Aker BP ASA (Hold, TP: NOK280.00) - Unwarranted share price reaction
We reiterate our HOLD recommendation following the Q1 results, and believe the +10% share price reaction was unwarranted. The Q1 results were largely in line with consensus, and management reiterated the full-year guidance despite a Q1 capex run-rate ~20% below the guidance. We are impressed by Aker BP’s ability to react quickly to add interesting exploration wells to the 2018 programme, adding NOK3/share to our NAV. We have raised our target price to NOK280 (273) to reflect the dip in the oil majors’ dividend yield.Aker BP ASA engages in the exploration, development, and production of petroleum resources on the Norwegian Shelf. In addition, Co. has a separate Johan Sverdrup business unit to manage its interest.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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