Thu, Oct. 8, 8:26 AM
- Statoil (NYSE:STO) -2% premarket after reporting an oil spill near its Statfjord A platform in the North Sea that has halted crude loading operations.
- Statfjord is one of the oldest producing fields on the Norwegian continental shelf, and the largest oil discovery in the North Sea; the field's oil is loaded onto tankers and shipped to ports in northwestern Europe.
- STO says it is too early to determine how much oil had leaked.
Wed, Oct. 7, 2:37 PM
- Petrobras (PBR +3.1%) sits out an oil licensing round in Brazil for the first time, as it struggles to reduce its enormous debt load.
- Brazil’s National Petroluem Agency sold only 37 of the 266 onshore and offshore blocks offered in the worst turnout at a Brazil auction in years, and global oil majors who operate in Brazil including Statoil (NYSE:STO), Royal Dutch Shell (RDS.A, RDS.B) and Total (NYSE:TOT) did not submit any bids.
- The country faces many of the same struggles that hindered two oil auctions earlier this year in Mexico: slumping crude oil prices, and companies are cutting investments.
- "Petrobras isn’t participating.. [it] is afraid about new troubles and expenses," an oil consultant and former employee at the company tells Bloomberg.
Tue, Sep. 29, 2:50 PM
- Statoil (STO +2.4%) says it laid the final piece of its Polarled pipeline connecting the Aasta Hansteen natural gas field in the Norwegian Sea to processing facilities and terminals on Norway's coast.
- Aasta Hansteen is estimated to hold 175B-300B cf of recoverable natural gas, making it one of the largest fields in the region; once it starts, an onshore processing terminal will be ready to receive natural gas through Polarled by 2017.
- STO says Polarled was built 32% under budget for at an investment of ~$875M; the new pipeline stretches ~300 miles and can transport up to 2.4B cf/day of gas.
Fri, Sep. 18, 9:47 AM
- BP (BP -2.3%) is expected to continue as operator of the ACG oil field complex after the current production-sharing deal expires, according to Azerbaijan state oil company Socar.
- The comments signal a thawing in BP’s relations with the Azeri government, after the president three years ago blamed an unexpected decline in oil output from the ACG fields on “grave mistakes” by BP.
- BP gets ~5% of its oil output from Azerbaijan; others in the ACG development group include Chevron (CVX -2.6%), Exxon (XOM -2.7%) and Statoil (STO -2.4%).
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, 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.
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, 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.
Wed, Jun. 17, 2:37 PM
- A Statoil (STO +1.9%) senior VP says he is optimistic the company will be able to reach an agreement with the government of Canada's Newfoundland on terms to develop the 600M barrel Bay du Nord discovery in the north Atlantic off the province's coast, but is not yet ready to say when he expects to reach a deal.
- The exec says STO is excited about the potential for production in the Flemish Pass Basin but cautions that many challenges must be overcome, including oceans depths, distance, logistics and harsh weather conditions.
- The comments came in response to a surprising statement yesterday by Newfoundland and Labrador Premier Paul Davis that the province is just "weeks away" from signing a term sheet with STO for development of Bay du Nord.
Tue, Jun. 2, 9:55 AM
- Statoil (STO +3.8%) opens higher after saying it agrees to significantly boost gas supplies to the U.K.’s SSE under an expansion of their existing supply agreement.
- STO says it will begin supplying 2.5B cm/year to SSE in October, up from the original annual volume of 500M cm/year under the six-year deal signed by the pair in October last year.
- STO’s long-term supply deals with SSE and Centrica represent nearly 15% of the U.K.’s 70B cm/year demand for gas.
Mon, May 18, 11:49 AM
- Goldman Sachs says its “lower for longer” oil price forecast would put significant pressure on integrated oil and gas companies such as BP (BP -0.8%)and Statoil (STO -2.7%), prompting the firm to downgrade its sector outlook to Cautious from Neutral and both energy giants to Sell from Neutral, citing long-term dividend risk for BP and cash-flow pressure on STO.
- The firm also downgrades Chevron (CVX -1%) to Sell from Neutral with a $99 price target, down from $111, saying CVX is burning through free cash flow, which should limit dividend growth in the coming quarters, and pointing risk to 2017 production guidance.
Thu, Apr. 30, 7:49 AM
- Statoil (NYSE:STO) +2.2% premarket after swinging to a surprise Q1 loss on a writedown in the value of its U.S. shale business but maintaining its dividend.
- STO wrote down the value of its assets by 46.1B kroner ($6.11B) in the quarter, with U.S. unconventional assets in the Bakken, Eagle Ford and Marcellus taking a 30.5B kroner hit and the remaining from international conventional assets, mainly in the Gulf of Mexico.
- But the results were "robust... in the context of quite low expectations," Jefferies analysts say: Q1 adjusted operating profit of 22.9B kroner was ahead of forecasts for 16.4B as STO's exploration and refining businesses both performed better than expected, output beat forecasts and cash flow covered nearly all of its relatively high investment spending.
- High spending remains a concern as STO plans to invest $18B this year, making the smallest spending cut among any of the majors.
Tue, Apr. 14, 12:21 PM
- Statoil (STO +3.6%) says it made another gas find near its Aasta Hansteen field in the Norwegian Arctic, further raising the gas resource in one of its biggest ongoing projects.
- STO says it found 2B-7B cm of gas that, together with a discovery announced earlier this year, increased the field's resource by about a quarter.
- Separately, the company reportedly plans to cut as many as 2,400 engineers in a new round of redundancies as it tries to cut costs in the face of lower crude prices.
Mon, Mar. 16, 10:17 AM
- Street chatter says Statoil (STO -2.8%) may be pursuing EOG Resources (EOG +0.5%) in a merger or acquisition that could exceed $50B.
- Analysts say the deal would make sense for STO, which is seeking to expand its U.S. shale presence; STO also has been mentioned as one of several companies showing interest in Whiting Petroleum (WLL -8%).
- Color Raymond James analyst Andrew Coleman skeptical, saying that a 25% premium over EOG's recent $85 share price - suggesting an offer near $60B - would be needed just to get a returned phone call.
Fri, Mar. 13, 3:58 PM
- Whiting Petroleum (WLL +3.1%) spikes on a Bloomberg report suggesting Exxon Mobil (XOM -0.2%) could be interested in the company; trading is now halted for volatility.
- Continental Resources (CLR -4.8%), Hess (HES +0.4%) and Statoil (STO +1.4%) also are reportedly looking at WLL, according to the report, and WLL has set up a data room for potential buyers to evaluate the company’s financial information and asked them to submit bids next week.
- WLL is the largest producer in North Dakota’s Bakken Shale, and the four rumored suitors already are among the 10 largest holders of acreage in the play.
- WLL had been down all day on an earlier report that it was considering selling off pieces rather than the whole company.
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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