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
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.
Thu, Feb. 4, 4:01 AM
- Credit Suisse (NYSE:CS) reported its first annual loss since 2008 as it wrote off billions of dollars in goodwill, set aside litigation provisions and suffered a trading downturn.
- Statoil (NYSE:STO) slashed its capital spending budget but said it would keep its dividend steady after topping fourth quarter expectations.
- Driven by a robust performance in its retail and wholesale divisions, ING posted a better-than-expected Q4 and announced a full-year dividend of €0.65 per share.
- AstraZeneca (NYSE:AZN) expects low to mid-single digit percentage drops in earnings this year, in part due to a flood of generic cholesterol drugs.
- Vodafone (NASDAQ:VOD) met expectations with a 1.4% rise in revenue during FQ3, its sixth consecutive quarter of growth, as a recovery in Europe gained pace.
Tue, Feb. 2, 9:17 AM| Tue, Feb. 2, 9:17 AM | 5 Comments
Mon, Feb. 1, 3:39 PM
- Standard & Poor’s lowers its credit rating on Royal Dutch Shell (RDS.A, RDS.B) and places Shell, BP, Eni (NYSE:E), Repsol (OTCQX:REPYF, OTCQX:REPYY), Statoil (NYSE:STO) and Total (NYSE:TOT) on ratings watch with potential negative implications.
- S&P's moves, which include downgrading Shell's ratings to A+/A-1 from AA-/A-1+, comes three weeks after the ratings agency lowered its price assumption for Brent crude to $40/bbl for 2016.
Thu, Jan. 28, 2:49 PM
- Statoil (STO +5.8%) says it is relocating ~250 workers in the North Sea and canceling helicopter traffic, due to forecasts of hurricane-force winds and high waves.
- STO says production would continue as usual, but the crew at the Snorre B platform would be reduced to 44 from 109, and 150-200 workers at the Statfjord A, B, and C platforms would be relocated to the Gullfaks field and other installations in the area.
- Norway maintains strict regulations and safety practices over oil companies that operate in the area, and STO is required to reduce the size of the platforms’ crews whenever waves reach a certain height.
Thu, Jan. 28, 9:23 AM
- Gainers: NEOS +59%. DNR +17%. BCEI +16%. UA +16%. FB +14%. INO +13%. ATHX +12%. PBR +12%. WLL +11%. MRO +10%. [[PBR-A]] +10%. TRXC +9%. CHK +9%. MLNX +9%. LINE +9%. MT +9%. SDRL +8%. HOG +8%. ETE +8%. STO +8%. CRUS 7%. KMI 7%. BBL 6%. HCA 6%. MJN 6%. CJES 6%. PYPL 6%.
- Losers: NOW -22%. OSIS -22%. EBAY -11%. INVN -10%. URI -10%. INCY -9%. JNPR -10%. OAS -7%.
Mon, Jan. 25, 6:49 PM
- Investment in Canada’s oil and gas industry is forecast to fall again this year, as the price of the heavy crude produced from Alberta's oil sands has fallen so low that some companies are losing money on every barrel they sell, and are looking at ways to cut production.
- The Canadian Association of Petroleum Producers predicts the industry will invest C$42B in 2016, 13% less than in 2015 and 48% less than in 2014 - a steeper decline than investment in oil and gas production worldwide, which is expected to drop by 40% during 2014-16, according to Wood Mackenzie.
- On top of plummeting prices, Alberta's new left-leaning government plans to cap carbon emissions from the oil sands, a move that threatens to strand billions of barrels of crude; companies including Exxon (NYSE:XOM), BP, Chevron (NYSE:CVX), ConocoPhillips (NYSE:COP), Shell (RDS.A, RDS.B), Marathon Oil (NYSE:MRO), Total (NYSE:TOT), Statoil (NYSE:STO) and Cnooc (NYSE:CEO) have invested in Alberta megaprojects to tap the world's third largest oil reserves, smaller only than Saudi Arabia and Venezuela.
Fri, Jan. 22, 8:28 AM
- Moody's places 120 oil and gas companies on review for a downgrade, in a sweeping global review that includes all major regions and ranges from the world's top global majors such as Royal Dutch Shell (RDS.A, RDS.B), Total (NYSE:TOT) and BP to 69 U.S. E&P and services firms.
- Warning of "a substantial risk that prices may recover much more slowly over the medium term than many companies expect, as well as a risk that prices might fall further," Moody's now sees both WTI and Brent crude averaging $33/bbl this year, a $7 cut for WTI and a $10 reduction for Brent from its previous forecast.
- The ratings firm also places 55 mining companies on review for downgrade as they battle a slump in commodity prices.
- Among the companies placed on review are Alcoa (NYSE:AA), Schlumberger (NYSE:SLB), Chesapeake Energy (NYSE:CHK), Transocean (NYSE:RIG), Statoil (NYSE:STO), Vale (NYSE:VALE), Goldcorp (NYSE:GG), National Oilwell Varco (NYSE:NOV) and Diamond Offshore (NYSE:DO).
- ETFs: XLE, VDE, ERX, OIH, XOP, ERY, FCG, DIG, GASL, DUG, BGR, XES, IYE, IEO, IEZ, FENY, PXE, PXI, FIF, PXJ, NDP, RYE, FXN, DDG
Thu, Jan. 21, 3:49 PM
- Crude oil futures settled more than 4% higher on the back of perceived oversold conditions, despite a higher than expected inventory build; March WTI jumped 4.2% to settle at $29.53/bbl after trading as high as $30.25, while Brent surged 4.9% to $29.25.
- Crude prices were supported by the inventory increase in this morning's EIA report, which was less than the API’s report released on Wednesday, says Phil Flynn, senior market analyst at Price Futures Group; also, reports of Libyan oil tanks on fire eased speculation that Libya would be exporting more oil soon.
- Also supportive for prices, oil production in the lower 48 states edged lower for the first time in seven weeks, “which is at least ‘less bearish’ for the extremely oversupplied global oil market,” says Tyler Richey of The 7:00’s Report.
- The energy sector is bouncing after hitting a multiyear low yesterday: XOM +1.4%, CVX +2.7%, RDS.A +3.8%, BP +3.7%, TOT +2.3%, STO +4.5%, COP +6.2%, MRO +12.2%, APC +10.3%, OXY +2.1%, EOG +6.4%, PXD +2.7%, APA +8.2%, HES +7%, KMI +15.5%, EPD +3.3%, ETP +6.8%.
- ETFs: UNG, USO, OIL, XLE, UGAZ, UCO, DGAZ, UWTI, VDE, ERX, OIH, SCO, XOP, BNO, BOIL, GAZ, DBO, DWTI, ERY, FCG, DIG, GASL, DTO, DUG, KOLD, BGR, USL, XES, IYE, IEO, UNL, IEZ, DNO, FENY, PXE, PXI, FIF, PXJ, OLO, SZO, NDP, RYE, DCNG, FXN, OLEM, DDG
Thu, Jan. 21, 8:28 AM
- Total (NYSE:TOT) likely will report an adjusted net profit near $10B for 2015, down from $12.8B in 2014, CEO Patrick Pouyanné tells French TV channel France2, a result he says shows "very good resilience... because the price of oil has fallen 50%."
- Pouyanné’s comments come ahead of TOT’s full-year earnings release on Feb. 11; analysts expect TOT to report 2015 adjusted net profit of $9.97B, down 22% Y/Y.
- Separately, TOT agrees to sell a 20% stake in the Kharyaga oil field to Russian state-owned energy company Zarubezhneft for an undisclosed price; TOT will keep a 20% stake in the field, while Statoil (NYSE:STO) will maintain a 30% share.
- Earlier: Total feels the profit pinch (Jan. 19)
Tue, Jan. 19, 4:59 PM
- Eni (NYSE:E) receives conditional approval from Norway's Petroleum Safety Authority to start using its floating oil production and storage facility at the world's northernmost oil field, the Goliat field in Norway's Barents Sea.
- Eni, which operates the field and owns a 65% stake, and Statoil (NYSE:STO), which holds the remaining 35%, must carry out a planned verification and confirm that the facility is ready before starting to pump oil, the regulator says.
- Production from Goliat, which has been delayed several times and was supposed to start before Christmas, now could begin by next month at the earliest.
Tue, Jan. 19, 2:43 PM
- Anadarko Petroleum (APC -4.3%) says it achieved first oil at its Heidelberg field, the company's second of a pair of truss spar developments in the deepwater Gulf of Mexico.
- Lucius, the spar’s sister development, began production last January; the spars have design capacities of 80K bbl/day and 80M cf/day.
- APC operates Heidelberg and holds a 31.5% interest; partners include Freeport McMoRan (FCX -8.2%) and Eni (E -0.5%), each with a 12.5% stake; Statoil (STO -1.1%), with 12%, and Exxon Mobil (XOM -2.5%) and Cobalt Energy (CIE -10.4%), with 9.375% each.
Tue, Jan. 19, 12:36 PM
- Statoil (STO +1.5%) has cut estimated development costs at the Johan Sverdrup field off Norway to NOK160B-NOK190B from an earlier view of NOK170B-NOK220B, says stakeholder Det Norske Oljeselskap, as the project profits from a slide of the Norwegian kroner against the dollar in parallel with the oil slump.
- The oil price crash could help make Sverdrup, which may hold as much as 3B barrels of oil, among Norway’s most profitable projects ever, but there’s a catch: Crude prices will need to recover by the time production starts in 2019.
- "Indirectly, lower oil price has a positive effect on the Johan Sverdrup project, as it has contributed to significantly lower capex,” says Carnegie Investment Bank, which sees the project's break-even price at $20/bbl.
Tue, Jan. 19, 11:42 AM
- Statoil (STO +1.9%) says it is moving ahead with planning for the delayed Johan Castberg oil field in the Barents Sea after cutting estimated development costs by half.
- CEO Eldar Saetre says STO plans to invest NOK50B-60B (~$6B) in the company's most northern development ever, compared with earlier estimates for ~NOK100B ($11.3B), with production possibly starting in 2022 after a final decision in 2017.
- STO and partners Eni and Petoro plan to develop the field with a floating production, storage and offloading vessel, and load the oil directly onto oil tankers rather than piping it to shore.
- "The major cost improvements are the result of a different and more streamlined concept, a smarter subsea design, a more efficient drilling and drainage strategy, a more streamlined concept and the benefit of general market cost reductions," according to the head of the Johan Castberg development.
Fri, Jan. 15, 3:20 PM
- Nymex crude oil settled -5.7% at $29.42/bbl, its lowest level since November 2003, with concerns that Iran will soon add to the world's glut of crude supplies added to fears about an economic slowdown in China.
- When a decade of trade and banking sanctions against Iran end, perhaps as soon as Monday, the country could lift exports by 500K bbl/day and gradually raise shipments by the same amount again; Iran reportedly has 22 VLCCs floating off its coast, with 13 fully or almost fully loaded.
- Among major energy companies today: XOM -1.8%, CVX -2.2%, RDS.A -5%, BP -5.2%, COP -4.9%, TOT -3.7%, PBR -8.6%, E -4.5%, TOT -3.7%, STO -2.5%, MRO -10.2%, HES -3.6%, OXY -1.8%, DVN -5.8%, APA -4.9%, EOG -3.8%, APC -7.9%, PXD -2.6%, CXO -4.9%.
- ETFs: UNG, USO, OIL, XLE, UGAZ, UCO, DGAZ, UWTI, VDE, ERX, OIH, SCO, XOP, BNO, BOIL, GAZ, DBO, DWTI, ERY, FCG, DIG, GASL, DTO, DUG, KOLD, BGR, USL, XES, IYE, IEO, UNL, IEZ, DNO, FENY, PXE, PXI, PXJ, FIF, DBE, OLO, SZO, NDP, RYE, DCNG, RJN, FXN, OLEM, DDG
Thu, Jan. 14, 4:55 AM
- Statoil (NYSE:STO) has increased its exposure to its home market by buying a big stake in Lundin Petroleum (OTCPK:LNDNY), boosting its presence in the Johan Sverdrup field, Norway's biggest offshore project in decades.
- The Norwegian state-controlled oil major bought 11.9% in the Swedish company for SEK4.6B ($539M) making the acquisition Statoil's first big deal since oil prices started collapsing 18 months ago.
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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