Statoil: 2012 fourth quarter results

Thu Feb 7, 2013 1:38am EST

* Reuters is not responsible for the content in this press release.

  STAVANGER, NORWAY, Feb 07 (Marketwire) -- 
Fourth quarter and preliminary 2012 Operating and Financial review

    Statoil's (OSE:STL, NYSE:STO) fourth quarter 2012 net operating income was
NOK 45.8 billion. In 2012, net operating income was NOK 206.6 billion.

    Statoil delivered equity production of 2,004 mboe per day in 2012,
increased by 8% from 1,850 mboe per day in 2011. Adjusted earnings
increased by 7% to NOK 193.2 billion in 2012, from NOK 179.9 billion in
2011. Statoil achieved an organic reserve replacement ratio (RRR) of 1.1
in 2012.

    "2012 was a year of strong strategic and operational progress for Statoil.
We grew our production by 8% in 2012, in line with the target we
announced in 2011, and we deliver strong earnings growth. We are well
underway to deliver profitably on our ambition of producing more than 2.5
million barrels of oil equivalents per day in 2020," says Helge Lund,
Statoil's president and CEO.

    "Statoil's strategy remains firm. We continue our strong exploration
performance, adding more than 1.5 billion barrels in new resources, and we
are maturing our high quality project portfolio, including the Johan
Sverdrup and Skrugard fields. We continue to manage our balance sheet and
enter 2013 from a robust financial position," says Lund.

    Statoil's Board of Directors will propose to increase the dividend to NOK
6.75 per share for 2012. This is in line with the company's dividend
policy and an increase from NOK 6.50 in 2011.

    Statoil maintains its ambition of producing more than 2.5 million barrels
of oil equivalents per day by 2020 and estimates organic capital
expenditures for 2013 at around USD 19 billion. The company will complete
around 50 exploration wells in 2013 with a total exploration activity
level at around USD 3.5 billion.

    Terror attack in Algeria

    On 16 January 2013, Statoil together with our partners BP and Sonatrach,
were hit by a terror attack on the In Amenas gas production facility in
Algeria. Five esteemed and dear Statoil-colleagues lost their lives in
the attack. Twelve of our employees managed to escape to safety. Many
colleagues from partners and suppliers are confirmed dead or remain
unaccounted for.

    "What happened in Algeria is brutal, international terrorism of the worst
kind. This affects innocent people from a variety of nations and innocent
victims from a number of companies and countries have been subjected to
senseless violence. The whole of Statoil is strongly affected by the
terror attack. We continue to assist and support the families, friends
and colleagues who have lost those dear to them. The safety of our staff
and partners will remain our highest priority," says Lund.

    Statoil will conduct an investigation to determine the relevant chain of
events before, during and after the In Amenas terror attack in order to
enable Statoil to further improve within the areas of security,
risk-assessment and emergency preparedness.

    Capital Markets Update

    Today, Statoil presents the Capital Markets Update, focusing on our
position as the leading oil and gas operator in Norway and the second
largest gas supplier to Europe.

    "On the Norwegian continental shelf, we announce that we are on track to
meet our ambition of producing more than 1.4 million barrels of oil
equivalents per day in 2020," says Lund.

    "We also announce that Statoil's gas sales in the European markets were
all-time high in 2012, at solid prices. We see a strong outlook for the
European gas markets and are well positioned to capture value as the
markets develop," says Lund.

    Statoil also announces today increased gas volumes for the Block 2
discoveries offshore Tanzania to 7-9 Tcf in total recoverable resources.

    Fourth quarter results 2012

    Statoil's net operating income was NOK 45.8 billion compared to NOK 60.7
billion in the fourth quarter of 2011.

    Adjusted earnings were NOK 48.3 billion, compared to NOK 45.9 billion in
the fourth quarter of 2011.

    Adjusted earnings after tax were NOK 15.1 billion, up from NOK 14.5
billion in the fourth quarter of 2011.

    Net income was NOK 13.0 billion compared to NOK 25.5 billion in the fourth
quarter of 2011.

    Key events since third quarter 2012

     * Creating value from a superior gas position, by entering into a
long-term  gas sales agreement with Wintershall for the delivery of a
total of 45  billion cubic meters (bcm) to the German and other
North-West European  markets.

     * Building new growth on the NCS through submission of the Dagny and
Aasta  Hansteen development plans (PDO), start-up of Visund South and
approval of  the Svalin fast-track development.

     * Building material positions in offshore business clusters, by
investment  decisions to develop the Mariner oil field (Statoil-operated)
in the UK  North Sea and the Hebron development project offshore Canada.

     * Continuing the development of Statoil as a leading global exploration 
company, by making a third discovery offshore Tanzania, adding additional
 acreage in the Espirito Santo Basin offshore Brazil, and added barrels to
 the Johan Sverdrup field.

     * Continuing portfolio management and expanding in unconventionals,
through  the acquisition of around 70,000 operated net acres in the
liquid rich part  of the central Marcellus area.

     * Further strengthening our financial position through the execution of
USD 2  billion in debt capital market transactions at highly competitive
terms.

    This information is subject of the disclosure requirements pursuant to
section 5-12 of the Norwegian Securities Trading Act.

    4th quarter 2012 Press release:
http://hugin.info/132799/R/1676231/546270.pdf

    4th quarter 2012 Financial statements and review:
http://hugin.info/132799/R/1676231/546269.pdf

    Capital Markets Update 4th quarter and full year 2012 Strategy update:
http://hugin.info/132799/R/1676231/546299.pdf

    This announcement is distributed by Thomson Reuters on behalf of Thomson
Reuters clients. The owner of this announcement warrants that:

    (i) the releases contained herein are protected by copyright and  other
applicable laws; and

    (ii) they are solely responsible for the content, accuracy and 
originality of the information contained therein.

    Source: Statoil via Thomson Reuters ONE

    [HUG#1676231]

Further information from:

Investor relations
Hilde Merete Nafstad
Senior Vice President Investor Relations
+ 47 957 83 911(mobile)

Morten Sven Johannessen
Vice President Investor Relations USA
+ 1 203 570 2524 (mobile)

Press
Jannik Lindbaek jr
Vice President for Media Relations
+ 47 977 55 622 (mobile)

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