Aker BP Expects Pre-Tax Profit in Q2
Norwegian producer Aker BP expects to report a pre-tax profit for the three months ending June 30, it said in a preliminary update on July 7, after recovering from a $414mn pre-tax loss in the first quarter.
The company, owned by BP and Norwegian investment firm Aker, suffered $654mn of impairments in the first quarter, resulting in its swing to a loss.
"Following the partial recovery in oil prices observed in the second quarter, the company expects to reverse parts of the impairments from the first quarter," it said, estimating a gain of $100-150mn. "The company expects to report a positive pre-tax result."
Aker BP produced a record 209,800 barrels of oil equivalent/day in the second quarter, up from only 127,300 boe/d in the same period of last year. It has a 11.6% stake in Norway's Johan Sverdrup oilfield, which came on stream last autumn and is now pumping 470,000 b/d of oil.
Output growth helped cushion the blow of the collapse in prices. Aker BP achieved realised prices for liquids of $29.9/b and for gas of around $80/'000 m3 in the three months ending June 30, versus $63.9 and $240 respectively a year earlier.