Statoil: Extensive maintenance, robust financials

03.11.2010  |  Globenewswire Europe

Statoil's (OSE:STL, NYSE:STO) third quarter 2010 net operating income was NOK
28.2 billion, compared to NOK 28.3 billion in the third quarter of 2009.

The quarterly result was positively affected by a 14% increase in liquids prices
and an 8% increase in gas prices compared with third quarter last year. In
addition, we had a reduction in equity production of 17%, in line with
management's expectations, largely caused by extensive maintenance activities
impacting both oil and gas production.

Net income in the third quarter 2010 was NOK 13.8 billion compared to NOK 6.6
billion in the same period last year. This result reflects higher prices for
both oil and gas, a strong net financial income, lower tax rate and reduced
impairment losses, partly offset by lower volumes sold and reduced gains on
derivatives.

Adjusted earnings in the third quarter 2010 were NOK 26.7 billion, down 14% from
last year. Adjusted earnings after tax were NOK 8.5 billion in the third
quarter, down 8% from last year. Adjusted earnings after tax excludes the effect
of financial items and the tax on net financial items, and represents an
effective adjusted tax rate of 68% compared to 70% in the third quarter of 2009.

"Extensive planned maintenance activities throughout the third quarter have
affected both our oil and gas production significantly. Our financial
performance and cash generation remains solid, reaffirming our financial
flexibility to support a continued development of our portfolio. In a period
with very high maintenance and modification activities, both offshore and at our
gas processing facilities, we are pleased to see that the positive trend for our
HSE results is demonstrated also in this quarter," says Statoil's CEO Helge
Lund.

Recently, we have decided to temporarily reduce the current production on two
North Sea fields (Gullfaks South and Kvitebjørn), securing sufficient reservoir
pressure in order to drill additional wells in a safe manner, and thereby
creating both more volumes and values from these fields. This decision, in
addition to short term capacity constraints at Kollsnes, has triggered a
downward adjustment of our production guidance for 2010 to 1,900 mboe per day
from the previously guided range of 1,925-1,975 mboe per day.

Our portfolio of new field developments are progressing as planned towards
2012, however, with limited expected production growth in 2011.

Highlights since second quarter 2010:

* Equity production was down 17% from third quarter 2009 to 1,552 mboe per
day. For the first nine months of the year, equity production was 1,868 mboe
per day, which is down 3% compared to last year.
* Average prices measured in NOK are up 14% for liquids and up 8% for gas
compared to third quarter last year.
* On 22 July the Norwegian Parliament (Stortinget) approved the plan for
development and operation (PDO) of Marulk.
* On 1 August Morvin started production according to plan.
* On 23 September Statoil announced the acquisition of 20.67% of Nautical
Petroleum's interest in the Mariner field in UK.
* On 10 October Statoil announced the agreements with Enduring Resources and
Talisman regarding acquisition of 67,000 net acres in the Eagle Ford shale
area in southwest Texas in the United States, adding approximately 550
million boe to Statoil's recoverable resources.
* On 21 October the plan for development and operation (PDO) of Valemon was
submitted.
* On 22 October the subsidiary Statoil Fuel & Retail ASA was listed on the
Oslo Stock Exchange.

Further information from:

Investor relations
Hilde 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)

Press
Jannik Lindbæk jr, vice president for media relations, + 47 977 55 622 (mobile)


This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)



[HUG#1458297]





3Q 2010 presentation:
http://hugin.info/132799/R/1458297/397794.pdf

3Q 2010 Financial statements and review:
http://hugin.info/132799/R/1458297/397793.pdf

Press release 3rd quarter 2010:
http://hugin.info/132799/R/1458297/397792.pdf




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Source: Statoil via Thomson Reuters ONE


Unternehmen: Statoil - ISIN: NO0010096985