Actionable news
0
All posts from Actionable news
Actionable news in STO: STATOIL ASA,

Report of foreign issuer [Rules 13a-16 and 15d-16]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF THE

SECURITIES EXCHANGE ACT OF 1934

Commission File Number 1-15200

Statoil ASA

(Translation of registrant’s name into English)

FORUSBEEN 50, N-4035, STAVANGER, NORWAY

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F X Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):_____

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):_____

This Report on Form 6-K shall be deemed to be filed and incorporated by reference in the Registration Statements on Form F-3 (File No. 333-188327) and Form S-8 (File No. 333-168426) and to be a part thereof from the date on which this report is furnished, to the extent not superseded by documents or reports subsequently filed or furnished.

This document includes portions from the previously published results announcement of Statoil ASA as of, and for the first nine months ended, 30 September, 2015, as revised to comply with the requirements of Item 10(e) of Regulation S-K regarding non-GAAP financial information promulgated by the U.S. Securities and Exchange Commission. For more information on our use of non-GAAP financial measures in this report, see the section entitled "Use and Reconciliation of Non-GAAP Financial Measures". This document does not update or otherwise supplement the information contained in the previously published results announcement.

2015 THIRD QUARTER RESULTS

In the third quarter of 2015, Statoil’s net operating income was NOK 7.3 billion, impacted by net impairment charges and provisions. Net income was negative NOK 2.8 billion.

“ We continue to reduce underlying operational costs and deliver a quarter with strong operational performance and solid results from marketing and trading. In the third quarter, our financial results continued to be affected by low liquids prices. The results enable us to increase our guided production growth to above 3% for 2015, as well as reduce the guided capital expenditure level with USD 1 billion to around USD 16.5 billion. We have generated a strong cash flow in the current environment and have a solid balance sheet with a net debt ratio of 24%", says president and CEO of Statoil ASA, Eldar Sætre.

Net operating income for the quarter was NOK 7.3 billion, compared to NOK 17.0 billion in the same period in 2014. The reduction was primarily a consequence of lower liquids prices and increased depreciation, partially offset by decreased net impairment charges, stronger refining margins, good operational performance and reduced underlying operating costs. Realised average liquids prices in the quarter were down 37% measured in NOK compared to the third quarter last year. Net impairment charges of NOK 4.8 billion related to exploration assets and various other asset impairments and reversals, provisions for disputes of NOK 3.3 billion and net other adjustments of NOK 1.3 billion, impacted the results in the third quarter.

Earnings per share were negative NOK 0.89 in the quarter, an improvement compared to negative NOK 1.48 in the same period last year.

“We are progressing our efficiency programs according to the plan we communicated in February, and continue to reduce the underlying operational cost. I am pleased with the way we are taking costs down, but the continued low prices in the third quarter demonstrates that we must continue to chase further cost efficiencies,” says Sætre.

Statoil delivered production of 1,909 mboe per day in the third quarter, up 4% compared to the same period in 2014. The underlying production growth, after adjusting for divestments, was 7% compared to the third quarter last year. The production from the Norwegian continental shelf (NCS) grew 10% in the third quarter of 2015 compared to last year, adjusted for divestments. Equity production outside of Norway was 735 mboe per day, a 4% increase compared to the same period last year, adjusted for divestments.

Statoil is pleased with the development of Johan Sverdrup with cost estimates coming down by 7%. However, Statoil and its partners have decided to accept a delayed timetable for the commencement of production from the Aasta Hansteen and Mariner fields from 2017 to the second half of 2018. The updated cost estimate for Aasta Hansteen has been increased by around 9% since the plan for development and operation (PDO). In addition, a currency effect of NOK 2.4 billion brings the total cost estimate to around NOK 37 billion. For Mariner, the cost increase is slightly above 10% as compared to the original plan.

In the third quarter Statoil made two discoveries on the NCS, as well as one on the UK Continental Shelf. As of 30 September, Statoil had completed 33 wells, with five wells on-going. Exploration expenses in the third quarter were NOK 9.9 billion, compared to NOK 8.5 billion in the third quarter of 2014.

Cash flow from operations amounted to NOK 90.2 billion in the first nine months compared to NOK 99.1 billion last year. Statoil maintained a strong capital structure, and net debt to capital employed at the end of the quarter was 24%. Organic capital expenditure was USD 11.6 billion in the first nine months.

The board of directors has decided to pay a dividend of USD 0.2201 per ordinary share for the third quarter and Statoil shares will trade ex-dividend on Oslo Børs commencing 17 February 2016. From and including the third quarter, dividends will be declared in USD, with the NOK dividend calculated and communicated four business days after the record date for the Oslo Børs shareholders.

The serious incident frequency (SIF) for the 12 months period ending 30 September 2015 was 0.5 compared to 0.6 the same period last year.

Key events since second quarter 2015:

· The plan for development and operation (PDO) for Johan Sverdrup, Phase One, was approved by the Ministry of Petroleum and Energy in August

· The Peregrino field offshore Brazil passed a significant milestone, with 100 million barrels of oil produced since April 2011

· Statoil and its partners put the first subsea gas compression facility on line at Åsgard in the Norwegian Sea, adding more than 300 million barrels of oil over the field’s life

· The final pipe in the 482 kilometer long Polarled Pipeline was laid at the Aasta Hansteen field at a depth of 1,260 meters in the Norwegian Sea. Polarled was delivered under budget and is the first pipeline on the NCS to cross the Arctic Circle

· In October Statoil acquired a 24% equity share in the UK part of Alfa Sentral, a gas and condensate field planned to be developed as a tie-back to the existing infrastructure for Sleipner on the NCS

· Two new compressors on the Troll A platform were started up, increasing the gas recovery from the field by 83 billion cubic meters

· Wenche Agerup was elected as new member of the board of directors, replacing Catherine Hughes who withdrew from the board in April

THIRD QUARTER 2015 GROUP REVIEW

The third quarter results were positively impacted by strong operational performance with production growth and high regularity, improved refining margins and a decreasing development in underlying expenses. Continuously low liquids prices, foreign exchange rate effects and impairment charges offset the positive development.

Total equity liquids and gas production [4] was 1,909 mboe per day, up 4% from 1,829 mboe per day in the third quarter of 2014, with strong operational performance at our fields. The increase was mainly due to enhanced utilisation of the gas value chain to create value from the NCS, ramp-up on various fields and production from new fields on stream, partially offset by expected natural decline on mature fields and reduced production due to lower ownership shares from redetermination and divestments.

Total entitlement liquids and gas production [3] increased by 7% to 1,741 mboe per day compared to the third quarter of 2014, impacted by the increase in equity production and a lower negative effect from production sharing agreements (PSA effect) mainly as a result of the decline in oil prices.

Net operating income was NOK 7.3 billion in the third quarter, compared to NOK 17.0 billion in the third quarter of 2014, primarily due to the significant drop in liquids prices and net impairment charges. Significantly higher refining margins partially offset the decrease.

Impairments charges of NOK 12.7 billion, mainly related to exploration assets and various other assets, and provisions for disputes of NOK 3.3 billion, negatively impacted net operating income. Reversal of impairment charges of NOK 7.9 billion, mainly related to a refinery asset and to offshore assets in the Gulf of Mexico, positively impacted net operating income.

In the third quarter of 2014, net operating income was negatively affected by impairment losses of NOK 13.5 billion in total, mainly relating to an oil sands project in Canada and exploration assets, mainly in Angola and in the Gulf of Mexico.

Total revenues and other income decreased primarily due to the drop in liquid prices partially offset by higher refinery margins

Operating and administrative expenses increased by NOK 2.1 billion compared to the third quarter of 2014 . Reduced operational costs and lower maintenance, in addition to reduced royalties caused by lower prices, had a positive impact. The ongoing cost initiatives and divestments added to the decrease. The decrease was however more than offset by the USD/NOK exchange rate development.

Depreciation, amortisation and net impairment losses decreased by NOK 8.5 billion mainly due to reversal of impairments in the third quarter, with net impairment losses lower in the third quarter of 2015 than in the third quarter of 2014 . The decrease was partly offset by an increase in depreciation compared to the third quarter of 2014 mainly due to the USD/NOK exchange rate development and start-up and ramp-up of several fields .

Exploration expenses increased by NOK 1.4 billion, mainly due to impairments, higher drilling costs due to the USD/NOK exchange rate development, higher average equity share in wells drilled and a higher portion of exploration expenditures capitalised in previous periods being expensed this quarter. A higher portion of current exploration expenditures being capitalised because of successful drilling, partially offset the increase.

Net financial items amounted to a gain of NOK 0.7 billion in the third quarter of 2015 , compared to a loss of NOK 1.0 billion in the third quarter of 2014 . The change was primarily driven by a gain on derivatives of NOK 3.1 billion related to our long term debt portfolio, mainly due to a decrease in the interest yield curves.

Income taxes were NOK 10.7 billion in the third quarter, equivalent to an effective tax rate of 135.3%, compared to 129.7% in the third quarter of 2014.

Please refer to note 5 Income tax to the condensed interim financial statements for information related to income taxes.

Net income in the third quarter of 2015 was negative NOK 2.8 billion compared to negative NOK 4.8 billion in the third quarter of 2014 , mainly due to decreased impairment losses, higher refining margins and lower taxes offset by a significant drop in the liquid prices.

Cash flows provided by operating activities were NOK 42.2 billion in the third quarter of 2015 compared to NOK 26.1 billion in the third quarter of 2014. Excluding working capital movements and taxes paid, cash flows provided by operating activities were NOK 42.9 billion in the third quarter of 2015 compared to NOK 50.0 billion in the third quarter of 2014. The decrease of NOK 7.1 billion was mainly due to reduced liquid prices.

Cash flows used in investing activities were NOK 31.6 billion in the third quarter of 2015 compared to NOK 17.5 billion in the third quarter of 2014. The increase of NOK 14.1 billion was mainly due to higher investments in deposits with more than three months to maturity of NOK 9.2 billion and higher capital expenditures of NOK 5.9 billion.

Cash flows used in financing activities were NOK 3.2 billion in the third quarter of 2015 compared to NOK 6.6 billion in the third quarter of 2014, a decrease of NOK 3.4 billion mainly due to change in collateral payments.

First nine months 2015

Net operating income was NOK 13.2 billion in the first nine months of 2015 compared to NOK 100.4 billion in the first nine months of 2014. Net operating income was negatively impacted by net impairment losses of NOK 53.9 billion, lower fair values of derivatives of NOK 3.5 billion and provisions for disputes of NOK 2.6 billion . Gain from sale of assets of NOK 14.5 billion mainly related to the divestment of the Shah Deniz project impacting net operating income positively. In the first nine months of 2014 , net operating income was negatively affected by impairment losses of total NOK 18.0 billion. Gain on sale of assets of NOK 6.5 billion and an award payment related to a commercial dispute of NOK 2.8 billion positively affected net operating income.

Total revenue and other income decreased, impacted by lower prices measured in NOK partially offset by significantly improved refinery margins and higher volumes of both liquids and gas sold, in addition to a gain realised from divestment of the Shah Deniz project .

Operating and administrative expenses increased mainly due to the USD/NOK exchange rate development in the first nine months of 2015. Lower maintenance and transportation costs, lower royalties due to reduced liquids prices, and positive effects from on-going cost initiatives and portfolio changes, partially offset the increase.

Depreciation, amortisation and net impairment losses increased mainly due to increased impairment charges in the first nine months of 2015. T he USD/NOK exchange rate development, start-up and ramp-up of production of several fields and negative revisions of proved reserves for certain assets, added to the decrease in depreciation costs compared to the first nine months of 2014.

Exploration expenses increased mainly due to impairment of exploration assets in the first nine months of 2015 and the USD/NOK exchange rate development. Increased drilling costs due to higher well equity share, and exploration expenditures capitalised in previous periods being expensed this period also contributed to the increase. A higher portion of current exploration expenditures being capitalised partially offset the increase.

Net financial items amounted to a loss of NOK 5.3 billion in the first nine months of 2015 compared to a gain of NOK 0.9 in the first nine months of 2014. The change from 2014 is mainly related to loss on derivatives related to long term debt portfolio the first nine months in 2015 of NOK 1.6 billion, compared to a gain on derivatives of NOK 3.6 billion the first nine months of 2014. Fair value changes of derivatives are

mainly due to changes in interest yield curves.

Income taxes in the first nine months of 2015 is NOK 36.1 billion equivalent to a tax rate of 455.7 % compared to 69.5 % in the first nine months of 2014.

Please refer to note 5 Income tax to the condensed interim financial statements for information related to income taxes.

Net income in the first nine months of 2015 was negative NOK 28.2 billion compared to positive NOK 30.9 billion in the first nine months of 2014.

Cash flows provided by operating activities were NOK 90.2 billion in the first nine months of 2015 compared to NOK 99.1 billion in the first nine months of 2014. Excluding working capital movements and taxes paid, cash flows provided by operating activities were NOK 130.8 billion in the first nine months of 2015 compared to NOK 167.9 billion in the first nine months of 2014. The decrease of NOK 37.1 billion was mainly due to reduced liquid prices.

Cash flows used in investing activities were NOK 112.9 billion in the first nine months of 2015 compared to NOK 75.8 billion in the first nine months of 2014. The increase of NOK 37.1 billion was due to increased investments in deposits with more than three months maturity of NOK 45.6 billion and increased capital expenditures of NOK 7.8 billion partially offset by increased proceeds from sale of assets of NOK 16.0 billion.

Cash flows provided by financing activities were NOK 0.1 billion the first nine months of 2015 compared to negative NOK 29.5 billion in the first nine months of 2014, an increase of NOK 29.6 billion mainly due to the issuance of new debt of NOK 32.1 billion in the first quarter of 2015.

OUTLOOK

· Organic capital expenditures for 2015 (i.e. excluding acquisitions, capital leases and other investments with significant different cash flow pattern) are estimated at around USD 16.5 billion

· Statoil intends to continue to mature the large portfolio of exploration assets and estimates a total exploration activity level of around USD 3.0 billion for 2015, excluding signature bonuses

· Statoil expects to deliver efficiency improvements with pre-tax cash flow effects of around USD 1.7 billion from 2016

· Statoil’s ambition is to maintain RoACE (Return on Average Capital Employed) at the 2013 level adjusted for price and foreign exchange level, and to keep the unit of production cost in the top quartile of Statoil`s group

· ...


More