Statoil loss widens in 3Q
Norwegian oil major Statoil has booked a bigger loss for the third quarter 2017 compared to the one posted a year ago while its revenues and production increased during the period.
Statoil on Thursday reported adjusted earnings of $2.3 billion in the third quarter, up from $0.6 billion in the same period in 2016. After tax, Statoil’s adjusted earnings amounted to $0.8 billion in the third quarter of 2017 up from negative $0.3 billion in the same period last year.
According to the company, higher prices for both oil and gas, solid operational performance with high production, strong liquids trading and refinery margins contributed to the increase.
IFRS net operating income was $1.1 billion in the third quarter compared to $0.7 billion in the same period of 2016. Net operating income was impacted by net impairments charges of $0.8 billion, mainly related to an unconventional onshore asset in North America of $0.9 billion, triggered by lower than expected production.
The oil company’s net loss deepened during the third quarter 2017 amounting to $480 million compared to a loss of $432 million in the corresponding period of 2016.
Statoil’s revenues increased during the third quarter 2017 totaling $13.6 billion compared to $12.1 billion in the same period last year.
In the third quarter 2017, Statoil delivered equity production of 2,045 mboe per day, an increase from 1,805 mboe per day in the same period in 2016. The increase was primarily due to increased flexible gas production on the Norwegian continental shelf due to higher prices, lower turnaround activity, ramp-up of new fields, additional well capacity, and continued strong operational performance. Adjusted for portfolio changes, the underlying production growth was 15% compared to the third quarter last year.
“In the quarter, we delivered 15% production growth and 11% reduction in underlying operating cost per barrel. In addition, we see strong contribution from our liquids trading and refining business,” says Eldar Sætre, President and CEO of Statoil.
“With an oil price below 52 dollars per barrel, we have generated 3.6 billion dollars in free cash flow so far this year, based on good contributions from all business segments. This has further strengthened our financial position,” said Sætre.
The company also said in its report on the Thursday that its organic capex guidance for 2017 was reduced by 1 billion dollars, to around 10 billion dollars. “We are getting more for less,” Sætre said.
Offshore Energy Today Staff