Statoil to Keep Capital Expenditures at 2016 Level as Net Loss Widens
February 07 2017 - 02:04AM
Dow Jones News
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)
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