Statoil Reports on 3rd Quarter Results

Statoil achieved a net income of NOK 4.1 billion (USD 453 million) or NOK 1.88 (USD 0.21) per share for the third quarter of 2001, on a par with the same period of last year.

Net income for the first nine months totalled NOK 14.6 billion (USD 1.6 billion) or NOK 7.15 (USD 0.79) per share, an increase of 28 percent from the same period of 2000. Adjusted for special items, earnings per share for the first nine months came to NOK 5.90 (USD 0.65). This was on a par with last year.

A reduction of 16 percent in oil prices and weaker downstream earnings were offset by a 57 percent increase in gas sales, higher gas prices and financial gains.

"Our third quarter results are satisfactory," comments Statoil president and chief executive Olav Fjell. "Despite reduced prices and margins for our main products, the underlying results are sound. "Planned cost reductions and restructuring are on schedule. Our production performance is good, allowing us to increase our forecast for the year to 985.000 barrels of oil equivalent per day (boed). Results so far this year confirm that we are on schedule to reach the goals for results and growth communicated during our initial public offering in June."

Oil and gas production averaged 999.000 boed during the third quarter, an increase of 11 per cent from the same period of last year. Production for the first nine months averaged 981.000 boed, up two per cent from 2000.

All field developments included in Statoil's production target of 1,120 million boed for 2004 have now been sanctioned.