2016 fourth quarter results
Statoil 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.