Statoil: 2012 Third Quarter Results
STAVANGER, NORWAY -- (Marketwire) -- 10/26/12 --
Statoil's (OSE:STL, NYSE:STO) third quarter 2012 net operating
income was NOK
40.9 billion, a 4% increase compared to NOK 39.3
billion in the third quarter of 2011.
"Statoil delivered solid financial results in the quarter. By ramping
fields, we have grown production year to date by 10% compared
to the same period
last year, and 8% compared to the 2011 average.
This is in line with our plans.
Our operational performance is solid
and we progressed an extensive maintenance
programme according to
plan. We are on track, and maintain our guidance for 2012," says
Helge Lund, Statoil's president and CEO.
In 2012, Statoil has increased cash flows from underlying operations
by 12% to
NOK 188 billion. Successful exploration activities have
added larger volumes to Statoil's resource base in the first nine
months of 2012 than in all of 2011.
"We maintain momentum in realising our strategy for growth towards
new discoveries and investments for improved oil recovery
on the NCS, and continued profitable growth in our production outside
Norway," says Lund.
Adjusted earnings were NOK 40 billion, 7% lower than in the same
period of 2011. The company increased gas sales while realising
higher prices. However,
higher exploration costs and lower liquids
volumes in accordance with expectations, more than offset the
Statoil has further strengthened its financial position, and the
holds NOK 85 billion in liquid assets. Portfolio
management has contributed NOK
29 billion in proceeds from sale of
assets and business this year.
"This week's agreement with Wintershall gives a more focused
portfolio, consolidates our position as the largest player on the
Utsira High, enhances
Statoil's financial flexibility and
demonstrates the value of our NCS assets,"
After the divestments of NCS assets, Statoil expects 2013 production
to be lower
than in 2012. However, the company is on track for an
average growth of 2 to 3% from 2012 to 2016 and equity production
above 2.5 million barrels per day of oil equivalent in 2020.
The serious incident frequency (SIF) was 0.9 in the third quarter of
2012, compared to 1.1 in the third quarter of 2011.
Equity production was 1,811 mboe per day in the third quarter, up 3%
mboe per day in the same period in 2011.
Adjusted earnings were NOK 40.0 billion in the third quarter, down 7%
43.1 billion in the third quarter last year.
Adjusted earnings after tax were NOK 11.9 billion, compared to NOK
in the third quarter of 2011.
Net income was NOK 14.5 billion in the third quarter, up 47% from NOK
9.9 billion in the same period in 2011.
Key events since second quarter:
* Continuing value creation through portfolio management and
NCS with high-value barrels: Signed agreement with
Wintershall to exit the Brage license, farm down Gjoa and Vega, and
enter the Edvard Grieg license.
The transaction is subject to
governmental approval. Agreed consideration is
USD 1.45 billion.
Entered strategic partnership with Wintershall and BASF to
new insights and technologies on improved oil recovery (IOR).
* Applying technology to increase recovery: Sanctioned four IOR
the NCS, commenced building of Norwegian IOR centre and
announced average recovery rate of 50% for Statoil's NCS portfolio.
* Developing a leading global exploration company: Added barrels to
Sverdrup field through the Geitungen discovery, confirmed
potential of Peregrino South oil discovery through new exploration
well, signed agreements for Russian offshore exploration with
Rosneft, and announced a nine well drilling campaign for 2013 in the
Norwegian Barents Sea.
* Growing unconventionals and taking strategic mid-stream positions:
transporting Bakken crude from North Dakota in the U.S. to
market by rail, significantly increasing the oil's value.
* Utilising oil and gas competencies to open new renewable energy
opportunities: Opened Sheringham Shoal offshore wind farm and
acquired a 70% share of the Dudgeon offshore wind farm project in
This information is subject of the disclosure requirements pursuant
5-12 of the Norwegian Securities Trading Act.
Press release Results 3rd quarter 2012:
Financial statements and review 3rd quarter 2012:
Presentation 3rd quarter 2012 Torgrim Reitan CFO:
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Further information from:
Hilde Merete Nafstad
senior vice president investor relations,
+ 47 957 83 911 (mobile)
Morten Sven Johannessen
vice president investor relations USA,
+ 1 203 570 2524 (mobile)
Jannik Lindbaek jr
vice president for media relations,
+ 47 977 55 622 (mobile)
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