A stronger Statoil

May 14, 2001, 01:00 CEST

A profit of NOK 15.4 billion before financial items, tax and minority interests was recorded by Statoil for the first quarter of 2001. Net profit came to NOK 4.3 billion.

These figures are up by NOK 2 billion and NOK 700 million respectively from the same period of 2000. The improvement primarily reflects higher gas prices and progress by the Manufacturing & Marketing business area.

“Our first-quarter results are good,” says chief executive Olav Fjell. “And acquiring assets from the state’s direct financial interest (SDFI) will further strengthen us.

“That creates a good basis for the process of introducing additional owners to Statoil. A stock market listing will be important for the continued development of our business.”

Mr Fjell notes that high gas prices boosted the results by comparison with the first quarter of last year.

“Our cost-cutting programme is continuing to have a positive effect, but total costs on the Norwegian continental shelf are rising because new fields have come on stream.

“We have continued our restructuring, and agreed a sale of our interest in Malaysia’s Melaka refinery. A letter of intent was also signed recently on the sale of our business in Vietnam.”

In connection with its forthcoming stock market listing, Statoil has converted to the US generally-accepted accounting principles (UGAAP).

Accounts for earlier periods have been revised to reflect the purchase of SDFI assets. The group is paying NOK 38.6 billion for 15 per cent of the SDFI, financed from its own funds, loans and the issue of new shares.

Following the revision, profit before financial items and tax in 2000 comes to NOK 60 billion in 2000 as against NOK 17.6 billion the year before.

Net profit came to NOK 16.2 billion last year compared with NOK 6.4 billion in 1999, with the return on capital employed rising from 6.4 per cent to 18.7 per cent in 2000.

Quarterly accounts for the Statoil group

Figures in NOK million

1st quarter 2001
1st quarter 2000
Operating revenues
50 844
54 739
- Exploration & Production Norway
10 489
10 764
- International Exploration & Production
556
313
- Manufacturing & Marketing
1 333
489
- European Gas
3 284
1 981
- Other
(219)
(186)

Profit before financial items, tax and minority interests
15 443
13 361

Net profit
4 328
3 613

Return on capital employed, annual basis
19.2%
16.9%



Income statement for the Statoil group
Figures in NOK million

2000
1999
Operating revenues
230 425
150 132
- Exploration & Production Norway
46 715
16 841
- International Exploration & Production
773
(1 995)
- Manufacturing & Marketing
4 559
(1 754)
- European Gas
7 893
5 052
- Other
51
(565)

Profit before financial items, tax and minority interests
59 991
17 578

Net profit
16 153
6 409

Return on capital employed
18.7%
6.4%

A more detailed overview can be found on the Norwegian version of the Statoil net site at www.statoil.com.