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

Fundamentals

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


Market Performance


7 Day Return

2.1%

OB:AKERBP

3.1%

NO Oil and Gas

1.5%

NO Market


1 Year Return

-20.4%

OB:AKERBP

-27.8%

NO Oil and Gas

-14.8%

NO Market

AKERBP outperformed the Oil and Gas industry which returned -27.8% over the past year.

AKERBP underperformed the Market in Norway which returned -14.8% over the past year.


Share holder returns

AKERBPIndustryMarket
7 Day2.1%3.1%1.5%
30 Day-10.4%-6.4%-3.8%
90 Day-8.0%-10.6%-5.3%
1 Year-15.4%-20.4%-24.3%-27.8%-10.0%-14.8%
3 Year131.1%100.7%38.2%21.2%38.1%19.9%
5 Year313.3%258.9%17.7%-6.8%38.6%6.9%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Aker BP's share price is below the future cash flow value, and at a moderate discount (> 20%).

Aker BP's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Aker BP is overvalued based on earnings compared to the NO Oil and Gas industry average.

Aker BP is overvalued based on earnings compared to the Norway market.


Price Based on Expected Growth

Aker BP is poor value based on expected growth next year.


Price Based on Value of Assets

Aker BP is overvalued based on assets compared to the NO Oil and Gas industry average.


Next Steps

Future Growth

How is Aker BP expected to perform in the next 1 to 3 years based on estimates from 19 analysts?

31.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Aker BP's revenue is expected to grow by 16.3% yearly, however this is not considered high growth (20% yearly).

Aker BP's earnings are expected to grow significantly at over 20% yearly.

Aker BP's revenue growth is expected to exceed the Norway market average.

Aker BP's earnings growth is expected to exceed the Norway market average.

Aker BP's earnings growth is expected to exceed the low risk savings rate of 1.8%.


Earnings per Share Growth Estimates


Future Return on Equity

Aker BP is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Aker BP performed over the past 5 years?

62.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Aker BP has delivered over 20% year on year earnings growth in the past 5 years.

Aker BP's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Aker BP's 1-year earnings growth is negative, it can't be compared to the NO Oil and Gas industry average.


Return on Equity

Aker BP has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Aker BP used its assets less efficiently than the NO Oil and Gas industry average last year based on Return on Assets.


Return on Capital Employed

Aker BP has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Aker BP's financial position?


Financial Position Analysis

Aker BP's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Aker BP's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Aker BP's level of debt (100%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (183.5% vs 100% today).

Debt is well covered by operating cash flow (133.7%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 26x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

9.29%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Aker BP's pays a higher dividend yield than the bottom 25% of dividend payers in Norway (2.72%).

Aker BP's dividend is above the markets top 25% of dividend payers in Norway (6.42%).

Whilst dividend payments have been stable, Aker BP has been paying a dividend for less than 10 years.

Dividend payments have increased, but Aker BP only paid a dividend in the past 3 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are not well covered by earnings (0.9x coverage).


Next Steps

Management

What is the CEO of Aker BP's salary, the management and board of directors tenure and is there insider trading?

1.0yrs

Average management tenure


CEO

Karl Hersvik (47yo)

5.3yrs

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

Karl's remuneration is higher than average for companies of similar size in Norway.

Karl's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.0yrs

Average Tenure

48yo

Average Age

The average tenure for the Aker BP management team is less than 2 years, this suggests a new team.


Board Age and Tenure

3.4yrs

Average Tenure

60yo

Average Age

The tenure for the Aker BP board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$1,670,70314 Feb 19
Anne Cannon
EntityIndividual
Role
Vice Chairman
Deputy Chair of the Board
Shares5,770
Max PriceUS$289.55
BuyUS$496,89508 Feb 19
Gro Kielland
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,750
Max PriceUS$283.94
BuyUS$2,027,20023 Oct 18
Tommy Sigmundstad
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Drilling & Wells
Shares7,000
Max PriceUS$289.60

Ownership Breakdown


Management Team

  • Per Kongelf (60yo)

    Senior Vice President of Improvement

    • Tenure: 0.0yrs
    • Compensation: US$609.00k
  • Øyvind Bratsberg (60yo)

    Special Advisor

    • Tenure: 0.0yrs
    • Compensation: US$658.00k
  • Karl Hersvik (47yo)

    Chief Executive Officer

    • Tenure: 5.3yrs
    • Compensation: US$1.99m
  • Gudmund Evju (47yo)

    Acting SVP Technology and Field Development

    • Tenure: 0.0yrs
    • Compensation: US$7.00k
  • Terje Solheim (57yo)

    GM of Harstad Office & Employee Representative Director

    • Tenure: 5.4yrs
    • Compensation: US$28.00k
  • Tommy Sigmundstad (49yo)

    Senior Vice President of Drilling & Wells

    • Tenure: 0.0yrs
    • Compensation: US$562.00k
  • Ole-Johan Molvig (47yo)

    Senior Vice President of Reservoir Development

    • Tenure: 2.7yrs
    • Compensation: US$554.00k
  • Kjetel Digre (50yo)

    Senior Vice President of Operations & Asset Development

    • Tenure: 0.3yrs
  • Evy Glørstad-Clark (44yo)

    Senior Vice President of Exploration & Asset Initiation

    • Tenure: 1.0yrs
    • Compensation: US$849.00k
  • David Tønne (34yo)

    Chief Financial Officer

    • Tenure: 0.5yrs

Board Members

  • Kjell Røkke (61yo)

    Director

    • Tenure: 6.3yrs
    • Compensation: US$47.00k
  • Finn Berg-Jacobsen (79yo)

    Chairman of Corporate Assembly

    • Tenure: 0.0yrs
  • Øyvind Eriksen (55yo)

    Chairman of the Board

    • Tenure: 3.4yrs
    • Compensation: US$108.00k
  • Trond Brandsrud (61yo)

    Director

    • Tenure: 3.4yrs
    • Compensation: US$71.00k
  • Anne Cannon (62yo)

    Deputy Chair of the Board

    • Tenure: 6.3yrs
    • Compensation: US$68.00k
  • Gro Kielland (60yo)

    Director

    • Tenure: 5.4yrs
    • Compensation: US$61.00k
  • Bernard Looney (49yo)

    Director

    • Tenure: 2.9yrs
  • Terje Solheim (57yo)

    GM of Harstad Office & Employee Representative Director

    • Tenure: 5.4yrs
    • Compensation: US$28.00k
  • Kate Thomson

    Director

    • Tenure: 2.9yrs
  • Ørjan Holstad (30yo)

    Employee Representative Director

    • Tenure: 1.8yrs
    • Compensation: US$28.00k

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: kr82.305b
  • Shares outstanding: 359.72m
  • 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 40 fields/projects. As of December 31, 2018, its  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/25 21:06
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.