A Review of the Nigerian Energy Industry

Statoil profit slips

Statoil-in-Offshore-Mozambique-Farmout30 October 2013, News Wires – Norway’s Statoil saw profit slip 6% in the third quarter, on the back of lower gas production and reduced prices.

The company posted a quarterly net income of Nkr13.7 billion (US$2.33 billion), compared to Nkr14.5 billion for the same three-month period last year.

Statoil also attributed this drop to non-recurring items, related tax effects and a higher gain from the sale of assets in 2012.

However, this was still a vast improvement from the Nkr4.3 billion recorded in the 2013 second quarter, which the company had blamed on lower liquids and gas prices and weaker trading results.

Net operating income was also down 4% from Nkr40.9 billion to Nkr39.3 billion, while adjusted earnings were relatively on par with last year, at Nkr40.4 billion compared to Nkr40 billion.

Statoil said the net operating income result was due to a gain on the sale of assets to Germany’s Wintershall, plus higher average liquids prices and increased volumes of liquids and gas sold, being offset by impairment losses related to refineries and a redetermination process.

Total equity production grew by 2% during the quarter, with a 6% rise in liquids output being offset by a 2% decline in equity gas production.

The increase in total output was mainly attributed to the start-up and ramp-up of production particularly in Angola, Brazil and onshore US, and lower maintenance effects.

“We are producing as planned, and maintain our production guidance for 2013. Our activity level is high. We are progressing our projects according to plan, with good cost control and capital discipline,” Statoil chief executive Helge Lund said in a statement.

– Upstream

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