Aker BP Vows to Keep Chasing Growth



Aker BP Vows to Keep Chasing Growth
Aker BP ASA has vowed to carry on pursuing growth opportunities in its latest quarterly report, following the announcement of a deal to acquire Hess Norge.

Aker BP ASA has vowed to carry on pursuing growth opportunities in its latest quarterly report, following the announcement of a deal to acquire Hess Norge.

“As illustrated by the Hess acquisition, we continue to pursue selective organic growth opportunities, where the aim is to enhance production and increase dividend capacity,” Aker BP CEO Karl Johnny Hersvik said in a webcast of the company’s third quarter results.

On October 24, Aker BP entered into an agreement to purchase Hess Norge for a cash consideration of $2 billion. Through the transaction, Aker BP will strengthen its production and resource base, and will become the sole owner of the Valhall and Hod fields.

The company confirmed in its latest quarterly update that intends to sell or swap a minority interest in the Valhall and Hod fields to partners who want to work together with Aker BP to ‘proactively target the upside potential in the area’.

Aker BP reported total income of $596 million in 3Q 2017, more than double the figure of $248 million registered during the same period last year. EBITDA amounted to $395 million in the quarter, compared to $179 million in 3Q 2016, and net profit was $112 million, compared to $63 million last year.

Production in 3Q hit 131,880 barrels of oil equivalent per day, up from 59,839 boepd in 3Q 2016. Production cost per barrel of oil equivalents was $11.1.

“Aker BP continued to deliver a solid performance in the third quarter with stable, safe and efficient operations,” Hersvik said in a statement on Aker BP’s website.

Under billionaire investor Kjell Inge Roekke, who controls a 40 percent stake, Aker BP has made eight acquisitions since 2014, including a merger with BP's Norway operations in mid-2016.



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