Statoil Q3 Profit Declines, Output Up - Update

(RTTNews) - Norwegian energy firm Statoil ASA (STO) Wednesday reported a lower third-quarter profit, citing refinery impairments and commercial provisions during the period. Production grew about 6 percent from last year, and the company maintained its production guidance for full-year 2013.

Equity production was up 2 percent compared to the prior year. According to the firm, production in Norway was impacted by start-up and ramp-up, maintenance, divestments and re-determination.

Outside Norway, production increased 13 percent to 728 mboe per day, mainly due to ramp-up in US onshore, Angola and Brazil.

Helge Lund, president and CEO of the company said, "We added high value barrels through the Bay du Nord discovery offshore Canada, the world's largest oil discovery this year. We also announced a major divestment to capture value created through asset development and unlock capital for investment in high return projects."

In the third quarter, net income attributable to equity holders edged down to 14.3 billion Norwegian kroner from 14.4 billion kroner a year ago. On a per share basis, earnings dropped year-over-year to 4.47 kroner from 4.51 kroner.

Statoil's net operating income for the period was 39.3 billion kroner, compared to 40.9 billion kroner last year.

The company said its operating income was positively impacted by gain from sale of assets. Meanwhile, refinery impairments and commercial provisions impacted the financial result negatively. Since the second quarter of 2013, the company recorded impairment losses related to Mongstad and Kalundborg refineries of 4.2 billion kroner due to lower margins and challenging outlook.

Adjusted earnings stood at 40.4 billion kroner, which is in line with the prior-year period, while adjusted earnings after tax were 12.1 billion kroner, compared to 11.9 billion kroner in the year 2012.

Quarterly total revenues and other income grew to 169.8 billion kroner from the prior-year figure of 166.7 billion kroner. Revenues were 162.6 billion kroner, lower than 165.3 billion kroner a year ago. In Oslo, the shares closed Tuesday's regular trading at 143 kroner, up 1.06 percent.