OB:AKERBP

Stock Analysis Report

Executive Summary

Aker BP ASA engages in the exploration, development, and production of oil and gas on the Norwegian Continental Shelf.


Snowflake Analysis

High growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Aker BP's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AKERBP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

17.7%

AKERBP

4.5%

NO Oil and Gas

0.7%

NO Market


1 Year Return

-61.7%

AKERBP

-43.1%

NO Oil and Gas

-28.8%

NO Market

Return vs Industry: AKERBP underperformed the Norwegian Oil and Gas industry which returned -43.1% over the past year.

Return vs Market: AKERBP underperformed the Norwegian Market which returned -28.8% over the past year.


Shareholder returns

AKERBPIndustryMarket
7 Day17.7%4.5%0.7%
30 Day-46.1%-23.4%-20.4%
90 Day-58.5%-39.3%-29.6%
1 Year-58.8%-61.7%-39.7%-43.1%-25.1%-28.8%
3 Year-0.04%-14.6%-11.2%-22.4%-4.9%-17.0%
5 Year225.4%171.9%-2.7%-22.3%11.9%-13.1%

Price Volatility Vs. Market

How volatile is Aker BP's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Aker BP undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AKERBP (NOK118.1) is trading below our estimate of fair value (NOK622.91)

Significantly Below Fair Value: AKERBP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AKERBP is poor value based on its PE Ratio (28.9x) compared to the Oil and Gas industry average (5.1x).

PE vs Market: AKERBP is poor value based on its PE Ratio (28.9x) compared to the Norwegian market (9.7x).


Price to Earnings Growth Ratio

PEG Ratio: AKERBP is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: AKERBP is overvalued based on its PB Ratio (1.7x) compared to the NO Oil and Gas industry average (0.4x).


Next Steps

Future Growth

How is Aker BP forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

27.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AKERBP's forecast earnings growth (27% per year) is above the savings rate (0.7%).

Earnings vs Market: AKERBP's earnings (27% per year) are forecast to grow faster than the Norwegian market (19.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AKERBP's revenue (11% per year) is forecast to grow faster than the Norwegian market (3% per year).

High Growth Revenue: AKERBP's revenue (11% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AKERBP's Return on Equity is forecast to be very high in 3 years time (41.3%).


Next Steps

Past Performance

How has Aker BP performed over the past 5 years?

60.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AKERBP has high quality earnings.

Growing Profit Margin: AKERBP's current net profit margins (4.2%) are lower than last year (12.8%).


Past Earnings Growth Analysis

Earnings Trend: AKERBP has become profitable over the past 5 years, growing earnings by 60.8% per year.

Accelerating Growth: AKERBP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AKERBP had negative earnings growth (-70.4%) over the past year, making it difficult to compare to the Oil and Gas industry average (39.2%).


Return on Equity

High ROE: AKERBP's Return on Equity (6%) is considered low.


Next Steps

Financial Health

How is Aker BP's financial position?


Financial Position Analysis

Short Term Liabilities: AKERBP's short term assets ($718.6M) do not cover its short term liabilities ($1.7B).

Long Term Liabilities: AKERBP's short term assets ($718.6M) do not cover its long term liabilities ($8.1B).


Debt to Equity History and Analysis

Debt Level: AKERBP's debt to equity ratio (140.4%) is considered high.

Reducing Debt: AKERBP's debt to equity ratio has reduced from 352.5% to 140.4% over the past 5 years.

Debt Coverage: AKERBP's debt is well covered by operating cash flow (56.7%).

Interest Coverage: AKERBP's interest payments on its debt are well covered by EBIT (22.5x coverage).


Balance Sheet

Inventory Level: AKERBP has a high level of physical assets or inventory.

Debt Coverage by Assets: AKERBP's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

What is Aker BP's current dividend yield, its reliability and sustainability?

20.84%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AKERBP's dividend (20.84%) is higher than the bottom 25% of dividend payers in the Norwegian market (3.86%).

High Dividend: AKERBP's dividend (20.84%) is in the top 25% of dividend payers in the Norwegian market (8.43%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, AKERBP has been paying a dividend for less than 10 years.

Growing Dividend: AKERBP's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (531.6%), AKERBP's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AKERBP's dividends in 3 years are not forecast to be well covered by earnings (120.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.6yrs

Average management tenure


CEO

Karl Hersvik (47yo)

5.83s

Tenure

US$1,994,000

Compensation

Mr. Karl Johnny Hersvik has been the Chief Executive Officer of Aker BP ASA since May 1, 2014. Mr. Hersvik served as a Senior Vice President at Statoil ASA. Mr. Hersvik has been Senior Vice President of St ...


CEO Compensation Analysis

Compensation vs Market: Karl's total compensation ($USD1.99M) is above average for companies of similar size in the Norwegian market ($USD456.30K).

Compensation vs Earnings: Karl's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Karl Hersvik
Chief Executive Officer5.83yrsUS$1.99m0.0017% $726.3k
Terje Solheim
GM of Harstad Office & Employee Representative Director6yrsUS$28.00kno data
Per Kongelf
Senior Vice President of Improvementno dataUS$609.00kno data
Tommy Sigmundstad
Senior Vice President of Drilling & Wellsno dataUS$562.00k0.0024% $1.0m
Ole-Johan Molvig
Senior Vice President of Reservoir Development3.25yrsUS$554.00k0.0027% $1.1m
Evy Glørstad-Clark
Senior Vice President of Exploration1.58yrsUS$849.00k0.0016% $700.5k
Øyvind Bratsberg
Special Advisorno dataUS$658.00k0.015% $6.5m
David Tønne
Chief Financial Officer1yrno data0.0016% $691.9k
Kjetel Digre
Senior Vice President of Operations & Asset Development0.83yrno data0.00083% $356.7k
Gudmund Evju
Acting SVP Technology and Field Developmentno dataUS$7.00kno data

1.6yrs

Average Tenure

48yo

Average Age

Experienced Management: AKERBP's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Terje Solheim
GM of Harstad Office & Employee Representative Director6yrsUS$28.00kno data
Kjell Røkke
Director6.92yrsUS$47.00kno data
Finn Berg-Jacobsen
Chairman of Corporate Assemblyno datano datano data
Øyvind Eriksen
Chairman of the Board4yrsUS$108.00kno data
Trond Brandsrud
Director4yrsUS$71.00kno data
Anne Cannon
Deputy Chair of the Board6.92yrsUS$68.00kno data
Gro Kielland
Director6yrsUS$61.00k0.00049% $210.6k
Bernard Looney
Director3.5yrsno datano data
Katherine Thomson
Director3.5yrsno datano data
Ørjan Holstad
Employee Representative Director2.33yrsUS$28.00kno data

4.0yrs

Average Tenure

60yo

Average Age

Experienced Board: AKERBP's board of directors are considered experienced (4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: AKERBP insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Aker BP ASA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Aker BP ASA
  • Ticker: AKERBP
  • Exchange: OB
  • Founded: 2001
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: kr42.974b
  • Shares outstanding: 359.61m
  • Website: https://www.akerbp.com

Number of Employees


Location

  • Aker BP ASA
  • Building B
  • Fornebuporten
  • Fornebu
  • Akershus
  • 1366
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AKERBPOB (Oslo Bors)YesOrdinary SharesNONOKDec 2009
0M5JLSE (London Stock Exchange)YesOrdinary SharesGBNOKDec 2009
ARCDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2009
AKERBOBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKDec 2009
DETN.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2009

Biography

Aker BP ASA engages in the exploration, development, and production of oil and gas on the Norwegian Continental Shelf. The company has working interests in 42 fields/projects. As of December 31, 2019, its total net proven reserves were 666 million barrels of oil equivalents; and estimated total net proven plus probable reserves were 906 million barrels of oil equivalents. The company was formerly known as Det norske oljeselskap ASA and changed its name to Aker BP ASA in October 2016. Aker BP ASA was founded in 2001 and is headquartered in Fornebu, Norway. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 22:23
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.