2-9-18 10:19 AM EST | Email Article

(Editor's Note: This item was is being republished to appear on additional newswires. It was originally published at 1408 GMT on Feb. 7.)

 
   By Christopher Alessi 
 

LONDON--Norwegian energy company Statoil ASA said Wednesday it swung to a net profit in the fourth quarter of last year, while lowering its capital expenditure and raising its dividend payment.

Here are some remarks from Statoil's earnings report:

On exploration & production in Norway in 4Q 2017:

"Average daily production of liquids and gas was stable at 1,376 MBOE (million barrels of oil equivalent) a day in the fourth quarter of 2017, compared to 1,374 MBOE a day [in the] fourth quarter of 2016. Positive contribution from higher gas off-take at Troll and Oseberg, in addition to ramp up of new fields were offset by reduced operational performance and regularity on certain fields...

After total adjustments of net $207 million to net operating income, adjusted earnings were $3.004 billion in the fourth quarter of 2017, up 52% from $1.972 billion in the fourth quarter of 2016."

On exploration & production globally in 4Q 2017:

"Average equity production of liquids and gas increased by 5% to 757 MBOE a day in the fourth quarter of 2017 compared to the fourth quarter of 2016. The increase was driven by ramp-up of Appalachian basin wells, improved operational efficiency on Bakken, and the lower effect of planned turnarounds in the fourth quarter of 2017. This was partially offset by the divestment of Kai Kos Dehseh oil sands, the reclassification of the heavy oil project Petrocedeño as a financial investment and expected natural decline...

Adjusted operating and administrative expenses decreased mainly due to portfolio changes and lower operations, and maintenance cost on various fields. The decreases were partially offset by increased costs related to preparation for operation for new fields and higher royalty expenses. Adjusted depreciation decreased primarily due to higher reserves estimates, in addition to effects from previous period impairments. Adjusted exploration expenses decreased in the fourth quarter of 2017 mainly due to a lower portion of wells capitalized in previous periods being expensed this quarter. After total adjustments of negative $1.315 billion to net operating income, adjusted earnings were positive $438 million in the fourth quarter of 2017, up from negative $681 million in the fourth quarter of 2016."

On midstream operations for 4Q 2017...

"Natural gas sales volumes amounted to 15.6 billion standard cubic meters (bcm) in the fourth quarter of 2017, up 5% compared to the fourth quarter of 2016. The increase was due to higher Statoil entitlement production on the Norwegian continental shelf and entitlement production from Development & Production USA (DPUSA), partially offset by lower third-party gas. Entitlement gas was 13.9 bcm in the fourth quarter of 2017 compared to 12.5 bcm in the fourth quarter of 2016...

Net operating income for Marketing, Midstream & Processing (MMP) was positive $343 million in the fourth quarter of 2017 compared to positive $264 million in the fourth quarter of 2016. The increase was mainly related to lower loss in fair value of derivatives and periodization of inventory hedging effect totaling $276 million in fourth quarter of 2017 compared to $598 million in fourth quarter of 2016."

 

Write to Christopher Alessi at christopher.alessi@wsj.com

 

(END) Dow Jones Newswires

February 09, 2018 10:19 ET (15:19 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.
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