Statoil has bought expensive abroad – Aftenposten

Statoil gained in the first three months barely 23 billion on operations of the company, compared with 46 billion in the same quarter last year.

It is dramatic when a company’s operating profit will be more than halved. But that’s no surprise.

Anyone who has followed the price of oil, could largely figure this out for yourself.

But Statoil fresh CEO Eldar Saetre delivered Thursday, the 2nd News that no one could figure out in advance. He gave us an insight into how much less valuable the company’s investments in oil and gas fields are – as Statoil sees the world.

Eating up the profits

The fall in oil prices has given Statoil to change your mind about the prices and the profits the company can count on in the future. And if a field is expected to yield less income in the future, yes, it is also worth less.

Therefore, writing down the value of Statoil’s oil and gas fields with 48 billion. This loss of value is more than enough to eat up the profits Statoil has on ongoing operations.

In other words, Statoil suffered from losses in the first quarter. Net profit (after tax) was a deficit of 35 billion.

Impairments abroad explains loss

The most instructive message from Eldar Saetre yesterday was that most of the major depreciation applies fields overseas, especially in North America.

He could have said it more clearly: The outlook for US fields, such Statoil even see it, justifies today not the price the company originally paid.

Statoil investments on the Norwegian shelf are of course less valuable if oil prices in the future will be lower, so Statoil now think. But it hardly seems in the accounts. The reason is that Statoil still believe that the proceeds from these fields in the coming years will cover the costs the company has had to develop the fields. And then says accounting rules that the company will not have to post the loss.

The image can be summed up in a different way: The group has been willing to pay more to acquire fields in North America than it has cost to develop fields on the Norwegian continental shelf.

This is important information that we get by reading Statoil accounts.

Lessons for all

Made and made and eaten is eaten. Yesterday Eldar Saetre keen to stress how well positioned the company for future, even outside our borders.

But time and again, and in industry after industry, it appears that companies are betting for fresh and with poorer knowledge when they move into new areas, far from home.

Often this is not easy to read the financial statements – before time turns.

And if something Statoil’s quarterly accounts tell, it’s just that: The times in the oil industry has improved.

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Published: 30.apr. 2015 11:32