Statoil adjusted earnings were $857 million in the first quarter compared to $2,945 million in the same period in 2015.
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The reduction was primarily a consequence of significantly lower liquids and gas prices, partially offset by good operational performance and reduced underlying operating costs.
Adjusted earnings after tax were $122 million in the first quarter, down from $902 million in the same period last year.
IFRS net income was $611 million in the first quarter compared to a net loss of $4,571 million in the same period of 2015.
Net impairment reversals of $308 million before tax in the first quarter of 2016 positively impacted the IFRS results compared to net impairment charges of $5,935 million before tax in the same period last year.
Statoil delivered equity production of 2,054 mboe per day in the first quarter. The underlying production growth in the quarter, after adjusting for divestments, was 2% compared to the first quarter last year.
Production from the Norwegian continental shelf (NCS) grew 2% in the first quarter of 2016 compared to last year, adjusted for divestments. Equity production outside of Norway was 734 mboe per day, in line with the first quarter last year, adjusted for transactions.
In the first quarter Statoil made two small discoveries on the NCS. As of March 31, 2016, Statoil had completed seven wells, with four wells on-going. Adjusted exploration expenses in the quarter were $280 million, down from $351 million in the first quarter of 2015.
Cash flow from operations amounted to $2,205 million in the first quarter compared to $3,740 million in the same period last year.
In light of the low liquids and gas prices in the quarter, Statoil maintained a strong capital structure, and net debt to capital employed at the end of the quarter was 28.1%.
Organic capital expenditure was $2.4 billion in the first three months of 2016.
The board of directors has decided to pay a dividend of $0.2201 per ordinary share for the first quarter.
Subject to approval of the proposed scrip dividend programme at the annual general meeting on May 11, 2016, shareholders will get the option to receive the dividend for the first quarter in newly issued shares in Statoil at a 5% discount.
Further information on the scrip dividend programme for the first quarter will be published in due course. ■