Statoil Reports Robust Q1

Posted by Greg Trauthwein
Tuesday, April 29, 2014
Oseberg field centre - Photo Harald Pettersen - Statoil.

Norway's Statoil defied gloom in the oil sector by reporting first-quarter earnings above expectations on Tuesday due to higher prices and good results from shale gas activities in the United States, lifting its shares.

 
Regarding new sanctions on Russia, Statoil's CEO told Reuters it was too early to say whether he would attend a high-profile St Petersburg economic forum in June as planned, as the firm had to assess the impact of the measures first.
 
Oil firms have seen their profit margins decline due to a rise in costs as crude becomes more difficult to extract and several big projects, such as Kashagan in Kazakhstan, have spiralled out of control.
 
Statoil was no exception in experiencing a squeeze in margins and in February said it would slash spending by $5 billion in 2014-2016, an 8 percent reduction from earlier expenditure plans, so it could pay more to shareholders.
 
Shares in Statoil were up 3.86 percent at 0755 GMT, outperforming a 0.79 percent gain in the European oil and gas index. The stock was among the best performers on the Oslo bourse, outstripping a 1.2 percent rise in the benchmark index.
 
Chief Executive Helge Lund said healthy prices and good results from its U.S. gas assets were behind the strong numbers. Statoil is present in all the major U.S. shale gas plays.
 
"The cold weather (in the United States) and good gas infrastructure (on the Northeastern Seaboard) has made it possible for us to get good prices," Lund told a news conference.
 
"This shows the importance of our gas assets in the U.S. and Europe."
 
The upbeat comment came in contrast with the view of U.S. shale by British major BP, which posted lower profits partly due to a $521 million write-off after a decision not to proceed with a U.S. shale gas project.
 
RUSSIA SANCTIONS
 
The United States imposed additional sanctions on Russia on Monday, ahead of expected additional moves by the European Union on Tuesday.
 
Statoil's CEO repeated the firm's position that it would comply with any sanctions imposed on Russia.
 
Statoil has several joint projects with Russia's largest oil company, Rosneft, including deals to explore for oil and gas in Siberia and above the Arctic Circle, as well as shale oil in the south of the country.
 
Last week, Statoil said Lund would attend the St Petersburg International Economic Forum in June.
 
But on Tuesday, Lund said it was too early to say whether he could go. "We must assess what the practical implications of the (new) sanctions are. We don't know yet what they will mean," he told Reuters.
 
Earlier this month, a top Statoil executive said it was business as usual with Russia despite the conflict in Ukraine.
 
HIGHER OPERATING PROFIT
 
Statoil's adjusted operating profit rose to 46.0 billion crowns ($7.7 billion), from 42.4 billion crowns for the same period a year earlier. The result beat the 42.02 billion crown expectation of analysts in a Reuters poll.
 
"Statoil has demonstrated its strong comparative advantages compared to other European integrateds," bank Societe Generale said.
 
Statoil reiterated its commitment to cut costs to boost margins. It offered a dividend payment of 1.80 crowns per share for the quarter, as expected, and said it intended to maintain that level in the coming two quarters.
 
The firm's total equity production averaged 1.978 million barrels of oil equivalent per day in the quarter, slightly above expectations for 1.966 million barrels.
 
(By Gwladys Fouche and Henrik Stolen, Editing by Terje Solsvik, Richard Borsuk and Dale Hudson)
Maritime Reporter August 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

U.S. Coast Guard Responds to Collision Near Paducah

On-scene assessment teams have reported the maximum estimated potential clarified slurry oil released from the tug collision is now 250,000 gallons, Thursday. The

ICTSI Manila Starts Container Booking System

The Manila International Container Terminal (MICT) in the Port of Manila has started implementing a vehicle appointment system called Terminal Appointment Booking

RORO Ops by NYK for Ford Plants in India

In 2011, NYK Auto Logistics (India) Pvt. Ltd.(NALI)* was awarded a contract by Ford India for RORO terminal services of finished cars at Chennai and Ennore Port.

Offshore

Rosneft, Gazprom to Receive Four Arctic Fields

Ministry of the Environment sent to the government documents on the transfer of "Rosneft" and "Gazprom" licenses for the development of four more fields on the Arctic shelf,

Edelweiss Now Controls Bharati Shipyard

Edelweiss Asset Reconstruction Company has taken over management control of Bharati Shipyard, says a report in ET.   Edelweiss now controls 70% of the Indian yard’s debts.

Offshore Operators Can Simplify Safety Equipment Logistics

Safety equipment manufacturer VIKING Life-Saving Equipment said its Offshore Safety Agreements are providing relief for offshore operators seeking to ensure compliance

Finance

HII Wins $109.4mln U.S. Navy Contract

Huntington Ingalls  has received a $109.4mln contract modification to carry out support services for the U.S. Navy’s nuclear submarines.   The company will work to engineer,

Russia’s Novatek Sells 10% Of Yamal LNG To Chinese Fund

Russia’s second-biggest gas producer Novatek is selling a 9.9 percent stake worth an estimated US$1.4 billion in its Yamal liquefied natural gas (LNG) project

Colachel to Become Major Port

The government of India would soon build a major port at Colachel in the southernmost tip of Tamil Nadu at an estimated cost of $3.2 billion (Rs 21,000 crore),

Energy

Rosneft, Gazprom to Receive Four Arctic Fields

Ministry of the Environment sent to the government documents on the transfer of "Rosneft" and "Gazprom" licenses for the development of four more fields on the Arctic shelf,

LaNaval Likely to Build Two LNG Fueled Ferries

Shipping company Baleària and Shipyard Construcciones Navales del Norte – LaNaval have reached this week an Agreement - expected to be firm in two months - for

Libya Plans to Sell Ex-rebel Tanker

Libya plans to sell a tanker that a former rebel group used in an attempt to bypass the Libyan government and export oil on its own last year, the Tripoli-based state prosecutor said on Thursday.

People in the News

Australia's New Shipping Laws Threaten Loss of Jobs

The planned changes to Australia’s shipping laws would cause a 93% loss of Australian seafaring jobs a new report says.   More than nine in 10 domestic seafarers

A Great Passion for Small Ships

Gottfried Knöbel owns almost 1,500 miniature model ships, many of them are Hapag-Lloyd ships. How did he end up with this collection?   In a quiet residential district in Cologne,

Busan Port Names Woo Ye-jong as New CEO

The Busan Port Authority (BPA) announced Woo Ye-jong has been named as its new CEO, as appointed by the Korean Ministry of Oceans and Fisheries.   Woo took office on July 31,

Offshore Energy

Rosneft, Gazprom to Receive Four Arctic Fields

Ministry of the Environment sent to the government documents on the transfer of "Rosneft" and "Gazprom" licenses for the development of four more fields on the Arctic shelf,

Russia’s Novatek Sells 10% Of Yamal LNG To Chinese Fund

Russia’s second-biggest gas producer Novatek is selling a 9.9 percent stake worth an estimated US$1.4 billion in its Yamal liquefied natural gas (LNG) project

Former CIA Spy Ship Becomes Victim of Oil Slump

A ship built by the CIA for a secret Cold War mission in 1974 to raise a sunken Soviet sub is heading to the scrap yard, a victim of the slide in oil prices.   Christened the Hughes Glomar Explorer,

 
 
Maritime Contracts Maritime Security Maritime Standards Navigation Pipelines Port Authority Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 1.0021 sec (1 req/sec)