LONDON (E24): Statoil released on Tuesday the results for the fourth quarter, the same day that the company holds its annual capital markets day for investors, analysts and the media in the british capital.
The adjusted results for the fourth quarter ended on 1,64 billion dollars before taxes, well below analysts ‘ expectation of 2,07 billion. It is also even weaker than one year ago when net income ended at 1.78 billion dollars.
After the tax ended the adjusted result of -40 million dollars, down from a positive result of 185 million dollars for one years ago. Analysts expected 614 million dollars in the plus.
There are new write-downs of 2.3 billion dollars (about 19 billion) in the fourth quarter that contributes the most to weighing the financial statements.
According to Statoil, the coming writedowns primarily that one has revised downwards the long-term prisprognosene is the basis for the company’s financial statements.
In today’s market, we delivered solid financial results from our Norwegian business and from trading and markedsføringsvirksomheten. The result was affected by the negative result from the international business which was due to expensing of exploration wells, high maintenance and depreciation. In the quarter, we delivered strong production and solid operational execution across all segments, ” says president and ceo of Statoil ASA, Eldar Sætre, in a statement.
– Good effect from the improvement program our gave annual savings of 700 million dollars over the goal of $ 2.5 billion. These are tangible improvements, and we’re aiming for a further $ 1 billion in savings in 2017, ” says Sætre further.
More production
Statoil increased production in the fourth quarter from 2,046 to 2,095 million barrels of oil equivalent per day, compared with the same period last year. It comes from a combination of new fields and the good operation, according to the company. Analysts expected a production of 2,068 million barrels.
Against the fourth quarter of last year, the company had a production growth of two per cent, adjusted for sales and acquisitions. From 2016 to 2020, expecting that the growth will remain at three per cent per year.
the Production for the whole of 2016 ended on 1,978 million barrels per day on average, up from 1,971 in 2015.
Even if prices began to increase for Statoil throughout the year, selling in average oil its mined in Norway for 39,4 per barrel last year, compared to 48,2 dollars the year before. Overseas, they sold in an average oil of 35,8 per barrel, down from 42,9 dollars the year before.
Statoil plans to invest 11 billion dollars in the year. It was also investeringsrammen in the last year, but the company ended at 10,1 billion. Read more about it and other strateginyheter here: Cut more costs than expected
NEW PRISPROGNOSER: This table shows Statoil’s price assumptions going forward. Compared to one year ago, they have screwed up prisprognosen for oil and gas in the year, but down for 2020 and later. Brent blend is the price of nordsjøolje, while the NBP and Henry Hub’s gas prices. While Statoil assumed an oil price of 83 barrels in 2020 think they are now at 75 dollars.
the gearing Ratio is rising – the yield is held fixed
Statoil’s debt ratio has risen sharply in the last couple of years, and at the end of last year, it had risen all the way to 35,6 per cent. When Statoil arranged a capital markets day for exactly one year ago, it had risen from 20 to 26,8 per cent from the year before that.
There was also one year ago that we launched the aksjeutbytteprogrammet his, which would last for two years. The application means is easily explained that the shareholders could choose to receive the proceeds of his in shares with a five percent discount.
Tuesday, reports Statoil that they maintain the level of dividends on 0,2201 dollars per share, and the utbytteaksjeprogrammet, according to the board’s proposals to the annual general meeting.
In October, reported Statoil has less than half of the dividend had been shares, and thus the company had “saved” 700 million dollars in payments. This amount has now increased to 960 million dollars for 2016 in the aggregate.
Statoil paid namely out 2.8 billion dollars in dividends in 2015, but “got away” with 1.8 billion last year because of aksjeutbytteprogrammet.
New years of loss
In 2015, Statoil expanded to 5.2 billion dollars (43 billion with the current course) with losses after tax, which was historic. In the third quarter of last year, the company delivered a result that was described by Trond Omdal at Pareto Securities as “all-time low”.
In 2016 ended with the deficit, but the deficit was however, reduced to 2.9 billion dollars (24 billion). The entire 2.8 billion of the deficit came in the fourth quarter due to writedowns and other costs.
in particular, It is abroad that Statoil’s struggling with the results. In Norway delivered the business namely an adjusted net loss of 1,97 billion dollars in the fourth quarter, compared to 1,87 billion expected. For the year, the result was still down from 8.6 to 5.4 billion.
Abroad increased the negative adjusted result from -1,5 to -2,6 billion dollars in the last year, and in the fourth quarter went -681 million dollars in minus. It is roughly on a par with the previous year, but far worse than analysts ‘ expectation of -172 million.
Statoil wrote down the values for 3.1 billion dollars in total in the fourth quarter, while other assets were written up in value with 825 million, so that nettoen be 2.3 billion.
Of the 3.1 billion was 2.3 billion written down in the international business. It is primarily to talk about skiferoljeressurser on land in the united STATES, the oil sands project that was sold and write-downs in the prospects that are not developed.
850 million dollars were written down in the business on the Norwegian continental shelf.
Statoil wrote at the same time the values of overseas 457 million dollars, and it comes from offshore fields in the Gulf of mexico, in addition to a not-named skiferfelt.
Statoil announced towards the end of last year that they sold out of the Kai Kos Dehseh oil sands in Canada (Leismer and the undeveloped Corner project) in exchange for 20 per cent of the shares in Athabasca Oil Corporation and a first payout of 323 million dollars, plus the subsequent payments.
This sale contributed alone with write-downs of nok 412 million (nok 3.4 billion) when the agreement was entered into. The actual transaction is recorded with effect from the first quarter of this year.
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