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Ivesting.com -- Aker BP ASA (OL:AKRBP) reported first-quarter results in line with expectations on Wednesday, as strong production and favorable pricing helped offset weaker-than-forecast net income.
The Norwegian oil and gas company produced 441,000 barrels of oil equivalent per day, a figure announced earlier this month.
Revenue totaled $3.20 billion, ahead of the Visible Alpha consensus of $3.09 billion and near RBC Capital Markets’ estimate of $3.21 billion.
EBITDA reached $2.80 billion, compared with a consensus of $2.72 billion and RBC’s projection of $2.85 billion.
Operating cash flow, excluding working capital, was $2.14 billion, slightly below consensus expectations of $2.16 billion and RBC’s $2.19 billion.
Net income was $316 million, falling short of consensus and RBC estimates, which both stood near $470 million.
Production efficiency was 97%, supported by realized prices of $70 per barrel for liquids and $85.20 per barrel of oil equivalent for natural gas.
Operating expenses remained low at $6.50 per barrel. The company ended the quarter with a leverage ratio of 0.29 times.
Aker BP said all major development projects remain on schedule and within budget. Drilling has ramped up ahead of planned start-ups in 2026 and 2027, and jacket installations are expected this summer.
The company maintained full-year guidance, including production of 390,000 to 420,000 barrels of oil equivalent per day, operating expenses of about $7 per barrel, and capital spending between $5.5 billion and $6 billion.
Aker BP paid a quarterly dividend of $0.63 per share and reaffirmed its full-year dividend target of $2.52 per share, yielding 11.6%.
RBC Capital Markets reiterated its “underperform” rating and NOK 220 price target. While analysts expect growth from upcoming projects such as Yggdrasil and the Valhall and Skarv extensions, they cited execution risk, high capital spending and near-term production declines as reasons investors may continue to demand a higher yield until delivery milestones are met.