Statoil ASA: 2016 second quarter results
(Thomson Reuters ONE) -
Statoil (OSE:STL, NYSE:STO) reports net operating income of USD 180 million and
adjusted earnings of USD 913 million in the second quarter of 2016.
The second quarter was characterised by
* Solid operational performance - while financial results are affected by low
prices
* Maintaining production guiding - lowering 2016 capex and exploration
guidance
* Continued focus on strict capital discipline
"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.
Key events since first quarter 2016:
* Following the helicopter accident on 29 April, Statoil initiated an
investigation to identify measures to improve Statoil's work on helicopter
safety on the NCS. The report is expected to be ready by the end of
September 2016
* Statoil entered into an agreement with Lundin Petroleum to divest its entire
15% interest in the Edvard Grieg field for an increased shareholding in
Lundin Petroleum AB, increasing the ownership to 20.1%
* In May Statoil introduced the scrip dividend programme, and at the end of
the subscription period 43% had selected shares with a 5% discount
* The Ministry of Petroleum and Energy awarded Statoil five licences in the
23rd licensing round, four operatorships and one partnership
* Statoil agreed to acquire JX Nippon's 45% equity share in, and operatorship
of, the UK licence for the Utgard field
* The Ministry of Petroleum and Energy has sanctioned the Plan for Development
and Operation (PDO) of Oseberg Vestflanken 2 field
Further information from:
Investor relations
Peter Hutton, Senior vice president Investor relations,
+44 7881 918 792 (mobile)
Morten Sven Johannessen, vice president Investor relations US,
+1 203 570 2524 (mobile)
Press
Bård Glad Pedersen, vice president Media relations,
+47 918 01 791 (mobile)
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
Press release 2nd quarter results 2016:
http://hugin.info/132799/R/2030902/755543.pdf
Presentation 2nd quarter 2016 Hans Jakob Hegge CFO:
http://hugin.info/132799/R/2030902/755544.pdf
Financial statements and review 2nd quarter 2016:
http://hugin.info/132799/R/2030902/755542.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Statoil via GlobeNewswire
[HUG#2030902]
Unternehmensinformation / Kurzprofil:
Datum: 27.07.2016 - 06:57 Uhr
Sprache: Deutsch
News-ID 485545
Anzahl Zeichen: 6911
contact information:
Town:
Stavanger
Kategorie:
Business News
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