Statoil sees profits slide

Statoil posted a net profit Nkr6.4 billion ($1.1 billion) for the three months to 31 March, down from a net income of Nkr15.4 billion during the same period last year.

The fall in profits came as revenue dropped 22% to Nkr47.9 billion in the first quarter, compared to Nkr61.8 billion during the first quarter of 2012.

Oslo-listed Statoil’s share price took a battering as the market showed its disappointment over the weak result, falling more than 3% to Nkr136, having dropped over the past year by almost 7% from an earlier high of Nkr155.

Analyst Henrik Madsen of Swedbank First Securities said the company’s adjusted earnings before interest and tax of Nkr42.2 billion – a drop of 28% on the previous year - were 10% below the firm's own estimate and 11% short of consensus.

Revenue was hit by a 15% decline in production which averaged about 1.3 million barrels of oil equivalent per day during the first quarter of the year.

Statoil said the majority of the fall in production was attributable to its lower ownership share in the Kvitebjorn field compared to a year ago, as well as natural decline at its mature fields.

Statoil noted that the terrorist attack at the In Amenas facility in Algeria earlier this year, which cost nearly 80 lives, resulted in a roughly 13,600 boepd decrease in overall production.

Also hitting output were compressor challenges at Troll and prolonged shutdown at Snohvit, off Norway.

Compounding the effects of the fall in overall production was a drop in prices compared to the first quarter of 2012.

Statoil achieved an average liquids price of $103.5 per barrel during the first quarter of the year, down 7% on the $111.5 per barrel average during the same period last year.

Averaged invoiced gas prices were also down 11% year-on-year, with the company achieving an average price of Nkr2.01 per standard cubic metre.

Statoil noted that the divestment of its fuel and retail segment in the second quarter of last year also contributed to the year-on-year decline in revenue in the first quarter of 2013.

These factors were partly offset by the ramp up of new fields and an overall rise in international production.

"Statoil delivered record international production,with an increase of 6% mainly due to start-up and ramp-up of fields,” Statoil chief executive Helge Lund said.

“We started production from new [Norwegian Continental Shelf] fields, including four fast-track projects, and continued our exploration success by making a new high impact discovery in Tanzania."

The company has previously stated that it expects output this year to be down on 2012 but is aiming to increase production to 2.5 million boepd by 2020 as it brings on a wave of new projects from 2014.

Statoil also warned that it expected planned maintenance to have a negative effect on production during the current quarter of about 40,000 boepd.

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Statoil 'On Track' for 2.5M BOEPD by 2020

Norway's Statoil said Thursday that it is "on track" to deliver between two and three percent average annual production growth from 2012 to 2016, with production above 2.5 million barrels of oil equivalent per day (boepd) by 2020. This was despite a drop in production during its first quarter.

Reporting its results for the first quarter of 2013, Statoil revealed that its production during 1Q 2013 fell to 2 million boepd from 2.19 mililon boepd in 1Q 2012. The firm said it had expected see lower production during the quarter but that output was further affected by operational disruptions at its Snøhvit, Troll and Peregrino fields.

However, the firm still managed to deliver "record international production", according to CEO Helge Lund. This increased by six percent during the quarter thanks to the start-up and ramp-up of a number of fields

Statoil added that it completed 12 exploration wells in the first quarter, six on the Norwegian Continental Shelf and six internationally, with seven discoveries: four on the NCS, two in Tanzania and one in the Gulf of Mexico.

Meanwhile, on April 19 Statoil announced what its described as considerable additional resources on its Gullfaks license in the North Sea.

"We continue to efficiently execute on our highly competitive project portfolio, while maintaining a firm financial framework, a predictable dividend to our shareholders and a solid balance sheet," Lund added.

Statoil's adjusted earnings for 1Q 2013 were ($6.5 billion) NOK 38 billion, compared to ($9.8 billion) NOK 57.9 billion in 1Q 2012.

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Statoil 'On Track' for 2.5M BOEPD by 2020

Norway's Statoil said Thursday that it is "on track" to deliver between two and three percent average annual production growth from 2012 to 2016, with production above 2.5 million barrels of oil equivalent per day (boepd) by 2020. This was despite a drop in production during its first quarter.

Reporting its results for the first quarter of 2013, Statoil revealed that its production during 1Q 2013 fell to 2 million boepd from 2.19 mililon boepd in 1Q 2012. The firm said it had expected see lower production during the quarter but that output was further affected by operational disruptions at its Snøhvit, Troll and Peregrino fields.

However, the firm still managed to deliver "record international production", according to CEO Helge Lund. This increased by six percent during the quarter thanks to the start-up and ramp-up of a number of fields

Statoil added that it completed 12 exploration wells in the first quarter, six on the Norwegian Continental Shelf and six internationally, with seven discoveries: four on the NCS, two in Tanzania and one in the Gulf of Mexico.

Meanwhile, on April 19 Statoil announced what its described as considerable additional resources on its Gullfaks license in the North Sea.

"We continue to efficiently execute on our highly competitive project portfolio, while maintaining a firm financial framework, a predictable dividend to our shareholders and a solid balance sheet," Lund added.

Statoil's adjusted earnings for 1Q 2013 were ($6.5 billion) NOK 38 billion, compared to ($9.8 billion) NOK 57.9 billion in 1Q 2012.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

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Statoil sees profits slide

Statoil posted a net profit Nkr6.4 billion ($1.1 billion) for the three months to 31 March, down from a net income of Nkr15.4 billion during the same period last year.

The fall in profits came as revenue dropped 22% to Nkr47.9 billion in the first quarter, compared to Nkr61.8 billion during the first quarter of 2012.

Oslo-listed Statoil’s share price took a battering as the market showed its disappointment over the weak result, falling more than 3% to Nkr136, having dropped over the past year by almost 7% from an earlier high of Nkr155.

Analyst Henrik Madsen of Swedbank First Securities said the company’s adjusted earnings before interest and tax of Nkr42.2 billion – a drop of 28% on the previous year - were 10% below the firm's own estimate and 11% short of consensus.

Revenue was hit by a 15% decline in production which averaged about 1.3 million barrels of oil equivalent per day during the first quarter of the year.

Statoil said the majority of the fall in production was attributable to its lower ownership share in the Kvitebjorn field compared to a year ago, as well as natural decline at its mature fields.

Statoil noted that the terrorist attack at the In Amenas facility in Algeria earlier this year, which cost nearly 80 lives, resulted in a roughly 13,600 boepd decrease in overall production.

Also hitting output were compressor challenges at Troll and prolonged shutdown at Snohvit, off Norway.

Compounding the effects of the fall in overall production was a drop in prices compared to the first quarter of 2012.

Statoil achieved an average liquids price of $103.5 per barrel during the first quarter of the year, down 7% on the $111.5 per barrel average during the same period last year.

Averaged invoiced gas prices were also down 11% year-on-year, with the company achieving an average price of Nkr2.01 per standard cubic metre.

Statoil noted that the divestment of its fuel and retail segment in the second quarter of last year also contributed to the year-on-year decline in revenue in the first quarter of 2013.

These factors were partly offset by the ramp up of new fields and an overall rise in international production.

"Statoil delivered record international production,with an increase of 6% mainly due to start-up and ramp-up of fields,” Statoil chief executive Helge Lund said.

“We started production from new [Norwegian Continental Shelf] fields, including four fast-track projects, and continued our exploration success by making a new high impact discovery in Tanzania."

The company has previously stated that it expects output this year to be down on 2012 but is aiming to increase production to 2.5 million boepd by 2020 as it brings on a wave of new projects from 2014.

Statoil also warned that it expected planned maintenance to have a negative effect on production during the current quarter of about 40,000 boepd.

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Statoil extends outsourcing contract with CGI

CGI Group Inc., (NYSE: GIB) (TSX: GIB.A), a leading provider of information technology and business process services, is pleased to announce that Statoil has chosen to extend its Service Desk contract with CGI in Norway. The multifunctional Service Desk is used by Statoil’s 20,000 employees in 36 countries. The agreement is extended until 2016, with an optional one year extension until April 2017.

For ten years, CGI has been responsible for delivering business process services to Statoil. CGI’s multifunctional Service Desk provides Statoil employees all over the world with a single point of contact for enquiries related to IT, human resources, finance, procurement, communication and facilities issues. Together, we have developed a modern, flexible, high quality service with main delivery centers in Stavanger, Norway and Manila, Philippines.

“We are pleased that Statoil continues to place their trust in us as one of their key IT suppliers. CGI delivers the industry and technology expertise required to support Statoil in areas strategic to their business growth. Our ability to combine local and global delivery is essential and we are proud of our global capability to provide high quality service to Statoil’s employees 24 hours a day, 7 days a week. This contract extension allows us to continue to enhance our service capabilities for Statoil users around the world,” said Gisle M. Eckhoff, Senior Vice-President, CGI in Norway.

About CGI
Founded in 1976, CGI Group Inc. is the fifth largest independent information technology and business process services firm in the world. With approximately 71,000 members located in offices and global delivery centers in the Americas, Europe and Asia Pacific, CGI offers a comprehensive portfolio of services including high-end business and IT consulting, systems integration, application development and maintenance, infrastructure management as well as a wide range of proprietary solutions. Further to the recent acquisition of Logica, CGI’s annualized revenue is in excess of C$10 billion, with an estimated order backlog of approximately C$18.3 billion; its shares are listed on the TSX (GIB.A) and the NYSE (GIB) and are included in the FTSE4Good Index. Website: www.cgi.com.

For more information:

Lorne Gorber
Senior Vice-President, Global Communications and Investor Relations
lorne.gorber@cgi.com
+1 514-841-3355

Norwegian Media
Graciella Garmann
Director, Communications
graciella.garmann@cgi.com
+47 47 68 3368

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