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Statoil's CEO Discusses Q4 2011 Results - Earnings Call Transcript

I mean, the summary of all is that we delivered record results, net operating income of NOK211.8 billion. Adjusted earnings were up 26% to NOK179.9 billion, record earnings delivering an EPS of NOK24.76 and also a strong underlying cash flow from our operations at NOK244 billion. This has been driven by primarily production according to our expectations and plans and also through solid prices as you all know and finally, that we have made a number of transactions recently that also gave NOK23 billion in gain on sale of assets that contributed also to the results for 2011.

I think more importantly for the group, I think 2011 was a strong year in terms of industrial progress. And by that I believe – by that I mean safe and efficient operations and if you look at the safety results here measured in number of serious incidents per million work hours at 0.9, we have never been at this level.

So I think we are approaching our ambition of being an industry leader. We have marked the start of – and I think that is significant industrial for Statoil of the two first own operated assets outside Norway. And we have continued what we have done over the last few years, paid more emphasis through the execution of portfolio transactions to high grade our portfolio of assets. But maybe the most important thing that happened Statoil industry last year was I think a good success in exploration. We made many new discoveries. We completed 41 exploration wells, of which 22 so far is discoveries. I think seven is now awaiting evaluations, and we made the discoveries of course in Norway but also in Brazil. This brought altogether more than 1 billion barrels to our resource base.

Production, as I see it, is exactly as we planned in the sense that there are no surprises here. We have moved some gas volumes out of 2011 to follow the value of our volume strategy. You know from before that the BP-operated Skarv is delayed. And also, we have lower production than the potential from the Gullfaks field due to the well incident that we had in 2010, but the production is according to what we have said. You also know about the riser issues that have been – impacted the production throughout 2011 and partly 2010.

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