STAVANGER, NORWAY--(Marketwire - Oct 26, 2012) -
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 up
new
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 2020,
with
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 increase.
Statoil has further strengthened its financial position, and the company
now
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,"
says Lund.
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% from
1,764
mboe per day in the same period in 2011.
Adjusted earnings were NOK 40.0 billion in the third quarter, down 7% from
NOK
43.1 billion in the third quarter last year.
Adjusted earnings after tax were NOK 11.9 billion, compared to NOK 11.4
billion
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 revitalising
the
NCS with high-value barrels: Signed agreement with Wintershall to exit the
Brage license, farm down Gjøa 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
develop new insights and technologies on improved oil recovery (IOR).
* Applying technology to increase recovery: Sanctioned four IOR projects
on
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 the
Johan
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:
Started
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 the UK.
This information is subject of the disclosure requirements pursuant to
section
5-12 of the Norwegian Securities Trading Act.
Press release Results 3rd quarter 2012:
http://hugin.info/132799/R/1652627/533546.pdf
Financial statements and review 3rd quarter 2012:
http://hugin.info/132799/R/1652627/533545.pdf
Presentation 3rd quarter 2012 Torgrim Reitan CFO:
http://hugin.info/132799/R/1652627/533547.pdf
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Source: Statoil via Thomson Reuters ONE
[HUG#1652627]