Aker BP Q1 beats forecast as costs fall, Tyrving to start sooner
OSLO, April 24 (Reuters) - Norwegian independent oil company Aker BP on Wednesday posted higher-than-expected net profit for the first quarter as costs fell, and said its Tyrving field development could start production sooner than previously planned.
The company, partly owned by BP, reported a net profit of $531 million for the January to March period, up from $187 million a year earlier, beating a $470 million forecast in a company-compiled poll of analysts.
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Oslo-listed Aker BP shares were trading around 1% up by 0823 GMT, outperforming the European oil and gas sector, which was 0.5% higher.
Analysts said the results beat was mainly driven by lower-than-expected production costs, which were down to $6.1 per barrel, below $7 per barrel guidance for the full year.
"The first-quarter numbers were positively impacted by high (production) volume, limited maintenance activity and currency effects, but still a very strong start of the year," CEO Karl Johnny Hersvik told analysts on a call.
The company reported quarterly production of 448,000 boed, above its full-year guidance of 410,000-440,000 boed.
Aker BP also said its Tyrving subsea development in the Alvheim area of the North Sea was "progressing towards an accelerated start-up" in the fourth quarter, versus the beginning of 2025 previously.
In January, environmentalists won a case against the government for approving Aker BP's Tyrving and Yggdrasil projects, but a court of appeal has put on hold a suspension of further development until the case is heard.
"With the court decision to defer the temporary injunction, the risks of the project schedules have been significantly reduced," the company said.
Greenpeace, which co-filed the case, said Aker BP was taking an "enormous" financial risk by moving ahead with the projects as the hearing was pending.
"Our case has been strengthened after the recent ruling against Switzerland in the European Court of Human Rights. We feel confident that the ruling from the lower court will stand," Frode Pleym, head of Greenpeace Norway, told Reuters.
A Norwegian court of appeals plans to hear the main case at the end of August, while its decision on the injunction was expected shortly, Hersvik told the call with analysts.
(Reporting by Nerijus Adomaitis; Editing by Terje Solsvik and Jan Harvey)