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Statoil ASA (STO)

- NYSE
  • 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.
    | 2 Comments
  • 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.
    | 4 Comments
  • 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.
    | Comment!
  • 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.
    | 2 Comments
  • 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.
    | 1 Comment
  • 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.
    | 33 Comments
  • 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.
    | Comment!
  • 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.
    | Comment!
  • 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.
    | 15 Comments
  • 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.
    | 33 Comments
  • Mon, Mar. 9, 3:35 PM
    • Analysts are mostly positive on Whiting Petroleum (WLL +10.8%) after WSJ's report that the company is looking to sell itself, particularly seeking out Statoil (STO -1.7%) to make a bid.
    • WLL is a prime takeover candidate, given its attempt to sell itself in 2012, BofA Merrill says as it maintains its Buy rating and $45 price target, adding that the scale of WLL's assets has increased significantly because of its Kodiak acquisition and could attract large energy companies with strong balance sheets such as Exxon (NYSE:XOM), Chevron (NYSE:CVX) and Hess (NYSE:HES).
    • WLL could get a strong price because of its rich assets in the Bakken Shale; on the other hand, investors have become particularly concerned about E&P companies that are heavily focused on a single region, as WLL is in the Bakken.
    • UBS analyst Betty Jiang points out some hurdles to a potential deal, including a wide price differential between buyers and sellers, and potential acquirers' apparent preference for buying land in areas that are cheaper than the Bakken.
    | 6 Comments
  • Mon, Mar. 9, 8:18 AM
    • Whiting Petroleum (NYSE:WLL) +10.2% premarket after WSJ reported Friday night that the company is for sale, citing unidentified sources.
    • Reuters reports that a person familiar with the board's thinking said he was not aware of any such plan.
    • Bloomberg reports that WLL has hired a bank to pursue a possible sale and has reached out to potential buyers including Statoil (NYSE:STO).
    | 6 Comments
  • 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.
    | Comment!
  • 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!
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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, North America, Africa, Asia and South America.