Press release first quarter results
May 2, 2013, 08:29 CEST
"We have delivered financial results impacted by lower production and reduced prices. We continue to deliver good industrial progress according to plan. As previously announced, production in 2013 will be lower than in 2012. We are on track to deliver 2-3% average annual production growth from 2012 to 2016 and production above 2.5 million barrels of oil equivalent per day in 2020," says Helge Lund, Statoil's president and CEO.
Statoil's president and CEO Helge Lund
In addition to the expected lower production in the quarter, production was impacted by operational disruptions at Snøhvit, Troll and Peregrino. Statoil's net operating income was also impacted by a provision related to the Cove Point terminal in the US. Adjusted earnings were down 28% compared to the first quarter 2012. The underlying cost development in the period is stable.
Statoil's cash flows provided by operating activities decreased by 19% compared to the first quarter of 2012, explained by the lower production and reduced prices.
"Statoil delivered record international production, with an increase of 6% mainly due to start-up and ramp-up of fields. We started production from new Norwegian continental shelf (NCS) fields, including four fast-track projects, and continued our exploration success by making a new high-impact discovery in Tanzania," says Lund.
Statoil completed 12 exploration wells in the first quarter - six on the NCS and six internationally - with seven discoveries: four on the NCS, two in Tanzania and one in the Gulf of Mexico. This gives a 58% success rate in the period.
On 19 April, Statoil also announced considerable additional resources in the Gullfaks licence in the North Sea, providing new volumes that can give high-value production in the short term as well as new and promising perspectives for the field and the installations.
"We continue to efficiently execute on our highly competitive project portfolio, while maintaining a firm financial framework, a predictable dividend to our shareholders and a solid balance sheet," says Lund.
First quarter results 2013
Statoil's net operating income was NOK 38.0 billion compared to NOK 57.9 billion in the first quarter of 2012.
Adjusted earnings were NOK 42.4 billion, compared to NOK 59.2 billion in the first quarter of 2012.
Adjusted earnings after tax were NOK 12.0 billion, compared to NOK 16.8 billion in the first quarter of 2012.
Net income was NOK 6.4 billion compared to NOK 15.4 billion in the first quarter of 2012.
Key events since fourth quarter 2012:
Statoil has initiated an investigation to determine the relevant chain of events before, during and after the In Amenas terrorist attack in order to enable the company to further improve within the areas of security, risk-assessment and emergency preparedness.
Production start-up from two of the three production trains at In Amenas.
Delivering continued good industrial progress, by selecting development concept for the Johan Castberg (formerly Skrugard) field in the Barents Sea and Bressay in the UK; putting four new fast-track projects on stream (Hyme, Vigdis, Skuld, Stjerne), and securing approval for the field development plans for Aasta Hansteen in Norway and the Mariner heavy oil field in the UK.
Revitalising Statoil's legacy position on the NCS, through a significant high-value discovery at Gullfaks in the North Sea and ramping up production from Skarv.
Continuing to develop into a leading exploration company, with a new high-impact discovery in Block 2 offshore Tanzania, bringing further robustness into a future decision on a potential LNG project; and continuing the appraisal program on the Johan Sverdrup field in Norway.
Building material positions in offshore clusters, securing 15 leases in the Gulf of Mexico lease sale, and signing a memorandum of understanding (MoU) with SOCAR to explore new Caspian acreage.
|FURTHER INFORMATION FROM|
|Hilde Merete Nafstad, senior vice president, Investor Relations||+47 957 83 911 (mobile)|
|Morten Sven Johannessen, vice president, Investor Relations USA||+1 203 570 2524 (mobile)|
|Jannik Lindbæk jr., vice president, Media Relations||+47 977 55 622 (mobile)|