08/05/2012 07:40:00

Statoil Profit Falls; Company Expects $17 Billion Capex In 2012

Related content
19 Mar - 
Statoil presents annual and sustainability reports for ..
18 Mar - 
Statoil: Election to Statoil's board of directors
17 Mar - 
Statoil: Notifiable trading

By Kjetil Malkenes Hovland

Of DOW JONES NEWSWIRES

OSLO -(Dow Jones)- Norwegian oil giant Statoil ASA (STO) said Tuesday it expects capital expenditures of around $17 billion in 2012, as it posted lower first-quarter earnings on the year.

The reduction was mainly due to one-off sales gains a year earlier as well as higher taxes, and was partly offset by higher net operating income.

Statoil's oil and gas production rose by 11.3% to 2.193 million barrels of oil equivalent a day in the first quarter, from 1.971 million barrels a day in the same period of 2011, helped by the start-up of production from Peregrino in Brazil, Pazflor in Angola and Gullfaks South Brent offshore Norway, as well as production from the Bakken field in the U.S. and higher gas sales from the Oseberg, Kvitebjorn and Troll fields.

Net profit in the three months to March 31 was 15.12 billion Norwegian kroner ($2.61 billion), compared with NOK15.98 billion a year earlier, and beating estimates of NOK14.99 billion.

"Statoil grew production by 11% and realised high oil and gas prices in the first quarter of 2012, generating strong financial results for the period," said Chief Executive Helge Lund in a statement, adding that production was as expected, and that the company maintains its guidance for 2012.

The company estimated equity production for 2012 to grow by around 3% compound annual growth rate, or CAGR, based on the actual 2010 equity production.

"Deferred gas production to create value, gas off-take, timing of new capacity coming on stream and operational regularity represent the most significant downside risks," Statoil said.

The company said it "has an ambition" to produce above 2.5 million barrels of oil equivalent in 2020, expecting 2% to 3% annual growth from new prospects in the period from 2014 to 2016, and 3% to 4% annual growth from projects on stream from 2016 to 2020.

The 2013 production is expected to be around the 2012 level, the company said.

Statoil expects to complete around 40 wells in 2012, with an exploration level similar to the 2011 level at around $3 billion, excluding signature bonuses.

Statoil continues to benefit from high oil prices, up about 12% on the year for North Sea Brent crude.

In the first quarter, Statoil made another discovery in the PL532 license in the Barents Sea, Havis, in the same license as the 2011 Skrugard discovery. The Havis discovery was estimated to hold 200 million to 300 million barrels of recoverable oil equivalents.

Shares closed Monday at NOK150.70, valuing the company at NOK480.5 billion, up 3.1% from six months ago.

-By Kjetil Malkenes Hovland, Dow Jones Newswires: +47 902 27 908; kjetilmalkenes.hovland@dowjones.com

(END) Dow Jones Newswires

May 08, 2012 02:40 ET (06:40 GMT)

Copyright (c) 2012 Dow Jones & Company, Inc.

Post comment

Related debate

  • 1 week
  • 1 month
  • 1 Year
Ingen indlæg

Regulatory news

Tech Companies Send Criticism Along With NSA-Related Data -- Update

04/02/2014 00:06:00
By Danny Yadron Technology companies including Google Inc. and Microsoft Corp. released new figures on the amount of data requests they received from U.S. ..

#

EuroInvestor: In Focus
#

#

EuroInvestor: In Focus
#

Most read news

  • 24 hours
  • 48 hours
  • 1 week
1
GOGL - KNIGHTSBRIDGE SHIPPING LIMITED ANNOUNCES CLOSING OF THE MERGER WITH GOLDEN OCEAN GROUP LIMITED
2
Annual financial statement for 2014: Significant growth with LOQTEQ® (+63%) leads to expansion of trauma business (+27%)
3
Cnova N.V. Publishes 2014 U.S. Annual Report on Form 20-F
4
VLCCF - KNIGHTSBRIDGE SHIPPING LIMITED ANNOUNCES CLOSING OF THE MERGER WITH GOLDEN OCEAN GROUP LIMITED
5
Corning Completes Acquisition of Samsung Electronics' Fiber Optics Business

Related stock quotes

Statoil ASA 17.59 0.0% Stock price unchanged
Statoil 144.20 1.1% Stock price increasing

Copyright Euroinvestor A/S 2015   Disclaimer and Terms of Use
Quote information is delivered by Interactive Data.
Data is delayed 15-20 minutes according to the distribution agreements set by the different exchanges.
 
01 April 2015 11:36:05
(UTC) Dublin, Edinburgh, Lisbon, London
Version: LiveBranchBuild_20150325.1 - EUROWEB7 - 2015-04-01 12:36:05 - 2015-04-01 11:36:05 - 1000 - Website: OKAY