OSLO, Norway, Aug. 1, 2005 (PRIMEZONE) -- Statoil ASA's (OSE:STL) (NYSE:STO) second quarter 2005, operating and financial review.
Net income for the Statoil group in the second quarter of 2005 was NOK 6.8 billion, compared to NOK 4.4 billion in the second quarter of 2004.
The increased income in the second quarter of 2005, compared to the second quarter of 2004, was mainly related to:
-- Increase in average oil price measured in NOK of 31 percent -- Increase in natural gas prices measured in NOK of 30 percent -- Increased oil and gas liftings of 8 percent -- Improved results from refining operations
"This has been another strong quarter for Statoil, with our best-ever result from operations," says chief executive Helge Lund. "The improved result is mainly due to higher oil and gas prices, increased international production and good regularity in refining."
"International production has increased by 77 percent compared with the same quarter last year, and I am pleased with our acquisition of the deepwater portfolio in the Gulf of Mexico in April, which will contribute to further long-term growth internationally."
"The level of activity on the Norwegian continental shelf is high. So far this year a total of nine projects have been sanctioned, including large and important developments such as Statfjord late life and Tyrihans. The process plant for the Snoehvit field was successfully berthed in its dock at Melkoeya on 13 July. And following the sale of Statoil's holding in Borealis in June, Statoil is now able to focus even more strongly on developing as an internationally competitive oil and gas company."
Return on average capital employed after tax (ROACE)(a) for the twelve months ended 30 June 2005 was 25.5 per cent, compared to 19.0 per cent for the twelve months ended 30 June 2004. This increase was mainly due to increased oil and gas prices measured in NOK. Normalised ROACE(a) for the twelve months ended 30 June 2005 was 12.5 per cent, compared to 12.6 per cent for the corresponding period in 2004. ROACE is defined as a non-GAAP financial measure(a).
In the second quarter of 2005, earnings per share were NOK 3.12 (USD 0.48) compared to NOK 2.01 (USD 0.29) in the second quarter of 2004.
Income before financial items, income taxes and minority interest increased from NOK 14.2 billion in the second quarter of 2004 to NOK 21.9 billion in the second quarter of 2005. This was mainly related to a 31 percent higher average oil price measured in NOK and a 30 percent increase in gas prices measured in NOK. Increased regularity and margins from the refineries were the main contributing factors to the NOK 1.0 billion increase in results from the downstream business. The increase in cost items was mainly related to increased activity and the consolidation of Statoil Detaljhandel Skandinavia (SDS) from 1 July 2004. However, these increases were more than offset by increased revenues from the same activities.
(a) See end notes in the complete quarterly report.