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

1.6%

AKERBP

0.1%

NO Oil and Gas

1.9%

NO Market


1 Year Return

-14.6%

AKERBP

-20.8%

NO Oil and Gas

-6.3%

NO Market

Return vs Industry: AKERBP exceeded the Norwegian Oil and Gas industry which returned -20.8% over the past year.

Return vs Market: AKERBP underperformed the Norwegian Market which returned -6.3% over the past year.


Shareholder returns

AKERBPIndustryMarket
7 Day1.6%0.1%1.9%
30 Day-6.6%-6.7%-1.9%
90 Day-4.8%0.6%1.4%
1 Year-9.2%-14.6%-16.9%-20.8%-1.4%-6.3%
3 Year120.9%91.9%47.4%29.2%40.8%22.4%
5 Year568.5%480.5%49.7%18.5%61.2%24.0%

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 (NOK247.3) is trading below our estimate of fair value (NOK651.87)

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 (38.5x) compared to the Oil and Gas industry average (22.3x).

PE vs Market: AKERBP is poor value based on its PE Ratio (38.5x) compared to the Norwegian market (13.5x).


Price to Earnings Growth Ratio

PEG Ratio: AKERBP is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: AKERBP is overvalued based on its PB Ratio (3.7x) compared to the NO Oil and Gas industry average (1x).


Next Steps

Future Growth

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

32.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AKERBP's forecast earnings growth (32.3% per year) is above the savings rate (1.8%).

Earnings vs Market: AKERBP's earnings (32.3% per year) are forecast to grow faster than the Norwegian market (15.2% per year).

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

Revenue vs Market: AKERBP's revenue (15.8% per year) is forecast to grow faster than the Norwegian market (4.7% per year).

High Growth Revenue: AKERBP's revenue (15.8% 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 (42.7%).


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

Earnings Trend: AKERBP has become profitable over the past 5 years, growing earnings by 62.9% 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 (-42.9%) over the past year, making it difficult to compare to the Oil and Gas industry average (29.3%).


Return on Equity

High ROE: AKERBP's Return on Equity (9.5%) is considered low.


Return on Assets

ROA vs Industry: AKERBP's Return on Assets is below or equal to the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: AKERBP has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Aker BP's financial position?


Financial Position Analysis

Short Term Liabilities: AKERBP's short term assets ($603.4M) do not cover its short term liabilities ($1.4B)

Long Term Liabilities: AKERBP's short term assets (603.4M) do not cover its long term liabilities (7.4B)


Debt to Equity History and Analysis

Debt Level: AKERBP's debt to equity ratio (100%) is considered high

Reducing Debt: AKERBP's debt to equity ratio has reduced from 183.5% to 100% over the past 5 years.

Debt Coverage: AKERBP's debt is well covered by operating cash flow (133.7%).

Interest Coverage: AKERBP's interest payments on its debt are well covered by EBIT (26x 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?

7.69%

Current Dividend Yield


Dividend Yield vs Market

company7.7%marketbottom25%2.6%markettop25%6.2%industryaverage5.9%forecastin3Years8.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: AKERBP's dividend (7.69%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.59%).

High Dividend: AKERBP's dividend (7.69%) is in the top 25% of dividend payers in the Norwegian market (6.21%)

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 (237.3%), 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 (120.3% payout ratio).


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

Karl Hersvik (47yo)

5.4yrs

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 ($USD1.99M) is about average for companies of similar size in the Norwegian market ($USD1.71M).

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


Management Age and Tenure

1.2yrs

Average Tenure

48yo

Average Age

Experienced Management: AKERBP's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Age and Tenure

3.6yrs

Average Tenure

60yo

Average Age

Experienced Board: AKERBP's board of directors are considered experienced (3.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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: 0yrs
    • Compensation: US$609.00k
  • Øyvind Bratsberg (60yo)

    Special Advisor

    • Tenure: 0yrs
    • Compensation: US$658.00k
  • Karl Hersvik (47yo)

    Chief Executive Officer

    • Tenure: 5.4yrs
    • Compensation: US$1.99m
  • Gudmund Evju (47yo)

    Acting SVP Technology and Field Development

    • Tenure: 0yrs
    • Compensation: US$7.00k
  • Terje Solheim (57yo)

    GM of Harstad Office & Employee Representative Director

    • Tenure: 5.6yrs
    • Compensation: US$28.00k
  • Tommy Sigmundstad (49yo)

    Senior Vice President of Drilling & Wells

    • Tenure: 0yrs
    • Compensation: US$562.00k
  • Ole-Johan Molvig (47yo)

    Senior Vice President of Reservoir Development

    • Tenure: 2.8yrs
    • Compensation: US$554.00k
  • Kjetel Digre (50yo)

    Senior Vice President of Operations & Asset Development

    • Tenure: 0.4yrs
  • Evy Glørstad-Clark (44yo)

    Senior Vice President of Exploration & Asset Initiation

    • Tenure: 1.2yrs
    • Compensation: US$849.00k
  • David Tønne (34yo)

    Chief Financial Officer

    • Tenure: 0.7yrs

Board Members

  • Kjell Røkke (61yo)

    Director

    • Tenure: 6.5yrs
    • Compensation: US$47.00k
  • Finn Berg-Jacobsen (79yo)

    Chairman of Corporate Assembly

    • Tenure: 0yrs
  • Øyvind Eriksen (55yo)

    Chairman of the Board

    • Tenure: 3.6yrs
    • Compensation: US$108.00k
  • Trond Brandsrud (61yo)

    Director

    • Tenure: 3.6yrs
    • Compensation: US$71.00k
  • Anne Cannon (62yo)

    Deputy Chair of the Board

    • Tenure: 6.5yrs
    • Compensation: US$68.00k
  • Gro Kielland (60yo)

    Director

    • Tenure: 5.6yrs
    • Compensation: US$61.00k
  • Bernard Looney (49yo)

    Director

    • Tenure: 3.1yrs
  • Terje Solheim (57yo)

    GM of Harstad Office & Employee Representative Director

    • Tenure: 5.6yrs
    • Compensation: US$28.00k
  • Kate Thomson

    Director

    • Tenure: 3.1yrs
  • Ørjan Holstad (30yo)

    Employee Representative Director

    • Tenure: 1.9yrs
    • 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: kr88.927b
  • Shares outstanding: 359.59m
  • 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 Analysis2019/10/21 21:14
End of Day Share Price2019/10/21 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.