Statoil profit slips, to rein in investment

Statoil's (STO) Q4 net operating profit dropped 4% to 43.9B kroner ($7.1B), just below consensus of 44.3B kroner.

Net income 14.8B kroner vs 13B kroner a year earlier.

Equity production in 2013 was 1.945M boe per day, 20,000 boe below expectations. Output was 2M boe in 2012.

Statoil has cut its investment plans for the next three years by over $5B and pushed back its 2020 targets by 3-4 years. Statoil intends to increase investment to $20B in 2014 from $19B in 2013 and then keep that level steady.

Statoil proposes to increase its dividend to 7 kroner for 2013 from NOK 6.75 in 2012, and it plans to introduce quarterly dividends, subject to shareholder approval. The company also intends repurchase stock "more actively."

Shares are -1.3% in Oslo. (PR)

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Comments (4)
  • manishgup
    , contributor
    Comments (4) | Send Message
    $ STO- is a one term hold & if the Government disinvests their stake -then the stock is going to $ 30 @ + I am long >
    7 Feb 2014, 09:45 AM Reply Like
  • Veritas1010
    , contributor
    Comments (3272) | Send Message
    We'll look to evaluate closely why STO missed the numbers. This in and of itself is not cause for panic in this capital intensive high risk industry.


    The good news is clear, quarterly dividends will perk-up interest in the US and institutional investor will no longer play the stock running up into its once a year dividend issue. As for some Norwegian divestiture, that would be a very big plus too and certainly would move this undervalued equity to the 30's solidly and garner potentially some reasonable institutional interest in the US marketplace.


    disc.: solidly long STO.
    7 Feb 2014, 11:23 AM Reply Like
  • Michael Fitzsimmons
    , contributor
    Comments (11183) | Send Message
    Very bullish announcements and as I say in this article, a game changing outlook:



    STO is no longer just an income investments. We'll start to see some share price appreciation now. Starting with today (currently up 5%).
    7 Feb 2014, 12:00 PM Reply Like
  • deercreekvols
    , contributor
    Comments (9616) | Send Message
    Stolt over a vaere norske


    Long (STO)
    7 Feb 2014, 10:59 PM Reply Like
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