Statoil – STO – Production grew by 11%

Statoil’s Statoil ASA(ADR)(NYSE:STO)  first quarter 2012 net operating income was NOK 57.9 billion, a 14% increase compared to NOK 50.8 billion in the first quarter of 2011.

“Statoil grew production by 11% and realised high oil and gas prices in the first quarter of 2012, generating strong financial results for the period. Production was as expected, and we maintain our guidance for 2012,” says Helge Lund, Statoil’s president and CEO.

The first quarter adjusted earnings of NOK 59.2 billion is the highest Statoil has presented in a single quarter. “We continued to start up new fields and ramp up production, delivering record international production. On the Norwegian continental shelf (NCS), we increased gas production in line with our strategy of gas optimisation. We also delivered stable oil production, as a result of our successful Improved Oil Recovery efforts,” says Lund.

In the first quarter of 2012, Statoil completed 12 exploration wells, eight of which were discoveries, a 67% success rate. During the quarter, Statoil announced three high-impact discoveries offshore Norway, Tanzania and Brazil, continuing the exploration success from 2011.

Over the past 12 months a total of six high-impact discoveries have significantly added to the company’s resource base, bolstering the reserve replacement going forward. STO delivered strong cash generation in the quarter, with a cash flow from underlying operations of NOK 70.8 billion, up from NOK 56.4 billion in the first quarter of 2011.

“Since the previous quarter, Statoil has signed a co-operation agreement with Rosneft, to jointly explore frontier areas of Russia and Norway. We have preaccepted a cash offer for our shares in Statoil Fuel & Retail ASA, reinforcing our position as a technology-focused upstream company. We continue to leverage our competitive strengths towards delivering on the production outlook of above 2.5 mmboe per day for 2020,” says Lund.

The serious incident frequency (SIF) was 1.2, both in the first quarter of 2012 and in the first quarter of 2011. Equity production was 2,193 mboe per day in the first quarter of 2012 compared to 1,971 mboe per day in the first quarter of 2011. Adjusted earnings for the first quarter of 2012 were NOK 59.2 billion, compared to NOK 47.2 billion in the first quarter of 2011. Adjusted earnings after tax in the period were NOK 16.8 billion, up from NOK 11.9 billion in the first quarter of 2011. The effective tax rates on adjusted earnings were 71.6% and 74.8% in the first quarters of 2012 and 2011, respectively.

About Statoil ASA – STO

Statoil ASA (STO) is an integrated energy company primarily engaged in oil and gas exploration and production activities. As of December 31, 2011, the Company had business operations in 41 countries and territories.

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.