Shell, Statoil Delivered 'Solid' Performances in 1Q 2015
Statoil reported Thursday a 28-percent fall in its first-quarter revenues. The Norwegian major's revenue for 1Q 2015 was NOK 121.5 billion ($15.8 billion), compared to NOK 169.6 billion ($22 billion). The firm's adjusted earnings for the quarter came in 45-percent lower at NOK 19 billion ($2.5 billion) – mainly as a result of the significant drop in the price of oil, lower European gas prices and increased depreciation and operating costs.
Statoil said that its successes in exploration during the first quarter – including discoveries in Tanzania, the Gulf of Mexico and Norway – "underline Statoil's position as a global top explorer".
Meanwhile, the firm's equity production during the first quarter of this year was 2.06 million boepd, compared to 1.98 million boepd during 1Q 2014.
Statoil CEO Eldar Sætre said that the firm was taking "a more cautious view due to the uncertainty in the commodity markets". This is reflected by Statoil choosing to optimize the development of some of its fields, such as it decision to spend more time maturing the Johan Castberg and Snorre 2040 licenses.
Commenting on Statoil's results, Jefferies said that they appear to be a "robust… in the context of quite low expectations" but cautioned that "while management is clearly responding to a lower near-term oil price outlook, Statoil still has one of the most-challenged organic cash cycles amongst peers".
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