2016 Fourth quarter results – statoil.com usd eur conversion

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“In the current price environment, we delivered solid financial results from our Norwegian operations and from our marketing and trading activity. Our result was impacted by the negative result from our international operations due to expensed exploration wells, high maintenance activity and impairment charges canadian dollar in us dollar. We delivered strong production and solid operational performance across all segments in the quarter”, says Eldar Sætre, President and CEO of Statoil ASA.

“We achieved strong results from our improvement programme, 700 million dollars above our target of 2.5 billion dollars in annual savings. These are lasting effects, and we target an additional 1 billion dollars in 2017”, says Sætre.

Adjusted earnings were USD 1.664 billion in the fourth quarter, down 6% from USD 1.778 billion in the same period in 2015.


In the quarter we have expensed exploration wells capitalised in previous periods in the amount of USD 260 million, contributing to the reduction together with lower European gas prices stock connect morgan stanley. Higher liquids prices, strong delivery on the improvement programme and solid operational performance contributed positively to the results usd to rmb converter. Net operating income was negative USD 1.897 billion in the fourth quarter compared to positive USD 152 million in the same period of 2015. The result was impacted by USD 2.3 billion in net impairment charges mainly due to reduced long term price assumptions.

Adjusted earnings after tax were negative USD 40 million in the fourth quarter, down from positive USD 185 million in the same period last year.

Statoil delivered equity production of 2,095 mboe per day in the fourth quarter compared to 2,046 mboe per day in the same period in 2015. The increase was primarily due to ramp-up of new fields and strong operational performance usd trend. Excluding divestments, the underlying production growth was 2% compared to the fourth quarter last year.

As of year-end 2016, Statoil had completed 23 exploration wells. Adjusted exploration expenses in the quarter were USD 607 million, up from USD 490 million in the fourth quarter of 2015.

Cash flow from operations amounted to USD 10.7 billion after taxes paid for the full year of 2016 compared to USD 12.3 billion last year used book stores denver. Organic capital expenditure was reduced to USD 10.1 billion in 2016 due to improvement programme and strict capital discipline. Net debt to capital employed was 35.6% at year-end us dollar exchange rate to indian rupee today. In the fourth quarter the net debt ratio was impacted by impairments, currency effects, increase in working capital to capture higher margins, and the acquisition of BM-S-8 licence in Brazil.

For the full year 2016, the IFRS net operating income was USD 80 million and adjusted earnings were USD 4.070 billion pound to usd conversion rate. IFRS net income for the year was negative USD 2.902 billion.

The board of directors will propose to the annual general meeting (AGM) to maintain a dividend of USD 0.2201 per ordinary share for the fourth quarter, and continue the scrip programme giving shareholders the option to receive the dividend for the fourth quarter in cash or newly issued shares in Statoil at a 5% discount.

The twelve month average Serious incident frequency (SIF) was 0.8 at year-end 2016, compared to 0.6 last year. Statoil has presented investigation reports following serious incidents in the quarter and initiated measures to improve safety results.

Statoil has improved average break even for its next generation portfolio with planned start-up before 2022 to USD 27/boe with an average internal rate of return (IRR) of 25%, assuming USD 70/boe. Recoverable resources from this portfolio are 3.2 billion boe, and will deliver high value barrels and cash flow growth binary to decimal. For 2017 Statoil targets additional improvements of USD 1 billion on top of the already achieved USD 3.2 billion.

“We have reset our cost base, transformed our opportunity set, and we continue to chase improvements hex editor freeware. We have the financial capacity and are ready to invest in our next generation portfolio with radically improved break evens. With a sharpened high value, low carbon strategy, Statoil is well positioned for the long term and even more value driven in everything we do”, says Sætre.

Statoil has set clear principles for development of a distinct and competitive portfolio. Statoil will develop long-term value on the Norwegian continental shelf, deepen in core areas and develop new growth options internationally, and grow value creation in its marketing and midstream operations usd to zar. Statoil is one of the world’s most carbon-efficient producers of oil and gas, and will develop its low carbon advantage further. In addition, Statoil is creating a material industrial position within new energy, with the potential to constitute around 15-20% of investments by 2030.

• Statoil estimates 4-5% production growth to 2017 from rebased 2016 production and organic annual production growth of around 3% from 2016 to 2020


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