Statoil Results Show The Price Of Value
Stephen Simpson, CFA
Stephen Simpson, CFA
Statoil: Shares To Remain Weak Short Term, May Interest Long-Term Buyers
Power Hedge • 35 Comments
Power Hedge • 35 Comments
Mon, Mar. 21, 12:48 PM
- Statoil (STO -1.5%) says it will install a lithium battery based storage system at its Hywind floating wind turbine project off Scotland, which if successful could transform the long-term profitability of offshore wind power.
- The battery package would have a capacity to store 1 MW-hour of electricity, equal to the capacity of ~2M smartphone batteries, but STO says it aims to build larger storage systems in the future.
- Because renewable sources of energy such as sun and wind do not promise a constant stream of power, STO sees storage as vital in a transition to a low-carbon, renewable future; a recent report from the Carbon Trust found that energy storage has the potential to save £2.4B/year ($3.46B) by 2030.
Mon, Mar. 21, 9:16 AM
- BP and partner Statoil (NYSE:STO) say they are pulling out staff from the In Salah gas plant in Algeria following Friday's attack on the facility.
- The companies also will withdraw staff from the In Amenas plant, the site of the 2013 attack in which 40 oil workers were killed.
- STO, BP and Algeria's state-owned Sonatrach are due to restart the third and final processing train at In Amenas later this year, which STO reaffirms will proceed "in the coming months."
Fri, Mar. 18, 7:39 AM
- Statoil (NYSE:STO) says the In Salah gas project in Algeria it operates jointly with BP in the Sahara Desert has been struck by explosives, but there are no reports of casualties or damage so far.
- Explosives were fired from some distance at the Krechba gas asset, one of several fields that are part of the In Salah project, the company says.
- Algeria's energy infrastructure is heavily protected by the army, especially since the 2013 attack by terrorists on the In Amenas gas plant, also operated by STO and BP, during which 40 oil workers were killed.
Thu, Mar. 17, 10:55 AM
- Statoil (STO +2.6%) expects to bring the average cost of new fields in its portfolio to a level below $40/bbl, CFO Hans Jacob Hegge tells Reuters.
- STO said last month that extensive cost cuts had brought the breakeven cost of projects set to start production by 2022 down to $41/bbl from $70 in 2013, and "if you look at the pace of our cost reductions, I think one could be very clear that we have not reached the final station yet... there is more to go," the CFO says.
- In addition to cutting its capital spending plan to $13B this year from $14.7B in 2015, STO also has set a cost cutting target of $2.5B on an annual basis.
Fri, Mar. 11, 11:48 AM
- Statoil (STO +0.8%) says it will not move ahead with plans to set up a European business center that would move some jobs out of Norway, and instead will seek other ways to cut costs.
- STO had started to plan a 180-employee business center in Europe which would shift some procurement and business services into lower-wage countries in an attempt to cut costs and boost competitiveness amid low oil prices.
Mon, Mar. 7, 8:58 AM
- Statoil (NYSE:STO) says it will end its contract with a drilling rig operated by China Oilfield Services, three months after a worker died when the rig was hit by a wave during a storm in the North Sea.
- STO says contract was not ended due to the fatality, but because the rig did not satisfy conditions stipulated in the contract, but the company does not specify which conditions.
- STO says the decisions to terminate one rig contract and suspend another may have short-term consequences for planned drilling activities at the giant Troll field, but will not impact the field's long-term production; Troll is the cornerstone of Norwegian natural gas production, and contains ~40% of the country's total gas reserves.
- COSL says it “strongly disagrees" with STO’s decision and may take legal action.
- STO -2.5% premarket.
Wed, Mar. 2, 8:58 AM
- Statoil (NYSE:STO) and Exxon Mobil (NYSE:XOM) are awarded six options to search for oil and gas offshore Ireland in the country's latest Atlantic Margin Licensing Round.
- The two firms each hold 50% stakes in all the deepwater acreage; STO will be the operator of four licensing options, while XOM will have the remaining two.
- Work on licenses is limited to seismic surveys during 2016-17, with the option to drill later depending on the analysis of the data.
Tue, Mar. 1, 11:29 AM
- Statoil (STO +0.6%) says it has started drilling the first of 35 wells to be drilled in the first phase of the Johan Sverdrup field development.
- Johan Sverdrup is one of the five biggest oil fields ever discovered on the Norwegian continental shelf, with a reserve basin of as much as 3B boe.
- Eight total wells are designated for the pre-drilling stage, with permanent drilling platforms expected to be at the site by 2018 in time for full-scale production.
Mon, Feb. 22, 11:59 AM
- Iran’s potential to add to oil industry problems by increasing its output looks to be a major topic at the upcoming IHS CERAWeek conference, but western companies remain wary of investing in the country, WSJ reports.
- "It will take a long time to fully develop the resources that Iran has access to,” Statoil (NYSE:STO) CEO Eldar Saetre says; the Norwegian oil company had operations in Iran until 2009 but was plagued by cost overruns and corruption allegations.
- The prospect of the companies returning to Iran also has sparked a rancorous debate that mirrors larger divisions between pragmatists and hard-liners; Iran’s pre-sanctions contracts with western firms had been seen as onerous money losers, but new terms would allow companies to work on fields longer and earn more money from them, a notion that hard-liners are resisting, thus effectively pushing back the time frame for international oil companies to return.
- European oil companies such as Royal Dutch Shell (RDS.A, RDS.B), Total (NYSE:TOT) and Eni (NYSE:E) have said they are interested in Iran but need to know the terms for working there.
Fri, Feb. 19, 8:59 AM
- GE's oil and gas unit secures an agreement with Statoil (NYSE:STO) to provide subsea equipment and services on field projects worldwide, extending through 2025.
- "In today’s oil price environment, sustained focus on costs and efficiency will ultimately be the key to develop several currently marginal prospects and discoveries," GE says.
- GE recently delivered subsea production system equipment for STO’s Snohvit gas field in the Barents Sea off Norway.
Thu, Feb. 18, 10:46 AM
- Statoil (STO -0.2%) says it is abandoning plans for a new platform to develop its Snorre field off Norway in favor of a subsea solution to boost recovery and extend the lifetime of the North Sea field.
- Investments are now seen 30%-40% below a 2013 estimate of NOK40B ($4.7B), Bjarne Bakken, STO's VP for the Snorre 2040 project, tells Bloomberg, adding that the subsea option, which would exploit the two existing platforms on the field, would achieve the same target of ~200M barrels of oil in added recovery.
- As STO and other producers have cut spending to weather the collapse in oil prices, Norwegian authorities have pressured companies to fulfill projects that aim to increase recovery from mature fields, warning that resources could be lost forever.
Wed, Feb. 17, 5:47 PM
- North Dakota's crude oil production fell in December for the first time in three months, down 2.5% to 1,152,280 bbl/day, as oil producers begin to acknowledging the low-price reality rolling over the entire energy industry.
- Only 41 drilling rigs are operating in the state as of Wednesday, the lowest level since July 2009, and North Dakota producers have cut back requests to drill new wells, with only 78 permitted in January compared to 125 in November.
- Bakken shale exposure includes: CLR, HES, WLL, STO, OAS, MRO, EOG, XOM, NOG, CHK, DNR, SM, NFX, OXY, MUR, OXY, COP, SSN, CXO, EOX
Wed, Feb. 17, 11:58 AM
- Statoil (STO +6.1%) says it will invest as much as $200M in renewable energy over the next 4-7 years as part of CEO Eldar Saetre’s plan to diversify the company’s portfolio.
- A new fund, Energy Ventures, will take a minority stake in startups developing technologies including wind power, energy storage and smart grids, STO says.
- Saetre set up a renewable energy unit in May, three months after becoming CEO, saying he wanted to expand into renewable sources beyond wind power.
Tue, Feb. 16, 2:55 PM
- BP (BP -0.1%) and Statoil (STO -0.2%) say they have started production at their massive Southern Fields dry gas project in Algeria, with a planned output of 9B cm/year.
- The partners say they plan to ramp up to 14.1M cm/day as they bring additional wells online over the next two months, with drilling of 26 planned southern field wells that began in 2014 expected to continue until 2018.
- The fields will produce new gas for Europe, which already obtains ~13% of its gas needs from Algeria.
Thu, Feb. 4, 11:06 AM
- Statoil (STO +6.2%) says it will offer a scrip dividend, allowing shareholders to accept newly issued shares rather than cash dividends to fund spending, utilizing a tool already used by big European companies including Shell, Total and BP.
- Norway’s government says it supports the move but that parliament would have to approve; the government plans to maintain its 67% ownership, by echoing any move by other investors to accept shares rather than cash dividends.
- STO shares are up strongly in early trading, as cost cuts and continued dividend payouts encouraged investors although the company reported its first-ever full-year net loss, totaling NOK37.5B ($4.42B) vs. a net profit of NOK 21.9B a year earlier (Q4 earnings).
- STO says it now plans 2016 capital spending of $13B, down ~12% from $14.7B in 2015; in October, the company had forecast 2015 capex would cam in at $16.5B.
Thu, Feb. 4, 4:40 AM
- Statoil (NYSE:STO): Q4 Adj. earnings of NOK1.6B vs. NOK4.3B in 4Q14.
- Adj. total revenue and other income of NOK112.7B (-24.2% Y/Y).
- The board proposed dividend of $0.2201 in 4Q15.
- The capex to be around $13B in FY16.
Statoil ASA explores, produces, transports, refines and markets petroleum and petroleum-derived products. The company operates through four segments: Development & Production Norway, Development & Production International, Marketing Processing & Renewable Energy and Other. The Development &... More
Sector: Basic Materials
Industry: Major Integrated Oil & Gas
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