July 13 (UPI) -- Production costs in the second quarter were in line with expectations and revenues were supported by improved commodity prices, Aker BP said Friday.
Aker BP, which formed as a result of a tie up with the Norwegian subsidiary of BP, is one of the first companies out with an earnings report for the second quarter. The company last year boasted that production was up more than 120 percent from 2016, though production costs per barrel more than doubled.
For the second quarter, the company said production costs equated to $11.4 million per barrel of oil equivalent, an increase from its previous report but in line with its full-year estimate of $12 million per boe.
Total production for the second half averaged 157,784 boe per day, 10 percent higher than the same period last year. Using only its current portfolio, Aker BP by 2023 should be able to produce around 330 million boe per day in part because of the acquisition of a regional subsidiary of Hess Corp.
Operating income for the second quarter was $975 million, 64 percent higher than the same period last year. The company said it realized an average price for oil of $76 per barrel. Brent crude oil, the global benchmark for the price of oil, was trading close to $74 per barrel on Friday in a week that saw the index drop 6 percent when Libyan oil production returned after weeks of unrest.
"The company recorded operating profit of $552 million, higher than the second quarter 2017, mainly driven by increased production and higher realized prices," the company's financial statement read.
Aker BP reported first quarter net income of $890 million, up 37 percent from the fourth quarter. Total first quarter production was 158.6 million boe per day, at the higher end of its guidance for the quarter.
The company is part of the consortium developing the Johan Sverdrup field off the coast of Norway, where production could top out at 660,000 barrels per day by 2022.