Aker BP books $537mn net profit

Soaring oil and gas prices helped Aker BP increase its first quarter net profit to $537mn, from $364mn yr/yr, as it continued efforts to increase its natural gas output, Aker BP said April 28.

The result marked Aker BP's fifth consecutive record quarterly profit, according to Reuters. In terms of core earnings before interest and taxes, Aker BP said it had generated a record $1.78bn compared with $591mn for the first three months of 2021.

The profit comes as Aker BP continues to ramp up gas liftings from its Norwegian Continental Shelf portfolio. It has been working to increase exports from Skarv field in the northern Norwegian sea, a move that should help capture revenue growth due to surging European gas prices.

Skarv's net output from January to March was 34,600 barrels of oil equivalent/day, up 9% compared to the previous quarter. The performance was boosted by a new production well, which completed a series of tie-ins under phase 1 and 2 of the Ærfugl expansion project. However Aker BP said the increase from the final Ærfugl well was limited due to technical problems in the seawater lifting pumps. 

Aker BP previously injected almost half of Skarv's gas output back into reservoirs to boost oil recovery.  It has now initiated the "blowdown phase" of its upgrade programme, which should free up more gas supply from Skarv to export into overseas markets. Aker BP said Skarv's production efficiency in the quarter was 86%, down from 88% in the previous quarter.

Aker BP is also preparing to close its acquisition of Sweden-based independent Lundin Energy on June 30. Both parties have secured shareholder approvals to allow the acquisition, a cash and shares deal worth around $14bn, to go ahead. Aker BP has said the merger will bring its net oil and gas output to around 400,000 boe/d, almost doubling the 208,200 boe/d it reported for the first quarter of this year.