Norwegian oil and gas company Aker BP recorded an increase in its quarterly profit as its total income went over $1 billion lifted by record high production.
Aker BP said on Tuesday that, for the first time, the company’s quarterly total income had exceeded one billion dollars, driven by record high production following the successful start-up of the Johan Sverdrup field, combined with continued strong performance from other fields.
Aker BP reported total income of $1.003 billion for the fourth quarter of 2019 compared to $916 million in the same period of 2018.
Overall, the company reported a net profit of $112 million for the quarter compared to a profit of $63 million in 4Q 2018.
The company’s net production in the fourth quarter was 191.1 thousand barrels of oil equivalents per day (mboepd), an increase when compared to 4Q 2018 and production of 155.7 mboepd.
The main contribution to the increase in volumes was the start-up of production from the Johan Sverdrup field in October. Average realized liquids price was $64.2 ($67.8 in 4Q 2018) per barrel oil equivalents (boe), while the realized price for natural gas averaged $0.17 per standard cubic meter (scm) ($0.30 scm in 4Q 2018).
For 2020, the company expects production of 205-220 mboepd and capex of about $1.5 billion.
In related news, Aker BP also on Tuesday said it had strengthened its position in the Skarv offshore areanby swapping its interest in two licenses for an interest and operatorship in license which holds the Shrek discovery, near the Skarv field.