- Statoil (STO -2.7%) is sharply lower after reporting a Q4 IFRS net loss of $0.87/share vs. analyst expectations for a $0.02 profit, with underlying earnings falling 6% Y/Y to $1.66B against analyst expectations of $2.09B.
- STO says Q4 results were hurt by high impairment charges, mainly as a result of reduced long-term price assumptions, as well as expensed exploration wells and high maintenance activity.
- For the full year, revenues fell 3% Y/Y to $12.7B, missing the $13.9B analyst consensus.
- STO says 2017 capex will remain at the 2016 level of ~$11B while targeting a further $1B in savings in addition to the $3.2B it already has cut as part of its improvement program.
- STO estimates 4%-5% production growth in 2017 and ~3% organic annual production growth during 2016-20; Q4 equity production totaled 2.09M boe/day vs. 2.04M boe/day in the year-ago period.