Oil is Back: A Strategic Analysis and Valuation of AKER BP ASA

This thesis contains a strategic analysis and valuation of Aker BP ASA as of 19 March 2019. The goal of this thesis is to estimate Aker BP’s enterprise value and the value of Aker BP’s equity as a going concern. Based on forecasted cash flows and weighted average cost of capital estimate, the fundamental enterprise value of Aker BP is equal to USD 19,497 million. With net financial liabilities of USD 2,018 million, Aker BP’s total market value of equity is equal to USD 17,479 million or NOK 425 per share. Given a price per share of NOK 304 as per 19 March 2019 and our final value estimate of NOK 425 per share, we have a buy recommendation for Aker BP ASA.