Euronews is no longer accessible on Internet Explorer. This browser is not updated by Microsoft and does not support the last technical evolutions. We encourage you to use another browser, such as Edge, Safari, Google Chrome or Mozilla Firefox.
BREAKING NEWS

Aker BP cuts 2019 oil output guidance on North Sea field delay

Euronews logo
Text size Aa Aa

OSLO (Reuters) – Aker BP ASA <AKERBP.OL> cut its full-year oil output target on Tuesday, as optimism around the early opening of its Johan Sverdrup field in Norway was overshadowed by production problems at the oil explorer’s Valhall field in the North Sea.

The company, jointly controlled by oil major BP Plc <BP.L> and Norwegian holding company Aker ASA <AKER.OL>, now expects its daily 2019 output to average 155,000 barrels of oil equivalents (boepd), down from a July forecast of 155,000-160,000 boepd.

The company blamed the lower forecast on a delay in starting new wells at the North Sea Valhall field, following maintenance in June, adding that there was no impact on reserves.

Meanwhile, Aker BP’s earnings before interest, tax, depreciation and amortization (EBITDA) fell to $480 million in the third quarter from $698 million a year ago, in line with a $478 million forecast in a Refinitiv poll of analysts.

The company had warned on Oct. 14 that third-quarter output was weaker than expected as seasonal maintenance at some fields had taken longer than expected.

It had also warned in advance of $80 million goodwill impairments and additional costs from repairs of some $14 million, which helped push its third-quarter net result to a loss of $43 million.

(Reporting by Nerijus Adomaitis; Editing by Terje Solsvik and Rashmi Aich)

euronews provides breaking news articles from reuters as a service to its readers, but does not edit the articles it publishes. Articles appear on euronews.com for a limited time.