• 5 minutes 'No - Deal Brexit' vs 'Operation Fear' Globalist Pushback ... Impact to World Economies and Oil
  • 8 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 12 minutes Will Uncle Sam Step Up and Cut Production
  • 2 hours Danish Royal Palace ‘Surprised’ By Trump Canceling Trip
  • 9 hours A legitimate Request: France Wants Progress In Ukraine Before Russia Returns To G7
  • 1 hour China has invested btw $30 - $40 Billon in Canadian Oil Sands. Trump should put 10% tariffs on all Chinese oil exported into or thru U.S. in which Chinese companies have invested .
  • 8 hours Used Thin Film Solar Panels at 15 Cents per Watt
  • 17 hours Recession Jitters Are Rising. Is There Reason To Worry?
  • 1 hour US to Drown the World in Oil
  • 11 hours IS ANOTHER MIDDLE EAST WAR REQUIRED TO BOLSTER THE OIL PRICE
  • 4 hours Iran Is Winning Big In The Middle East
  • 6 hours Strait Of Hormuz As a Breakpoint: Germany Not Taking Part In U.S. Naval Mission
  • 2 hours With Global Warming Greenland is Prime Real Estate
  • 2 hours Tit For Tat: China Strikes Back In Trade Dispute With U.S. With New Tariffs
  • 21 hours NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
  • 6 hours Philadelphia Energy Solutions seeks to permanently shut oil refinery - sources
  • 9 hours LA Solar Power/Storage Contract

Statoil’s Surprise $1.9 Billion Q4 Loss

Statoil HQ

Norway’s Statoil (NYSE:STO) booked an unexpected net operating loss of US$1.897 billion for the fourth quarter, after taking US$2.3 billion net impairment charges mostly due to reduced long-term price assumptions.

The Norwegian oil major booked an adjusted loss after tax of US$40 million for the fourth quarter, down from adjusted earnings of US$185 million for the fourth quarter of 2015, and well below consensus estimates for US$614 million adjusted earnings after tax provided by Statoil itself.

Adjusted earnings came in at US$1.664 billion, down by 6 percent annually, chiefly due to expensed exploration wells and lower European gas prices.

The fourth quarter was the third consecutive quarter in which Statoil has posted losses, after an unexpected adjusted loss after tax of US$261 million for the third quarter, and a US$300-million loss for the second quarter of 2016.

The oil major continued to cut expenditure, with organic capital expenditure at US$10.1 billion in 2016, on the back of improvement program and strict capital discipline.

On the upside, Statoil’s 2016 production was slightly higher than in 2015, and cash flow did not drop much. Cash flow from operations after taxes stood at US$10.7 billion for 2016 compared to US$12.3 billion for the previous year.

Related: Oil Prices Fall On Glut Fears Despite Tighter Market

Another bright point in Statoil’s earnings release was the lowered average break even for planned start-up projects before 2022: to US$27/boe with an average internal rate of return (IRR) of 25 percent, assuming US$70/boe. As of the Q4 2015 results release, Statoil’s average break-even for the project portfolio was US$4 billion.

Looking ahead, Statoil will slightly raise investments, to around US$11 billion organically in 2017. The company also estimates its 2017 production would grow by 4-5 percent compared to rebased 2016 production. The oil major also sees organic annual production growth of around 3 percent between 2016 and 2020.

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
Download on the App Store Get it on Google Play