Higher oil prices boost Statoil’s 1Q earnings
- Business & Finance
Norwegian oil firm Statoil reported a net income for the first quarter of 2017 of $1,06 billion, an increase from $611 million a year ago.
The company’s adjusted earnings were $3,3 billion in the first quarter, up from $857 million in the same period in 2016.
Statoil said the improved results for the quarter were due to higher prices for both oil and North American gas, solid operational performance with high production and continued progress on improvement initiatives contributed to the increase.
Eldar Sætre, President and CEO of Statoil said: “Our solid financial result and strong cash flow across all segments was driven by higher prices, good operational performance and an organic production growth of 5%. Our production from the Norwegian Continental Shelf was at its highest level in five years, driven by high regularity and ramp-up of new fields.”
He said Statoil’s international portfolio delivered positive results and cash flow per barrel after tax “on par with our Norwegian portfolio.”
Sætre said Statoil continued to capture efficiency gains and is on track to deliver an additional billion dollars in annual improvements in 2017.
“We delivered seven discoveries from nine exploration wells drilled during first quarter. Many of these can be quickly put into profitable production. We are also about to start our exploration programme in the Barents Sea, testing several new opportunities over the next six months. In the quarter, we received approval for three plans for development and submitted additional two projects for approval by Norwegian authorities, showing commitment to industrial development on the NCS,” Sætre added.
Statoil delivered equity production of 2,146 mboe per day in the first quarter, an increase from 2,054 mboe per day in the same period in 2016. The increase was primarily due to ramp-up of new fields, increased gas offtake and solid operational performance.
Excluding divestments, the underlying production growth was 5% compared to the first quarter last year. Adjusted exploration expenses in the quarter were $ 202 million, down from $280 million in the first quarter of 2016.Scheduled maintenance activity is estimated to reduce quarterly production by approximately 75 mboe per day in the second quarter of 2017.
In total, maintenance is estimated to reduce equity production by around 30 mboe per day for the full fiscal year 2017.
Offshore Energy Today Staff