Aker BP’s 2025 Annual Report confirms what the market has been sensing for months: this was not a peak year—it was a transition year.
Production held firm, costs remained low, and shareholder payouts continued. But weaker realized oil prices and impairments drove a sharp drop in earnings, even as the company doubled down on a capital-intensive growth pipeline aimed at the late 2020s.
Production Holds, But Growth Pauses
Aker BP delivered 420.1 thousand barrels of oil equivalent per day (mboepd) in 2025, landing at the top end of guidance. That compares to 439.0 mboepd in 2024, confirming a modest year-on-year decline.
Liquids dominated the mix at 365.5 mboepd, with gas at 59.0 mboepd, reinforcing the company’s exposure to oil price movements.
This was a year of solid execution—but not expansion.
Lower Prices Hit Earnings Hard
Realized liquids prices dropped to $68.9 per boe in 2025, down from $80.1 per boe in 2024. Gas prices partially offset the decline, rising to $69.4 per boe, but not enough to compensate.
Revenue fell to $10.94 billion from $12.38 billion, while EBITDA declined to $9.36 billion from $11.08 billion. Net profit dropped sharply to $132 million, down from $1.83 billion in 2024.
A key driver was impairments linked to lower forward price assumptions, including a $584 million hit in the fourth quarter alone.
The earnings decline was driven by price—not operational underperformance.
Costs Remain a Key Strength
Despite weaker earnings, Aker BP maintained strong cost discipline, with unit costs at $7.3 per boe—keeping the company among the lowest-cost operators on the Norwegian Continental Shelf.
That cost base remains central to the investment case.
A Softer 2026 Before Growth Returns
Guidance for 2026 signals another step down before growth resumes, with production expected at 370–400 mboepd and capital expenditure in the range of $6.2 billion to $6.7 billion pre-tax.
This combination—lower output and higher investment—underscores the scale of the ongoing development program.
Investors are effectively being asked to look through 2026.
The 2028 Growth Story
The strategic focus is firmly on the second half of the decade. Aker BP is targeting around 525 mboepd by 2028, with production expected to remain above 500 mboepd into the 2030s.
This growth is underpinned by major projects on the Norwegian Continental Shelf and continued exploration success, with more than 100 million barrels discovered net in 2025.
At the same time, project costs are rising. The Valhall PWP-Fenris development, for example, has seen its investment estimate increase to around $7.0 billion, up from $5.9 billion previously.
The company is clearly trading capital intensity today for scale tomorrow.
