Statoil Q3 Net Operating Income Declines; Lowers FY16 Capex Guidance

(RTTNews) - Norwegian energy firm Statoil ASA (STO) reported a decline in net operating income for the third quarter compared to last year, noting that the latest quarter was characterized by continued weak markets, planned maintenance and expensed exploration wells.

Net operating income for the third quarter was $737 million, down from $883 million in the same period last year. The reduction was primarily due to lower oil and gas prices, expensed exploration wells and lower refinery margins.

Adjusted earnings for the quarter were $636 million, compared to $2.03 billion a year ago. In addition to the continued low prices, the latest quarter's result reflects reduced overall operating costs mainly as a result of the on-going cost improvement initiatives.

Statoil delivered equity production of 1,805 mboe per day in the quarter, compared to 1,909 mboe per day same period in 2015. The reduction was primarily due to planned maintenance and deferral of gas sales.

Looking ahead, Statoil said it is lowering its capex guidance for 2016 from $12 billion to around $11 billion, and its exploration guidance for 2016 from $1.8 billion to around $1.5 billion.

However, production guidance for the year remains unchanged, and expected annual organic production growth is 1 percent from 2014 to 2017.

Further, the company said its board of directors has decided to pay a dividend of $0.2201 per ordinary share for the third quarter.