Registration Strip Icon for tools Level up your trading with our powerful tools and real-time insights all in one place.

Fat Prophets
Fat Prophets's columns :
12/19/2005Castings CGS
11/10/2005Royal Dutch Shell
10/27/2005Dana Petroleum
10/20/2005Peter Hambro Mining
09/08/2005Golden Prospect
09/01/2005Randgold Resources
08/25/2005Scottish Power
08/17/2005Royal Dutch Shell
08/09/2005Statoil Asa >>
08/03/2005Peter Hambro Mining
07/28/2005JKX Oil & Gas
07/19/2005Dana Petroleum
07/13/2005BP British Petroleum
07/06/2005JP Morgan Fleming Indian Investment Trust
06/23/2005Carclo
06/16/2005Invesco Japan Discovery Trust
06/09/2005Dragon Oil
06/02/2005Friends Provident
05/31/2005JKX Oil & Gas
05/24/2005WH Smith
05/18/2005Baillie Gifford Japan Trust
05/11/2005Glaxo Smith Kline (GSK)
05/04/2005British Petroleum (BP)
04/25/2005Peter Hambro Mining (POG)
04/19/2005Avocet Mining (AVM)
04/04/2005Dana Petroleum
03/31/2005Carclo (CAR)
03/22/2005Golden Prospect

« EARLIEST ‹ PrevNext › LATEST »
Fat Prophets – Dog of the Week

Dog Of The Week - a weekly column from Fat Prophets, the providers of independent, unbiased research. Each stock is rated as either a Labrador, Poodle, Greyhound or Border Collie. All of the dogs have their own unique characteristics and qualities. Check out the 'Pound' on the left for an explanation of each dog.


Statoil Asa

08/09/2005

High energy prices, improved refining margins and rising production levels all contributed to another stellar quarterly result from NYSE-listed Statoil Asa (US: STO). Second quarter net income increased a robust 55 percent to NOK 6.8 billion (around US$1.0 billion). With crude once again trading above US$60 a barrel, we expect the oil major's earnings will remain strong throughout 2005.

The Exploration and Production (E&P) Norway group increased income before financial items, income taxes and minority interest (adjusted income) by 47 percent to NOK 17.1 billion. Contributing significantly to this result were higher realised oil and gas prices. Future volumes in the group will be driven by a heavy development programme on the Norwegian continental shelf.

Statoil's International E&P business was a standout performer. Adjusted income at the division surged ahead 147 percent to NOK 2.2 billion. Profitability was bolstered by strong oil prices combined with a 77 percent increase in production to 175,000 boepd.

Longer-term Statoil is busy furthering international diversification. The recent acquisition of EnCana Corporation's Gulf of Mexico assets and last month's collaboration agreement with Gazprom and Norsk Hydro to map oil and gas resources in the far north offer tremendous potential.

Total oil and gas production at Statoil rose 5 percent to 1.1 million boepd for the quarter. Commitment to maintaining production was illustrated by a 33 percent increase in capital expenditure to NOK 21.9 billion. We were also heartened by the group's return on average capital employed, a key measure of profitability, which rose to 25.5 percent from 19.0 percent in 2004.

We believe that Statoil will continue to perform strongly within the current environment of high oil prices, robust refining margins and modestly rising production. Long-term profitability will be driven by the group's active E&P programme, particularly at the International division where several exciting projects are progressing. With a prospective price earnings ratio of just over 11 times and a dividend yield of nearly 4 percent, Statoil offers excellent value in our opinion.


Fat Prophets is the trading name for Mint Financial (UK) limited, (Company Number 04255908). Mint Financial (UK) Limited is authorised and regulated by the Financial Services Authority (Firm Reference Number 220591).

To view a recent stockmarket report from Fat Prophets click here