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Investing.com -- Aker BP (NYSE:BP) ASA reported fourth-quarter 2024 financial results that exceeded market expectations, while reaffirming its long-term production outlook.
The company emphasized a "stronger-for-longer" strategy, projecting output above 500,000 barrels of oil equivalent per day (boe/d) into the 2030s, with a target of approximately 525,000 boe/d by 2028.
For Q4 2024, Aker BP posted a net profit of $562 million ($0.89 per share), a 13% beat against company consensus estimates, largely due to a lower corporate tax rate of 73% following the absence of goodwill impairment charges.
Revenue stood at $3.1 billion, supported by production of 449,200 boe/d, while EBITDA came in at $2.7 billion, with realized liquids and gas prices averaging $74 per barrel and $79 per barrel, respectively.
For the full year, Aker BP delivered production at the upper end of its guidance, kept operational costs below expectations, and maintained capital investments within initial estimates.
Year-end 2P reserves stood at 1.6 billion barrels, down from 1.7 billion barrels a year earlier, while 2C resources remained stable at 0.8 billion barrels.
Net debt increased to $3.9 billion in Q4, up 19% from the prior quarter and slightly above market expectations.
The net debt-to-EBITDAX ratio rose to 0.29x from 0.21x, while total available liquidity stood at $7.5 billion, including $4.1 billion in cash and $3.4 billion in undrawn credit facilities.
Looking ahead, Aker BP expects 2025 production to range between 390,000 and 420,000 boe/d, an 8% year-over-year decline at the midpoint.
Capital expenditures are projected at $5.5–6.0 billion, with exploration and abandonment costs estimated at $450 million and $150 million, respectively. Operating costs per barrel are expected to rise to around $7/boe.
The company also announced a 5% dividend increase, bringing the quarterly payout to $0.63 per share ($2.52 annually), equating to a full-year cash dividend of approximately $1.59 billion and an implied yield of about 11%.
Aker BP reiterated its commitment to maintaining at least this level of annual dividend growth. However, cash tax payments for the first half of 2025 are expected to rise to $2.2 billion, reflecting higher gas price assumptions of $13 per MMBtu.
On the operational front, all major development projects remain on schedule and within budget. Johan Sverdrup is expected to maintain strong production in 2025, with additional drilling planned to increase the number of producing wells to 41.
A redetermination process for the field has been initiated, which may lead to adjustments in equity allocations among partners, including Aker BP and TotalEnergies (EPA:TTEF).
The Yggdrasil project remains on track, with initial production drilling scheduled to begin after the summer of 2025.
Meanwhile, Aker BP plans to drill 14 exploration wells in 2025, targeting approximately 700 million boe, with key prospects including Bounty (50–440 mmboe, 60% WI), Rondeslottet (700–1,000 mmboe, 40% WI), and Kokopelli (50–375 mmboe, 20% WI).