Aker BP swings to $285 mln profit in Q3, unveils major North Sea oil find

Investing.com -- Norwegian oil and gas exploration and production company Aker BP on Wednesday posted a return to profit in the third quarter of 2025, posting net earnings of $285 million after a loss of $324 million in the previous quarter, as higher realised oil prices and steady production supported results.

Total income stood at $2.6 billion, nearly unchanged from the previous quarter’s $2.58 billion. 

Earnings before interest, taxes, depreciation and amortisation rose to $2.26 billion from $2.22 billion. Pre-tax profit was $1.43 billion, while earnings per share increased to $0.45 from a loss of $0.51.

Production averaged 414,000 barrels of oil equivalent per day, slightly down from 415,000 barrels in the previous quarter, with high uptime across fields including Johan Sverdrup, Valhall, Alvheim and Skarv. 

Production costs rose to $7.6 per barrel of oil equivalent from $7.3, mainly due to maintenance. The realised oil price rose 5% to $70.3 per barrel, while gas prices dropped 8% to $63.3.

Cash flow from operations increased to $2.02 billion from $1.24 billion, reflecting lower tax payments. Net cash used for investments was $1.87 billion, including $1.77 billion in fixed asset spending. 

Net cash from financing activities was negative $547 million, mainly due to dividend payments of $398 million. Cash and cash equivalents at the end of the quarter stood at $2.34 billion, down from $2.75 billion.

Aker BP paid a quarterly dividend of $0.63 per share and plans to distribute the same in the fourth quarter, maintaining its full-year payout of $2.52 per share. 

Total liquidity was $5.6 billion, including $2.3 billion in cash and $3 billion in undrawn credit facilities. Net interest-bearing debt rose to $6.07 billion, and the leverage ratio increased to 0.49.

“The Omega Alfa discovery was a clear highlight this quarter,” chief executive Karl Johnny Hersvik said in a statement. 

“As one of the largest oil finds on the Norwegian Continental Shelf in the past decade, it underscores the strength of our exploration strategy.” The discovery, part of the Yggdrasil area, is estimated at 96-134 million barrels of oil equivalent recoverable.

The Yggdrasil project, operated by Aker BP with Equinor and Orlen Upstream Norway, advanced on schedule with installation of the Hugin A and Munin jackets.

First production is expected in 2027. Other developments, including Valhall PWP-Fenris, Utsira High and Skarv Satellites, also progressed according to plan.

Exploration spending reached $151 million, up from $110 million in the prior quarter. Greenhouse gas emissions intensity was 2.9 kilograms of CO₂ equivalent per barrel of oil equivalent. The Total Recordable Injury Frequency declined to 1.7 per million working hours.

Aker BP reaffirmed its 2025 guidance, projecting production between 410,000 and 425,000 barrels of oil equivalent per day, production costs near $7 per barrel, and capital spending of about $6.5 billion.