08/05/2012 07:40:00

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

Related content
21 May - 
Statoil ASA: Notifiable trading
20 May - 
Statoil ASA: Notifiable trading
19 May - 
Statoil ASA: Annual general meeting approves dividend o..

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

Notification of Transactions of Directors

22/05/2015 15:32:07
Intermediate Capital Group plc (the "Company") 22 May 2015 Notification of Transactions of Directors In accordance with the UK Financial Services Aut..

Holding(s) in Company

22/05/2015 13:38:48
For filings with the FSA include the annex   For filings with issuer..

Form 8.3 - Greene King plc

22/05/2015 10:49:20
FORM 8.3 PUBLIC OPENING POSITION DISCLOSURE/DEALING DISCLOSURE BY A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1% OR MORE ..

Most read news

  • 24 hours
  • 48 hours
  • 1 week
1
HFF closes $185.5 million sale of LaPlaya Beach Resort in Naples, Florida
2
HI-MEDIA :AVAILIBILITY OF THE REGISTRATION DOCUMENT
3
DEXION EQUITY ALTERNATIVE LIMITED - 4th Liquidation Distribution: Continuing Portfolio
4
DSV, 598 - Statement of insiders' trading in DSV shares
5
Saga Tankers ASA : DETAILED STOCK EXCHANGE ANNOUNCEMENT REGARDING PURCHASE OF SHARES IN S.D STANDARD DRILLING PLC

Related stock quotes

Statoil ASA 19.62 -1.8% Stock price decreasing
Statoil 150.70 -0.7% Stock price decreasing

Buy and sell signals

  • Trend
  • Moneymachine

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.
 
23 May 2015 17:25:05
(UTC) Dublin, Edinburgh, Lisbon, London
Version: LiveBranchBuild_20150519.1 - EUROWEB2 - 2015-05-23 18:25:05 - 2015-05-23 17:25:05 - 1000 - Website: OKAY