Aker BP (Buy, TP: NOK450.00) - No drama
Q3 was in line our expectations and consensus, as production costs were as expected and volume and realised prices were pre-announced. Aker BP cut the high end of its H2 production guidance, which had been based on a Johan Sverdrup phase 2 start-up in October but is now expected in early December, which we see as no drama with a limited impact on our valuation. We consider Aker BP attractive, with the stock trading at a P/NAV of ~0.9x, low downside risk on gas prices, and ~900mmboe of net resources working towards sanction by end-2022, benefiting from the temporary tax regime. We reiterate our BUY and NOK450 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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