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Statoil ASA: 2016 second quarter results

STAVANGER, Norway, July 27, 2016 (GLOBE NEWSWIRE) -- Statoil (OSE:STL, NYSE:STO) reports net operating income of USD 180 million and adjusted earnings of USD 913 million in the second quarter of 2016.

The second quarter was characterised by

  • Solid operational performance - while financial results are affected by low prices
  • Maintaining production guiding - lowering 2016 capex and exploration guidance
  • Continued focus on strict capital discipline

"We delivered solid operational performance with strong production growth and progress on project development and execution. Our financial results were affected by low oil and gas prices in the quarter," says Eldar Sætre, President and CEO of Statoil ASA.

"We maintain our production guidance, expecting annual organic production growth of around 1% from 2014 to 2017. Strict prioritisation, good results from our improvement programme and more effective drilling operations allow us to lower our 2016 capex and exploration guidance", says Sætre.

"We see continued progress on our plan to improve efficiency and make faster and deeper cost reductions. As an additional tool to strengthen the company's financial flexibility, we have successfully introduced a scrip dividend", says Sætre.

Net operating income was USD 180 million in the second quarter compared to USD 3,635 million in the same period of 2015. 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.

Adjusted earnings were USD 913 million in the second quarter compared to USD 2,883 million in the...