OSLO, Norway, Nov. 4, 2002 (PRIMEZONE) -- Statoil (OSE:STL) (NYSE:STO) delivered a result for the third quarter of 2002, adjusted for special items(1), of NOK 9.8 billion (USD 1.3 billion) before financial items, tax and minority interests (EBIT). This compares with NOK 13.9 billion for the same period of 2001. The EBIT for the first nine months came to NOK 30.9 billion (USD 4.2 billion), adjusted for special items, as against NOK 43.7 billion adjusted for one-off effects in the same period of 2001.
Net profit for the third quarter, adjusted for special items, came to NOK 2.6 billion (USD 351 million). This compares with NOK 4.1 billion for the same period of last year. For the first nine months, net profit adjusted for special items totalled NOK 11.6 billion (USD 1.6 billion) as against NOK 12 billion in the same period of 2001. Return on capital employed, adjusted for special items, was NOK 14.6 per cent as against NOK 17.6 for the whole of 2001. Earnings per share, adjusted for special items, came to NOK 1.19 for the third quarter compared with NOK 1.89 for the same period of last year.
"Given prevailing market conditions, the financial result is satisfactory," said chief executive Olav Fjell. "It is gratifying that the underlying business is improving and that we can upgrade our production forecasts for 2002."
Reduced results from the third quarter of 2001 to the third quarter of 2002 primarily reflect a weakening of the U.S. dollar exchange rate against the Norwegian krone and planned maintenance turnarounds on Norway's continental shelf (NCS). The special items refers to the realised pretax gain of NOK 1 billion from the sale of Statoil's upstream operations in Denmark.
Statoil's average daily oil and gas production increased during the first nine months from 980,000 barrels of oil equivalents (boe) in 2001 to 1,042,000 boe. The principal reasons for this improvement were increased gas sales and good operational regularity. It has prompted the group to upgrade its 2002 production forecast from a daily average of 1,030,000 boe to 1,050,000 boe. Total oil and gas production in the third quarter averaged 957,000 boe per day as against 998,000 boe for the same period of last year.
A collaboration agreement signed with Petropars in October gives Statoil an interest of up to 40 per cent in, and the operatorship of, the offshore part of phases 6, 7 and 8 of the South Pars gas development in the Persian Gulf. Under the deal, Statoil will take over the operatorship at the beginning of November 2002.
"It's very positive that we've secured our first operatorship in Iran," commented Mr. Fjell. "This will be an important building block in our future international growth."
Two contracts concluded by Statoil have strengthened its position in the liquefied natural gas (LNG) sector. An agreement reached in October with El Paso Merchant Energy gives the group the right to up to a third of the capacity at the Cove Point LNG terminal in Maryland, USA. This provides Statoil with direct access to the American gas market. At the same time, Statoil has contracted to take over an annual volume of 2.4 billion cubic metres (bcm) of LNG from El Paso Global LNG Company. This gas is due to be supplied from the Statoiloperated Snoehvit field in the Barents Sea.
Statoil has made a gas and oil discovery in the Tyrihans area of the Norwegian Sea, and an oil find with its Dolly well on the Gullfaks field in the North Sea. Beyond the NCS, the group was involved in a new discovery during the third quarter with the Plutao well in Angolan block 31. This ranks as the first find in ultradeep water off the West African nation. Discoveries have been made by all the wells drilled internationally with Statoil participation so far this year.
Gas sales were high in the third quarter, totalling 4 bcm as against 3.8 bcm in the same period of 2001. This increase largely reflects the expansion of the portfolio of contracts since October 1, 2001. A number of Statoil's major gas sales contracts were potentially subject to price revisions at October 1, 2001. So far this year, good solutions have been found through commercial agreements for about 85 per cent of these gas volumes.
Lower refining margins and a weaker shipping market adversely affected results from Statoil's downstream operations. Statoil has participated in the consolidation of the European service station market, and concluded an agreement to buy Preem's forecourts in Poland.
Four fatal accidents have been suffered in Statoil's operations so far this year. All are being investigated, and necessary measures will be implemented to improve safety. The negative trend was also reflected in statistics for total recordable injuries and serious incidents.
"Four fatal accidents is not acceptable, and show that we must do even better in our work on safety," said Mr Fjell.
(1) Special items for the third quarter of 2002 refer to gain on sales
(NOK 1 billion before tax and NOK 0.7 billion after tax). Special
items for the fourth quarter of 2001 refer to gain on sales (NOK 1.3
billion before tax and NOK 0.9 billion after tax) and an accounting
write-down (NOK 2 billion before tax and NOK 1.4 billion after tax),
adding up to a loss of NOK 0.7 billion before tax and NOK 0.5 billion
after tax. Special items for the second quarter of 2001 included a
tax-free gain (NOK 1.4 billion after tax) and a taxable gain
(NOK 1.6 billion before tax, corresponding to NOK 1.2 billion after
tax), adding up to NOK 3 billion before tax and NOK 2.6 billion
after tax.
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