Statoil profit rises on higher oil and gas prices

Higher oil and gas prices and increased production helped the Norwegian oil and gas major Statoil, soon to be renamed Equinor, boost its profit for the first quarter of the year. 

In its report on Wednesday Statoil said that adjusted earnings were $4.4 billion in the first quarter, up from $3.3 billion in the same period in 2017. Adjusted earnings after tax were $1.5 billion in the first quarter, up from $1.1 billion in the same period last year.

According to the company, higher prices for both oil and gas, coupled with high production, contributed to the increase.

IFRS net operating income was $5 billion in the first quarter compared to $4.3 billion in the same period of 2017. The increase was partially offset by reduced value of derivatives.

IFRS net income was $1.3 billion, up from $1.1 billion in the first quarter of 2017.

Eldar Sætre, President and CEO of Statoil, commented on the quarter’s events: “In the quarter we have accessed attractive acreage in Brazil and the Gulf of Mexico, secured acreage for further developing our renewable business in Poland and taken over the operatorship for Martin Linge.

“This week, the world’s largest spar platform, arrived at the Aasta Hansteen field in the Norwegian Sea. In addition, Johan Sverdrup and our project portfolio are progressing according to plan and we have delivered the development plan for the Askeladd project for approval.”

Statoil delivered equity production of 2,180 mboe per day in the first quarter, an increase from 2,146 mboe per day in the same period in 2017. The increase was primarily due to higher production in the US. The underlying production growth was more than 2% compared to the first quarter of 2017.

Statoil’s organic capital expenditures for 2018 are estimated at around $11 billion. The company estimates a total exploration activity level of around $1.5 billion for 2018, excluding signature bonuses. Production for 2018 is estimated to be 1-2% above the 2017 level.

Offshore Energy Today Staff