Aker BP Reports Third-Quarter 2026 Net Profit of $986 Million
Key Facts
Aker BP reported net profit of $986 million, or $1.56 per share, in the third quarter of 2026, including a positive after-tax impact of $262 million from the reversal of asset impairments, according to the company. Total income was $3.87 billion, above expectations of $3.81 billion, while underlying earnings were $3.40 billion versus $3.42 billion expected, according to Reuters via Investing.com. Chief Executive Karl Johnny Hersvik said the results were supported by "safe and reliable operations, higher sales volumes and strong realised prices." Net profit included an accounting impact related to the impairment reversal and should therefore be read alongside operating figures and cash flows. The company reaffirmed its annual production guidance range of 380–400 thousand barrels of oil equivalent per day.
The impairment reversal amounted to $870 million and was linked to assets at the Valhall and Westing fields, according to Reuters via Investing.com. The company attributed the reversal to higher short-term oil and gas prices and updated cost estimates, while the after-tax impact added $262 million to profit. The item therefore explains a material part of reported net profit, but does not change the fact that underlying earnings came in slightly below expectations. Realised prices for liquids and gas moved in different directions during the quarter. The realised liquids price fell 7% to $100.6 per barrel of oil equivalent, from $107.9 in the second quarter, while the realised gas price rose 39% to $123.3 from $88.4.
Net production was 374 thousand barrels of oil equivalent per day in the third quarter, and Aker BP said planned maintenance affected output. Average net production in the second quarter was 383.6 thousand barrels of oil equivalent per day, putting the latest quarter below the previous level, while annual guidance remained at 380–400 thousand barrels of oil equivalent per day. By contrast, net sales volumes reached 396 thousand barrels of oil equivalent per day, up 5% from the previous quarter. Hersvik said higher sales and realised prices, along with operational safety and reliability, supported the results. The difference between production and sales in the company's figures reflects the two metrics moving on different bases during the period, while the results did not establish that the share price was stable.
Cash flow from operations was $2.43 billion, below analysts' forecast of $2.83 billion and down from $3.12 billion in the second quarter, according to Reuters via Investing.com. The source attributed the decline mainly to working capital movements and higher trade receivables. The company reported operating cash flow of $3.1 billion and net profit of $521 million in the previous quarter, compared with net profit of $986 million in the third quarter. Net interest-bearing debt was $7.07 billion at the end of the third quarter, compared with $6.94 billion at the end of June. The company also reported available liquidity of $5.8 billion and a leverage ratio of 0.50.
Aker BP raised its 2026 production cost estimate to around $8.5 per barrel of oil equivalent, from a previous estimate of around $8, according to Reuters via Investing.com. The company kept capital expenditure within a range of $6.8–7.2 billion and exploration spending near $400 million, and the source said other guidance was largely unchanged. The company's reaffirmation therefore applied to the annual production range and does not establish that it reaffirmed all financial guidance. It also declared a quarterly distribution of $0.6615 per share, payable around November 12, 2026, according to its statement. These figures combine stable production guidance with a higher expected cost and a continuing quarterly distribution.
Aker BP said the Yggdrasil and Valhall PWP–Fenris projects had passed major offshore milestones and entered the final phase ahead of a targeted start of production next summer. Hook-up and commissioning work had begun at Yggdrasil, according to the company statement. The Skarv Satellites project also began production in late August, around a year ahead of its original schedule. The company places these developments within its upcoming operational trajectory, while its current annual production guidance is based on a range of 380–400 thousand barrels of oil equivalent per day. The company set February 10, 2027, as the date for publishing its fourth-quarter report.