Aker BP Q2 Profit Falls on Lower Output, Higher Costs

Aker BP ASA posted a drop in second-quarter profit as production slipped and costs rose, the Norwegian oil producer said Tuesday.

Net income fell to $1.2 billion from $1.5 billion a year earlier, missing the $1.4 billion average estimate from analysts polled by Bloomberg. Output averaged 405,000 barrels of oil equivalent a day, down from 420,000 boe/d in the same period last year.

Production costs rose to $9.80 a barrel from $8.90, driven by higher maintenance spending at the Johan Sverdrup field and increased activity on the Yggdrasil development, Chief Executive Karl Hersvik said on a call with analysts.

The company kept its full-year output guidance at 390,000 to 410,000 boe/d and said it expects costs to remain elevated through the third quarter before easing in the fourth.

Aker BP declared a dividend of $0.55 a share for the quarter, unchanged from the prior period.