Yesterday, 3:58 PM
- Statoil (STO +1.5%) is higher after Bloomberg reports that Malaysian state-owned energy company Petronas is interested in acquiring its stake in the Trans Atlantic gas pipeline that runs from the Caspian basin to Europe.
- STO owns a 20% stake in the project but is executing a capital spending reduction plan amid falling global oil prices as it looks to raise returns for shareholders.
Tue, Sep. 1, 3:58 PM
- Citigroup's energy analysts defend their bullish take on big oil stocks such as ConocoPhillips (COP -2.6%), Total (TOT -2.1%) and Statoil (STO -4.5%), pointing to 30-year valuation lows, upside asymmetric risk on oil prices and signs that managements are doing enough to turn the corner on better capital allocation and cost-cutting.
- Favoring COP, TOT and STO, the firm says its sector investment criteria are (1) growth - companies that have near-term growth are less reliant on simply cutting costs; (2) better capital allocation - combined with growth, it should deliver 2-3x the ROE uplift than cost-cutting can; and (3) a strong enough balance sheet to manage the early part of the cycle.
- Citi is staying away from Exxon Mobil (XOM -4%) because of its valuation premium to peers and low growth and from Chevron (CVX -3.2%) due to its slow response in a lower commodity world.
Mon, Aug. 31, 5:37 PM
Tue, Aug. 18, 11:47 AM
- Having been "multi-year cautious" on Big Oil, Citigroup's Alastair Syme is getting more bullish, believing current valuations are giving very little chance to the restoration of the group's long-term profitability to long-run averages.
- He notes the sector price-to-book ratio of 1.2x is now below the Q1 2009 and Q4 1998 troughs, even with books marked to reflect world oil in the $50-$70 range.
- "This will be a long process, but the repair (cost-cutting, better capital allocation) has now started," says Syme, recommending investors at least get to benchmark weight in the group. His favored ways to play are ConocoPhillips (NYSE:COP), Statoil (NYSE:STO), Total (NYSE:TOT), and BG Group (OTCQX:BRGYY) as a cheaper way to get into Shell (NYSE:RDS.A).
- Notably not on the list are ExxonMobil (NYSE:XOM) thanks to its valuation premium and low growth (through the strong balance sheet is worth a look), and Chevron (NYSE:CVX) - "slow to adjust to a lower commodity world."
- Previously: BAML: Capitulation in emerging markets, commodities, and energy-related stocks (Aug. 18)
Wed, Aug. 5, 11:58 AM
- Statoil (STO +0.6%) is seeking to deepen its ties with Russia's Rosneft (OTC:RNFTF) even amid sanctions, saying it has started a process to secure rig capacity to drill two wells next year in the Sea of Okhotsk in Russia’s far east and to run test production at the North Komsomolskoye oil field during the winter.
- The objective at the heavy oil field, which holds ~600M metric tons of oil, is to test whether production and recovery rates can make exploitation profitable, and the companies would drill more wells if tests prove successful, STO says.
- The company says Russia is still among the top five regions it expects will drive growth in its international production over the next decade, alongside Tanzania, Brazil, Canada and the U.S.
Tue, Jul. 28, 9:49 AM
- Statoil (STO +2.6%) opens with solid gains after beating Q2 estimates on the top and bottom lines, reporting Q2 earnings of NOK3.15/share vs. NOK1.62 analyst consensus and revenues of NOK138.5B vs. NOK124.8B consensus.
- STO says it booked a one-off gain of NOK12.3B on the sale of its interest in Azerbaijan's Shah Deniz gas field.
- STO says it is further cutting its capital expenditures by 3% to $17.5B, which already is down from $20B last year.
- Q2 production totaled 1.87M boe/day, up 4% Y/Y, with 7% underlying production growth after adjusting for divestments.
- While STO’s average liquids price fell to $55/bbl from $99.7 a year ago, refining margins improved to $9.6/bbl from $3.9; net operating income for its marketing and processing unit almost doubled to NOK5.1B from a year earlier.
- STO is "sailing through with strong operating performance and visible management response on costs. Statoil’s results prove once again just how resilient its business model actually is,” says Bernstein's Oswald Clint.
Tue, Jul. 28, 6:18 AM
Mon, Jul. 27, 3:52 AM
- As oil prices slump for a second time this year, the world's biggest energy groups have shelved $200B of spending on new projects in an urgent round of cost-cutting aimed at protecting investors' dividends, FT reports.
- Among companies postponing big production plans while they wait for costs to come down are BP (NYSE:BP), Royal Dutch Shell (RDS.A, RDS.B), Chevron (NYSE:CVX), Statoil (NYSE:STO) and Woodside Petroleum (OTCPK:WOPEY).
- Crude prices have now fallen 20% since hitting five-month highs in early May.
Thu, Jul. 23, 11:39 AM
- Statoil (STO -0.4%) and partner Total (TOT +0.3%) say they made a gas and condensate discovery at the Julius prospect in the King Lear area of the North Sea.
- Operator STO estimates Julius volumes at 15M-75M recoverable boe.
- The discovery well also aimed to appraise the King Lear gas and condensate discovery made in 2012, but STO expects King Lear volumes will stay within the previously announced 70M-200M boe range.
Tue, Jul. 21, 8:55 AM
- Total (NYSE:TOT) says it has started production from its Dalia Phase 1A project, boosting its deepwater Block 17 offshore Angola production by ~30K bbl/day.
- The development, which unlocks 51M barrels additional reserves, is in TOT’s deep offshore Block 17; TOT operates the block with a 40% interest, alongside Statoil with 23.3% (NYSE:STO), Exxon with 20% (NYSE:XOM) and BP with 16.7%.
- In total, TOT operates four FPSO units on the major production zones of Block 17.
- TOT +0.8% premarket.
Thu, Jul. 16, 3:32 PM
- Statoil (STO +1.6%) is higher following an upgrade to Buy at Citigroup, which adds the stock to its short list - which also includes Total (TOT +0.9%) and ConocoPhillips (COP -0.9%) - of companies the firm believes is leading change in the industry.
- Citi cuts its estimates for 2015 prices by 8% and 2016 prices by 10% to $58/bbl and $63/bbl, respectively; in turn, with companies’ "feet to the fire,” the firm lowers its earnings estimates by an average of 4% for this year and 9% for 2016.
- But Citi thinks new CEO Eldar Saetre is driving deep-seated change at STO, with a core ambition to improve on self-help initiatives that already have been active over the last 12-18 months, bringing cost-efficiencies towards best-in-class within the big oil group.
Mon, Jul. 6, 7:00 AM| Mon, Jul. 6, 7:00 AM | 1 Comment
Wed, Jul. 1, 4:59 PM
- Sinopec (NYSE:SNP) and Cnooc (NYSE:CEO), which entered Brazil’s giant deepwater oilfields two years ago, are now looking to increase their presence as Petrobras (NYSE:PBR) sells assets to pay down debt, Bloomberg reports.
- The Chinese companies, as well as Royal Dutch Shell (RDS.A, RDS.B) and Statoil (NYSE:STO) are said to be among companies interested in buying stakes in Brazil's pre-salt offshore exploration blocks, and are preparing for bids to be presented as soon as this month.
- PBR removed the Carcara and Jupiter pre-salt discoveries from its schedule of projects to start producing by 2020, indicating that the fields may be for sale, BofA said in a recent research report.
Wed, Jul. 1, 8:39 AM
- Statoil (NYSE:STO) says it is suspending its Scarabeo 5 drilling rig because of overcapacity in its rig portfolio, the second such move in a week, as it continues to cut costs in the low oil price environment.
- The rig will be suspended next month after it has completed drilling of a well on the Kristin field in the Norwegian Sea, and will last until March 2016.
- A week ago, STO canceled a contract with the COSL Pioneer drilling rig 13 months before it expires, as the company had failed to find work for it amid an overcapacity of rigs.
Tue, Jun. 30, 9:19 AM
- Statoil (NYSE:STO) awards Samsung Heavy Industries (OTC:SMSHF) a NOK7B ($888M) contract to build two platform decks for its giant Johan Sverdrup development in the North Sea.
- STO says 65% of Johan Sverdrup equipment contracts so far have been awarded to suppliers with Norwegian billing addresses.
- The total investment costs for phase one of the Johan Sverdrup development are estimated at NOK117B and include installing the accommodation, processing, drilling and riser platforms as well as three subsea templates; production is expected towards the end of 2019.
- Earlier: First steel cut for Johan Sverdrup platform, Statoil says (Jun 29)
Mon, Jun. 29, 12:31 PM
- Construction begins at the giant Johan Sverdrup field development off Norway, as Statoil (STO -3.1%) says the first steel is cut for the jacket for the riser platform.
- At a designed 26.5K tons, the entire jacket will be the largest in Europe when complete; a special barge, the largest of its kind in the world, will transport the structure to the drilling site when completed in 2017.
- Johan Sverdrup is one of the five biggest oil fields ever discovered on the Norwegian continental shelf, with reserves estimated at 1.7B-3B boe.
STO vs. ETF Alternatives
Statoil ASA is an integrated oil and gas company. It explores, produces, transports, refines, and markets petroleum and petroleum-derived products. It has operations in Norway, rest of Europe, North America, Africa, Asia and South America.
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