Statoil ASA: 2016 fourth quarter results
(Thomson Reuters ONE) -
Statoil (OSE:STL, NYSE:STO) reports adjusted earnings of USD 1.664 billion and a
negative IFRS net operating income of USD 1.897 billion in the fourth quarter of
2016. The IFRS net income was negative USD 2.785 billion.
The fourth quarter results were characterised by:
* Solid results from the Norwegian continental shelf with high production
regularity and the lowest cost level in a decade
* Strong marketing and trading results
* Negative results from the international segment, impacted by expensed
exploration wells and high maintenance activity
* Cost improvements of USD 3.2 billion, USD 700 million above target
* Solid cashflow, around USD 900 million positive after taxes paid, dividend
and organic investments
* High impairment charges, mainly as a result of reduced long term price
assumptions
"In the current price environment, we delivered solid financial results from our
Norwegian operations and from our marketing and trading activity. Our result was
impacted by the negative result from our international operations due to
expensed exploration wells, high maintenance activity and impairment charges. We
delivered strong production and solid operational performance across all
segments in the quarter," says Eldar Sætre, President and CEO of Statoil ASA.
"We achieved strong results from our improvement programme, 700 million dollars
above our target of 2.5 billion dollars in annual savings. These are lasting
effects, and we target an additional 1 billion dollars in 2017," says Sætre.
Adjusted earnings were USD 1.664 billion in the fourth quarter, down 6% from USD
1.778 billion in the same period in 2015. In the quarter we have expensed
exploration wells capitalised in previous periods in the amount of USD 260
million, contributing to the reduction together with lower European gas prices.
Higher liquids prices, strong delivery on the improvement programme and solid
operational performance contributed positively to the results. Net operating
income was negative USD 1.897 billion in the fourth quarter compared to positive
USD 152 million in the same period of 2015. The result was impacted by USD 2.3
billion in net impairment charges mainly due to reduced long term price
assumptions.
Adjusted earnings after tax were negative USD 40 million in the fourth quarter,
down from positive USD 185 million in the same period last year.
Statoil delivered equity production of 2,095 mboe per day in the fourth quarter
compared to 2,046 mboe per day in the same period in 2015. The increase was
primarily due to ramp-up of new fields and strong operational performance.
Excluding divestments, the underlying production growth was 2% compared to the
fourth quarter last year.
As of year-end 2016, Statoil had completed 23 exploration wells. Adjusted
exploration expenses in the quarter were USD 607 million, up from USD 490
million in the fourth quarter of 2015.
Cash flow from operations amounted to USD 10.7 billion after taxes paid for the
full year of 2016 compared to USD 12.3 billion last year. Organic capital
expenditure was reduced to USD 10.1 billion in 2016 due to improvement programme
and strict capital discipline. Net debt to capital employed was 35.6% at year-
end. In the fourth quarter the net debt ratio was impacted by impairments,
currency effects, increase in working capital to capture higher margins, and the
acquisition of BM-S-8 licence in Brazil.
For the full year 2016, the IFRS net operating income was USD 80 million and
adjusted earnings were USD 4.070 billion. IFRS net income for the year was
negative USD 2.902 billion.
The board of directors will propose to the annual general meeting (AGM) to
maintain a dividend of USD 0.2201 per ordinary share for the fourth quarter, and
continue the scrip programme giving shareholders the option to receive the
dividend for the fourth quarter in cash or newly issued shares in Statoil at a
5% discount.
The twelve month average Serious incident frequency (SIF) was 0.8 at year-end
2016, compared to 0.6 last year. Statoil has presented investigation reports
following serious incidents in the quarter and initiated measures to improve
safety results.
Capital markets update
Today, Statoil presents its strategy to capitalise on high value opportunities
to the capital market, focusing on three priorities:
* Investing in our next generation portfolio with radically improved break
evens
* Maintaining financial capacity, with a clear funding visibility and the
ability to be cash flow positive at USD 50/boe in 2017
* Pursuing our sharpened high value, low carbon strategy
Statoil has improved average break even for its next generation portfolio with
planned start-up before 2022 to USD 27/boe with an average internal rate of
return (IRR) of 25%, assuming USD 70/boe. Recoverable resources from this
portfolio are 3.2 billion boe, and will deliver high value barrels and cash flow
growth. For 2017 Statoil targets additional improvements of USD 1 billion on top
of the already achieved USD 3.2 billion.
"We have reset our cost base, transformed our opportunity set, and we continue
to chase improvements. We have the financial capacity and are ready to invest in
our next generation portfolio with radically improved break evens. With a
sharpened high value, low carbon strategy, Statoil is well positioned for the
long term and even more value driven in everything we do," says Sætre.
Statoil has set clear principles for development of a distinct and competitive
portfolio. Statoil will develop long-term value on the Norwegian continental
shelf, deepen in core areas and develop new growth options internationally, and
grow value creation in its marketing and midstream operations. Statoil is one of
the world's most carbon-efficient producers of oil and gas, and will develop its
low carbon advantage further. In addition, Statoil is creating a material
industrial position within new energy, with the potential to constitute around
15-20% of investments by 2030.
Furthermore, Statoil announces its updated outlook for 2017-2020:
* Statoil will invest around USD 11 billion organically in 2017
* Statoil estimates 4-5% production growth to 2017 from rebased 2016
production and organic annual production growth of around 3% from 2016 to
2020
* The exploration activity in 2017 will be around USD 1.5 billion
Further information from:
Investor relations
Peter Hutton, Senior vice president Investor relations,
tel +44 7881 918 792 (mobile)
Morten Sven Johannessen, vice president Investor Relations North America,
tel +12035702524 (mobile)
Press
Bård Glad Pedersen, vice president Media relations,
tel +47 918 01 791 (mobile)
This information is subject to the disclosure requirements pursuant to section
5 -12 of the Norwegian Securities Trading Act.
4th quarter 2016 press release:
http://hugin.info/132799/R/2076328/780862.pdf
CEO and CFO presentations 4Q 2016 and Capital Markets Update:
http://hugin.info/132799/R/2076328/780863.pdf
4th quarter 2016 Financial statements and review:
http://hugin.info/132799/R/2076328/780861.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Statoil via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 07.02.2017 - 06:43 Uhr
Sprache: Deutsch
News-ID 522302
Anzahl Zeichen: 8378
contact information:
Town:
Stavanger
Kategorie:
Business News
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