Statoil Sees Profit Amid Exploration and Production -- Energy Comment
February 09 2018 - 10:24PM
Dow Jones News
(Editor's Note: This item was is being republished to appear on
additional newswires. It was originally published at 1408 GMT on
Feb. 7.)
By Christopher Alessi
LONDON--Norwegian energy company Statoil ASA said Wednesday it
swung to a net profit in the fourth quarter of last year, while
lowering its capital expenditure and raising its dividend
payment.
Here are some remarks from Statoil's earnings report:
On exploration & production in Norway in 4Q 2017:
"Average daily production of liquids and gas was stable at 1,376
MBOE (million barrels of oil equivalent) a day in the fourth
quarter of 2017, compared to 1,374 MBOE a day [in the] fourth
quarter of 2016. Positive contribution from higher gas off-take at
Troll and Oseberg, in addition to ramp up of new fields were offset
by reduced operational performance and regularity on certain
fields...
After total adjustments of net $207 million to net operating
income, adjusted earnings were $3.004 billion in the fourth quarter
of 2017, up 52% from $1.972 billion in the fourth quarter of
2016."
On exploration & production globally in 4Q 2017:
"Average equity production of liquids and gas increased by 5% to
757 MBOE a day in the fourth quarter of 2017 compared to the fourth
quarter of 2016. The increase was driven by ramp-up of Appalachian
basin wells, improved operational efficiency on Bakken, and the
lower effect of planned turnarounds in the fourth quarter of 2017.
This was partially offset by the divestment of Kai Kos Dehseh oil
sands, the reclassification of the heavy oil project Petrocedeño as
a financial investment and expected natural decline...
Adjusted operating and administrative expenses decreased mainly
due to portfolio changes and lower operations, and maintenance cost
on various fields. The decreases were partially offset by increased
costs related to preparation for operation for new fields and
higher royalty expenses. Adjusted depreciation decreased primarily
due to higher reserves estimates, in addition to effects from
previous period impairments. Adjusted exploration expenses
decreased in the fourth quarter of 2017 mainly due to a lower
portion of wells capitalized in previous periods being expensed
this quarter. After total adjustments of negative $1.315 billion to
net operating income, adjusted earnings were positive $438 million
in the fourth quarter of 2017, up from negative $681 million in the
fourth quarter of 2016."
On midstream operations for 4Q 2017...
"Natural gas sales volumes amounted to 15.6 billion standard
cubic meters (bcm) in the fourth quarter of 2017, up 5% compared to
the fourth quarter of 2016. The increase was due to higher Statoil
entitlement production on the Norwegian continental shelf and
entitlement production from Development & Production USA
(DPUSA), partially offset by lower third-party gas. Entitlement gas
was 13.9 bcm in the fourth quarter of 2017 compared to 12.5 bcm in
the fourth quarter of 2016...
Net operating income for Marketing, Midstream & Processing
(MMP) was positive $343 million in the fourth quarter of 2017
compared to positive $264 million in the fourth quarter of 2016.
The increase was mainly related to lower loss in fair value of
derivatives and periodization of inventory hedging effect totaling
$276 million in fourth quarter of 2017 compared to $598 million in
fourth quarter of 2016."
Write to Christopher Alessi at christopher.alessi@wsj.com
(END) Dow Jones Newswires
February 09, 2018 22:09 ET (03:09 GMT)
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