Statoil's 2Q Earnings Soar in 2011

- Statoil's 2Q Earnings Soar in 2011

Thursday, July 28, 2011
Statoil

Statoil's second quarter 2011 net operating income was NOK 61.0 billion, a 129% increase compared to NOK 26.6 billion in the second quarter of 2010. The quarterly result was mainly affected by a 32% increase in the average prices for liquids measured in NOK, a 28% increase in average gas prices, a NOK 8.8 billion gain related to the 40% Peregrino divestment and an 18% decrease in lifted volumes, when compared to the same period last year.

"Statoil delivered record net income in the second quarter of 2011, reflecting an operational performance in line with expectations, the value-creating Peregrino transaction and strong oil and gas prices throughout the period. Production was mainly impacted by previously announced extensive maintenance activities and seasonal variability in gas off-take. We continued to make progress within exploration and project developments in the quarter, staying on track to deliver future growth," says Helge Lund, Statoil's chief executive officer.

Net income in the second quarter of 2011 was NOK 27.1 billion ($5.01B) compared to NOK 3.1 billion in the same period last year. This result reflected higher prices for both liquids and gas, a gain on sale of asset of NOK 7.5 billion net of tax, reduced exploration expenses and higher net financial income, partly offset by reduced liftings. The tax rate for the quarter was 56%.

Adjusted earnings in the second quarter of 2011 were NOK 43.6 billion, compared to NOK 36.5 billion in the second quarter of 2010.

Adjusted earnings after tax were NOK 12.8 billion in the second quarter of 2011. Adjusted earnings after tax exclude the effect of tax on net financial items, and represent an effective adjusted tax rate of 71% in the second quarter of 2011.

Total equity production was 1,692 mboe per day in the second quarter of 2011 compared to 1,957 mboe per day in the second quarter of 2010.

Highlights since first quarter 2011:

• The sale of 40% of the Peregrino offshore field in Brazil was completed and a gain of NOK 8.8 billion before tax is recorded.
• Successful exploration drilling activities in Norway and internationally.
• The approval of the Plan for development and operation (PDO) for the Hyme field (formerly Gygrid) on the NCS.
• The approval of the Plan for development and operation of the Valemon gas and condensate field on the NCS.
• The announcement of the divestment of a 24.1% interest in the Gassled joint venture to Solveig Gas Norway AS.
• The approval of the Plan for development and operation for Visund South fast track on the NCS.
• Statoil awarded the contract for construction of two new specially designed category D drilling rigs.
• First shipment of Peregrino crude.
• Strengthened position in Eagle Ford through acquiring new leases.

Oil & Gas Post

Promote Your Page Too
LINK