Higher second-quarter earnings to deliver 5% production growth for Statoil

Statoil ASA reported adjusted earnings of $3 billion and adjusted earnings aftertax of $1.3 billion in this year’s second quarter. International Financial Reporting Standards (IFRS) net operating income, meanwhile, was $3.2 billion and IFRS net income was $1.4 billion for the quarter.

Statoil ASA reported adjusted earnings of $3 billion and adjusted earnings aftertax of $1.3 billion in this year’s second quarter. International Financial Reporting Standards (IFRS) net operating income, meanwhile, was $3.2 billion and IFRS net income was $1.4 billion for the quarter.

The Norwegian firm said the second quarter marked a net debt ratio reduced to 27.5%. The company expects about 5% production growth in 2017.

“At oil prices around $50/bbl, we have generated $4 billion in free cash flow and reduced our net debt ratio by 8.1 percentage points since the start of the year,” said Eldar Saetre, Statoil president and chief executive officer.

Projects that continue to make progress include Gina Krog field, which has started production in the North Sea, and Johan Sverdrup and other projects including Aasta Hansteen, Mariner, Oseberg Vestflanken, Peregrino II, Dudgeon, and Hywind. “On the [Norwegian Continental Shelf], we have received approval for three new projects and submitted one additional plan for development,” Saetre said.

In 2017 so far, Statoil has drilled 14 exploration wells and has made 9 discoveries, the executive said. “Our exploration program in the Barents Sea started with the Kayak discovery and gives us the opportunity to test several new prospects,” Saetre said.

The company plans to drill about 30 exploration wells this year.

Statoil delivered equity production of 1.996 million boe/d in the second quarter, an increase from 1.959 million boe/d in the same period in 2016.

Adjusted exploration expenses in the second quarter were $224 million, down from $423 million in second-quarter 2016.

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