Statoil holds a press conference at Fornebu on the results at 08:00. Aftenposten update case consecutively.
– The decrease was mainly due to lower oil prices in the second quarter of 2015 compared with the same period last year, writes Statoil said in a statement.
Measured in Norwegian kroner were the average prices in the second quarter of this year 28 percent lower than the second quarter last year, according to the company.
Revenue for the oil company came at 124.4 billion kroner from 142.6 billion kroner last year.
The result before tax was NOK 24.3 billion, compared with NOK 33.2 billion last year.
Optimistic CEO
– Statoil delivered promising development in underlying operations with good production growth and high regularity in the second quarter, while reducing costs. Our financial performance was affected by capital gains and lower prices. We report an approximately neutral free cash flow after dividends and sales proceeds in the second quarter, says CEO of Statoil ASA, Eldar Saetre, reports Stavanger Aftenblad.
Adjusted earnings were NOK 22.4 billion in the second quarter, compared with NOK 32.3 billion in the same period in 2014. The decrease was mainly due to lower oil prices in the second quarter of 2015 compared with the same period last year. Average realized liquids prices in the quarter were 28% lower than the second quarter last year measured in Norwegian kroner.
Adjusted earnings after tax was NOK 7.2 billion compared with 9.9 billion in the same period last year , the company reported in a press release Tuesday morning.
Influenced by large sales
Statoil IFRS results for the second quarter was NOK 10.1 billion, compared with 12.0 billion in same period in 2014. IFRS profit was impacted by the gain on the sale of Shah Deniz project and the South Caucasus pipeline totaling 12.3 billion. Earnings per share were 3.15 million, down from 3.75 million in the same period last year.
– We continue our efforts to increase efficiency, enhance returns from our investments and reduce costs. Reduced operating costs on the Norwegian continental shelf and in our international operations and lower investments shows that the measures are effective. In June, we announced adjustments to the company’s organizational structure and operating model to strengthen our competitiveness even further, says Sætre.
Increased production
Despite the sale of assets, Statoil achieved a production of 1,873 million per day in the second quarter, an increase of 4% compared with the same period in 2014. The underlying production growth, after adjusting for sales was 7% in the second quarter of 2015 compared with last year.
Production from Norwegian Shelf increased by 7% in the second quarter of 2015 compared with the previous year. The increase was mainly due to the escalation of production in various fields, higher sales from the Norwegian continental shelf and lower maintenance compared with the second quarter of 2014. The expected natural decline and reduced holdings due to sales partly offset this increase. Equity production outside Norway was 724,000 boe per day, an increase of almost 4% adjusted for the sale of Shah Deniz project.
Two discoveries on the Norwegian shelf
Statoil made two discoveries on the Norwegian shelf in the second quarter. In July, Statoil announced a discovery in Julius prospect in King Lear area of the North Sea. Drilling is ongoing in three wells – one in the UK, one in Mexico and one in Canada. Statoil has also secured access to non-explored areas off the coast of Nicaragua and Myanmar. Adjusted exploration expenses for the quarter were 4.1 billion, an increase from 2.7 billion in the second quarter of 2014.
The downward revision in forecasts for 2015
In the first half of 2015, cash flow from operations 48.0 billion. Statoil maintains a strong financial position and net debt ratio was reduced to 22.4% at the end of the quarter. Capital expenditures were 7.8 billion USD in the first half, and the forecasts for 2015 have been revised downwards to about 17.5 billion USD due to the effects of the ongoing efficiency program and the exchange rate USD / NOK.
Change currency to dollar
With effect from the first quarter 2016 Statoil is amending its presentation currency to USD. The change is due to the company’s underlying exposure to USD and while adapting the reporting of comparable companies. As a result of the change of presentation currency Statoil will also determine its quarterly dividend in USD. Statoil announces dividend for the second quarter of 2015 in both US dollars and Norwegian kroner based on the exchange rate on 27 July 2015. From the third quarter will yield at reporting be published in USD, while the final dividend in NOK will be announced in advance of the payout.
Exclusive dividend on the Oslo Stock Exchange
The Board has decided to pay a dividend of $ 0.2201 per share, equivalent to 1.80 million, for the second quarter and Statoil share will be traded ex-dividend the Oslo Stock Exchange on 13 November 2015.
The rate of serious incidents (SIF) was 0.6 for the 12 months ended 30 June 2015, compared with 0.7 in the same period last year.
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