Statoil: Second quarter 2011 results

Statoil's (OSE:STL, NYSE:STO) second quarter 2011 net operating income was NOK
61.0 billion, a 129% increase compared to NOK 26.6 billion in the second quarter
of 2010. The quarterly result was mainly affected by a 32% increase in the
average prices for liquids measured in NOK, a 28% increase in average gas
prices, a NOK 8.8 billion gain related to the 40% Peregrino divestment and an
18% decrease in lifted volumes, when compared to the same period last year.
 
"Statoil delivered record net income in the second quarter of 2011, reflecting
an operational performance in line with expectations, the value-creating
Peregrino transaction and strong oil and gas prices throughout the period.
Production was mainly impacted by previously announced extensive maintenance
activities and seasonal variability in gas off-take. We continued to make
progress within exploration and project developments in the quarter, staying on
track to deliver future growth," says Helge Lund, Statoil's chief executive
officer.
 
Net income in the second quarter of 2011 was NOK 27.1 billion compared to NOK
3.1 billion in the same period last year. This result reflected higher prices
for both liquids and gas, a gain on sale of asset of NOK 7.5 billion net of tax,
reduced exploration expenses and higher net financial income, partly offset by
reduced liftings. The tax rate for the quarter was 56%.
 
Adjusted earnings in the second quarter of 2011 were NOK 43.6 billion, compared
to NOK 36.5 billion in the second quarter of 2010.
 
Adjusted earnings after tax were NOK 12.8 billion in the second quarter of
2011. Adjusted earnings after tax exclude the effect of tax on net financial
items, and represent an effective adjusted tax rate of 71% in the second quarter
of 2011.
 
Total equity production was 1,692 mboe per day in the second quarter of 2011
compared to 1,957 mboe per day in the second quarter of 2010.
 
Highlights since first quarter 2011:
 
  * The sale of 40% of the Peregrino offshore field in Brazil was completed and
    a gain of NOK 8.8 billion before tax is recorded.
  * Successful exploration drilling activities in Norway and internationally.
  * The approval of the Plan for development and operation (PDO) for the Hyme
    field (formerly Gygrid) on the NCS.
  * The approval of the Plan for development and operation of the Valemon gas
    and condensate field on the NCS.
  * The announcement of the divestment of a 24.1% interest in the Gassled joint
    venture to Solveig Gas Norway AS.
  * The approval of the Plan for development and operation for Visund South fast
    track on the NCS.
  * Statoil awarded the contract for construction of two new specially designed
    category D drilling rigs.
  * First shipment of Peregrino crude.
  * Strengthened position in Eagle Ford through acquiring new leases.
 
Further information from:
 
Investor relations
 
Hilde Merete Nafstad, senior vice president investor relations,
+ 47 957 83 911 (mobile)
 
Morten Sven Johannessen, vice president investor relations USA,
+ 1 203 570 2524 (mobile)
 
Press
 
Jannik Lindbæk jr, vice president for media relations,
+ 47 977 55 622 (mobile)
 
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
 
Presentation - 2nd quarter 2011 Torgrim Reitan CFO: 
http://hugin.info/132799/R/1534049/467452.pdf
 
Press release - Results 2nd quarter 2011: 
http://hugin.info/132799/R/1534049/467555.pdf
 
Financial statements and review 2nd quarter 2011: 
http://hugin.info/132799/R/1534049/467553.pdf
 
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Source: Statoil via Thomson Reuters ONE
 
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