Statoil : Third quarter 2011 results

Statoil's (OSE:STL, NYSE:STO) third quarter 2011 net operating income was NOK
39.3 billion, a 39% increase compared to NOK 28.2 billion in the third quarter
of 2010.
 
"Statoil delivered strong financial results in the third quarter of 2011,
reflecting operational performance in line with expectations and strong oil and
gas prices throughout the period," says Helge Lund, Statoil's chief executive
officer.
 
Statoil presented the long term strategy and long term growth outlook on its
capital markets day in June 2011, where revitalisation of the NCS with high
value barrels and expansion in unconventionals are among key building blocks.
 
"The giant Aldous/Avaldsnes discovery clearly reaffirms the strong potential of
the Norwegian continental shelf, and we continue our long-term effort to
position Statoil as an industrial player and operator within unconventionals
through the offer to acquire all shares of the Brigham Exploration Company,"
says Lund.
 
The quarterly result was mainly affected by a 30% increase in the average prices
for liquids measured in NOK, a 13% increase in average gas prices, a 13%
increase in lifted volume compared to the same period last year, and a net
impairment loss of NOK 4.8 billion mainly related to the refinery business.
 
Net income in the third quarter of 2011 was NOK 9.9 billion compared to NOK
13.8 billion in the same period last year. The decrease stems primarily from
lower gain on net financial items and higher tax rates, and was only partly
offset by higher net operating income. The tax rate for the quarter was 76.6%.
 
Adjusted earnings in the third quarter of 2011 were NOK 43.1 billion, a 62%
increase compared to NOK 26.7 billion in the third quarter of 2010.
 
Adjusted earnings after tax were NOK 11.4 billion in the third quarter of 2011.
Adjusted earnings after tax exclude the effect of tax on net financial items,
and represent an effective adjusted tax rate of 73.5% in the third quarter of
2011.
 
Total equity production was 1,764 mboe per day in the third quarter of 2011
compared to 1,552 mboe per day in the third quarter of 2010.
 
Highlights since second quarter 2011:
 
  * Successful exploration, highlighted by the Aldous/Avaldsnes oil discovery in
    the North Sea, one of the largest finds ever on the Norwegian continental
    shelf. Statoil holds a 40% interest in both licences. In total, 9
    discoveries on 13 completed wells by 30 September.
  * Further expanding in unconventionals, through a merger agreement between
    Statoil and Brigham Exploration Company for Statoil to acquire all the
    outstanding shares of Brigham through an all-cash tender offer. If the
    tender offer is successful, the acquisition adds 375,000 net acres in the
    Williston Basin with potential for oil production from the Bakken and Three
    Forks formations. The transaction builds on Statoil's stepwise build-up in
    the United States and establishes Statoil as an operator in unconventional
    plays.
  * Maturing the project portfolio, including August start-up of the Pazflor
    development in Angola. Statoil has a 23.33% interest and Pazflor is expected
    to contribute with 47 000 barrels per day in equity capacity when plateau is
    reached in the first quarter next year.
  * Industrial progress, as plans for development and operation (PDO) are
    submitted to the authorities for the Skuld field in the Norwegian Sea and
    for the subsea gas compression project at Åsgard, to maintain production
    from the Mikkel and Midgard reservoirs. PDO for Stjerne and Vigdis North
    East has been approved.
  * Participating interests in two exploration licences in Camamu-Almada basin
    offshore Brazil have been farmed down 10% and 15% respectively to Gran
    Tierra Energy. The agreement is subject to approval by Brazilian authorities
    and other conditions.
 
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 3rd quarter 2011 Torgrim Reitan CFO: 
http://hugin.info/132799/R/1558317/481379.pdf
 
Financial statements and review 3rd quarter 2011: 
http://hugin.info/132799/R/1558317/481381.pdf
 
Press release Results 3rd quarter 2011: 
http://hugin.info/132799/R/1558317/481382.pdf
 
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Source: Statoil via Thomson Reuters ONE
 
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