Statoil Cuts Capital Spending by 10%
Statoil ASA has responded to weaker oil prices by reducing its capital spending for 2015 by 10 percent, the Norwegian oil and gas major revealed as it announced its results Friday. However, analysts who follow the company are concerned that Statoil may be being overly optimistic about its outlook.
Statoil said it was reducing its organic capital expenditure from $20 billion to $18 billion this year. But in a research note, investment bank Jefferies said: "In our view, the outlook could disappoint with planned capital spending in 2015 only expected to reduce circa 10 percent year-on-year to $18 billion. Thus far [international oil companies] have signaled year-on-year cuts of circa 19 percent."
Statoil's revenue for 2014 was 4-percent lower than that for the previous year at NOK 607.1 billion ($78.9 billion). The firm's adjusted profit for the year was smaller by 17 percent at NOK 136.1 billion ($17.7 billion).
During the fourth quarter of 2014, adjusted profit was down 36 percent on the previous year at NOK 26.9 billion ($3.5 billion).
"Statoil's quarterly earnings were affected by the sharp drop in oil prices," Statoil President and CEO Eldar Sætre said in a company statement.
"Our net income was also impacted by specific accounting charges. Underlying performance and cash flows were solid in 2014, supported by profitable growth, strong operational improvements, and solid marketing and trading results. Our financial position is robust, and we maintain a stable dividend. Through our significant flexibility in our investment program we are well prepared for continuous market weakness and uncertainty."
The firm's net production during the fourth quarter of 2014 was 2,103 million barrels of oil equivalent per day (MMboepd) – up 8.1 percent from the 1,945 MMboepd that Statoil produced during 4Q 2013.
View Full Article
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- ITEM Club: More Jobs Losses Expected in NE Scotland due to Oil Slump
- Shell Q&A: What Makes an Ideal Employer in Oil, Gas?
- Shell Takes First Place in Rigzone's Inaugural Ideal Employer Survey
- UK Government 'Must Recommit' to Oil, Gas Sector in Autumn Statement
- UK Government Gives Go-Ahead for Fracking in NW England
- USA EIA Hikes Up 2023 and 2024 Brent Oil Price Forecasts
- Chevron Starts Up Gorgon Extension Project
- Macquarie Group Reveals Oil Market Outlook
- Enagas Opens Logistics Bidding for Mothballed Asturias Terminal
- Eni Inks Deal to Build Hybrid Renewables-Gas Plant in Kazakhstan
- Biden Urged to Demand Climate Emergency as Smoke Chokes Washington
- ADNOC Chief: Shift from Fossil Fuel Unavoidable
- Global Oil Demand for Road Transport to Peak in 2027: BNEF
- Improved Wage Offer Ends North Sea Dispute
- Oil Down as Demand Concerns Supercede Saudi Cuts
- Saudis Remind Global Oil Market Who is King
- Saudi to Cut Output by 1MM BPD in Solo OPEC+ Move
- Data Science is the Future of Oil and Gas
- Debt Ceiling Deal Becomes Law
- What Do Latest OPEC+ Moves Mean?
- Two Main Forces Have Come Together to Pull Down Commodity Prices
- Fatality At North Rankin Complex
- North America Loses More Rigs
- Par Pacific Completes Buy of ExxonMobil Refinery
- USA Shale Seen Holding Firm on Returns
- Which Generation Is Most in Demand in Oil, Gas Right Now?
- Who Is the Most Prolific Private Oil and Gas Producer in the USA?
- BMI Reveals Latest Brent Oil Price Forecasts
- Is There a Danger That Oil and Gas Runs out of Financing?
- BMI Projects Gasoline Price Through to 2026
- What Will World Oil Demand Be in 2023?
- North America Rig Count Reduction Rumbles On
- What New Oil and Gas Jobs Will Exist in the Future?
- What Does a 2023 USA Recession Mean for Oil and Gas in the Country?
- USA Oil and Gas Supported Nearly 11MM Jobs