Statoil: 2013 Third Quarter Results

STAVANGER, Norway, Oct. 30, 2013 (GLOBE NEWSWIRE) --
Statoil's (OSE:STL, NYSE:STO) third quarter 2013 net operating income was NOK39.3 billion. Adjusted earnings were NOK 40.4 billion."Statoil delivered strong strategic progress in the third quarter. We addedhigh-value barrels through the Bay du Nord discovery offshore Canada, theworld's largest oil discovery this year. We also announced a major divestment tocapture value created through asset development and unlock capital forinvestment in high return projects. Our operational performance is good and wedelivered solid earnings in the period," says Helge Lund, Statoil's presidentand CEO.Statoil's net operating income of NOK 39.3 billion in the third quarter waspositively impacted by gain from sale of assets. Refinery impairments andcommercial provisions impacted the financial result negatively. The adjustedearnings were NOK 40.4 billion, which is in line with the same period last year.The decrease in net income in the first nine months of 2013 is primarilyexplained by expected, lower production and reduced prices. Non-recurring items,related tax effects and higher gain from sale of assets last year, contributedto the decrease."We are producing as planned, and maintain our production guidance for 2013. Ouractivity level is high. We are progressing our projects according to plan, withgood cost control and capital discipline," says Lund.Statoil increased equity production by 2% compared to the third quarter of2012. Production grew by around 6%, taking into account the effects ofdivestments and redetermination on the Norwegian continental shelf. The companyproduced as expected in Norway, impacted by start-up and ramp-up, maintenance,divestments and redetermination. Outside Norway, Statoil increased production by13% to a record 728 mboe per day, mainly due to ramp-up in US onshore, Angolaand Brazil.New discoveries added significant new resources in the third quarter. Statoilannounced a new high-impact discovery offshore Canada, marking the company'sthird discovery in the Flemish Pass basin. Statoil now expects to completearound 60 exploration wells in 2013 and an activity level of around USD 3.75billion in exploration for the year as a whole.Statoil continued delivering on its strategy of active portfolio management. InSeptember, the company announced a USD 2.65 billion divestment of assets on theNorwegian and UK continental shelves. Through this transaction, Statoil expectsto realise significant gains, reduces future investment exposure by around USD7 billion and demonstrates the underlying value of the company's portfolio.Cash flows from underlying operations remain strong, and Statoil hasstrengthened its financial position in the period. The company reduced its netdebt to capital employed from 21% in the second quarter to 17% at the end of thethird quarter.The quarter in briefStatoil's net operating income was NOK 39.3 billion compared to NOK 40.9 billionin the third quarter of 2012.Adjusted earnings were NOK 40.4 billion, compared to NOK 40.0 billion in thethird quarter of 2012.Adjusted earnings after tax were NOK 12.1 billion, compared to NOK 11.9 billionin the third quarter of 2012.Net income was NOK 13.7 billion compared to NOK 14.5 billion in the thirdquarter of 2012.Key events since second quarter 2013:  * Continued active portfolio management, demonstrated by the USD 2.65 billion    transaction with OMV to capture value and focus portfolios on the Norwegian    and UK continental shelves, and the completion of the previously announced    USD 1.45 billion Wintershall transaction on the Norwegian continental shelf.  * Continued strong exploration results, through a high impact oil discovery in    the Flemish Pass basin offshore Canada and several new discoveries on the    Norwegian continental shelf. Statoil is a partner in the OMV-operated    Wisting Central oil discovery in the Hoop area. Statoil also announced an    oil discovery near Norne and a gas/condensate discovery north of Åsgard in    the period.  * Further strengthening the financial flexibility through the execution of    debt capital market transactions of USD 3.4 billion on competitive terms.  * The investigation report on the In Amenas terrorist attack was published on    12 September. Statoil will ensure that the recommendations are integrated    and prioritised as part of the initiated improvement programme in the    security area.  * Impairment losses related to the Mongstad and Kalundborg refineries of NOK    4.2 billion due to lower margins and challenging outlook.  * The Norwegian government announced in September that the full-scale carbon    capture project at Mongstad (CCM) will be terminated. Statoil is now    commencing work in order to ensure a smooth project conclusion.Further information from:Investor relationsHilde Merete Nafstad, senior vice president investor relations,+ 47 957 83 911(mobile)Morten Sven Johannessen, vice president investor relations USA,+ 1 203 570 2524 (mobile)PressJannik Lindbæk jr, vice president for media relations,+ 47 977 55 622 (mobile)This information is subject of the disclosure requirements pursuant to section5-12 of the Norwegian Securities Trading Act.Press release Results 3rd quarter 2013: http://hugin.info/132799/R/1739087/583551.pdfFinancial statements and review 3rd quarter 2013: http://hugin.info/132799/R/1739087/583549.pdfPresentation 3rd quarter 2013 Torgrim Reitan CFO: http://hugin.info/132799/R/1739087/583552.pdf[HUG#1739087]

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