• 3 minutes Biden Seeks $2 Trillion Clean Energy And Infrastructure Spending Boost
  • 5 minutes While U.S. Pipelines Are Under Siege, China Streamlines Its Oil and Gas Network
  • 8 minutes Gazprom fails to exempt Nord Stream-2 from EU market rules
  • 10 mins China wields coronavirus to nationalize American-owned carmaker
  • 4 hours Trumpist lies about coronavirus too bad for Facebook - BANNED!
  • 7 hours The Truth about Chinese and Indian Engineering
  • 7 hours China's impending economic meltdown
  • 10 hours Why Oil could hit $100
  • 1 day The World is Facing a Solar Panel Waste Problem
  • 4 hours Renewables Overtake Coal, But Lag Far Behind Oil And Natural Gas
  • 17 hours Pompeo upsets China; oil & gas prices to fall
  • 12 hours Brent above $45. Holding breath for $50??
  • 8 hours Open letter from Politico about US-russian relations
  • 2 days Sell Natural Gas Benefits to Grow the Market!
  • 2 days Trump Suggests Delaying Election Amid Fraud Claims
  • 2 days Rational analysis of CV19 from Harvard Medical School
  • 3 days The Core Issue Of US Chaos..Finally disclosed
Is Natural Gas Still The Fuel Of The Future?

Is Natural Gas Still The Fuel Of The Future?

Global gas demand continues to…

A Worrying Sign For Two Major Oil Hotspots

A Worrying Sign For Two Major Oil Hotspots

Two of the world's most…

Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

Statoil Posts $300M Loss In Q2, Blames Wavering Upstream Revenue

Statoil reported its second quarter figures on Wednesday, revealing a second-quarter loss that disappointed analysts’ expectations.

The Norwegian oil company lost just over $300 million on the quarter, meaning that Statoil has now posted a net loss in six out of the last eight quarters. Statoil’s debt ratio climbed from 28.1 percent at the end of the first quarter to 31.2 percent at the end of the second. The company previously said that it would want to avoid going above 30 percent, but now says that it can manage the situation. A year earlier Statoil’s debt ratio – also known as gearing – stood at just 22.4 percent.

“We are comfortable with a debt ratio well above 30% because we have a big toolbox, including significant flexibility in our investment portfolio,” said CEO Eldar Saetre. “We expect to be cash flow neutral at $60 a barrel in 2017 and $50 a barrel in 2018.”

Net operating income for the quarter stood at $180 million, compared to $3.6 billion in the second quarter of 2015.

The loss and the increase in debt prompted the company to slash capital expenditures. Statoil said that it will cut spending by 8 percent to $12 billion. That will allow it to avoid cuts to its dividend, which like most of the other oil majors, is a high priority. Related: Oil Tanks After EIA Reports 1.7M Barrel Crude Build

"We think it is very important to sustain our dividend," Statoil's Sætre told CNBC on Wednesday. "We see a cost reduction of 80 percent year-on-year.”

Just as BP saw earnings suffer from lower refining margins, so too did the Norwegian oil company. Explaining the slump in earnings this quarter, Statoil pointed to poor market conditions both upstream and downstream. “The reduction was primarily due to the drop in prices for oil and gas and lower refinery margins,” the company wrote in a statement. Refining margins have plunged in 2016 on a glut of refined products. Unfortunately for the oil majors, that was one of the few sources of strong revenues over the past two years, but downstream profits have soured across the industry more recently.

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News