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Statoil Q3 net operating income $737 million, capex down $1 billion

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Staff Writer | October 27, 2016
Statoil
Statoil   Adjusted earnings were $636 million

Statoil reported net operating income of $737 million and adjusted earnings of $636 million in the third quarter of 2016.

Net operating income was $737 million in the third quarter compared to $883 million in the same period of 2015. The reduction was primarily due to lower oil and gas prices, expensed exploration wells and lower refinery margins.

Continued progress on the improvement programme with reduced costs and strong operational performance contributing positively to the results.

Adjusted earnings were $636 million in the third quarter compared to $2.027 billion in the same period in 2015.

In addition to the continued low prices, the result reflects reduced overall operating costs mainly as a result of the on-going cost improvement initiatives.

Adjusted earnings after tax were negative $261 million in the third quarter, down from positive $445 million in the same period last year.

In the quarter we have expensed exploration wells capitalised in previous periods in the amount of $324 million. This is mainly related to two exploration wells in the Gulf of Mexico.

Statoil delivered equity production of 1,805 mboe per day in the third quarter compared to 1,909 mboe per day same period in 2015.

The reduction was primarily due to planned maintenance and deferral of gas sales. Excluding these elements and divestments, the underlying production growth was 5% compared to the third quarter last year.

As of 30 September 2016, Statoil had completed 21 exploration wells. Adjusted exploration expenses in the quarter were $581 million, up from $412 million in the third quarter of 2015.

Cash flow from operations amounted to $7.0 billion after tax in the first nine months of 2016 compared to $11.4 billion in the same period last year.

Statoil is lowering its capex guidance for 2016 from $12 billion to around $11 billion and its exploration guidance for 2016 from $1.8 billion to around $1.5 billion.

Production guidance remains unchanged, and expected annual organic production growth is 1% from 2014 to 2017.


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