Income surges for Statoil

Published 29.07.2010 11:16:39 by John Bradbury

Statoil saw its operating income increase 9% in the second quarter this year and by 11% in the first half.

Net income for the second quarter and first half and earnings per share substantially improved after better lifting rates, and higher tax rates imposed last year.

Statoil reported a rise in net operating income for the second quarter to NKr 26.6 Bn (US $4.25 Bn) from NKR 24.3 Bn last year – a rise of 9%. For the first half, Statoil's operating income was up 11% to NKr 66.2 Bn from NKr 59.8 Bn last year.

Net income for the second quarter was NKr 3.1 Bn, up 100% compared with zero in the second quarter 2009, while the first half net income figure was NKr 14.2,Bn, up from a zero in 2009;

Underlining the second quarter performance on net income, Statoil stated: “This result reflects higher oil prices and increased liftings, lower net financial losses and lower tax rates partly offset by lower gas prices, impairments, losses on derivatives and an onerous contract compared to the second quarter of 2009, when net income was zero and the tax rate unusually high.”

Earnings per share for the second quarter were NKr 1.14 compared with NKr 0.02 in the same period last year – a 100 % increase – and the figure for the first half this year was NKr 4.63, compared with NKr 1.18 in the first half last year, almost a threefold increase.

Highlighting business developments in the second quarter, Statoil noted that the first well on the Tyrihans field offshore Norway started up on 8 May, and the same month China's Sinochem bought agreed to acquire Statoil's 40% stake in the Peregrino development offshore Brazil.

In June the Gjøa platform was towed out for installation at the field location, and the month also saw a new equity re-determination at the Agbami field offshore Nigeria which increased Statoil's equity from 18.85% to 20.21%.

Noting the six-month deepwater drilling ban imposed in the US Gulf of Mexico since 27 May, Statoil said this will “... if sustained significantly affect Statoil's exploration activity in US Golf of Mexico.”

However the Norwegian group said it has not yet recognised any provision for onerous contracts in the second quarter 2010 following the current moratorium.

And referring to the Gullfaks C platform blowout on 19 May – which it called it a well control incident – Statoil said the loss of fluid which occurred there causing the shutdown of both Gullfaks C and satellites Gimle and Tordis resulted in a management plan for the incident being implemented and well barriers were re-established, allowing production to resume on 14 July “...without any environmental spills or safety being compromised.”

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