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Statoil ASA (STO)

- NYSE
  • Fri, Feb. 13, 8:27 AM
    • Statoil (NYSE:STO) +3.5% premarket on news it will move forward with plans to develop the giant Johna Sverdup oil field in the North Sea, which is expected to produce up to 3B boe over 50 years and give Norway's fading oil industry a second life.
    • Sverdrup's first phase is expected to cost $15.4B, at the top end of the previous estimate range but only marginally ahead of analyst expectations; STO plans to start production by 2019.
    • The project is expected to break even at under $40/bbl, with operating costs seen at below $5/bbl once the project is up and running.
    • STO's partners in the project failed to agree on ownership stakes and are asking the Norwegian government to divide the project; STO says it has submitted a plan to the government asking for a ~40% share.
    | Comment!
  • Tue, Feb. 10, 2:57 PM
    • Norway’s government warns Statoil (STO -2.8%) against sacrificing the 300M-barrel Snorre oil project in the North Sea, after the company said the project was among those that could provide flexibility in the event of further spending cuts in coming years.
    • The Snorre 2040 project, aimed at prolonging the field’s lifetime and boosting extraction by adding a new platform, is more “time critical” than other ventures such as new developments, Norway’s energy minister says.
    • Norwegian companies including STO and global majors with Norwegian units are gearing up for sharp investment cuts that could sacrifice as many as 40K jobs nationwide.
    | Comment!
  • Fri, Feb. 6, 8:33 AM
    • Statoil (NYSE:STO) +1.7% premarket despite announcing Q4 results that showed a $1B-plus net loss, missing analyst expectations.
    • CEO Eldar Saetre says at STO's Capital Markets day that the company cut its U.S. onshore spending by 20%-25%, and has the flexibility to delay upcoming projects to maintain its dividend while avoiding loading on much more debt.
    • "We haven't stopped any of our ongoing projects, they're moving forward, but we've reduced activity quite significantly, including U.S. onshore," the CEO says.
    • At current oil prices, STO needs to take on more debt to cover its dividend and capital spending, but the company believes it could keep its debt as a share of its capital at a comfortable level even if the oil price stays at $60/bbl.
    • "Even in a $60 scenario, we operate within a debt ratio of 15%-30%, while increasing our production and investing heavily in Johan Sverdrup, and paying a competitive dividend," CFO Torgrim Reitan says.
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  • Fri, Feb. 6, 4:35 AM
    • Reporting a sharp slide in fourth-quarter profits, Statoil (NYSE:STO) became the latest oil company to slash spending this year and signal project delays after the plunge in crude prices.
    • The company will raise spending cuts by 30% to $1.7B from 2016 and lower capex to $18B this year from previous guidance of $20B.
    • Net loss for the three months through December was 8.9B kroner ($1.18B) compared with a net profit of 14.8B kroner a year earlier.
    • STO +3.3% AH
    | Comment!
  • Wed, Feb. 4, 7:57 AM
    • Statoil (NYSE:STO) appoints interim CEO Eldar Saetre to permanently fill the position; shares -3.6% premarket.
    • The appointment is a surprise, since Saetre, who has run the company since Helge Lund left in October to lead BG Group, had said he was not a candidate for the job on a permanent basis.
    • Saetre has worked for STO for 35 years and served as both CFO and head of the company’s marketing, processing and renewable energy unit.
    • The new CEO says STO’s strategy will remain largely unchanged, maintaining spending cuts begun last year to protect shareholder returns amid rising costs; he also says the company will strengthen its efforts in the "transition toward a low carbon society."
    | Comment!
  • Mon, Jan. 5, 2:21 PM
    • Statoil (STO -5.2%) says it has started production of natural gas and condensate from the Valemon field in North Sea and expects to recover up to 192M boe over the field's lifetime.
    • STO says the high pressure and high temperature field will cost ~$3B once all production wells are in operation.
    • STO owns a 53.7% stake in Valemon.
    | Comment!
  • Mon, Jan. 5, 12:39 PM
    • ConocoPhillips (COP -4.8%) says it is flowing its first barrels of oil from the Eldfisk II project in the Norwegian North Sea, in the company’s second big startup off the coast of Norway since late 2013.
    • COP says its newly productive project, alongside its other Norwegian offshore wells, will boost its output by 60K boe/day by 2017, and plans to drill 40 new water-injection and oil wells at its Norwegian field over the next three years.
    • The Eldfisk field is one of four offshore oil regions that make up Norway’s Greater Ekofisk Area, operated by COP and co-owned with Total (NYSE:TOT), Eni (NYSE:E), Statoil (NYSE:STO) and others.
    | 7 Comments
  • Dec. 16, 2014, 3:26 PM
    • A consortium led by Statoil (STO +3.3%) has submitted a development plan for the Rutil discovery in the North Sea’s Gullfaks Rimfaks Valley that will extend production from the Gullfaks A platform, providing close to 80M boe.
    • The development, one of STO's fast-track projects, will cost 4.6B kroners ($610M), and production is scheduled to begin during Q1 2017.
    • The field, which is expected to operate for 15 years, is expected to produce 31K boe/day at its peak production in 2019.
    • STO has delayed several new developments as low oil prices and high costs have hurt profits and eaten into its cash, but the Gullfaks project should keep costs relatively low by using existing infrastructure and extend the lifetime of the Gullfaks A platform.
    | Comment!
  • Dec. 15, 2014, 2:42 PM
    • The European Commission gives conditional clearance for BP (BP -3.1%) to acquire jet fuel business Statoil Fuel and Retail Aviation (NYSE:STO), subject to conditions.
    • The competition authorities say BP had committed to divesting SFRA's activities at Stockholm, Malmo, Gothenburg and Copenhagen airports to remove concerns that increased concentration there would have led to price increases of fuel for airlines.
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  • Dec. 2, 2014, 12:15 PM
    • Chevron (CVX +1.8%) says oil and natural gas production has begun from the Jack and St. Malo fields development project in the deepwater Gulf of Mexico, 10 years after the fields were first discovered.
    • CVX expects total production from the $7.5B project - its costliest active investment in the Americas - to ramp up to 94K bbl/day of crude and 21M cf/day of gas by 2020, with 500M boe from the two fields over their 30-year lifespan.
    • CVX has a 50% interest in the Jack field, with Statoil (NYSE:STO) and Maersk splitting the remaining half, and it owns 51% of St. Malo, with co-owners Petrobras (NYSE:PBR), Statoil, Exxon (NYSE:XOM) and Eni (NYSE:E).
    | 1 Comment
  • Nov. 28, 2014, 10:05 AM
    • With OPEC having seemingly handed the market responsibility for removing the ~1mb/d of supply needed to achieve balance into 2015, our concern is that the lack of transparency around the price at which supply breaks and speed/scale of a non-OPEC response leaves oil equities facing a period of uncertainty," writes analyst Lucas Hermann, downgrading Statoil (STO -13.2%) to Hold.
    • On a brighter note for the oil majors, Hermann notes on a 12-month view, the sector's relative valuation is at levels last seen in 2009, maybe meaning "absolute support" for names like Shell (RDS.A -6.2%) "where we have real conviction in the solidity of distributions."
    | 4 Comments
  • Nov. 28, 2014, 9:17 AM
    | 13 Comments
  • Nov. 27, 2014, 1:51 PM
    • Arctic Securities maintains its Sell rating and lowers its price and dividend targets on Statoil (NYSE:STO).
    • Notes that “run rate” 2015 operational cash flow is currently at NOK 104B while CAPEX is currently guided at NOK 138B. Consensus dividend expectation is NOK 7.54/share, or NOK 24B. "Statoil will hence before any divestments have to borrow NOK 58B next year to bridge the funding gap."
    • "Statoil is not in a position to continue the current dividend policy." Says oil prices would need to rise to $130/bbl for 2015 and $115/bbl for 2016 to make dividend sustainable.
    • Lowers price target to NOK 115 and dividend estimate by NOK 1.75/share to NOK 5.75 and NOK 6.00 in 2015 and 2016.
    • Shares are -24.6% since Arctic first pegged STO with a Sell rating on July 23. They fell 4.75% today to NOK 142.30.
    • Previously: Crude now -7.6% on OPEC rollover
    | 7 Comments
  • Oct. 28, 2014, 3:59 PM
    • Total (TOT +2.9%) earlier today said it agreed to sell a minority stake in the Gina Krog field near Norway and three additional North Sea fields to PGNiG Upstream International for $317M.
    • The deal includes an 8% ownership stake in Gina Krog, now under development and scheduled for a 2017 production start; through a subsidiary, TOT will retain a 30% interest in the project expected to produce ~60K barrels of oil and 9M cm/day of natural gas per day, while Statoil (NYSE:STO) is the majority partner with a 58.7% interest.
    • Also included are interests in three minor fields in the Norwegian North Sea.
    | Comment!
  • Oct. 21, 2014, 6:58 AM
    • Statoil (NYSE:STO) says it has found up to 80M barrels of recoverable oil in a prospect first drilled more than two decades ago and abandoned because the initial discovery was too small.
    • The find is located near the company's operating Grane field in the North Sea, and is well above the 6M barrels estimated when the prospect was explored by Norsk Hydro in 1992.
    • Statoil owns 57% of the production license for the new discovery. State holding firm Petoro has 30% and ExxonMobil (NYSE:XOM) has 13%.
    • STO +2.2% premarket
    | 3 Comments
  • Oct. 16, 2014, 9:13 AM
    | 3 Comments
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Company Description
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, and North America.