• 3 minutes Natural gas is crushing wind and solar power
  • 6 minutes OPEC and Russia could discuss emergency cuts
  • 8 minutes Is Pete Buttigieg emerging as the most likely challenger to Trump?
  • 11 minutes Question: Why are oil futures so low through 2020?
  • 13 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 25 mins Oil and gas producers fire back at Democratic presidential candidates.
  • 6 hours Peak Shale Will Send Oil Prices Sky High
  • 40 mins "Criticism of migration will become a criminal offense.  And media outlets that give room to criticism of migration, can be shut down." - EU Official to the Media.
  • 7 hours So the west is winning, is it? Only if you’re a delusional Trump toady, Mr Pompeo, by Simon Tisdall
  • 6 hours Saudi Aramco launches largest shale gas development outside U.S.
  • 1 hour CDC covid19 coverup?
  • 2 hours Charts of COVID-19 Fatality Rate by Age and Sex
  • 15 hours Fight with American ignorance, Part 1: US is a Republic, it is not a Democracy
  • 4 hours What Is Holding Back Geothermal Heating and Cooling?
  • 1 day Democrats Plan "B" Bloomberg Implodes. Plan "C" = John Kerry ?

Statoil Cuts Spending As It Posts Unexpected Q3 Loss

Statoil infrastructure

In a sign that major oil producers continue to suffer from low crude prices, Norway’s Statoil (NYSE:STO) reported on Thursday a third-quarter loss, missing by a mile analyst estimates for a profit, and saying it would further cut capital expenditure by US$1 billion this year amid continued weak markets.

Statoil, the first major oil company to report earnings this third-quarter earnings season, said it posted an adjusted loss after tax of US$261 million, compared with adjusted earnings after tax of US$445 million for the third quarter last year. The group attributed the losses to the low oil and gas prices, and to maintenance and exploration expenses.

Loss per share was US$0.14, while analysts had widely expected the Norwegian company to book a profit for the third quarter. Jefferies Group had projected Statoil to report earnings per share (EPS) of US$0.09 while the Zacks Investment Research consensus forecast was for EPS of US$0.08. This was the second quarter in a row in which the company has posted a loss, following the US$300-million loss for the second quarter. Back then, Statoil said it would slash capital expenditures for this year, by 8 percent to US$12 billion.

Obviously market and price conditions had not materially improved for the Norwegian group in one quarter’s time and today, it cut again its capital expenditure guidance for 2016, from US$12 billion to around US$11 billion. On top of that, Statoil also cut its exploration guidance for this year, to some US$1.5 billion from US$1.8 billion.

What the company did not change was production guidance and dividends. Statoil reiterated its expectation for annual organic production growth of 1 percent between 2014 and 2017. Dividends were kept at US$0.2201 per ordinary share for the third quarter, the same as the dividend paid for the third quarter last year.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage


Leave a comment

Leave a comment

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