Statoil IFRS net income was negative $2.785 billion
Staff Writer |
Statoil reports adjusted earnings of $1.664 billion and a negative IFRS net operating income of $1.897 billion in the fourth quarter of 2016.
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The IFRS net income was negative $2.785 billion. Adjusted earnings were $1.664 billion in the fourth quarter, down 6% from $1.778 billion in the same period in 2015.
In the quarter the company had expensed exploration wells capitalised in previous periods in the amount of $260 million, contributing to the reduction together with lower European gas prices.
Higher liquids prices, strong delivery on the improvement programme and solid operational performance contributed positively to the results.
Net operating income was negative $1.897 billion in the fourth quarter compared to positive $152 million in the same period of 2015.
The result was impacted by $2.3 billion in net impairment charges mainly due to reduced long term price assumptions.
Adjusted earnings after tax were negative $40 million in the fourth quarter, down from positive $185 million in the same period last year
Statoil delivered equity production of 2,095 mboe per day in the fourth quarter compared to 2,046 mboe per day in the same period in 2015.
The increase was primarily due to ramp-up of new fields and strong operational performance. Excluding divestments, the underlying production growth was 2% compared to the fourth quarter last year.
As of year-end 2016, Statoil had completed 23 exploration wells. Adjusted exploration expenses in the quarter were $607 million, up from $490 million in the fourth quarter of 2015.
Cash flow from operations amounted to $10.7 billion after taxes paid for the full year of 2016 compared to $12.3 billion last year.
Organic capital expenditure was reduced to $10.1 billion in 2016 due to improvement programme and strict capital discipline.
Net debt to capital employed was 35.6% at year-end. In the fourth quarter the net debt ratio was impacted by impairments, currency effects, increase in working capital to capture higher margins, and the acquisition of BM-S-8 licence in Brazil.
For the full year 2016, the IFRS net operating income was $80 million and adjusted earnings were $4.070 billion. IFRS net income for the year was negative $2.902 billion.
The board of directors will propose to the annual general meeting (AGM) to maintain a dividend of $0.2201 per ordinary share for the fourth quarter, and continue the scrip programme giving shareholders the option to receive the dividend for the fourth quarter in cash or newly issued shares in Statoil at a 5% discount.
The twelve month average Serious incident frequency (SIF) was 0.8 at year-end 2016, compared to 0.6 last year. Statoil has presented investigation reports following serious incidents in the quarter and initiated measures to improve safety results. ■