OSLO, Norway, Feb. 13, 2006 (PRIMEZONE) -- Statoil ASA (OSE:STL) (NYSE:STO) had a net income of NOK 30.7 billion in 2005, compared to NOK 24.9 billion in 2004.
Net income for the fourth quarter of 2005 was NOK 8.5 billion, compared to NOK 10.0 billion for the same period of 2004. The change in net income from the fourth quarter of 2004 to the fourth quarter of 2005 was influenced by:
-- Higher oil and gas prices
-- Higher oil and gas liftings
-- A gain from the sale of the group's shares in Borealis
-- A write-down on phases 6-7-8 of the Iranian South Pars project
-- Increased financial expenses due to currency effects
-- Higher tax rate due to positive non-recurring tax effects in the
fourth quarter of 2004
"Last year was a prosperous year for the group, with strong results underpinned by increased production and continued strict cost control, as well as high oil and gas prices," says chief executive Helge Lund.
"During the year we sanctioned 17 new upstream projects, and we have secured a significant number of new production licences, in Norway and internationally, that will support our long-term growth ambitions. Another important achievement is that we have been able to more than replace our production in 2005 with new reserves."
Return on average capital employed after tax (ROACE)(a) for the 12 months ended 31 December 2005 was 27.6 per cent, compared to 23.5 per cent for the 12 months ended 31 December 2004. This increase was mainly due to higher oil and gas prices and continued production growth. Normalised ROACE(a) for the 12 months ended 31 December 2005 was 11.7 percent, compared to 12.4 percent for the corresponding period in 2004. The reason for the change in normalised ROACE was mainly increased investments. ROACE and normalised ROACE are defined as non-GAAP financial measures(a).
In 2005, earnings per share were NOK 14.19 (USD 2.10) compared to NOK 11.50 (USD 1.89) in 2004. In the fourth quarter of 2005, earnings per share were NOK 3.94 (USD 0.59) compared to NOK 4.64 (USD 0.76) in the fourth quarter of 2004.
Statoil's board of directors will propose to the annual general meeting an ordinary dividend of NOK 3.60 per share for 2005, as well as NOK 4.60 per share in special dividend due to increased results from higher oil and gas prices. In 2004 the ordinary dividend was NOK 3.20 per share, while the special dividend amounted to NOK 2.10 per share.
Income before financial items, income taxes and minority interest in 2005 was NOK 95.1 billion compared to NOK 65.1 billion in 2004. The increase was mainly due to a 34 percent increase in the average oil price measured in NOK, a 31 percent increase in gas prices measured in NOK, a 7 percent increase in oil and gas liftings, and a net increase of NOK 0.9 billion from sale of shares. In addition, increased margins and regularity from the refineries were the main contributors to the increase in results from the downstream business. The increase in cost items was mainly related to increased activity, both in the fourth quarter and for the year 2005, relative to the same periods in the year before.
Income before financial items, income taxes and minority interest increased from NOK 18.7 billion in the fourth quarter of 2004 to NOK 27.8 billion in the same period of 2005. This was mainly related to an increase in the average oil and gas prices measured in NOK of 38 percent and 45 percent respectively.
Total oil and gas production in 2005 was 1,169,000 barrels of oil equivalent (boe) per day, compared to 1,106,000 boe per day in the same period in 2004. In the fourth quarter of 2005 total oil and gas production amounted to 1,232,000 boe per day, compared to 1,202,000 boe per day in the fourth quarter of 2004.
Total oil and gas liftings in 2005 were 1,166,000 boe per day compared to 1,093,000 boe per day in the corresponding period of 2004. This implies a small underlift in 2005, compared to an average underlifting of 12,000 boe per day in 2004.
In the fourth quarter of 2005 total oil and gas liftings were 1,252,000 boe per day compared to 1,172,000 boe per day in the fourth quarter of 2004. This implies an average overlifting of 20,000 boe per day in the fourth quarter of 2005 compared to an average underlifting of 30,000 boe per day in the fourth quarter of 2004.
In the fourth quarter of 2005, a total of four exploration and appraisal wells were completed, all of them internationally. Two wells resulted in discoveries, while one well awaits final evaluation. Five exploration wells were completed in the fourth quarter of 2004.
Proved reserves at the end of 2005 were 4,295 million boe, compared to 4,289 million boe at the end of 2004, an increase of 7 million boe. In 2005, 453 million boe were added, mostly through revisions, extensions and discoveries, compared to 455 million boe in 2004. About half of the added reserves in 2004 came from purchases of proved reserves. Production in 2005 was 427 million boe compared to 402 million boe in 2004.
The reserve replacement ratio(a) was 102 percent in 2005, compared to 106 percent in 2004, while the average three-year replacement ratio was 102 per cent in 2005, compared to 101 per cent in 2004.
Production cost per boe was NOK 22.2 for the 12 months ended 31 December 2005, compared to NOK 23.3 for the 12 months ended 31 December 2004 (9).
Normalised at a NOK/USD exchange rate of 6.75, the production cost for the 12 months ended 31 December 2005 was NOK 22.3 per boe, compared to NOK 23.3 per boe for the 12 months ended 31 December 2004(a). The reason for the reduction in production unit cost, both actual and normalised, is mainly a continued focus on cost control, as well as increased lifting of oil and gas.
Net financial items amounted to an expense of NOK 3.6 billion in 2005 compared to an income of NOK 5.7 billion in 2004. In the fourth quarter of 2005 net financial items were an expense of NOK 1.5 billion, compared to an income of NOK 5.2 billion in the fourth quarter of 2004.
High oil prices contribute to considerably higher earnings and profitability in international projects with production sharing agreements (PSA) than was anticipated in 2004, when Statoil set its targets for 2007. In PSA contracts, the higher the oil price as soon as the field is profitable, the smaller the share of production that goes to the partners. If the oil price remains at today's level throughout the whole of 2006 and 2007, the PSA effect in 2007 will be in the order of 50,000 to 60,000 boe per day. Statoil will adjust for this in its production- and cost reporting towards 2007. The production target of 1,400,000 boed remains unchanged.
(a) See footnotes in the complete quarterly report.
Attachments
- Financial statements and review http://hugin.info/132799/R/1034325/166810.pdf