Aker BP (Buy, TP: NOK370.00) - Expecting support for guidance beat
We expect solid QOQ growth for Aker BP’s production in Q1, supported by Johan Sverdrup reaching its initial gross plateau production level of 720kboed by mid-February followed by further testing towards the targeted 755kboed plateau. For Q1, we estimate Aker BP to report net production of 470kboed, which should provide support for exceeding its full-year production guidance as the quarter still does not fully reflect the ramp-up of Johan Sverdrup. Bearing in mind the weak share price performance relative to peers following Q4, we believe this could be a positive catalyst for the shares. We reiterate our BUY and NOK370 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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