RUS | ENG | All
Enter the email or login, that you used for registration.
If you do not remember your password, simply leave this field blank and you will receive a new, along with a link to activate.

Not registered yet?
Welcome!

2016-07-27 18:30:00

STATOIL NET LOSS $302 MLN

STATOIL NET LOSS $302 MLN

 

STATOIL RESULTS 2Q 2016

 

"We delivered solid operational performance with strong production growth and progress on project development and execution. Our financial results were affected by low oil and gas prices in the quarter," says Eldar Sætre, President and CEO of Statoil ASA.

"We maintain our production guidance, expecting annual organic production growth of around 1% from 2014 to 2017. Strict prioritisation, good results from our improvement programme and more effective drilling operations allow us to lower our 2016 capex and exploration guidance", says Sætre. 

"We see continued progress on our plan to improve efficiency and make faster and deeper cost reductions. As an additional tool to strengthen the company's financial flexibility, we have successfully introduced a scrip dividend", says Sætre. 

Net operating income was USD 180 million in the second quarter compared to USD 3,635 million in the same period of 2015. The reduction was primarily due to the drop in prices for oil and gas and lower refinery margins. Cost reductions contributed positively to the results. Net operating income for the second quarter in 2015 was impacted by a significant sales transaction.

Adjusted earnings were USD 913 million in the second quarter compared to USD 2,883 million in the same period in 2015. In addition to the continued low prices, the result reflects reduced overall operating costs mainly as a result of the on-going cost improvement initiatives.

Adjusted earnings after tax were negative USD 28 million in the second quarter, down from USD 929 million in the same period last year. 

Statoil delivered equity production of 1,959 mboe per day in the second quarter. The underlying production growth in the quarter, after adjusting for divestments, was 6% compared to the second quarter of last year. In the second quarter Statoil made two discoveries on the Norwegian continental shelf (NCS) and one in Canada. As of 30 June 2016, Statoil had completed 15 wells. Adjusted exploration expenses in the quarter were USD 423 million, down from USD 524 million in the second quarter of 2015.

Cash flow from operations amounted to USD 3,349 million in the first half of 2016 compared to USD 6,278 million in the same period last year. 

Organic capital expenditure was USD 5.3 billion in the first six months of 2016, and net debt to capital employed at the end of the quarter was 31.2%. 

Statoil is lowering its capex guidance for 2016 from USD 13 billion to USD 12 billion and its exploration guidance for 2016 from USD 2 billion to USD 1.8 billion. Production guidance remains unchanged, and expected annual organic production growth is 1% from 2014 to 2017. 

The board of directors has decided to pay a dividend of USD 0.2201 per ordinary share for the second quarter. Pursuant to the scrip dividend programme approved at the annual general meeting on 11 May 2016, shareholders will have the option to receive the dividend for the second quarter in cash or newly issued shares in Statoil at a 5% discount. 

In the second quarter, Statoil experienced two fatal accidents. On 29 April, a helicopter returning from Gullfaks B crashed at Turøy outside Bergen and 13 people lost their lives. The accident at Turøy is being investigated by the Investigation Board Norway (Havarikommisjonen). 

On 21 April, a contractor was fatally injured in a grinding accident in a yard in Korea. 

The twelve month average Serious incident frequency (SIF) was 0.8 per 30 June 2016, compared to 0.6 in the same period last year.

-----

Earlier: 

NORWEGIAN OIL & GAS DOWN BY $50 BLN 

NORWEGIAN MERGER 

NORWEGIAN OIL WILL DOWN 

THE NEW NORWEGIAN LICENSES 

STATOIL PROFIT DOWN 71%

 

 

Tags: STATOIL, NORWWAY,