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 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Ingram to Build 20 Tank Barges in 2015

Ingram Barge Company announced that it will build 20 tank barges in 2015 to meet growing demand for chemical shipments. While most of the company’s recent tank

Webinar: 3D Laser Scanning in the Marine Industry

Maritime industry professionals have increasingly taken notice of 3D laser scanning in recent years as acceptance for the technology and its applications mounts throughout the sector.

Shuster Receives Champion of Maritime Award

Congressman honored for support of domestic maritime industry.   Rep. Bill Shuster (R-Pa.) this week received the 2014 Champion of Maritime Award from the American Maritime Partnership (AMP),

Offshore

Upcoming Expo 'Offshore Marintec Russia'

ExpoForum Convention and Exhibition Centre in St. Petersburg, October 7-10  will host the International Specialised Offshore Exhibition and Conference 'Offshore

RWE Dea Awarded Two New Concessions in Egypt

In the International Bid Round 2013, RWE Dea has been awarded two new offshore concessions with operatorship by the Egyptian General Petroleum Corporation (EGPC).

TRIYARDS' Liftboat Orderbook Filling up

*This new order brings total liftboat contracts to date to 14, and showcases TRIYARDS’ engineering versatility * Win affirms TRIYARDS' leadership position as

Finance

NRC Program Targets Vessel Operating Costs, Safety

Canada’s NRC creating solutions for the growing Canadian shipbuilding, military vessels, marine commercial transportation and offshore resource industries As

Senator Says 2015 Could Be Time for US Oil Export Bill

The top supporter in the U.S. Congress for reversing the 40-year ban on crude oil exports, Senator Lisa Murkowski from Alaska, said next year could be the time for a bill on lifting the restriction.

Global Ship Lease to Acquire Containership

Global Ship Lease, Inc. has  announced  that it has agreed to acquire a 8,063 TEU containership from a leading container liner company for a purchase price of $55 million.

Energy

Ingram to Build 20 Tank Barges in 2015

Ingram Barge Company announced that it will build 20 tank barges in 2015 to meet growing demand for chemical shipments. While most of the company’s recent tank

Senator Says 2015 Could Be Time for US Oil Export Bill

The top supporter in the U.S. Congress for reversing the 40-year ban on crude oil exports, Senator Lisa Murkowski from Alaska, said next year could be the time for a bill on lifting the restriction.

Oil Edges Below $99 but Supply Risks in Focus

Oil traded slightly lower below $99 a barrel on Thursday, pressured by ample supply and concern over the weakening of demand growth in major consumer nations, as well as a rise in the U.

People in the News

Senator Says 2015 Could Be Time for US Oil Export Bill

The top supporter in the U.S. Congress for reversing the 40-year ban on crude oil exports, Senator Lisa Murkowski from Alaska, said next year could be the time for a bill on lifting the restriction.

Shuster Receives Champion of Maritime Award

Congressman honored for support of domestic maritime industry.   Rep. Bill Shuster (R-Pa.) this week received the 2014 Champion of Maritime Award from the American Maritime Partnership (AMP),

USCG in Search of Missing Man in Lake Michigan

The Coast Guard is searching for a man who went missing on Lake Michigan, Tuesday. Missing is 48-year-old Joseph Kiehm from Milwaukee. Kiehm was last seen aboard his 26-foot white sailboat,

Offshore Energy

Ricardo to Support Kongsberg WFMS Development

Ricardo and Kongsberg have signed a framework agreement that will see Ricardo support the development of the Kongsberg Wind Farm Management System (WFMS) as well

Aiming to Make Less Fuel Go Further: Maersk Drilling

Maersk Drilling says it is engaged in an energy efficiency project for its newbuilds together with Maersk Maritime Technology. The project involves an Energy Management System (MSPS),

Upcoming Expo 'Offshore Marintec Russia'

ExpoForum Convention and Exhibition Centre in St. Petersburg, October 7-10  will host the International Specialised Offshore Exhibition and Conference 'Offshore

 
 
Maritime Contracts Maritime Security Maritime Standards Naval Architecture Navigation Port Authority Ship Electronics Ship Repair Ship Simulators Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.6420 sec (2 req/sec)