Disappointing from Statoil in the third quarter – Aftenposten

The adjusted operating profit for the third quarter was nok 636 million dollars, against 2 billion dollars for the same period last year.

In an announcement type, the oil company that the quarter was characterised by continued weak markets.

The financial results were impacted by low oil and gas prices, comprehensive planned maintenance and expensed exploration wells from previous periods. We delivered solid performance with strong kostnadsforbedringer and make good progress in our projects, ” says president and ceo of Statoil ASA, Eldar Sætre.

the Result is characterised by sustained weak oil and gas markets. But we see clear signs that we are on the way to a better balance in the market, let Sætre.

Key performance indicators from the group’s income statement for the third quarter of 2016. Figures for the same period in 2015 in brackets.

* Operating income: 12.092 million dollars (13.614 million dollars).

* Operating profit (adjusted): 636 million dollars (2.027 million dollars)

* Earnings before taxes: 661 million dollars (963 million dollars)

Go with the deficit out

In advance, it was expected a lower result than from the corresponding period of last year, but the 636 million was still much less than expected.

Analysts had expected an adjusted profit of 957 million dollars.

the Company continues to lose money on the utenlandsvirksomheten. Here, the company had a deficit of 596 million dollars. In Norway ended the operating profit of nok 999 million. It is almost halved compared with the operating profit of nok 1.9 billion in the same period last year.

Cut exploration and investment costs

at the same time continuing Statoil to reduce the investment. Projections for the investment to be cut from 12 to 11 billion dollars. The outlook for exploration costs to be cut is reduced from 1.8 to 1.5 billion dollars.

the Reductions in investment and exploration costs was mainly due to cost reductions.

– We now have the laverste the costs we have had on the Norwegian dokkel since 2007, said Eldar Sætre during today’s press conference.

the Company is still waiting to increase production by 1 per cent also next year.

Hold back gas

the Company produced slightly less oil and gas in the third quarter compared with the same period last year. This is due, among other things, that the company has turned again gasskranene something to be able to sell gas at higher prices later.

– We prioritize the value ahead of volume, and if one looks at the curves for the gas prices points they weak up. We choose to push the gas forward in time within the flexibility produksjonstillatelsene gives us, ” says Sætre.

He would not specify how much gas the company is now holding again, but says volumes are “not insignificant”.

Increased accident frequency

the Day after Statoil chief Arne Sigve Nylund met at the petroleum safety authority norway (Psa) to explain why they have had a number of serious incidents with the risk of loss of life for two weeks, comes the company with an update on the ulykkesfrekvensen.

the Average frequency of serious events was 0.8 for the last twelve months to 30. september, up from 0.5 in the same period last year.

in The last month, Statoil has had seven serious incidents on the Norwegian continental shelf. Three of the cases the petroleum safety authority norway said that there was a danger that lives could be lost.

Six of the events have happened in October. Had these been included in the figures, had the statistics looked even worse off.

Search events

The most important thing for us is that it should be safe to work in Statoil, as this development is, we are not satisfied with, ” said Sætre.

He says the company is investigating all serious incidents, and will go thoroughly to work to find out about the events may have some connection with the powerful cost reductions Statoil has carried out in recent years.

The employees have long warned that the cuts can go out over the security on the socket.

the Rate of “serious incidents” has gone down the last few years, but the latest time levelled out, and increased in the last quarter.

– We will see if there are any contexts we that is not easy to see on the surface, ” said Sætre.

To the shareholders and the board of directors has decided to pay a dividend of 0,2201 dollars per ordinary share for the third quarter. The shareholders are given the choice between kontantutbetaling or acquisition of shares with discount.