StatoilHydro: Solid performance in a demanding market
(Thomson Reuters ONE) - StatoilHydro's (OSE:STL, NYSE:STO) second quarter 2009 net operatingincome was NOK 24.3 billion, compared to NOK 62.6 billion in thesecond quarter of 2008. The quarterly result was negatively affectedby a 40% drop in oil prices, an 18% decrease in the average price ofnatural gas and a 9% reduction in liftings of liquids, partly offsetby a 4% increase in lifted gas volumes and improved margins fornatural gas.Adjusted for certain items that management considers not to bereflective of StatoilHydro's underlying operational performance inthe individual reporting period, adjusted earnings in the secondquarter of 2009 were NOK 29.2 billion, compared to NOK 56.3 billionin the second quarter of 2008. The decrease in adjusted earnings wasprimarily due to lower prices and volumes of liquids and partly dueto decreasing prices for natural gas. The reduction was only partlycompensated by higher margins and sales volumes of natural gas.The second quarter net income was NOK 0.0 billion and was mostlyinfluenced by lower crude oil and gas prices, currency effects and anunusually high effective tax rate caused in part by tax on currencygains not reflected in the net financial items.Adjusted earnings after tax amounted to NOK 9.0 billion, down fromNOK 16.7 billion in the second quarter of 2008. The decrease ismainly due to lower oil prices and volumes, partly offset by higherincome from natural gas sales and a lower effective tax rate onadjusted earnings. Adjusted earnings after tax excludes the effectsof tax on net financial items, and represented an effective tax rateof 69.2% in the second quarter of 2009 and 70.3% in the secondquarter of 2008."StatoilHydro maintains a high activity level and robust operationsboth in Norway and internationally. In a demanding market, ouroperational performance is solid. We have increased our efforts toreduce costs, and we continue to deliver good results fromoperations," says StatoilHydro's chief executive Helge Lund."Since first quarter we have started operations on important oil andgas fields such as Tyrihans in the Norwegian Sea and Tahiti andThunder Hawk in the Gulf of Mexico and our exploration programmecontinues to yield good results.""So far this year we have completed a total of 48 exploration andextension wells, 30 of which resulted in discoveries. Twenty-five ofthese discoveries were made on the Norwegian continental shelf," saysLund.The CEO continues: "Although the outlook for the global economy seemssomewhat less pessimistic and the balance of risks appears to haveimproved, the uncertainty remains high. We therefore continue tofocus on operational efficiency and capital discipline, and we havethe flexibility to adjust our activity level according to marketdevelopment," says Lund.In the second quarter of 2009, equity production of liquids andnatural gas was 1.137 million and 708 thousand barrels of oilequivalent per day, respectively. Total equity production was 1.845million barrels of oil equivalent per day, down 3% from the secondquarter of 2008. The decrease in equity production was primarilycaused by declining production from mature fields.1.1 Performance updateIn the second quarter of 2009, StatoilHydro delivered total liquidsand gas entitlement production of 1,729 mboe per day, which is anincrease of 1% compared to the 1,710 mboe per day in the secondquarter of 2008. Total liftings of liquids and gas were 1,664 mboeper day in the second quarter of 2009, a 4% decrease from 1,736 mboeper day in the second quarter of 2008.StatoilHydro delivered an extensive exploration programme in thesecond quarter of 2009. Of a total of 22 exploration wells completedbefore 30 June 2009, eight were drilled outside the NCS. Fourteenwells have been announced as discoveries, of which two are locatedoutside the NCS. In the first half of 2009 StatoilHydro has completed44 wells, 27 on the NCS and 17 internationally. A total of 27 wellshave been announced as discoveries, 23 on the NCS and fourinternationally. An additional four wells, of which three have beendeclared as discoveries, have been completed since 30 June 2009.In the second quarter of 2009, the Tyrihans field started productionon the NCS and first oil was received from the Chevron-operatedTahiti field in the US Gulf of Mexico.The StatoilHydro operated Troll field received approval from theNorwegian government on 19 June on a project to increase reserves andextend the lifetime of the field. The Goliat field also receivedapproval from the Norwegian government on 19 June, marking thego-ahead for development of the first oil field in the Barents Sea.Return on average capital employed after tax (ROACE)* for the 12months ended 30 June 2009 was 13.4%, compared to 23.2% for the 12months ended 30 June 2008. The decrease was due to the reduced incomeand a higher average capital employed. ROACE is defined as a non-GAAPfinancial measure.*In the second quarter of 2009, earnings per share based on net incomewas NOK 0.02 compared to NOK 5.89 in the second quarter of 2008. Inthe first half of 2009 earnings per share based on net incomeamounted to NOK 1.18, compared to NOK 10.91 in the first half of2008.1.1.1 Profit and loss discussionIn the second quarter of 2009, net operating income was NOK 24.3billion, compared to NOK 62.6 billion in the second quarter of 2008.Net operating income includes certain items that management considersnot to be reflective of StatoilHydro's underlying operationalperformance. Management adjusts for these items to arrive at adjustedearnings. Adjusted earnings is a supplemental non-GAAP measure toStatoilHydro's IFRS measure of net operating income which managementbelieves provides an indication of StatoilHydro's underlyingoperational performance in the period and facilitates a betterevaluation of operational developments between periods.In the second quarter of 2009, lower fair value of derivatives (NOK0.5 billion), impairment charges net of reversals (NOK 3.3 billion),underlift (NOK 1.1 billion) and other accruals (NOK 0.1 billion)negatively impacted net operating income, while higher values ofproducts in operational storage (NOK 1.2 billion) and gain on sale ofassets (NOK 0.2 billion) both had a positive impact on net operatingincome in the second quarter of 2009. Adjusted for these items andeffects of eliminations (NOK 1.3 billion), adjusted earnings were NOK29.2 billion in the second quarter of 2009.In the second quarter of 2008 restructuring cost accruals (NOK 0.2billion) and other accruals (NOK 0.3 billion) negatively impacted netoperating income, while higher value of derivatives (NOK 3.3billion), impairment charges net of reversals (NOK 2.1 billion),overlift (NOK 1.8 billion), higher values of products in operationalstorage (NOK 1.4 billion) and gain on sale of assets (NOK 0.5billion), had a positive impact on net operating income in the secondquarter of 2008. Adjusted for these items and effects of eliminations(NOK 1.3 billion), adjusted earnings were NOK 56.3 billion in thesecond quarter 2008.The 48 % decrease in adjusted earnings from second quarter 2008 tosecond quarter 2009 was primarily due to the reduction in prices forboth liquids and gas, and the decrease in volumes of liquids sold,partly compensated by increased results from sales of natural gas.In the first half of 2009, the net operating income was NOK 59.8billion, compared to NOK 114.1 billion in the first half of 2008.In the first half of 2009, lower fair value of derivatives (NOK 0.6billion), impairment charges net of reversals (NOK 5.7 billion) andunderlift (NOK 0.5 billion) negatively impacted net operating income,while higher values of products in operational storage (NOK 1.7billion), gain on sale of assets (NOK 0.5 billion) and other accruals(NOK 1.4 billion) had a positive impact on net operating income forthe second quarter of 2009. Adjusted for these items and effects ofinter-company eliminations (NOK 2.2 billion), adjusted earnings wereNOK 65.3 billion in the first half of 2009.In the first half of 2008 impairment charges net of reversals (NOK0.4 billion) and other accruals (NOK 0.5 billion) negatively impactednet operating income, while higher value of derivatives (NOK 4.1billion), gain on sale of assets (NOK 1.2 billion), overlift (NOK 0.1billion) and higher values of products in operational storage (NOK1.7 billion) had a positive impact on net operating income in thesecond quarter of 2008. Adjusted for these items adjusted earningswere NOK 107.9 billion in the first half of 2008.The 39% decrease in adjusted earnings from first half of 2008 tofirst half of 2009 was primarily due to the drop in liquids prices,and was only partly offset by the higher income from sales of naturalgas.Introducing the USD as functional currency from 2009 in the parentcompany has led to reduced currency effects on net financial income.While taxes payable are unaffected by this change, taxable incomeexceeded consolidated accounting income before tax by approximatelyNOK 3.6 billion in the second quarter of 2009, thus contributing to atax rate of 99.9%. Management considers this tax rate not to bereflective of the underlying tax exposure. Adjusted earnings aftertax excludes net financial items and tax on net financial items andis an alternative measure which provides an indication ofStatoilHydro's tax exposure to its underlying operational performancein the period, and therefore better faciliates a comparison betweenperiods.Adjusted earnings after tax in the second quarter of 2009 was NOK 9.0billion, down from NOK 16.7 billion in the second quarter of 2008. Inthe first half of 2009, adjusted earnings after tax was NOK 19.5billion, down from NOK 30.7 billion the same period last year. Thedecrease is mainly due to lower liquid prices, partly offset byhigher income from natural gas sales and a lower effective tax rateon adjusted earnings. Tax on adjusted earnings amounted to 69.2% inthe second quarter of 2009 and 70.3% in the second quarter of 2008,compared to 70.1% and 71.6% in the first half of 2009 and 2008,respectively.Total liquids and gas liftings in the second quarter of 2009 were1,664 mboe per day, compared to 1,736 mboe per day in the secondquarter of 2008. In the second quarter of 2009 there was an underliftof 49 mboe per day* compared to an overlift in the second quarter of2008 of 42 mboe per day.Total liquids and gas liftings in the first half of 2009 were 1,813mboe per day, compared to 1,786 mboe per day in the first half of2008. There was an underlift in the first half of 2009 of 3 mboe perday* compared to an overlift of 3 mboe per day in the first half of2008.Total liquids and gas entitlement production in the second quarter of2009 was 1,729 mboe per day, compared to 1,710 mboe per day in thesecond quarter of 2008. Average equity* production was 1,845 mboe perday in the second quarter of 2009 compared to 1,898 mboe per day inthe second quarter of 2008. Total liquids and gas entitlementproduction in the first half of 2009 was 1,831 mboe per day, comparedto 1,799 mboe per day in the first half of 2008. Average equityproduction was 1,959 mboe per day in the first half of 2009 comparedto 1,973 mboe per day in the first half of 2008.The slight increase in entitlement production between the quarters aswell as year to date, mainly stems from new fields coming on stream,partly offset by declining production from mature fields. Thedecrease in average equity production in the second quarter of 2008compared to the second quarter of 2009 was primarily due to decliningproduction from mature fields, various operational issues andmaintenance activities, partly compensated by increased productionfrom start up of new fields. The decrease in average equityproduction in the first half of 2009 compared to the first half of2008 was primarily due to declining production from mature fields,various operational issues, maintenance activities and Opecrestrictions, partly compensated by increased production from startup of new fields.Exploration expenditure was NOK 4.0 billion in the second quarter of2009, compared to NOK 3.7 billion in the second quarter of 2008.Exploration expenditure was NOK 9.2 billion in the first half of2009, compared to NOK 7.6 billion in the first half of 2008. Theincreases were mainly due to increased exploration activities andcost. Exploration expenditure reflects exploration activities in theperiod.Adjusted exploration expenses for the period consist of explorationexpenditure adjusted for the period's change in capitalisedexploration expenditure and for certain items impacting the netoperating income as described above. The adjusted explorationexpenses decreased from NOK 3.1 billion in the second quarter of 2008to NOK 2.4 billion in the second quarter of 2009 primarily because ofhigher capitalisation of exploration expenditures. Adjustedexploration expenses was NOK 5.6 billion in the first half of 2009compared to NOK 5.3 billion in the first half of 2008, an increase of6% mainly due to higher drilling activity. In the second quarter of 2009, a total of 22 exploration andappraisal wells were completed, 14 on the NCS and eightinternationally. Fourteen wells have been declared as discoveries. Inthe second quarter of 2008, a total of 27 exploration, appraisal andextension wells were completed, 15 on the NCS and 12 internationally.Fourteen wells were declared as discoveries.In the first half of 2009, a total of 43 exploration and appraisalwells and one exploration extension well were completed, 27 on theNCS and 17 internationally. Twenty-six exploration and appraisalwells and one exploration extension well have been declared asdiscoveries. In the first half of 2008, a total of 45 exploration andappraisal wells and four exploration extension wells were completed,22 on the NCS and 27 internationally. Nineteen exploration andappraisal wells and two exploration extension wells were declared asdiscoveries.A number of wells completed internationally have encounteredhydrocarbons. However, more extensive evaluation must be carried outbefore reaching and announcing a conclusion on potentialcommerciality.Drilling of seven exploration and appraisal wells was ongoing at theend of second quarter 2009.Production cost per boe was NOK 38.0 for the 12 months ended 30 June2009, compared to NOK 46.2 for the 12 months ended 30 June 2008.*Based on equity * volumes, the production cost per boe for the twoperiods was NOK 35.0 and NOK 42.4, respectively.The production cost per boe decreased mainly due to non-recurringrestructuring cost relating to the merger of Statoil ASA and HydroPetroleum in 2007, and partial reversal of the restructuring cost inthe fourth quarter of 2008.Adjusted for restructuring costs and other costs arising from themerger recorded in the fourth quarter of 2007 and gas injectioncosts, the production cost per boe of equity production for the 12months ended 30 June 2009 was NOK 35.6. The comparable figure for the12 months ended 30 June 2008 was NOK 32.1. The increase is partly dueto currency effects from the strengthening of USD versus NOK.Net financial items amounted to a loss of NOK 4.8 billion in thesecond quarter of 2009, compared to a loss of NOK 0.5 billion in thesecond quarter of 2008. In the first half of 2009, net financialitems amounted to a loss of NOK 8.7 billion, compared to a gain ofNOK 3.4 billion in first half of 2008.As a result of introducing USD as the new functional currency in theparent company, StatoilHydro ASA, the US dollar denominatednon-current financial liabilities that impacted net foreign exchangegains and losses in prior periods, do not impact the income statementin 2009. Correspondingly, the Norwegian kroner denominated taxespayable impacting net foreign exchange gains and losses in 2009, didnot have such an impact on the income statement in prior periods.Translation differences arising from changes in the USDNOK exchangerates for USD denominated financial assets and liabilities translatedinto presentation currency of Norwegian kroner in consolidation havebeen recorded to other comprehensive income in equity.In the second quarter of 2009, net foreign exchange gains and lossesamounted to a loss of NOK 0.1 billion, compared to a NOK 0.7 billiongain in the second quarter of 2008. The NOK 0.8 billion increase incost is mostly attributable to the effects of the change infunctional currency.In the first half of 2009, net foreign exchange gains and lossesamounted to a loss of NOK 1.6 billion, compared to a NOK 4.1 billiongain in the first half of 2008. The NOK 5.7 billion increase in costis mostly attributable to the effects of the change in functionalcurrency.Interest and other financial expenses amounted to NOK 6.4 billion andNOK 1.9 billion in the second quarters of 2009 and 2008,respectively. The NOK 4.5 billion increase in cost is mostly relatedto a NOK 3.4 billion loss on derivative financial instruments in thesecond quarter of 2009, due to increased USD long term interest ratesand a loss related to impairment of the investment in the Pernisrefinery. There was a loss on derivative financial instruments of NOK0.8 billion in the second quarter of 2008.In the first half of 2009, interest and other financial expensesamounted to NOK 9.3 billion, compared with NOK 2.0 billion in thefirst half of 2008. The NOK 7.3 billion increase in cost is mostlyrelated to a NOK 5.1 billion loss on derivative financial instrumentsin the first half of 2009, due to increased USD long term interestrates and a loss related to impairment of the investment in thePernis refinery. There was no loss on derivative financialinstruments in the first half of 2008.Summarised, net financial items changed by NOK 4.3 billion fromsecond quarter of 2008 to second quarter of 2009, primarily due toNOK 4.2 billion from changes in the fair value of financialderivatives and to some extent due to a NOK 0.8 billion foreignexchange effect and the change in functional currency in particular.From the first half of 2008 to the first half of 2009, net financialitems changed by NOK 12.1 billion, primarily due to a NOK 5.1 billionchange in the fair value of financial derivatives and a NOK 5.8billion foreign exchange effect and a change in functional currencyin particular.Income taxes were NOK 19.5 billion in the second quarter of 2009,equivalent to a tax rate of 99.9%, compared to NOK 43.2 billion inthe second quarter of 2008, equivalent to a tax rate of 69.6%. Theincrease in the tax rate was mainly due to currency effects relatedto the change of functional currency for certain companies. Thesecompanies are taxable in other currencies than the functionalcurrency. In the second quarter of 2009 the taxable income was higherthan the income before tax, which increased the reported tax rate inthe quarter. In addition, the effective tax rate was increased byrelatively higher income from the NCS and impairments with lower thanaverage tax rate.In the second quarter of 2009, income before tax amounted to NOK 19.5billion, while taxable income was estimated to be NOK 3.6 billionhigher. This difference in taxable income arose in companies whichare taxable in other currencies than the functional currency.Adjusted earnings after tax excludes the effects of tax on financialitems, and represented a tax rate of 69.2% in the period, compared to70.3% in the second quarter of 2008.Income taxes were NOK 47.1 billion in the first half of 2009,equivalent to a tax rate of 92.2%, compared to NOK 82.5 billion inthe first half of 2008, equivalent to a tax rate of 70.2%. Theincrease in the tax rate was mainly due to currency effects relatedto the change of functional currency for certain companies. Thesecompanies are taxable in other currencies than the functionalcurrency. In the first half of 2009 the taxable income is higher thanthe Income before tax, which increases the tax rate in the firsthalf. In addition, the tax rate was increased by relatively higherincome from the NCS and impairments with lower than average taxrates.In the first half of 2009, income before tax amounted to NOK 51.1billion, while taxable income was estimated to be NOK 13.6 billionhigher than income before tax. This difference in taxable incomearose in companies which are taxable in a different currency than thefunctional currency. Adjusted earnings after tax excludes the effectsof tax on financial items, and represented a tax rate of 70.1% in theperiod, compared to 71.6% in the first half of 2008.1.2 OutlookStatoilHydro's guiding for equity production is 1,950 mboe per day in2009 and 2,200 mboe per day in 2012.* The estimate for 2009 excludesany adverse effects of potential Opec quotas. Operational regularity,gas offtake and commercial considerations related to gas salesactivities represent the most significant risks to the productionguidance.Maintenance activity is expected to influence our equity productionby 55-60 mboe per day in the third quarter of 2009, and around 30mboe per day for the full year.Capital expenditures for 2009, excluding acquisitions, are estimatedat around USD 13.5 billion. Approximately 50% of the forecastedinvestments for 2009 are related to new assets contributing to growthin oil and gas production, while one third is related to investmentsin currently producing assets, and the remainder in other activities.Unit production cost for equity volumes is estimated in the range ofNOK 33 to 36 per barrel in the period from 2009 to 2012, excludingpurchases of fuel and gas for injection. For 2009, the unitproduction cost is expected to be in the upper end of this range.StatoilHydro's ambition is to deliver a competitive ROACE comparedwith its peer group.Exploration drilling is the primary tool for growing our business.The company will continue to high-grade the large portfolio ofexploration assets and expects to maintain a high level ofexploration activity in 2009, although slightly lower than in 2008.StatoilHydro expects to complete around 70 exploration and appraisalwells in 2009 and the exploration activity is estimated to beapproximately USD 2.7 billion for 2009.The year 2008 was one of the most volatile periods seen recently inthe natural gas, product, gas liquid and crude oil markets. Weanticipate that these commodity prices will continue to be volatileat least in the near term.These forward-looking statements reflect current views about futureevents and are, by their nature, subject to significant risks anduncertainties because they relate to events and depend oncircumstances that will occur in the future. See "Forward-LookingStatements" below.1.3 Risk updateRisk factorsThe results of operations largely depend on a number of factors, mostsignificantly those that affect the price received in NOK forproducts sold. Specifically, such factors include the level ofliquids and natural gas prices, trends in the exchange rates, liquidsand natural gas production volumes, which in turn depend onentitlement volumes under profit sharing agreements and availablepetroleum reserves, StatoilHydro's, as well as our partners'expertise and co-operation in recovering oil and natural gas fromthose reserves, and changes in StatoilHydro's portfolio of assets dueto acquisitions and disposals.Financial risk managementStatoilHydro has policies in place to manage acceptable risk forcommercial and financial counterparties and the use of derivativesand market activities in general. StatoilHydro has so far had onlylimited exposure towards distressed parties and instruments. Theturmoil in the financial markets has not caused us to make anychanges in our risk management policies, but we have tightened ourpractices with respect to credit risk and liquidity management. Onlyinsignificant counterparty losses have been incurred so far. Thegroup's exposure towards financial counterparties is still consideredto have an acceptable risk profile, but it is anticipated that therisk may increase if the financial crisis worsens. This may besomewhat reduced by the effects of national and international actionsby nations and national banks.The markets for short- and long-term financing are currentlyconsidered to function comfortably for borrowers with StatoilHydro'scredit standing and general characteristics. However, under thecurrent circumstances uncertainty still exists. Funding costs forshort maturities are generally at historically low levels. Long-termfunding costs are at attractive absolute levels although the creditspread element for corporate issuers is still higher compared tolevels existing before the financial crisis. With regard to liquiditymanagement, focus is on finding the right balance between risk andreward and most funds are currently placed in short term AA- andAAA-rated non-Norwegian government certificates or with banks withAA-rating.In accordance with our internal credit rating policy, we reassesscounterparty credit risk at least annually and assess counterpartiesthat we identify as high risk more frequently. The internal creditratings reflect our assessment of the counterparties' credit risk andare similar to rating categories used by well known credit ratingagencies, such as Standard & Poor's and Moody's.1.4 Health, safety and the environment (HSE)The total recordable injury frequency was 3.7 in the second quarterof 2009 compared to 5.6 in the second quarter of 2008. The seriousincident frequency decreased from 2.1 in the second quarter of 2008to 1.9 in the second quarter of 2009. There were four fatalities inthe second quarter of 2009.The total recordable injury frequency was 4.1 in the first half yearof 2009 compared to 5.5 in the first half year of 2008. The seriousincident frequency rate decreased from 2.4 in the first half year of2008 to 2.1 in the first half year of 2009. There were fourfatalities in the first half of 2009. One fatality occurred when acontractor fell down when dismantling the scaffolding. ThreeStatoilHydro employees were onboard the Air France flight 447 whichdisappeared over the Atlantic.The number of accidental oil spills in the second quarter of 2009decreased compared to the second quarter of 2008, and the volumedecreased from 260 cubic metres in the second quarter of 2008 to 20cubic metres in the second quarter of 2009.The number of accidental oil spills in the first half of 2009 had aslight increase compared to the first half of 2008, but the volumesdecreased from 276 cubic metres in the first half of 2008 to 46 cubicmetres in the first half of 2009.1.5 Important eventsOn 1 April StatoilHydro and the Norwegian utility company, Statkraft,agreed to jointly develop the 315 MW Sheringham Shoal Offshore WindFarm off the coast of Norfolk in the UK.* On 2 April StatoilHydro's board sanctioned the Caesar Tonga Project in the Gulf of Mexico operated by Anadarko.* On 3 April StatoilHydro farmed into three North Sea licences located close to the Luno and Ragnarrock discoveries.* On 14 April StatoilHydro acquired a 40% stake in 50 blocks from BHP Billiton in the frontier DeSoto Canyon area of the US Gulf of Mexico.* On 16 April StatoilHydro executed debt capital market transactions issuing USD 500 million 3.875% Notes due April 2014, and USD 1500 million 5.25% Notes due April 2019.* On 20 April StatoilHydro made public the new logo "Statoil's new lodestar" which will adorn the group's installations and buildings after the name change from StatoilHydro to Statoil on 1 November 2009.* On 30 April the Norwegian Ministry of Petroleum and Energy announced that StatoilHydro was awarded 7 new production licences in the 20th licensing round, five of which are StatoilHydro operatorships.* On 6 May, StatoilHydro received first oil from the Chevron-operated Tahiti field in the US Gulf of Mexico.* On 7 May, an employee of STS, the contractor carrying out the scaffolding work at Oseberg B platform, died after an accidental fall. Investigations have been completed by the Petroleum Safety Authority Norway (PSA) and StatoilHydro, and measures are being implemented to prevent similar incidents in the future.* On 15 May Norway's National Authority for Investigation and Prosecution of Economic and Environmental Crime, ÿkokrim, informed that there will be no investigations related to the international activities of former Hydro Oil & Energy.* On 18 May StatoilHydro agreed with BPC Limited to become the operator of three offshore exploration licences, Zapata, Islamorada and Falcones in the Cay Sal area of the south-western Bahamas.* On 1 June StatoilHydro suffered three fatalities when the flight AF447 disappeared over the Atlantic ocean en route to Paris.* On 5 June StatoilHydro and Gazprom signed an Memorandum of Understanding (MoU) in St. Petersburg to jointly engage in geological exploration, development and production of hydrocarbon resources in northern regions of Russia and Norway.* On 18 June Einar Arne Iversen takes up the position as a new employee representative on the company's Board of Directors.* On 19 June the plan for development and operation (PDO) of Goliat in the Barents Sea and the Troll Modification Project was approved by the Norwegian parliament (Stortinget).* StatoilHydro enjoyed exploration successes in the period with 12 discoveries on the NCS and two internationally: On the NCS: PL029B Freke (April 6), PL309 Corvus S (April 23), PL052 Canon S (April 30), PL265 Ragnarrock P-Graben (May 13), PL120 Titan (May 13), PL362 Fulla sidetrack (May 25), PL312 Harepus (May 27), PL309 Corvus A (May 31), PL348 Gygrid (May 31), PL348 Gygrid sidetrack (June 13), PL326 Gro (June 20), and PL120 Titan sidetrack (June 26). Internationally: Mizzen offshore Newfoundland (April 8) and BL31 Oberon 1 offshore Angola (May 27).Subsequent important events:* On 1 July StatoilHydro and Scottish and Southern Energy have started some commercial operations at the Aldbrough gas storage facility in East Yorkshire in the UK.* On 2 July StatoilHydro's corporate assembly announced Jakob Stausholm as a new member of its Board of Directors.* On 7 July StatoilHydro started production from the Tyrihans oil and gas field in the Norwegian Sea.* On 8 July StatoilHydro entered into an agreement to acquire South Riding Point crude oil storage and transhipment terminal located in the Bahamas.* On 8 July StatoilHydro received first oil and gas delivery from the Murphy Oil operated Thunder Hawk field in Gulf of Mexico.* On 20 July production started at the Tune South satellite which is tied back to the Oseberg field centre.* On July 29 Anadarko Petroleum Corporation announced a discovery at the Vito exploration well in Mississippi Canyon in Gulf of Mexico. The well encountered around 80 metres of oil pay in subsalt Miocene sands. StatoilHydro has a 25% working interest in Vito.1.6To see end notes referenced in main table and text please downloadour complete report from our website -http://www.statoilhydro.com/en/investorcentre/results/quarterlyresults/pages/default.aspx*See end notes in the complete quarterely reportAttachments:- Press release- Financial statement and review- PresentationFurther information from:Investor relationsLars Troen Sørensen, senior vice president investor relations, + 4790 64 91 44 (mobile)Geir Bjørnstad, vice president, US investor relations, + 1 203 9786950PressKai Nielsen, public affairs manager, +44 2032043577 (mobile)http://hugin.info/132799/R/1332453/315578.pdfhttp://hugin.info/132799/R/1332453/315579.pdfhttp://hugin.info/132799/R/1332453/315580.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 04.08.2009 - 07:55 Uhr
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