production cost per barrel increased to $7.3 from $6.5 in the prior quarter. Greenhouse gas emissions intensity remained stable at 2.8 kg CO2e per boe. 

Seven injuries were recorded, raising the 12-month TRIF to 2.3. No spills or process safety events were reported.

The company raised the lower end of its full-year production guidance to 400–420 mboepd, from 390–420 mboepd.

Aker BP’s PDOs for several fields remain under legal review in Norway. A new petition for an injunction filed in June was dismissed. A hearing is scheduled for September.