Aker BP Q3 profit tops forecast on $870 million writedown reversal

Investing.com -- Aker BP reported a larger-than-expected third-quarter net profit of $986 million on Thursday, lifted by an $870 million reversal of an earlier writedown, while core earnings were in line with forecasts and the company kept its 2026 production guidance of 380-400 mboepd.

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The profit, equal to $1.56 per share, compares with an average analyst forecast of $614 million, or $0.97 per share.

The writedown reversal related to assets at the Valhall and Wisting fields and was driven by higher short-term oil and gas prices and updated cost profiles. It added $262 million to profit after tax.

Core earnings were $3.40 billion, against a forecast of $3.42 billion. Total income was $3.87 billion, versus a forecast of $3.81 billion, helped by higher sold volumes and strong realised prices.

Cash flow from operations was $2.43 billion, below the $2.83 billion forecast and the $3.12 billion of the previous quarter, mainly because of changes in working capital driven by higher trade receivables.

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Production was 374 mboepd, in line with the forecast, reflecting planned maintenance. Sold volumes were 396 mboepd, up 5% from the previous quarter. The realised liquids price fell 7% to $100.6 per barrel of oil equivalent from $107.9, while the realised gas price rose 39% to $123.3 from $88.4.

The company raised its 2026 production cost forecast to about $8.5 per barrel of oil equivalent from about $8. Other guidance was largely unchanged, including capital spending of $6.8 billion to $7.2 billion and exploration spending of about $400 million.

A quarterly dividend of $0.6615 per share, in line with the $0.66 forecast, is payable on or about 12 November.

Net interest-bearing debt was $7.07 billion, up from $6.94 billion at the end of June.

Yggdrasil and Valhall PWP-Fenris are on track for first production next summer. Skarv Satellites began producing in late August, almost a year ahead of the schedule. Aker BP's share of Johan Sverdrup output fell to 195 mboepd from 213.5 mboepd because of planned maintenance.

Norway's Supreme Court, which heard the case in August, has yet to rule on government approvals for the Tyrving and Yggdrasil developments. The company said the matter is not expected to have material consequences for its operations.