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Statoil Q1 adjusted earnings $4.4 billion

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Staff Writer | April 25, 2018
Statoil
Statoil   Adjusted earnings after tax were $1.5 billion

Statoil reported adjusted earnings of $4.4 billion and $1.5 billion after tax in the first quarter of 2018.

IFRS net operating income was $5.0 billion and the IFRS net income was $1.3 billion.

Adjusted earnings were $4.4 billion in the first quarter, up from $3.3 billion in the same period in 2017. Adjusted earnings after tax were $1.5 billion in the first quarter, up from $1.1 billion in the same period last year.

Higher prices for both oil and gas, coupled with high production, contributed to the increase. The USD/NOK exchange rate development, increased transportation costs, and increased royalty expenses from higher prices, contributed to a cost increase.

A change in depreciation basis for one of the fields on the Norwegian continental shelf increased adjusted depreciation expenses by more than $100 million.

Excluding the effect of new fields coming on stream, underlying operating costs and administrative expenses per barrel are stable from the same quarter last year.

IFRS net operating income was $5.0 billion in the first quarter compared to $4.3 billion in the same period of 2017. The increase was partially offset by reduced value of derivatives. IFRS net income was $1.3 billion, up from $1.1 billion in the first quarter of 2017.

Statoil delivered equity production of 2,180 mboe per day in the first quarter, an increase from 2,146 mboe per day in the same period in 2017.

The increase was primarily due to higher production in the US. The underlying production growth was more than 2% compared to the first quarter of 2017.

As of first quarter 2018, Statoil had completed seven exploration wells with two commercial discoveries. Adjusted exploration expenses in the quarter were $238 million, up from $202 million in the same quarter of 2017, mainly due to higher drilling activity.

Cash flows provided by operating activities before taxes paid and changes in working capital amounted to $7.1 billion for the first quarter of 2018 compared to $5.9 billion same period 2017. Organic capital expenditure was $2.1 billion for the first three months of 2018. End of quarter, net debt to capital employed was reduced from 29.0% to 25.1%, after value enhancing transactions.

The board of directors has decided on a dividend of $0.23 per share for the first quarter, on par with the boards proposal for increased dividend for the fourth quarter of 2017.

The twelve-month average Serious Incident Frequency (SIF) was 0.5 for the twelve months ended 31 March 2018, compared to 0.8 in the same period a year ago.


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