08/05/2012 07:40:00

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

Related content
05 Dec - 
Statoil ASA: Subscription price set for the Dividend Is..
21 Nov - 
Statoil ASA: Commencement of subscription period for th..
21 Nov - 
Statoil ASA: Commencement of subscription period for th..

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

Appointment of Joint Corporate Broker

05/12/2016 15:00:33
Appointment of Joint Corporate Broker Stagecoach Group plc is pleased to announce that RBC Capital Markets has been appointed Joint Corporate Brok..

Rathbones : Form 8.3 - [Alternative Networks PLC]

05/12/2016 12:06:02
FORM 8.3 PUBLIC OPENING POSITION DISCLOSURE/DEALING DISCLOSURE BY A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1% OR MORE ..

HSBC Bank Plc : Form 8.5 (EPT/RI) - Brammer PLC

05/12/2016 10:32:18
FORM 8.5 (EPT/RI) PUBLIC DEALING DISCLOSURE BY AN EXEMPT PRINCIPAL TRADER WITH RECOGNISED INTERMEDIARY STATUS DEALING IN A CLIENT-SERVING CAPACITY ..

Most read news

  • 24 hours
  • 48 hours
  • 1 week
1
Bristol is Open Wins Internet of Things Award for Programmable City Initiative
2
Form 8 (OPD) - Alternative Networks plc
3
The Eye Doctors Host an Event on December 7 to Celebrate the Launch of Their Men’s Premier Red Bull Eyewear Line
4
Form 8.5 (EPT/RI) - Alternative Networks plc - AMENDMENT
5
Karyopharm Presents Updated Phase 1b STOMP Data at the American Society of Hematology 2016 Annual Meeting

Related stock quotes

Statoil ASA 17.72 0.0% Stock price unchanged
Statoil 148.50 -0.3% Stock price decreasing

Buy and sell signals

  • Trend
  • Moneymachine

Copyright Euroinvestor A/S 2016   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.
 
06 December 2016 10:17:13
(UTC+00:00) Dublin, Edinburgh, Lisbon, London
Version: LiveBranchBuild_20161205.1 - EUROWEB1 - 2016-12-06 11:17:13 - 2016-12-06 10:17:13 - 1000 - Website: OKAY