Statoil Q2 Pretax Profit Decreases; Maintains Production Guidance - Quick Facts

(RTTNews) - Statoil (STO) reported that its second-quarter income before tax decreased year-over-year to $211 million from $2.70 billion. The company reported a net loss to equity holders of $307 million or $0.10 per share compared to profit of $861 million or $0.27 per share, last year. Adjusted earnings were $913 million in the second quarter compared to $2.88 billion in the same period in 2015. The company reported an adjusted loss after tax of $28 million in the second quarter, down from profit of $929 million in the same period last year.

Net operating income was $180 million compared to $3.64 billion in the same period of 2015. The company said the reduction was primarily due to the drop in prices for oil and gas and lower refinery margins. Cost reductions contributed positively to the results. Net operating income for the second quarter in 2015 was impacted by a significant sales transaction.

Second-quarter revenues decreased to $10.81 billion from $16.04 billion, prior year. Statoil delivered equity production of 1,959 mboe per day in the second quarter. The underlying production growth in the quarter, after adjusting for divestments, was 6% compared to the second quarter of last year.

Statoil lowered its capex guidance for 2016 from $13 billion to $12 billion and its exploration guidance from $2 billion to $1.8 billion. Production guidance remains unchanged, and expected annual organic production growth is 1% from 2014 to 2017. Organic capital expenditures for 2016 are estimated at around $12 billion.

The board of directors has decided to pay a dividend of $0.2201 per ordinary share for the second quarter. The shareholders will have the option to receive the dividend for the second quarter in cash or newly issued shares in Statoil at a 5% discount.