Aker BP (Buy, TP: NOK440.00) - Two becoming one
We forecast Q2 EBITDA of USD1,829m and production of 190kboed for Aker BP on a standalone basis (results due 07:00 CET on 20 July). Focus will likely be on potential updates to production and/or capex guidance following the Lundin Energy merger closing on 30 June. Furthermore, we expect the full-year DPS of USD1.90 to be raised in line with improved fundamentals. However, with the stock trading at a modest 5.3% dividend yield versus European majors at 9.3% on average, this should be widely expected. We reiterate our BUY and NOK440 target price.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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