Norwegian oil and gas company Aker BP has booked an increase in its third quarter profit and revenues, helped by higher oil and gas prices, and decided to reduce plans for capital and exploration spending for the year.
The oil company on Friday reported a total income of $1 billion for the third quarter 2018, an increase from a $596 million income in the same period last year.
According to the company, the increase was driven by higher prices and increased production. Aker BP said that average realized hydrocarbon prices increased by 44 percent, and the production volume increased by 14 percent compared to the third quarter last year.
Namely, in 3Q 2018 average realized prices were $78 per barrel of oil and $0.30 per standard cubic meter (scm) of natural gas compared to $55 per barrel of oil and $0.20 per scm in 3Q 2017.
The company’s operating profit was $548 million for the third quarter 2018, compared to $219 million in 3Q 2017.
Aker BP’s net profit was $125 million and earnings per share were $0.35 in this year’s third quarter versus $112 million profit in the corresponding period of 2017 and $0.33 earnings per share.
The company’s net production in the third quarter increased to 150.6 thousand barrels of oil equivalents per day (mboepd) from 131.9 mboepd in the last year’s third quarter.
For 2018, the company has previously communicated a production estimate of 155-160 mboepd. The average production for the first nine months was 155.6 mboepd, and the company now expects full year production to be in the lower half of the estimated range.
Aker BP’s capex totaled $823 million for the first nine months of 2018. The company’s full-year capex estimate has been reduced from around $1.3 billion to around $1.25 billion.
Offshore Energy Today Staff