By Dominic Chopping

 

Norway's Statoil ASA said Tuesday capital expenditure in 2017 will remain at the 2016 level of around $11 billion while targeting a further $1 billion in savings after the oil-and-gas producer posted a huge loss in the fourth-quarter amid extensive maintenance, expensed exploration wells and high impairments.

The company posted net impairment charges of $2.3 billion, mainly due to reduced long-term price assumptions, with the largest effect on unconventional onshore assets in North America, and unrealized losses on derivatives and inventory hedge contracts of $765 million.

Statoil estimates 4%-5% production growth in 2017 and organic annual production growth of around 3% from 2016 to 2020. Exploration activity in 2017 will be around $1.5 billion, it said.

The 67% state-owned company said its net loss for the three months through Dec. 31 was $2.79 billion, compared with a net loss of $1.13 billion a year earlier. Analysts had expected a net profit of $564 million. Revenue fell 1% on the year to $12.7 billion, against expectations of $13.47 billion.

The company maintained its quarterly dividend at $0.2201 a share.

Statoil's adjusted earnings before interest and taxes, which excludes one-off items to show the company's underlying performance, dropped 6% on the year to $1.66 billion, against analysts' expectations of $2.09 billion.

 

Write to Dominic Chopping at dominic.chopping@wsj.com; Twitter: @domchopping @WSJNordics

 

(END) Dow Jones Newswires

February 07, 2017 01:49 ET (06:49 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.
Equinor ASA (NYSE:EQNR)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more Equinor ASA Charts.
Equinor ASA (NYSE:EQNR)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more Equinor ASA Charts.