UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
April 27, 2016
Commission File Number 1-15200
Statoil ASA
(Translation of registrant’s name into English)
FORUSBEEN 50, N-4035, STAVANGER, NORWAY
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F X Form 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):_____
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):_____
This Report on Form 6-K shall be deemed to be filed and incorporated by reference in the Registration Statements on Form F-3 (File No. 333-188327) and Form S-8 (File No. 333-168426) and to be a part thereof from the date on which this report is furnished, to the extent not superseded by documents or reports subsequently filed or furnished.
This document includes portions from the previously published results announcement of Statoil ASA as of, and for the first quarter ended, 31 March 2016, as revised to comply with the requirements of Item 10(e) of Regulation S-K regarding non-GAAP financial information promulgated by the U.S. Securities and Exchange Commission. For more information on our use of non-GAAP financial measures in this report, see the section entitled "Use and Reconciliation of Non-GAAP Financial Measures". This document does not update or otherwise supplement the information contained in the previously published results announcement.
· Strong operational performance - financial results affected by low price environment
· Continuing to capture cost reductions and efficiency gains
· Maintaining competitive capital distribution of USD 0.2201 per share
“Our financial results were affected by low oil and gas prices in the quarter. We delivered strong operational performance across all business areas, high production efficiency and results in line with expectations from liquids trading and refining. The guidance for 2016 is maintained,” says Eldar Sætre, President and CEO of Statoil ASA.
“The industry is facing challenges. However, I am pleased to see progress consistent with the priorities we presented in February. We have a firm plan to improve efficiency and make faster and deeper cost reductions. We are radically improving our project break evens and we are on track to re-set costs and thereby impact the parameters that we can control”, says Sætre.
Net operating income was USD 1,060 million in the first quarter compared to negative USD 3,303 million in the same period in 2015. The increase was mainly due to lower depreciation, amortisation and net impairment losses, good operational performance and reduced underlying operating costs, partially offset by significantly lower liquids and gas prices.
Net income was USD 611 million in the first quarter compared to a net loss of USD 4,571 million in the same period of 2015. Net impairment reversals of USD 308 million before tax in the first quarter of 2016 positively impacted net income, compared to net impairment charges of USD 5,935 million before tax in the same period last year.
Statoil delivered equity production of 2,054 mboe per day in the first quarter. The underlying production growth in the quarter, after adjusting for divestments, was 2% compared to the first quarter last year. Production from the Norwegian continental shelf (NCS) grew 2% in the first quarter of 2016 compared to last year, adjusted for divestments. Equity production outside of Norway was 734 mboe per day, in line with the first quarter last year, adjusted for transactions.
In the first quarter Statoil made two small discoveries on the NCS. As of 31 March 2016, Statoil had completed seven wells, with four wells on-going. Exploration expenses in the quarter were USD 351 million, down from USD 1,721 million in the first quarter of 2015.
Cash flow from operations amounted to USD 2,205 million in the first quarter compared to USD 3,740 million in the same period last year. In light of the low liquids and gas prices in the quarter, Statoil maintained a strong capital structure, and net debt to capital employed at the end of the quarter was 28.1%. Organic capital expenditure was USD 2.4 billion in the first three months of 2016.
The board of directors has decided to pay a dividend of USD 0.2201 per ordinary share for the first quarter. Subject to approval of the proposed scrip dividend programme at the annual general meeting on 11 May 2016, shareholders will get the option to receive the dividend for the first quarter in newly issued shares in Statoil at a 5% discount. Further information on the scrip dividend programme for the first quarter will be published in due course.
The serious incidents frequency indicator was revised as from 2016, and caters now for Safety and Security incidents with an actual serious consequence. The twelve month average Actual Serious incident frequency (Actual SIF) was 0.21 per 31 March 2016, compared to 0.20 in the same period last year.
|
Quarters |
Change |
||
|
Q1 2016 |
Q4 2015 |
Q1 2015 |
Q1 on Q1 |
|
|
|
|
|
Net operating income (USD million) |
1,060 |
152 |
(3,303) |
N/A |
Net income (USD million) |
611 |
(1,122) |
(4,571) |
N/A |
Total equity liquids and gas production (mboe per day) [4] |
2,054 |
2,046 |
2,056 |
(0%) |
Group average liquids price (USD/bbl) [1] |
29 |
38 |
47 |
(39%) |
Key events since fourth quarter 2015:
· Drilling of the first of a total of 35 wells for the first phase of the Johan Sverdrup field development commenced early March
· Statoil announced the acquisition of 11.93% of the shares and votes in Lundin Petroleum, increasing Statoil’s exposure to core field development projects and growth assets on NCS, including Johan Sverdrup and Edvard Grieg
· In the Awards in Predefined Areas (APA) round 2015, Statoil was awarded interest in 24 licences on the NCS, the highest number of licences since 2005
· In April, Statoil entered the German offshore wind market, through a 50% acquisition of the Arkona offshore wind farm, providing renewable energy for up to 400,000 households in Germany
FIRST QUARTER 2016 GROUP REVIEW
The first quarter financial results continued to be characterised by the low price environment. Strong operational performance and a positive cost development affected earnings positively.
Total equity liquids and gas production [4] was 2,054 mboe per day in the first quarter of 2016, at the same level as in the first quarter of 2015. Expected natural decline on mature fields and lower ownership shares from divestments were offset by stronger operational performance and new production from ramp-up and start-up on various fields.
Total entitlement liquids and gas production [3] was slightly up by 2% to 1,909 mboe per day compared to 1,878 mboe per day in the first quarter of 2015. The increase was due to a beneficial effect from production sharing agreements (PSA effect), mainly as a result of the decline in oil prices. The PSA effect was 100 mboe per day in the first quarter of 2016 compared to 134 mboe per day in the first quarter of 2015.
Net operating income was USD 1,060 million in the first quarter of 2016, compared to negative USD 3,303 million in the first quarter of 2015, primarily due to lower impairment charges, partially offset by significant drop in liquids prices and reduction in gas prices. In the first quarter of 2016, net operating income was positively affected by net impairment reversals of USD 308 million, mainly due to improved production profiles and lower operating and capital expenditures on both conventional and un-conventional assets.
In the first quarter of 2015, net operating income was negatively impacted by net impairment charges of USD 5,935 million as a result of downward revisions of long term price assumptions.
Total revenues and other income decreased primarily due to the significant drop in liquids prices and the reduction in gas prices, lower margins for gas sales and trading activity and lower refinery margins.
Operating and administrative expenses decreased by USD 677 million compared to the first quarter of 2015, mainly due to reduced operational costs, lower maintenance activity and effects from on-going cost reduction initiatives. Lower transportation costs, diluent expenses and royalties as a result of the reduced prices and lower volumes, also contributed to the decrease.
Depreciation, amortisation and net impairment losses decreased by USD 5,299 mainly due to net impairment reversals in the first quarter of 2016, compared to high impairments in the first quarter of 2015. The net impairment of assets in 2015, the positive effect from exchange rate development and revisions of proved reserves for certain assets led to decreased depreciation costs in the first quarter of 2016 compared to the first quarter of 2015. The decrease was partially offset by higher production from ramp-up and start-up on various fields.
Exploration expenses decreased by USD 1,370 million in the first quarter of 2016, mainly due to lower impairments, lower drilling activity and relatively more expensive wells being drilled in the first quarter of 2015, partially offset by a lower capitalisation rate in the first quarter of 2016.
Net financial items amounted to a gain of USD 625 million in the first quarter of 2016, compared to a gain of USD 173 million in the first quarter of 2015. The change is mainly due to an increased gain on derivatives related to our long term debt portfolio, mainly due to the decrease in interest yield curves.
Income taxes were USD 1,074 million in the first quarter of 2016 , equivalent to an effective tax rate of 63.7%, compared to a negative effective tax rate of 46.1% in the first quarter of 2015.
Please refer to note 5 Income tax to the condensed interim financial statements for information related to income taxes.
Condensed income statement under IFRS |
Quarters |
Change |
||
(unaudited, in USD million) |
Q1 2016 |
Q4 2015 |
Q1 2015 |
Q1 on Q1 |
|
|
|
|
|
Total revenues and other income |
10,115 |
13,093 |
15,513 |
(35%) |
|
|
|
|
|
Purchases [net of inventory variation] |
(4,170) |
(5,974) |
(6,586) |
(37%) |
Operating and administrative expenses |
(2,495) |
(2,516) |
(3,172) |
(21%) |
Depreciation, amortisation and net impairment losses |
(2,039) |
(3,972) |
(7,338) |
(72%) |
Exploration expenses |
(351) |
(480) |
(1,721) |
(80%) |
|
|
|
|
|
Net operating income |
1,060 |
152 |
(3,303) |
N/A |
|
|
|
|
|
Net financial items |
625 |
(625) |
173 |
>100% |
|
|
|
|
|
Income before tax |
1,685 |
(473) |
(3,129) |
N/A |
|
|
|
|
|
Income tax |
(1,074) |
(649) |
(1,441) |
(25%) |
|
|
|
|
|
Net income |
611 |
(1,122) |
(4,571) |
N/A |
Net income in the first quarter of 2016 was USD 611 million compared to negative USD 4,571 in the first quarter of 2015, primarily due to net impairment reversals of USD 308 million in first quarter of 2016, compared to net impairment charges of USD 5,935 million the same period last year. Lower depreciation, increased gain on net financial items and lower income taxes positively impacted net income. Significantly lower liquids and gas prices partially offset the positive impact on net income.
Cash flows provided by operating activities were USD 2,205 million in the first quarter of 2016 compared to USD 3,740 million in the first quarter of 2015. Excluding working capital movements and taxes paid, cash flows provided by operating activities were USD 3,386 million in the first quarter of 2016 compared to USD 5,765 million in the first quarter of 2015. The 41% decrease was mainly due to reduced liquids and gas prices.
Cash flows used in investing activities were USD 2,337 million in the first quarter of 2016 compared to USD 8,338 million in the first quarter of 2015. The decrease of USD 6,001 million was mainly due an increase in financial investments of USD 4,857 million in the first quarter of 2015 compared to a decrease in financial investments of USD 451 million in the first quarter of 2016.
Cash flows used in financing activities were USD 248 million in the first quarter of 2016 compared to cash flows provided by financing activities of USD 2,742 million in the first quarter of 2015, a change of USD 2,990 million. The significant cash provided by financing activities in the first quarter of 2015 reflect mainly the issuance of new debt of USD 4,262 million which was partially offset by the repayment of debt of USD 1,427 million.
OUTLOOK
· Organic capital expenditures for 2016 (i.e. excluding acquisitions, capital leases and other investments with significant different cash flow pattern) are estimated at around USD 13 billion
· Statoil intends to continue to mature its large portfolio of exploration assets and estimates a total exploration activity level of around USD 2 billion for 2016, excluding signature bonuses
· Statoil expects to deliver efficiency improvements with pre-tax cash flow effects of around USD 2.5 billion from 2016
· Statoil’s ambition is to keep the unit of production cost in the top quartile of its peer group
· For the period 2014 – 2017, organic production growth [7] is expected to come from new projects resulting in around 1% CAGR (Compound Annual Growth Rate) from a 2014 level rebased for divestments
· The equity production for 2016 is estimated to be somewhat lower than the 2015 level due to Statoil’s value over volume-approach
· Scheduled maintenance activity is estimated to reduce quarterly production by approximately 55 mboe per day in the second quarter of 2016. In total, maintenance is estimated to reduce equity production by around 60 mboe per day for the full fiscal year 2016, which is higher than the 2015 impact
· Indicative effects from Production Sharing Agreement (PSA-effect) and US royalties are estimated to be around 135 mboe per day in 2016 based on an oil price of USD 40 per barrel and 165 mboe per day based on an oil price of USD 70 per barrel [4]
· Deferral of production to create future value, gas off-take, timing of new capacity coming on stream and operational regularity represent the most significant risks related to the foregoing production guidance
These forward-looking statements reflect current views about future events and are, by their nature, subject to significant risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. For further information, see section Forward-Looking Statements.
First quarter 2016 review
Average daily production of liquids and gas increased by 2% to 1,320 mboe per day in the first quarter of 2016 compared to the first quarter of 2015. The increase was mainly due to stronger operational performance from several fields and ramp-up of new fields, partially offset by expected natural decline on mature fields and lower gas sales.
Net operating income for Development and Production Norway (DPN) was USD 1,325 million compared to USD 2,047 million in the first quarter of 2015. The decrease by 35% in net operating income in the first quarter of 2016 compared to the first quarter of 2015 was mainly due to the drop in liquids and gas prices, partially offset by increased production and the NOK/USD exchange rate development.
In the first quarter of 2015 net operating income was negatively impacted by lower fair value of derivatives of USD 298 million and impairment charges of USD 140 million.
Operating and administrative expenses decreased mainly due to the results of efficiency gains from improvement initiatives and the NOK/USD exchange rate development.
Depreciation, amortisation and net impairment losses decreased mainly due to the NOK/USD exchange rate development and decreased asset retirement obligations, partially offset by ramp-up of new fields.
Exploration expenses decreased compared to 2015 mainly due to lower drilling activity and more expensive wells being drilled in the first quarter of 2015.
Income statement under IFRS |
Quarters |
Change |
||
(in USD million) |
Q1 2016 |
Q4 2015 |
Q1 2015 |
Q1 on Q1 |
|
|
|
|
|
Total revenues and other income |
3,338 |
4,087 |
4,786 |
(30%) |
|
|
|
|
|
Operating and administrative expenses |
(717) |
(600) |
(1,016) |
(29%) |
Depreciation, amortisation and net impairment losses |
(1,228) |
(1,666) |
(1,569) |
(22%) |
Exploration expenses |
(69) |
(117) |
(154) |
(55%) |
|
|
|
|
|
Net operating income |
1,325 |
1,704 |
2,047 |
(35%) |
First quarter 2016 review
Average equity production of liquids and gas in the first quarter of 2016 decreased by 3% to 734 mboe per day compared to the first quarter of 2015. The divestment of the Shah Deniz project, natural decline on various fields and higher effect of planned turnarounds were offset by ramp-up on the Corrib and Jack/St. Malo –fields and positive operational effects on the Marcellus shale play.
Average daily entitlement production of liquids and gas in the first quarter of 2016 increased by 1% to 589 mboe per day compared to the first quarter of 2015. The increase was due to a beneficial effect from production sharing agreements (PSA effect), mainly driven by the decline in prices. The PSA effect was 100 mboe per day in the first quarter of 2016 compared to 134 mboe per day in the first quarter of 2015.
Net operating income for Development and Production International (DPI) was negative USD 473 million compared to negative USD 6,134 million the first quarter of 2015. Lower realised oil and gas prices negatively impacted net operating income. This was partially offset by net reversal of impairments of USD 314 million and lower operating expenses and depreciation.
In the first quarter of 2015, net operating income was negatively impacted by net impairment charges of USD 5,795 million.
Operating and administrative expenses decreased due to lower operation and maintenance costs relating to various fields, in addition to lower diluent expenses and royalties caused by reduced prices and lower volumes. Portfolio changes added further to the decrease. The decreases were partially offset by higher transportation expenses in the US and operating costs for new fields coming on stream.
Depreciation, amortisation and net impairment losses decreased primarily due to net impairment reversals in the first quarter of 2016 compared to net impairments charges in the first quarter of 2015. Higher reserves estimates added to the decrease. Higher production volumes from the start-up and ramp-up of new fields partially offset the decrease in depreciation.
Exploration expenses decreased primarily due lower impairments, lower drilling activity and less expensive wells being drilled in the first quarter of 2016. A lower capitalisation rate as a result of unsuccessful drilling compared to first quarter of 2015 partially offset the decrease.
Income statement under IFRS |
Quarters |
Change |
||
(in USD million) |
Q1 2016 |
Q4 2015 |
Q1 2015 |
Q1 on Q1 |
|
|
|
|
|
Total revenues and other income |
1,139 |
1,209 |
1,964 |
(42%) |
|
|
|
|
|
Operating and administrative expenses |
(626) |
(702) |
(888) |
(30%) |
Depreciation, amortisation and net impairment losses |
(702) |
(2,168) |
(5,641) |
(88%) |
Exploration expenses |
(282) |
(363) |
(1,567) |
(82%) |
|
|
|
|
|
Net operating income |
(473) |
(2,031) |
(6,134) |
92% |
First quarter 2016 review
Natural gas sales volumes in the first quarter of 2016
amounted to 14.9 billion standard cubic meters (bcm), down 4% compared to the
first quarter of 2015. The decrease was mainly due to lower third-party volumes
and divestments. Of the total gas sales in the first quarter of 2016, entitlement
gas was 12.2 bcm compared to 12.1 bcm in the first quarter of 2015.
Average invoiced European natural gas sales price [8] decreased by 31% due to abundant gas supply, combined with a comparatively mild winter. Average invoiced North American piped gas sales price [8] decreased by 48% due to abundant gas supply, combined with warmer weather conditions in the Northeast in the first quarter of 2016 compared to the first quarter of 2015.
Net operating income for Marketing, Midstream and Processing (MMP) was USD 303 million compared to USD 831 million in the first quarter of 2015. Net operating income was negatively impacted by changes in the market value of storage and future physical contracts of USD 149 million. Lower margins for gas sales and trading activity, partially as a result of realised sales being less exposed to longer dated price markers than reflected in the transfer price formula, and lower refinery margins added to the decrease.
Operating and administrative expenses decreased as a result of lower transportation costs, effects from the on-going cost initiatives and the NOK/USD exchange rate development.
Income statement under IFRS |
Quarters |
Change |
||
(in USD million) |
Q1 2016 |
Q4 2015 |
Q1 2015 |
Q1 on Q1 |
|
|
|
|
|
Total revenues and other income |
9,934 |
13,091 |
15,442 |
(36%) |
|
|
|
|
|
Purchases [net of inventory variation] [6] |
(8,485) |
(11,362) |
(13,301) |
(36%) |
Operating and administrative expenses |
(1,073) |
(1,157) |
(1,218) |
(12%) |
Depreciation, amortisation and net impairment losses |
(73) |
(98) |
(92) |
(21%) |
|
|
|
|
|
Net operating income |
303 |
474 |
831 |
(64%) |
First quarter 2016
With effect from the first quarter of 2016 the financial statements are presented in US dollars (USD). Comparative data has been converted from Norwegian kroner (NOK) to USD accordingly. For more information concerning this re-presentation see note 9 Change of presentation currency – re-presentation of comparative periods to these Condensed interim financial statements.
CONSOLIDATED STATEMENT OF INCOME
|
Quarters |
Full year |
||
(unaudited, in USD million) |
Q1 2016 |
Q4 2015 |
Q1 2015 |
2015 |
|
|
|
|
|
Revenues |
10,087 |
12,809 |
15,404 |
57,900 |
Net income from equity accounted investments |
20 |
(35) |
39 |
(29) |
Other income |
8 |
320 |
70 |
1,770 |
|
|
|
|
|
Total revenues and other income |
10,115 |
13,093 |
15,513 |
59,642 |
|
|
|
|
|
Purchases [net of inventory variation] |
(4,170) |
(5,974) |
(6,586) |
(26,254) |
Operating expenses |
(2,247) |
(2,246) |
(2,928) |
(10,512) |
Selling, general and administrative expenses |
(247) |
(270) |
(244) |
(921) |
Depreciation, amortisation and net impairment losses |
(2,039) |
(3,972) |
(7,338) |
(16,715) |
Exploration expenses |
(351) |
(480) |
(1,721) |
(3,872) |
|
|
|
|
|
Net operating income |
1,060 |
152 |
(3,303) |
1,366 |
|
|
|
|
|
Net financial items |
625 |
(625) |
173 |
(1,311) |
|
|
|
|
|
Income before tax |
1,685 |
(473) |
(3,129) |
55 |
|
|
|
|
|
Income tax |
(1,074) |
(649) |
(1,441) |
(5,225) |
|
|
|
|
|
Net income |
611 |
(1,122) |
(4,571) |
(5,169) |
|
|
|
|
|
Attributable to equity holders of the company |
607 |
(1,126) |
(4,578) |
(5,192) |
Attributable to non-controlling interests |
4 |
4 |
8 |
22 |
|
|
|
|
|
Basic earnings per share (in USD) |
0.19 |
(0.35) |
(1.44) |
(1.63) |
Diluted earnings per share (in USD) |
0.19 |
(0.35) |
(1.44) |
(1.63) |
Weighted average number of ordinary shares outstanding (in millions) |
3,180 |
3,178 |
3,180 |
3,179 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
|
Quarters |
Full year |
||
(unaudited, in USD million) |
Q1 2016 |
Q4 2015 |
Q1 2015 |
2015 |
|
|
|
|
|
Net income |
611 |
(1,122) |
(4,571) |
(5,169) |
|
|
|
|
|
Actuarial gain (loss) on defined benefit pension plans |
(221) |
1,013 |
359 |
1,599 |
Income tax effect on income and expenses recognised in OCI |
60 |
(290) |
(101) |
(461) |
Items that will not be reclassified to the Consolidated statement of income |
(161) |
722 |
258 |
1,138 |
|
|
|
|
|
Currency translation adjustments |
1,357 |
(656) |
(2,266) |
(3,976) |
Net gain (loss) from available for sale financial assets |
89 |
0 |
0 |
0 |
Items that may be subsequently reclassified to the Consolidated statement of income |
1,445 |
(656) |
(2,266) |
(3,976) |
|
|
|
|
|
Other comprehensive income |
1,284 |
66 |
(2,008) |
(2,838) |
|
|
|
|
|
Total comprehensive income |
1,895 |
(1,056) |
(6,578) |
(8,007) |
|
|
|
|
|
Attributable to the equity holders of the company |
1,891 |
(1,060) |
(6,586) |
(8,030) |
Attributable to non-controlling interests |
4 |
4 |
8 |
22 |
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEET
|
At 31 March |
At 31 December |
At 31 March |
At 31 December |
(unaudited, in USD million) |
2016 |
2015 |
2015 |
2014 |
|
|
|
|
|
ASSETS |
|
|
|
|
Property, plant and equipment |
64,576 |
62,006 |
68,571 |
75,619 |
Intangible assets |
9,494 |
9,452 |
9,447 |
11,458 |
Equity accounted investments |
835 |
824 |
1,465 |
1,127 |
Deferred tax assets |
1,775 |
2,022 |
2,037 |
1,732 |
Pension assets |
1,242 |
1,284 |
916 |
1,072 |
Derivative financial instruments |
3,294 |
2,697 |
3,557 |
4,023 |
Financial investments |
3,037 |
2,336 |
2,364 |
2,634 |
Prepayments and financial receivables |
849 |
967 |
971 |
766 |
|
|
|
|
|
Total non-current assets |
85,102 |
81,588 |
89,328 |
98,430 |
|
|
|
|
|
Inventories |
2,594 |
2,502 |
3,029 |
3,193 |
Trade and other receivables |
6,868 |
6,671 |
9,699 |
11,212 |
Derivative financial instruments |
407 |
542 |
844 |
717 |
Financial investments |
9,292 |
9,817 |
12,110 |
7,968 |
Cash and cash equivalents |
8,540 |
8,623 |
8,657 |
11,182 |
|
|
|
|
|
Total current assets |
27,700 |
28,154 |
34,338 |
34,272 |
|
|
|
|
|
Total assets |
112,802 |
109,742 |
123,666 |
132,702 |
|
|
|
|
|
EQUITY AND LIABILITIES |
|
|
|
|
Shareholders' equity |
42,162 |
40,271 |
44,643 |
51,225 |
Non-controlling interests |
36 |
36 |
53 |
57 |
|
|
|
|
|
Total equity |
42,198 |
40,307 |
44,696 |
51,282 |
|
|
|
|
|
Finance debt |
30,210 |
29,965 |
30,930 |
27,593 |
Deferred tax liabilities |
7,553 |
7,421 |
8,259 |
9,613 |
Pension liabilities |
3,213 |
2,979 |
3,486 |
3,752 |
Provisions |
13,192 |
12,422 |
15,389 |
15,766 |
Derivative financial instruments |
935 |
1,285 |
993 |
611 |
|
|
|
|
|
Total non-current liabilities |
55,105 |
54,073 |
59,057 |
57,335 |
|
|
|
|
|
Trade and other payables |
9,003 |
9,333 |
11,896 |
13,545 |
Current tax payable |
3,151 |
2,740 |
5,532 |
5,321 |
Finance debt |
2,796 |
2,326 |
2,306 |
3,561 |
Dividends payable |
0 |
700 |
0 |
770 |
Derivative financial instruments |
550 |
264 |
178 |
887 |
|
|
|
|
|
Total current liabilities |
15,499 |
15,363 |
19,913 |
24,085 |
|
|
|
|
|
Total liabilities |
70,604 |
69,436 |
78,970 |
81,420 |
|
|
|
|
|
Total equity and liabilities |
112,802 |
109,743 |
123,666 |
132,702 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(unaudited, in USD million) |
Share capital |
Additional paid-in capital |
Retained earnings |
Currency translation adjustments |
Available for sale financial assets |
Shareholders' equity |
Non-controlling interests |
Total equity |
|
|
|
|
|
|
|
|
|
At 31 December 2014 |
1,139 |
5,714 |
45,677 |
(1,305) |
(0) |
51,225 |
57 |
51,282 |
Net income for the period |
|
|
(4,578) |
|
|
(4,578) |
8 |
(4,571) |
Other comprehensive income |
|
|
258 |
(2,266) |
0 |
(2,008) |
|
(2,008) |
Total comprehensive income |
|
|
|
|
|
|
|
(6,578) |
Dividends |
|
|
1 |
|
|
1 |
|
1 |
Other equity transactions |
|
2 |
0 |
|
|
2 |
(11) |
(9) |
|
|
|
|
|
|
|
|
|
At 31 March 2015 |
1,139 |
5,717 |
41,358 |
(3,571) |
(0) |
44,643 |
53 |
44,696 |
|
|
|
|
|
|
|
|
|
At 31 December 2015 |
1,139 |
5,720 |
38,693 |
(5,281) |
(0) |
40,271 |
36 |
40,307 |
Net income for the period |
|
|
607 |
|
|
607 |
4 |
611 |
Other comprehensive income |
|
|
(161) |
1,357 |
89 |
1,284 |
|
1,284 |
Total comprehensive income |
|
|
|
|
|
|
|
1,895 |
Dividends |
|
|
0 |
|
|
0 |
|
0 |
Other equity transactions |
|
1 |
(0) |
|
|
0 |
(5) |
(5) |
|
|
|
|
|
|
|
|
|
At 31 March 2016 |
1,139 |
5,720 |
39,138 |
(3,924) |
89 |
42,162 |
36 |
42,198 |
CONSOLIDATED STATEMENT OF CASH FLOWS
|
Quarters |
Full year |
||
(unaudited, in USD million) |
Q1 2016 |
Q4 2015 |
Q1 2015 |
2015 |
|
|
|
|
|
Income before tax |
1,685 |
(473) |
(3,129) |
55 |
|
|
|
|
|
Depreciation, amortisation and net impairment losses |
2,039 |
3,972 |
7,338 |
16,715 |
Exploration expenditures written off |
142 |
(108) |
1,423 |
2,164 |
(Gains) losses on foreign currency transactions and balances |
(614) |
424 |
447 |
1,166 |
(Gains) losses on sales of assets and businesses |
(5) |
(301) |
(59) |
(1,716) |
(Increase) decrease in other items related to operating activities |
712 |
367 |
(299) |
558 |
(Increase) decrease in net derivative financial instruments |
(526) |
262 |
12 |
1,551 |
Interest received |
68 |
81 |
114 |
363 |
Interest paid |
(115) |
(137) |
(81) |
(443) |
|
|
|
|
|
Cash flows provided by operating activities before taxes paid and working capital items |
3,386 |
4,087 |
5,765 |
20,414 |
|
|
|
|
|
Taxes paid |
(743) |
(2,226) |
(1,671) |
(8,078) |
|
|
|
|
|
(Increase) decrease in working capital1) |
(438) |
357 |
(354) |
1,292 |
|
|
|
|
|
Cash flows provided by operating activities |
2,205 |
2,218 |
3,740 |
13,628 |
|
|
|
|
|
Additions through business combinations |
0 |
(398) |
0 |
(398) |
Capital expenditures and investments |
(2,821) |
(3,214) |
(3,963) |
(15,518) |
(Increase) decrease in financial investments |
451 |
2,810 |
(4,857) |
(2,813) |
(Increase) decrease in other non-current items |
23 |
(136) |
1 |
(22) |
Proceeds from sale of assets and businesses |
10 |
690 |
481 |
4,249 |
|
|
|
|
|
Cash flows used in investing activities |
(2,337) |
(248) |
(8,338) |
(14,501) |
|
|
|
|
|
New finance debt |
0 |
9 |
4,262 |
4,272 |
Repayment of finance debt |
(3) |
(11) |
(1,427) |
(1,464) |
Dividend paid |
(697) |
(658) |
(757) |
(2,836) |
Net current finance debt and other |
452 |
(224) |
665 |
(701) |
|
|
|
|
|
Cash flows provided by (used in) financing activities |
(248) |
(884) |
2,742 |
(729) |
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents |
(379) |
1,086 |
(1,856) |
(1,602) |
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
296 |
(194) |
(580) |
(871) |
Cash and cash equivalents at the beginning of the period (net of overdraft) |
8,613 |
7,721 |
11,085 |
11,085 |
|
|
|
|
|
Cash and cash equivalents at the end of the period (net of overdraft)2) |
8,530 |
8,613 |
8,650 |
8,613 |
1) (Increase)/decrease in items under operating activities include currency effects.
2) At 31 March 2016 cash and cash equivalents included a net bank overdraft of USD 10 million. At 31 December 2015 and at 31 March 2015 cash and cash equivalents included a net bank overdraft of USD 10 million and USD 7 million, respectively.
General information and organisation
Statoil ASA, originally Den Norske Stats Oljeselskap AS, was founded in 1972 and is incorporated and domiciled in Norway. The address of its registered office is Forusbeen 50, N-4035 Stavanger, Norway.
The Statoil group’s (Statoil) business consists principally of the exploration, production, transportation, refining and marketing of petroleum and petroleum-derived products. Statoil ASA is listed on the Oslo Børs (Norway) and the New York Stock Exchange (US).
All Statoil's oil and gas activities and net assets on the Norwegian continental shelf are owned by Statoil Petroleum AS, a 100% owned operating subsidiary of Statoil ASA. Statoil Petroleum AS is co-obligor or guarantor of certain debt obligations of Statoil ASA.
Statoil's Condensed interim financial statements for the first quarter of 2016 were authorised for issue by the board of directors on 26 April 2016.
Basis of preparation
These Condensed interim financial statements are prepared in accordance with International Accounting Standard 34 Interim Financial Reporting as issued by the International Accounting Standards Board (IASB) and as adopted by the European Union (EU). The Condensed interim financial statements do not include all of the information and disclosures required by International Financial Reporting Standards (IFRS) for a complete set of financial statements, and these Condensed interim financial statements should be read in conjunction with the Consolidated annual financial statements. IFRS as adopted by the EU differ in certain respects from IFRS as issued by the IASB, but the differences do not impact Statoil's financial statements for the periods presented. A description of the significant accounting policies applied in preparing these Consolidated interim financial statements is included in Statoil`s Consolidated annual financial statements for 2015.
On 1 January 2016 Statoil changed its presentation currency from Norwegian kroner (NOK) to US dollar (USD), mainly in order to better reflect the underlying USD exposure of Statoil’s business activities and to align with industry practice. See note 9 Change of presentation currency – re-presentation of comparative periods for further information about the change and its impact on the financial statements.
There have been no other changes to significant accounting policies in the first quarter of 2016 compared to the annual financial statements for 2015.
The Condensed interim financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair statement of the financial position, results of operations and cash flows for the dates and interim periods presented. Interim period results are not necessarily indicative of results of operations or cash flows for an annual period. Certain amounts in the comparative periods have been re-presented to conform to current period presentation. The subtotals and totals in some of the tables may not equal the sum of the amounts shown due to rounding.
The Condensed interim financial statements are unaudited.
Use of estimates
The preparation of financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an on-going basis, considering current and expected future market conditions. A change in an accounting estimate is recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Statoil’s operations are managed through the following operating
segments: Development and Production Norway (DPN), Development and Production
USA (DPUSA), Development and Production International (DPI), Marketing,
Midstream and Processing (MMP), New Energy Solutions (NES) and Other.
Statoil reports its business through reporting segments which correspond to the operating segments, except for the operating segments DPUSA and DPI which have been aggregated into one reporting segment, Development and Production International. This aggregation has its basis in similar economic characteristics, the nature of products, services and production processes, the type and class of customers, the methods of distribution and regulatory environment. The operating segment NES is reported in the reporting segment Other.
As of 1 January 2016, certain assets and operations, with a book value of USD 1,487 million, previously included in the MMP operating segment are now managed as part of the DPUSA operating segment and are now reported as part of the Development and Production International reporting segment. Comparative periods have not been restated, as the impact on the segments has been considered immaterial.
The eliminations section includes the elimination of inter-segment sales and related unrealised profits, mainly from the sale of crude oil and products. Inter-segment revenues are based upon estimated market prices.
Segment data for the first quarter of 2016 and 2015 is presented below. The reported measure of segment profit is net operating income. Deferred tax assets, pension assets and non-current financial assets are not allocated to the segments. The line item additions to PP&E, intangibles and equity accounted investments excludes movements related to changes in asset retirement obligations.
First quarter 2016 |
Development and Production Norway |
Development and Production International |
Marketing, Midstream and Processing |
Other |
Eliminations |
Total |
(in USD million) |
||||||
|
|
|
|
|
|
|
Revenues third party and other income |
22 |
137 |
9,909 |
27 |
0 |
10,095 |
Revenues inter-segment |
3,317 |
1,000 |
12 |
(2) |
(4,327) |
0 |
Net income from equity accounted investments |
0 |
2 |
13 |
5 |
0 |
20 |
|
|
|
|
|
|
|
Total revenues and other income |
3,338 |
1,139 |
9,934 |
31 |
(4,327) |
10,115 |
|
|
|
|
|
|
|
Purchases [net of inventory variation] |
0 |
(3) |
(8,485) |
(0) |
4,318 |
(4,170) |
Operating and SG&A expenses |
(717) |
(626) |
(1,073) |
(103) |
24 |
(2,495) |
Depreciation, amortisation and net impairment losses |
(1,228) |
(702) |
(73) |
(37) |
0 |
(2,039) |
Exploration expenses |
(69) |
(282) |
0 |
0 |
0 |
(351) |
|
|
|
|
|
|
|
Net operating income |
1,325 |
(473) |
303 |
(108) |
14 |
1,060 |
|
|
|
|
|
|
|
Additions to PP&E, intangibles and equity accounted investments |
1,234 |
1,016 |
118 |
115 |
0 |
2,482 |
|
|
|
|
|
|
|
Balance sheet information |
|
|
|
|
|
|
Equity accounted investments |
6 |
437 |
123 |
269 |
0 |
835 |
Non-current segment assets |
29,631 |
39,264 |
4,414 |
761 |
0 |
74,070 |
Non-current assets, not allocated to segments |
|
|
|
|
|
10,197 |
|
|
|
|
|
|
|
Total non-current assets |
|
|
|
|
|
85,102 |
First quarter 2015 |
Development and Production Norway |
Development and Production International |
Marketing, Midstream and Processing |
Other |
Eliminations |
Total |
(in USD million) |
||||||
|
|
|
|
|
|
|
Revenues third party and other income |
(274) |
303 |
15,356 |
90 |
0 |
15,474 |
Revenues inter-segment |
5,057 |
1,648 |
60 |
0 |
(6,765) |
0 |
Net income from equity accounted investments |
3 |
13 |
27 |
(4) |
0 |
39 |
|
|
|
|
|
|
|
Total revenues and other income |
4,786 |
1,964 |
15,442 |
86 |
(6,765) |
15,513 |
|
|
|
|
|
|
|
Purchases [net of inventory variation] |
(0) |
(1) |
(13,301) |
(0) |
6,716 |
(6,586) |
Operating and SG&A expenses |
(1,016) |
(888) |
(1,218) |
(100) |
50 |
(3,172) |
Depreciation, amortisation and net impairment losses |
(1,569) |
(5,641) |
(92) |
(35) |
0 |
(7,338) |
Exploration expenses |
(154) |
(1,567) |
(0) |
0 |
0 |
(1,721) |
|
|
|
|
|
|
|
Net operating income |
2,047 |
(6,134) |
831 |
(49) |
2 |
(3,303) |
|
|
|
|
|
|
|
Additions to PP&E, intangibles and equity accounted investments |
1,630 |
2,231 |
212 |
13 |
0 |
4,086 |
|
|
|
|
|
|
|
Balance sheet information |
|
|
|
|
|
|
Equity accounted investments |
33 |
655 |
764 |
14 |
0 |
1,465 |
Non-current segment assets |
32,692 |
39,445 |
5,240 |
642 |
0 |
78,018 |
Non-current assets, not allocated to segments |
|
|
|
|
|
9,844 |
|
|
|
|
|
|
|
Total non-current assets |
|
|
|
|
|
89,328 |
In the first quarter of 2016, Statoil recognised net impairment reversals of USD 308 million, consisting of impairment reversals of USD 633 million and impairment charges of USD 325 million.
The impairment reversals relate to unconventional onshore assets in North America amounting to USD 413 million and two conventional assets in the DPI segment amounting to USD 220 million, and are mainly driven by updated business plans resulting in improved production profiles and lower operating and capital expenditures.
The impairment charges of USD 325 million relate to an unconventional onshore asset in North America as a result of a lower fair market valuation, a conventional asset in the DPI segment as a result of an updated business plan and acquisition costs of oil and gas prospects.
See also note 6 Property, plant and equipment and intangible assets for further information on impairments.
In the first quarter of 2015, Statoil recognised net impairment losses of USD 5,934 million, of which USD 140 million was recognised in the DPN segment and USD 5,767 million in the DPI segment. Of the impairment losses in the DPI segment, USD 3,910 million, including goodwill of USD 539 million, related to unconventional onshore assets in North America. Of the remaining USD 1,857 million, relating to conventional upstream assets, USD 1,419 million related to assets in the Gulf of Mexico. The impairments were mainly driven by a downward adjustment of the long term commodity price assumptions.
Revenues by geographic areas
When attributing the line item revenues third party and other income to the country of the legal entity executing the sale for the first quarter of 2016, Norway constitutes 78% and the US constitutes 13%.
Non-current assets by country |
|
|
|
|
|
|
|
|
At 31 March |
At 31 December |
At 31 March |
(in USD million) |
2016 |
2015 |
2015 |
|
|
|
|
Norway |
33,396 |
31,487 |
36,198 |
US |
20,594 |
20,531 |
19,490 |
Angola |
5,203 |
5,350 |
6,668 |
Brazil |
3,483 |
3,474 |
3,885 |
UK |
3,227 |
2,883 |
2,303 |
Canada |
2,495 |
2,270 |
2,286 |
Algeria |
1,454 |
1,435 |
1,590 |
Azerbaijan |
1,398 |
1,416 |
3,375 |
Other countries |
3,655 |
3,435 |
3,688 |
|
|
|
|
Total non-current assets1) |
74,905 |
72,282 |
79,484 |
1) Excluding deferred tax assets, pension assets and non-current financial assets.
Acquisition of shares and votes in Lundin Petroleum AB
In the first quarter of 2016 Statoil acquired 11.93% of the issued share capital and votes in Lundin Petroleum AB for a total purchase price of SEK 4.6 billion (USD 541 million). The shares are accounted for as a non-current financial investment at fair value with changes in fair value through other comprehensive income. The fair value as of 31 March 2016 was USD 630 million and an unrealised gain before and after tax of USD 89 million is presented in the line item net gain (loss) on available for sale financial assets in the Consolidated statement of comprehensive income.
|
Quarters |
Full year |
||
(in USD million) |
Q1 2016 |
Q4 2015 |
Q1 2015 |
2015 |
|
|
|
|
|
Net foreign exchange gains (losses) |
8 |
(249) |
32 |
(245) |
Interest income and other financial items |
48 |
137 |
171 |
396 |
Gains (losses) derivative financial instruments |
824 |
(268) |
208 |
(491) |
Interest and other finance expenses |
(255) |
(246) |
(238) |
(971) |
|
|
|
|
|
Net financial items |
625 |
(625) |
173 |
(1,311) |
Statoil has available a US Commercial paper program with a limit of USD 4 billion.
At 31 March 2016 there are no outstanding amounts under the US Commercial paper program.
|
Quarters |
Full year |
||
(in USD million) |
Q1 2016 |
Q4 2015 |
Q1 2015 |
2015 |
|
|
|
|
|
Income before tax |
1,685 |
(473) |
(3,129) |
55 |
Income tax |
(1,074) |
(649) |
(1,441) |
(5,225) |
Equivalent to a tax rate of |
63.7% |
>(100%) |
(46.1%) |
>100% |
The tax rate for the Group for the first quarter of 2016 was primarily influenced by low tax rate on income from the Norwegian continental shelf caused by proportionally greater impact of uplift deduction and currency effects in entities that are taxable in other currencies than the functional currency. This was partially offset by write-off of deferred tax assets within Development and Production International segment, due to uncertainty related to future taxable income.
The tax rate for the first quarter of 2015 was primarily influenced by impairments with lower than average tax rates. The tax rate was partially offset by tax effect of foreign exchange losses in entities that are taxable in other currencies than the functional currency this quarter.
(in USD million) |
Property, plant and equipment |
Intangible assets |
|
|
|
|
|
Balance at 31 December 2015 |
62,006 |
9,452 |
|
Additions |
2,506 |
137 |
|
Transfers |
47 |
(47) |
|
Disposals and reclassifications |
(1) |
(2) |
|
Expensed exploration expenditures and impairment losses |
0 |
(142) |
|
Depreciation, amortisation and net impairment losses |
(2,036) |
(3) |
|
Effect of foreign currency translation adjustments |
2,054 |
99 |
|
|
|
|
|
Balance at 31 March 2016 |
64,576 |
9,494 |
|
Impairments
In the first quarter of 2016, Statoil recognised net impairment reversals of USD 308 million, consisting of impairment reversals of USD 633 million and impairment charges of USD 325 million. See also note 2 Segments.
First quarter 2016 |
Property, plant and equipment |
Intangible assets |
Total |
(in USD million) |
|||
|
|
|
|
Producing and development assets |
(379) |
(14) |
(393) |
Acquisition costs related to oil and gas prospects |
0 |
84 |
84 |
|
|
|
|
Total net impairment losses/(reversals) recognised |
(379) |
71 |
(308) |
The impairment charges have been recognised in the Consolidated statement of income as depreciation, amortisation and net impairment losses and exploration expenses based on the impaired assets’ nature of property, plant and equipment and intangible assets, respectively. Recoverable amounts in the impairment assessments have been based on value in use as well as fair value less costs of disposal. The fair value estimates have been based on various market parameters derived from relevant transactions and assumed to be applied by market participants in the current market environment.
During the normal course of its business Statoil is involved in legal and other proceedings, and several claims are unresolved and currently outstanding. The ultimate liability or asset, respectively, in respect of such litigation and claims cannot be determined at this time. Statoil has provided in its condensed interim financial statements for probable liabilities related to litigation and claims based on the company's best judgement. Statoil does not expect that its financial position, results of operations or cash flows will be materially affected by the resolution of these legal proceedings.
On 20 April 2016, Statoil entered into a confidential agreement to divest unconventional non-core properties in the United States for a cash consideration of approximately USD 400 million. The closing of this transaction is subject to customary procedures, which are expected to be completed early third quarter 2016. Statoil does not expect to realise a gain or loss on this transaction, but Statoil impaired the carrying amount of these properties in first quarter of 2016 by USD 131 million. This impairment is reflected as part of depreciation, amortisation and net impairment losses and exploration expense in the Consolidated Statement of Income.
On 26 April 2016 the board of directors resolved to declare a dividend for the first quarter of 2016 of USD 0.2201 per share. The shares will trade ex-dividend on 10 August 2016 on both the Oslo Børs (OSE) and for American depositary receipt (ADR) holders at the New York Stock Exchange (NYSE). Proposed dividend of USD 0.2201 per share for the fourth quarter of 2015 is expected to be adopted by the annual general meeting of shareholders on 11 May 2016 and the shares will trade ex-dividend on 12 May 2016 on OSE and for ADR holders at NYSE.
Subject to approval of the proposed scrip dividend programme at the annual general meeting (AGM) 11 May 2016, shareholders will get the option to receive the dividend for the first quarter in newly issued shares in Statoil at a 5% discount. Further information on the scrip programme for first quarter will be published in due course.
On
1 January 2016 Statoil changed its presentation currency from Norwegian kroner
(NOK) to US dollars (USD). The change was made mainly in order to better
reflect the underlying USD exposure of Statoil’s business activities and to
align with industry practice.
The change in presentation currency has been accounted for as a policy change, and comparative figures have been re-presented to USD, to reflect the change in presentation currency.
The re-presented Consolidated statement of income, Consolidated statement of other comprehensive income, Consolidated balance sheet, Consolidated statement of changes in equity, Consolidated statement of cash flows and the segment information are presented in USD in this note disclosure for the periods ending 31 December 2014, 31 December 2015 and for the four quarters of 2015. The changes made to each of the statements and to the segment information are described below. There are no policy changes other than the change in presentation currency.
The different components of assets and liabilities in USD correspond to the amount published in NOK translated at the USD/NOK closing rate applicable at the end of each reporting period. The same relates to the equity as a whole. As such, the change in presentation currency will not impact the valuation of assets, liabilities, equity or any ratios between these components, such as debt to equity ratios.
All currency translation adjustments have been set to zero as of 1 January 2006, which was the date of Statoil’s transition to IFRS. Translation adjustments and cumulative translation adjustments have been presented as if Statoil had used USD as the presentation currency from that date.
The recalculation of currency translation adjustments in USD has an impact on the distribution of shareholders’ equity for comparable periods, between currency translation adjustments and other components of equity. Together with changes in net income arising from the change in presentation currency, these effects are presented as re-presentations in the table below.
EFFECT OF CHANGES IN REPORTED EQUITY
(unaudited) |
Historical Consolidated financial statements in NOK billion |
Historical Consolidated financial statements in USD million1) |
Re-presentation in USD million |
Consolidated financial statements in USD million |
31 December, 2014 |
||||
|
|
|
|
|
Share capital |
8.0 |
1,072 |
67 |
1,139 |
Additional paid-in capital |
40.2 |
5,408 |
306 |
5,714 |
Retained earnings |
268.4 |
36,097 |
9,580 |
45,677 |
Currency translation adjustments |
64.3 |
8,650 |
(9,955) |
(1,305) |
Non-controlling interests |
0.4 |
54 |
3 |
57 |
|
|
|
|
|
Total equity |
381.2 |
51,282 |
0 |
51,282 |
|
|
|
|
|
1) Translated at exchange rate NOK 7,4332 : USD 1 as of 31 December 2014. |
||||
|
|
|
|
|
|
|
|
|
|
(unaudited) |
Historical Consolidated financial statements in NOK billion |
Historical Consolidated financial statements in USD million1) |
Re-presentation in USD million |
Consolidated financial statements in USD million |
31 December, 2015 |
||||
|
|
|
|
|
Share capital |
8.0 |
905 |
234 |
1,139 |
Additional paid-in capital |
40.1 |
4,552 |
1,168 |
5,720 |
Retained earnings |
215.1 |
24,417 |
14,276 |
38,693 |
Currency translation adjustments |
91.6 |
10,398 |
(15,679) |
(5,281) |
Non-controlling interests |
0.3 |
34 |
2 |
36 |
|
|
|
|
|
Total equity |
355.1 |
40,307 |
0 |
40,307 |
|
|
|
|
|
1) Translated at exchange rate NOK 8,8090 : USD 1 as of 31 December 2015. |
The Consolidated statement of income, Consolidated statement of other comprehensive income, Consolidated statement of changes in equity and Consolidated statement of cash flows have been re-presented to reflect the currency rates of transactions in foreign currencies at the date of the transactions.
Upon disposal of a foreign operation accumulated currency translation adjustments arising from currency movements between the Group’s presentation currency and the operational currency of the foreign operation are reclassified from equity to profit or loss and included as part of the gain or loss from the disposal, presented as other income. When changing the Group’s presentation currency from NOK to USD, the gains or losses from such disposals have been changed to reflect accumulated currency gains or losses being calculated based on USD being the presentation currency rather than NOK. These effects are presented as re-presentations in the table below.
EFFECT OF CHANGES IN REPORTED NET INCOME
(unaudited) |
Historical Consolidated financial statements in NOK billion |
Historical Consolidated financial statements in USD million1) |
Re-presentation in USD million |
Consolidated financial statements in USD million |
Net income |
||||
|
|
|
|
|
Full year 2014 |
22 |
3,831 |
56 |
3,887 |
|
|
|
|
|
Q4 2015 |
(9) |
(1,074) |
(48) |
(1,122) |
Q3 2015 |
(3) |
(341) |
(2) |
(343) |
Q2 2015 |
10 |
1,299 |
(433) |
866 |
Q1 2015 |
(35) |
(4,568) |
(2) |
(4,571) |
Full year 2015 |
(37) |
(4,684) |
(485) |
(5,169) |
1) Translated at average exchange rates for the quarters.
The disposal with most significant effect on the net income of the Group is the disposal of Statoil’s interests in Shah Deniz, presented within the DPI segment in the second quarter 2015, for which the gain presented in NOK included NOK 3.2 billion arising from reclassification of accumulated translation differences. As the disposed foreign operation had USD as functional currency, there are no accumulated translation differences when presented in USD for this transaction.
The Statement of cash flow has been re-presented to reflect the changes described above and based on the currency rates applicable at the transaction dates of relevant transactions. The re-presentation impacts the classification between the different lines in the statement of cash flow, between currency translation adjustments and other components of cash flow.
CONSOLIDATED STATEMENT OF INCOME
Quarters |
|
|
Full year |
||||
Q1 2015 |
Q2 2015 |
Q3 2015 |
Q4 2015 |
|
(unaudited, in USD million) |
2015 |
2014 |
|
|
|
|
|
|
|
|
15,404 |
16,041 |
13,647 |
12,809 |
|
Revenues |
57,900 |
96,708 |
39 |
28 |
(60) |
(35) |
|
Net income from equity accounted investments |
(29) |
(34) |
70 |
1,353 |
27 |
320 |
|
Other income |
1,770 |
2,590 |
|
|
|
|
|
|
|
|
15,513 |
17,422 |
13,614 |
13,093 |
|
Total revenues and other income |
59,642 |
99,264 |
|
|
|
|
|
|
|
|
(6,586) |
(7,307) |
(6,388) |
(5,974) |
|
Purchases [net of inventory variation] |
(26,254) |
(47,980) |
(2,928) |
(2,733) |
(2,605) |
(2,246) |
|
Operating expenses |
(10,512) |
(11,657) |
(244) |
(189) |
(219) |
(270) |
|
Selling, general and administrative expenses |
(921) |
(1,159) |
(7,338) |
(3,087) |
(2,319) |
(3,972) |
|
Depreciation, amortisation and net impairment losses |
(16,715) |
(15,925) |
(1,721) |
(471) |
(1,201) |
(480) |
|
Exploration expenses |
(3,872) |
(4,666) |
|
|
|
|
|
|
|
|
(3,303) |
3,635 |
883 |
152 |
|
Net operating income |
1,366 |
17,878 |
|
|
|
|
|
|
|
|
173 |
(940) |
80 |
(625) |
|
Net financial items |
(1,311) |
20 |
|
|
|
|
|
|
|
|
(3,129) |
2,695 |
963 |
(473) |
|
Income before tax |
55 |
17,898 |
|
|
|
|
|
|
|
|
(1,441) |
(1,829) |
(1,306) |
(649) |
|
Income tax |
(5,225) |
(14,011) |
|
|
|
|
|
|
|
|
(4,571) |
866 |
(343) |
(1,122) |
|
Net income |
(5,169) |
3,887 |
|
|
|
|
|
|
|
|
(4,578) |
861 |
(348) |
(1,126) |
|
Attributable to equity holders of the company |
(5,192) |
3,871 |
8 |
5 |
5 |
4 |
|
Attributable to non-controlling interests |
22 |
16 |
|
|
|
|
|
|
|
|
(1.44) |
0.27 |
(0.11) |
(0.35) |
|
Basic earnings per share (in USD) |
(1.63) |
1.22 |
(1.44) |
0.27 |
(0.11) |
(0.35) |
|
Diluted earnings per share (in USD) |
(1.63) |
1.21 |
3,180 |
3,180 |
3,179 |
3,178 |
|
Weighted average number of ordinary shares outstanding (in millions) |
3,179 |
3,180 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Quarters |
|
|
Full year |
||||
Q1 2015 |
Q2 2015 |
Q3 2015 |
Q4 2015 |
|
(unaudited, in USD million) |
2015 |
2014 |
|
|
|
|
|
|
|
|
(4,571) |
866 |
(343) |
(1,122) |
|
Net income |
(5,169) |
3,887 |
|
|
|
|
|
|
|
|
359 |
240 |
(13) |
1,013 |
|
Actuarial gain (loss) on defined benefit pension plans |
1,599 |
636 |
(101) |
(64) |
(6) |
(290) |
|
Income tax effect on income and expenses recognised in OCI |
(461) |
(56) |
258 |
176 |
(19) |
722 |
|
Items that will not be reclassified to the Consolidated statement of income |
1,138 |
580 |
|
|
|
|
|
|
|
|
(2,266) |
833 |
(1,887) |
(656) |
|
Currency translation adjustments |
(3,976) |
(5,167) |
(2,266) |
833 |
(1,887) |
(656) |
|
Items that may be subsequently reclassified to the Consolidated statement of income |
(3,976) |
(5,167) |
|
|
|
|
|
|
|
|
(2,008) |
1,009 |
(1,905) |
66 |
|
Other comprehensive income |
(2,838) |
(4,587) |
|
|
|
|
|
|
|
|
(6,578) |
1,875 |
(2,248) |
(1,056) |
|
Total comprehensive income |
(8,007) |
(701) |
|
|
|
|
|
|
|
|
(6,586) |
1,870 |
(2,253) |
(1,060) |
|
Attributable to the equity holders of the company |
(8,030) |
(717) |
8 |
5 |
5 |
4 |
|
Attributable to non-controlling interests |
22 |
16 |
CONSOLIDATED BALANCE SHEET
At 30 September |
At 30 June |
At 31 March |
|
|
At 31 December |
At 31 December |
At 31 December |
2015 |
2015 |
2015 |
|
(unaudited, in USD million) |
2015 |
2014 |
2013 |
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
65,846 |
67,305 |
68,571 |
|
Property, plant and equipment |
62,006 |
75,619 |
80,115 |
8,969 |
9,838 |
9,447 |
|
Intangible assets |
9,452 |
11,458 |
15,039 |
1,083 |
1,196 |
1,465 |
|
Equity accounted investments |
824 |
1,127 |
1,218 |
1,708 |
1,540 |
2,037 |
|
Deferred tax assets |
2,022 |
1,732 |
1,355 |
721 |
1,045 |
916 |
|
Pension assets |
1,284 |
1,072 |
863 |
2,931 |
2,786 |
3,557 |
|
Derivative financial instruments |
2,697 |
4,023 |
3,625 |
2,310 |
2,285 |
2,364 |
|
Financial investments |
2,336 |
2,634 |
2,703 |
910 |
928 |
971 |
|
Prepayments and financial receivables |
967 |
766 |
1,402 |
|
|
|
|
|
|
|
|
84,477 |
86,924 |
89,328 |
|
Total non-current assets |
81,588 |
98,430 |
106,321 |
|
|
|
|
|
|
|
|
2,855 |
3,362 |
3,029 |
|
Inventories |
2,502 |
3,193 |
4,861 |
7,369 |
9,505 |
9,699 |
|
Trade and other receivables |
6,671 |
11,212 |
13,452 |
388 |
456 |
844 |
|
Derivative financial instruments |
542 |
717 |
476 |
12,948 |
13,658 |
12,110 |
|
Financial investments |
9,817 |
7,968 |
6,446 |
7,722 |
7,003 |
8,657 |
|
Cash and cash equivalents |
8,623 |
11,182 |
14,016 |
|
|
|
|
|
|
|
|
31,283 |
33,983 |
34,338 |
|
Total current assets |
28,154 |
34,272 |
39,251 |
|
|
|
|
|
|
|
|
115,760 |
120,907 |
123,666 |
|
Total assets |
109,742 |
132,702 |
145,572 |
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY AND LIABILITIES |
|
|
|
42,028 |
44,980 |
44,643 |
|
Shareholders' equity |
40,271 |
51,225 |
58,432 |
40 |
48 |
53 |
|
Non-controlling interests |
36 |
57 |
81 |
|
|
|
|
|
|
|
|
42,068 |
45,029 |
44,696 |
|
Total equity |
40,307 |
51,282 |
58,513 |
|
|
|
|
|
|
|
|
31,082 |
31,194 |
30,930 |
|
Finance debt |
29,965 |
27,593 |
27,197 |
7,789 |
8,366 |
8,259 |
|
Deferred tax liabilities |
7,421 |
9,613 |
11,672 |
3,244 |
3,401 |
3,486 |
|
Pension liabilities |
2,979 |
3,752 |
3,666 |
14,214 |
14,412 |
15,389 |
|
Provisions |
12,422 |
15,766 |
16,722 |
1,041 |
1,076 |
993 |
|
Derivative financial instruments |
1,285 |
611 |
366 |
|
|
|
|
|
|
|
|
57,369 |
58,449 |
59,057 |
|
Total non-current liabilities |
54,073 |
57,335 |
59,622 |
|
|
|
|
|
|
|
|
9,915 |
11,130 |
11,896 |
|
Trade and other payables |
9,333 |
13,545 |
15,712 |
3,740 |
3,842 |
5,532 |
|
Current tax payable |
2,740 |
5,321 |
8,678 |
1,667 |
1,344 |
2,306 |
|
Finance debt |
2,326 |
3,561 |
2,806 |
674 |
728 |
0 |
|
Dividends payable |
700 |
770 |
0 |
327 |
386 |
178 |
|
Derivative financial instruments |
264 |
887 |
241 |
|
|
|
|
|
|
|
|
16,323 |
17,430 |
19,913 |
|
Total current liabilities |
15,363 |
24,085 |
27,437 |
|
|
|
|
|
|
|
|
73,692 |
75,879 |
78,970 |
|
Total liabilities |
69,436 |
81,420 |
87,059 |
|
|
|
|
|
|
|
|
115,760 |
120,907 |
123,666 |
|
Total equity and liabilities |
109,743 |
132,702 |
145,572 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(unaudited, in USD million) |
Share capital |
Additional paid-in capital |
Retained earnings |
Currency translation adjustments |
Shareholders' equity |
Non-controlling interests |
Total equity |
|
|
|
|
|
|
|
|
At 31 December 2013 |
1,139 |
5,741 |
47,690 |
3,863 |
58,432 |
81 |
58,513 |
Net income for the period |
|
|
3,871 |
|
3,871 |
16 |
3,887 |
Other comprehensive income |
|
|
580 |
(5,167) |
(4,587) |
|
(4,587) |
Dividends |
|
|
(6,517) |
|
(6,517) |
|
(6,517) |
Other equity transactions |
|
(26) |
54 |
|
27 |
(39) |
(12) |
|
|
|
|
|
|
|
|
At 31 December 2014 |
1,139 |
5,714 |
45,677 |
(1,305) |
51,225 |
57 |
51,282 |
|
|
|
|
|
|
|
|
At 31 December 2014 |
1,139 |
5,714 |
45,677 |
(1,305) |
51,225 |
57 |
51,282 |
Net income for the period |
|
|
(5,192) |
|
(5,192) |
22 |
(5,169) |
Other comprehensive income |
|
|
1,138 |
(3,976) |
(2,838) |
|
(2,838) |
Dividends |
|
|
(2,930) |
|
(2,930) |
|
(2,930) |
Other equity transactions |
|
6 |
0 |
|
6 |
(43) |
(38) |
|
|
|
|
|
|
|
|
At 31 December 2015 |
1,139 |
5,720 |
38,693 |
(5,281) |
40,271 |
36 |
40,307 |
(unaudited, in USD million) |
Share capital |
Additional paid-in capital |
Retained earnings |
Currency translation adjustments |
Shareholders' equity |
Non-controlling interests |
Total equity |
At 31 December 2014 |
1,139 |
5,714 |
45,677 |
(1,305) |
51,225 |
57 |
51,282 |
Net income for the period |
|
|
(4,578) |
|
(4,578) |
8 |
(4,571) |
Other comprehensive income |
|
|
258 |
(2,266) |
(2,008) |
|
(2,008) |
Dividends |
|
|
1 |
|
1 |
|
1 |
Other equity transactions |
|
2 |
- |
|
2 |
(11) |
(9) |
At 31 March 2015 |
1,139 |
5,717 |
41,358 |
(3,571) |
44,643 |
53 |
44,696 |
Net income for the period |
|
|
861 |
|
861 |
5 |
866 |
Other comprehensive income |
|
|
176 |
833 |
1,009 |
|
1,009 |
Dividends |
|
|
(1,532) |
|
(1,532) |
|
(1,532) |
Other equity transactions |
|
- |
- |
|
- |
(10) |
(11) |
At 30 June 2015 |
1,139 |
5,716 |
40,863 |
(2,738) |
44,980 |
48 |
45,029 |
Net income for the period |
|
|
(348) |
|
(348) |
5 |
(343) |
Other comprehensive income |
|
|
(19) |
(1,887) |
(1,905) |
|
(1,905) |
Dividends |
|
|
(700) |
|
(700) |
|
(700) |
Other equity transactions |
|
1 |
- |
|
1 |
(14) |
(12) |
At 30 September 2015 |
1,139 |
5,718 |
39,797 |
(4,625) |
42,028 |
40 |
42,068 |
Net income for the period |
|
|
(1,126) |
|
(1,126) |
4 |
(1,122) |
Other comprehensive income |
|
|
722 |
(656) |
66 |
|
66 |
Dividends |
|
|
(700) |
|
(700) |
|
(700) |
Other equity transactions |
|
2 |
- |
|
2 |
(8) |
(6) |
At 31 December 2015 |
1,139 |
5,720 |
38,693 |
(5,281) |
40,271 |
36 |
40,307 |
CONSOLIDATED STATEMENT OF CASH FLOWS
Quarters |
|
|
Full year |
||||
Q1 2015 |
Q2 2015 |
Q3 2015 |
Q4 2015 |
|
(unaudited, in USD million) |
2015 |
2014 |
|
|
|
|
|
|
|
|
(3,129) |
2,695 |
963 |
(473) |
|
Income before tax |
55 |
17,898 |
|
|
|
|
|
|
|
|
7,338 |
3,087 |
2,319 |
3,972 |
|
Depreciation, amortisation and net impairment losses |
16,715 |
15,925 |
1,423 |
(53) |
902 |
(108) |
|
Exploration expenditures written off |
2,164 |
2,097 |
447 |
(729) |
1,024 |
424 |
|
(Gains) losses on foreign currency transactions and balances |
1,166 |
883 |
(59) |
(1,346) |
(9) |
(301) |
|
(Gains) losses on sales of assets and businesses |
(1,716) |
(1,998) |
(299) |
424 |
65 |
367 |
|
(Increase) decrease in other items related to operating activities |
558 |
(1,671) |
12 |
1,449 |
(171) |
262 |
|
(Increase) decrease in net derivative financial instruments |
1,551 |
254 |
114 |
84 |
84 |
81 |
|
Interest received |
363 |
341 |
(81) |
(134) |
(91) |
(137) |
|
Interest paid |
(443) |
(551) |
|
|
|
|
|
|
|
|
5,765 |
5,476 |
5,085 |
4,087 |
|
Cash flows provided by operating activities before taxes paid and working capital items |
20,414 |
33,178 |
|
|
|
|
|
|
|
|
(1,671) |
(3,033) |
(1,149) |
(2,226) |
|
Taxes paid |
(8,078) |
(15,308) |
|
|
|
|
|
|
|
|
(354) |
94 |
1,195 |
357 |
|
(Increase) decrease in working capital |
1,292 |
2,335 |
|
|
|
|
|
|
|
|
3,740 |
2,538 |
5,132 |
2,218 |
|
Cash flows provided by operating activities |
13,628 |
20,205 |
|
|
|
|
|
|
|
|
0 |
0 |
0 |
(398) |
|
Additions through business combinations |
(398) |
0 |
(3,963) |
(4,363) |
(3,978) |
(3,214) |
|
Capital expenditures and investments |
(15,518) |
(19,497) |
(4,857) |
(456) |
(310) |
2,810 |
|
(Increase) decrease in financial investments |
(2,813) |
(1,919) |
1 |
108 |
6 |
(136) |
|
(Increase) decrease in other non-current items |
(22) |
128 |
481 |
2,650 |
429 |
690 |
|
Proceeds from sale of assets and businesses |
4,249 |
3,514 |
|
|
|
|
|
|
|
|
(8,338) |
(2,061) |
(3,854) |
(248) |
|
Cash flows used in investing activities |
(14,501) |
(17,775) |
|
|
|
|
|
|
|
|
4,262 |
2 |
0 |
9 |
|
New finance debt |
4,272 |
3,010 |
(1,427) |
(18) |
(8) |
(11) |
|
Repayment of finance debt |
(1,464) |
(1,537) |
(757) |
(735) |
(687) |
(658) |
|
Dividend paid |
(2,836) |
(5,499) |
665 |
(1,460) |
317 |
(224) |
|
Net current finance debt and other |
(701) |
(2) |
|
|
|
|
|
|
|
|
2,742 |
(2,210) |
(378) |
(884) |
|
Cash flows provided by (used in) financing activities |
(729) |
(4,028) |
|
|
|
|
|
|
|
|
(1,856) |
(1,733) |
900 |
1,086 |
|
Net increase (decrease) in cash and cash equivalents |
(1,602) |
(1,598) |
|
|
|
|
|
|
|
|
(580) |
70 |
(166) |
(194) |
|
Effect of exchange rate changes on cash and cash equivalents |
(871) |
(1,329) |
11,085 |
8,650 |
6,987 |
7,721 |
|
Cash and cash equivalents at the beginning of the period (net of overdraft) |
11,085 |
14,013 |
|
|
|
|
|
|
|
|
8,649 |
6,986 |
7,721 |
8,613 |
|
Cash and cash equivalents at the end of the period (net of overdraft) |
8,613 |
11,085 |
REPORTING SEGMENTS
Fourth quarter 2015 |
Development and Production Norway |
Development and Production International |
Marketing, Midstream and Processing |
Other |
Eliminations |
Total |
(unaudited, in USD million) |
||||||
|
|
|
|
|
|
|
Income statement |
|
|
|
|
|
|
Revenues third party and other income |
150 |
(117) |
13,049 |
47 |
0 |
13,128 |
Revenues inter-segment |
3,937 |
1,373 |
39 |
1 |
(5,350) |
(0) |
Net income from equity accounted investments |
0 |
(47) |
3 |
8 |
0 |
(35) |
Total revenues and other income |
4,087 |
1,209 |
13,091 |
57 |
(5,350) |
13,093 |
|
|
|
|
|
|
|
Purchases [net of inventory variation] |
(0) |
(8) |
(11,362) |
(0) |
5,396 |
(5,974) |
Operating and SG&A expenses |
(600) |
(702) |
(1,157) |
(103) |
45 |
(2,516) |
Depreciation, amortisation and net impairment losses |
(1,666) |
(2,168) |
(98) |
(40) |
0 |
(3,972) |
Exploration expenses |
(117) |
(363) |
0 |
0 |
0 |
(480) |
Net operating income |
1,704 |
(2,031) |
474 |
(87) |
92 |
152 |
|
|
|
|
|
|
|
Additions to PP&E, intangibles and equity accounted investments |
1,385 |
1,946 |
291 |
49 |
0 |
3,670 |
|
|
|
|
|
|
|
Balance sheet information |
|
|
|
|
|
|
Equity accounted investments |
5 |
333 |
214 |
272 |
0 |
824 |
Non-current segment assets |
27,706 |
37,475 |
5,588 |
690 |
0 |
71,458 |
Non-current assets, not allocated to segments |
|
|
|
|
|
9,305 |
|
|
|
|
|
|
|
Total non-current assets |
|
|
|
|
|
81,588 |
Third quarter 2015 |
Development and Production Norway |
Development and Production International |
Marketing, Midstream and Processing |
Other |
Eliminations |
Total |
(unaudited, in USD million) |
||||||
|
|
|
|
|
|
|
Income statement |
|
|
|
|
|
|
Revenues third party and other income |
(36) |
(114) |
13,802 |
23 |
0 |
13,674 |
Revenues inter-segment |
4,093 |
1,588 |
37 |
(1) |
(5,718) |
0 |
Net income from equity accounted investments |
0 |
(70) |
12 |
(3) |
0 |
(60) |
Total revenues and other income |
4,057 |
1,404 |
13,851 |
20 |
(5,718) |
13,614 |
|
|
|
|
|
|
|
Purchases [net of inventory variation] |
(0) |
0 |
(12,212) |
0 |
5,825 |
(6,388) |
Operating and SG&A expenses |
(814) |
(917) |
(1,047) |
(76) |
31 |
(2,823) |
Depreciation, amortisation and net impairment losses |
(1,419) |
(1,249) |
383 |
(35) |
0 |
(2,319) |
Exploration expenses |
(133) |
(1,068) |
(0) |
0 |
0 |
(1,201) |
Net operating income |
1,690 |
(1,829) |
975 |
(91) |
137 |
883 |
|
|
|
|
|
|
|
Additions to PP&E, intangibles and equity accounted investments |
1,518 |
1,958 |
137 |
185 |
0 |
3,798 |
|
|
|
|
|
|
|
Balance sheet information |
|
|
|
|
|
|
Equity accounted investments |
5 |
555 |
237 |
285 |
0 |
1,083 |
Non-current segment assets |
30,455 |
38,036 |
5,554 |
770 |
0 |
74,815 |
Non-current assets, not allocated to segments |
|
|
|
|
|
8,579 |
|
|
|
|
|
|
|
Total non-current assets |
|
|
|
|
|
84,477 |
Second quarter 2015 |
Development and Production Norway |
Development and Production International |
Marketing, Midstream and Processing |
Other |
Eliminations |
Total |
(unaudited, in USD million) |
||||||
|
|
|
|
|
|
|
Income statement |
|
|
|
|
|
|
Revenues third party and other income |
38 |
1,505 |
15,662 |
188 |
0 |
17,394 |
Revenues inter-segment |
4,371 |
2,105 |
48 |
0 |
(6,525) |
0 |
Net income from equity accounted investments |
(0) |
12 |
13 |
3 |
0 |
28 |
Total revenues and other income |
4,409 |
3,623 |
15,723 |
191 |
(6,525) |
17,422 |
|
|
|
|
|
|
|
Purchases [net of inventory variation] |
0 |
(1) |
(13,672) |
(0) |
6,366 |
(7,307) |
Operating and SG&A expenses |
(792) |
(884) |
(1,243) |
(63) |
60 |
(2,922) |
Depreciation, amortisation and net impairment losses |
(1,725) |
(1,174) |
(156) |
(32) |
0 |
(3,087) |
Exploration expenses |
(173) |
(299) |
0 |
0 |
0 |
(471) |
Net operating income |
1,720 |
1,265 |
652 |
96 |
(98) |
3,635 |
|
|
|
|
|
|
|
Additions to PP&E, intangibles and equity accounted investments |
1,760 |
1,985 |
259 |
26 |
0 |
4,030 |
|
|
|
|
|
|
|
Balance sheet information |
|
|
|
|
|
|
Equity accounted investments |
6 |
626 |
550 |
14 |
0 |
1,196 |
Non-current segment assets |
32,718 |
38,503 |
5,400 |
522 |
0 |
77,143 |
Non-current assets, not allocated to segments |
|
|
|
|
|
8,585 |
|
|
|
|
|
|
|
Total non-current assets |
|
|
|
|
|
86,924 |
First quarter 2015 |
Development and Production Norway |
Development and Production International |
Marketing, Midstream and Processing |
Other |
Eliminations |
Total |
(unaudited, in USD million) |
||||||
|
|
|
|
|
|
|
Income statement |
|
|
|
|
|
|
Revenues third party and other income |
(274) |
303 |
15,356 |
90 |
0 |
15,474 |
Revenues inter-segment |
5,057 |
1,648 |
60 |
0 |
(6,765) |
0 |
Net income from equity accounted investments |
3 |
13 |
27 |
(4) |
0 |
39 |
Total revenues and other income |
4,786 |
1,964 |
15,442 |
86 |
(6,765) |
15,513 |
|
|
|
|
|
|
|
Purchases [net of inventory variation] |
(0) |
(1) |
(13,301) |
(0) |
6,716 |
(6,586) |
Operating and SG&A expenses |
(1,016) |
(888) |
(1,218) |
(100) |
50 |
(3,172) |
Depreciation, amortisation and net impairment losses |
(1,569) |
(5,641) |
(92) |
(35) |
0 |
(7,338) |
Exploration expenses |
(154) |
(1,567) |
(0) |
0 |
0 |
(1,721) |
Net operating income |
2,047 |
(6,134) |
831 |
(49) |
2 |
(3,303) |
|
|
|
|
|
|
|
Additions to PP&E, intangibles and equity accounted investments |
1,630 |
2,231 |
212 |
13 |
0 |
4,086 |
|
|
|
|
|
|
|
Balance sheet information |
|
|
|
|
|
|
Equity accounted investments |
33 |
655 |
764 |
14 |
0 |
1,465 |
Non-current segment assets |
32,692 |
39,445 |
5,240 |
642 |
0 |
78,018 |
Non-current assets, not allocated to segments |
|
|
|
|
|
9,844 |
|
|
|
|
|
|
|
Total non-current assets |
|
|
|
|
|
89,328 |
Full year 2015 |
Development and Production Norway |
Development and Production International |
Marketing, Midstream and Processing |
Other |
Eliminations |
Total |
(unaudited, in USD million) |
||||||
|
|
|
|
|
|
|
Income statement |
|
|
|
|
|
|
Revenues third party and other income |
(123) |
1,576 |
57,869 |
349 |
0 |
59,671 |
Revenues inter-segment |
17,459 |
6,715 |
183 |
1 |
(24,357) |
(0) |
Net income from equity accounted investments |
3 |
(91) |
55 |
4 |
0 |
(29) |
Total revenues and other income |
17,339 |
8,200 |
58,107 |
354 |
(24,357) |
59,642 |
|
|
|
|
|
|
|
Purchases [net of inventory variation] |
(0) |
(10) |
(50,547) |
(0) |
24,303 |
(26,254) |
Operating and SG&A expenses |
(3,223) |
(3,391) |
(4,664) |
(342) |
187 |
(11,433) |
Depreciation, amortisation and net impairment losses |
(6,379) |
(10,231) |
37 |
(142) |
0 |
(16,715) |
Exploration expenses |
(576) |
(3,296) |
(0) |
0 |
0 |
(3,872) |
Net operating income |
7,161 |
(8,729) |
2,932 |
(130) |
133 |
1,366 |
|
|
|
|
|
|
|
Additions to PP&E, intangibles and equity accounted investments |
6,293 |
8,119 |
900 |
273 |
0 |
15,584 |
|
|
|
|
|
|
|
Balance sheet information |
|
|
|
|
|
|
Equity accounted investments |
5 |
333 |
214 |
272 |
0 |
824 |
Non-current segment assets |
27,706 |
37,475 |
5,588 |
690 |
0 |
71,458 |
Non-current assets, not allocated to segments |
|
|
|
|
|
9,305 |
|
|
|
|
|
|
|
Total non-current assets |
|
|
|
|
|
81,588 |
Full year 2014 |
Development and Production Norway |
Development and Production International |
Marketing, Midstream and Processing |
Other |
Eliminations |
Total |
(unaudited, in USD million) |
||||||
|
|
|
|
|
|
|
Income statement |
|
|
|
|
|
|
Revenues third party and other income |
1,347 |
3,017 |
94,814 |
120 |
0 |
99,299 |
Revenues inter-segment |
27,568 |
10,757 |
286 |
1 |
(38,612) |
0 |
Net income from equity accounted investments |
11 |
(113) |
73 |
(5) |
0 |
(34) |
Total revenues and other income |
28,926 |
13,661 |
95,174 |
116 |
(38,612) |
99,264 |
|
|
|
|
|
|
|
Purchases [net of inventory variation] |
(0) |
(2) |
(86,689) |
0 |
38,711 |
(47,980) |
Operating and SG&A expenses |
(4,034) |
(3,654) |
(5,287) |
(161) |
321 |
(12,815) |
Depreciation, amortisation and net impairment losses |
(6,301) |
(8,885) |
(583) |
(156) |
0 |
(15,925) |
Exploration expenses |
(838) |
(3,824) |
(4) |
0 |
0 |
(4,666) |
Net operating income |
17,753 |
(2,703) |
2,610 |
(202) |
420 |
17,878 |
|
|
|
|
|
|
|
Additions to PP&E, intangibles and equity accounted investments |
8,817 |
9,750 |
1,225 |
132 |
0 |
19,924 |
|
|
|
|
|
|
|
Balance sheet information |
|
|
|
|
|
|
Equity accounted investments |
32 |
640 |
434 |
20 |
0 |
1,127 |
Non-current segment assets |
35,243 |
44,912 |
6,234 |
688 |
0 |
87,077 |
Non-current assets, not allocated to segments |
|
|
|
|
|
10,226 |
|
|
|
|
|
|
|
Total non-current assets |
|
|
|
|
|
98,430 |
OPERATIONAL DATA |
|
|||
|
|
|
|
|
|
Quarters |
Change |
||
Operational data |
Q1 2016 |
Q4 2015 |
Q1 2015 |
Q1 on Q1 |
|
|
|
|
|
Prices |
|
|
|
|
Average Brent oil price (USD/bbl) |
33.9 |
43.8 |
53.9 |
(37%) |
DPN average liquids price (USD/bbl) |
30.7 |
40.7 |
50.1 |
(39%) |
DPI average liquids price (USD/bbl) |
25.6 |
35.5 |
42.7 |
(40%) |
Group average liquids price (USD/bbl) |
28.7 |
38.4 |
47.0 |
(39%) |
Group average liquids price (NOK/bbl) [1] |
248.0 |
327.7 |
364.5 |
(32%) |
Transfer price natural gas (USD/mmbtu) [9] |
4.00 |
4.75 |
5.90 |
(32%) |
Average invoiced gas prices - Europe (USD/mmbtu) [8] |
5.45 |
6.18 |
7.88 |
(31%) |
Average invoiced gas prices - North America (USD/mmbtu) [8] |
2.29 |
1.99 |
4.38 |
(48%) |
Refining reference margin (USD/bbl) [2] |
4.3 |
5.7 |
7.1 |
(39%) |
|
|
|
|
|
Entitlement production (mboe per day) |
|
|
|
|
DPN entitlement liquids production |
602 |
610 |
599 |
1% |
DPI entitlement liquids production |
434 |
463 |
445 |
(2%) |
Group entitlement liquids production |
1,036 |
1,073 |
1,044 |
(1%) |
DPN entitlement gas production |
719 |
699 |
698 |
3% |
DPI entitlement gas production |
155 |
149 |
136 |
14% |
Group entitlement gas production |
873 |
848 |
834 |
5% |
Total entitlement liquids and gas production [3] |
1,909 |
1,921 |
1,878 |
2% |
|
|
|
|
|
Equity production (mboe per day) |
|
|
|
|
DPN equity liquids production |
602 |
610 |
599 |
1% |
DPI equity liquids production |
552 |
569 |
582 |
(5%) |
Group equity liquids production |
1,154 |
1,179 |
1,181 |
(2%) |
DPN equity gas production |
719 |
699 |
698 |
3% |
DPI equity gas production |
182 |
168 |
177 |
3% |
Group equity gas production |
901 |
867 |
875 |
3% |
Total equity liquids and gas production [4] |
2,054 |
2,046 |
2,056 |
(0%) |
|
|
|
|
|
MMP sales volumes |
|
|
|
|
Crude oil sales volumes (mmbl) |
205.0 |
209.0 |
202.0 |
1% |
Natural gas sales Statoil entitlement (bcm) |
12.2 |
11.9 |
12.1 |
0% |
Natural gas sales third-party volumes (bcm) |
2.7 |
1.7 |
3.4 |
(21%) |
EXCHANGE RATES |
|
|||
|
|
|
|
|
|
Quarters |
Change |
||
Exchange rates |
Q1 2016 |
Q4 2015 |
Q1 2015 |
Q1 on Q1 |
|
|
|
|
|
NOK/USD average daily exchange rate |
0.1156 |
0.1173 |
0.1289 |
(10%) |
NOK/USD period-end exchange rate |
0.1209 |
0.1135 |
0.1236 |
(2%) |
USD/NOK average daily exchange rate |
8.6482 |
8.5273 |
7.7594 |
11% |
USD/NOK period-end exchange rate |
8.2692 |
8.8090 |
8.0895 |
2% |
EUR/USD average daily exchange rate |
1.1015 |
1.0948 |
1.1253 |
(2%) |
EUR/USD period-end exchange rate |
1.1385 |
1.0920 |
1.0759 |
6% |
EXPLORATION EXPENSES |
|
|||
|
|
|
|
|
Exploration expenses |
Quarters |
Change |
||
(in USD million) |
Q1 2016 |
Q4 2015 |
Q1 2015 |
Q1 on Q1 |
|
|
|
|
|
DPN exploration expenditures (activity) |
105 |
136 |
204 |
(49%) |
DPI exploration expenditures (activity) |
239 |
640 |
506 |
(53%) |
|
|
|
|
|
Group exploration expenditures (activity) |
344 |
776 |
710 |
(52%) |
Expensed, previously capitalised exploration expenditure |
71 |
23 |
54 |
32% |
Capitalised share of current period's exploration activity |
(135) |
(189) |
(413) |
(67%) |
Impairment (reversal of impairment) |
71 |
(131) |
1,369 |
(95%) |
|
|
|
|
|
Exploration expenses IFRS |
351 |
480 |
1,721 |
(80%) |
HEALTH, SAFETY AND THE ENVIRONMENT (HSE) |
|
|
|
|
|
HSE |
Quarters |
|
Twelve month average per |
Q1 2016 |
Q1 2015 |
|
|
|
Total recordable injury frequency (TRIF) |
2.7 |
3.0 |
Actual serious incident frequency (Actual SIF) |
0.21 |
0.20 |
Accidental oil spills |
139 |
213 |
Accidental oil spills (cubic metres) |
22 |
86 |
USE AND RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Non-GAAP financial measures are defined as numerical measures that either exclude or include amounts that are not excluded or included in the comparable measures calculated and presented in accordance with GAAP (i.e. IFRS).
For more information on our use of non-GAAP financial measures, see report section - Financial analysis and review - Non-GAAP measures in Statoil's 2015 Annual Report on Form 20-F.
The following financial measures may be considered non-GAAP financial measures:
· Net interest-bearing debt adjusted
· Net debt to capital employed ratio
· Net debt to capital employed ratio adjusted
· Organic capital expenditures
Calculation of capital employed and net debt to capital employed ratio |
|
At 31 March |
At 31 December |
At 31 March |
(in USD million) |
|
2016 |
2015 |
2015 |
|
|
|
|
|
Shareholders' equity |
|
42,162 |
40,271 |
44,643 |
Non-controlling interests |
|
36 |
36 |
53 |
|
|
|
|
|
Total equity |
A |
42,198 |
40,307 |
44,696 |
|
|
|
|
|
Current finance debt |
|
2,796 |
2,326 |
2,306 |
Non-current finance debt |
|
30,210 |
29,965 |
30,930 |
|
|
|
|
|
Gross interest-bearing debt |
B |
33,006 |
32,291 |
33,236 |
|
|
|
|
|
Cash and cash equivalents |
|
8,540 |
8,623 |
8,657 |
Current financial investments |
|
9,292 |
9,817 |
12,110 |
|
|
|
|
|
Cash and cash equivalents and financial investment |
C |
17,831 |
18,440 |
20,767 |
|
|
|
|
|
Net interest-bearing debt before adjustments [10] |
B1 = B-C |
15,175 |
13,852 |
12,469 |
|
|
|
|
|
Other interest-bearing elements 1) |
|
1,191 |
1,111 |
1,142 |
Marketing instruction adjustment 2) |
|
(211) |
(215) |
(226) |
Adjustment for project loan 3) |
|
- |
- |
(18) |
|
|
|
|
|
Net interest-bearing debt adjusted [5] |
B2 |
16,155 |
14,748 |
13,366 |
|
|
|
|
|
Normalisation for cash-build up before tax payment (50% of Tax Payment) 4) |
|
345 |
- |
730 |
|
|
|
|
|
Net interest-bearing debt adjusted [5] |
B3 |
16,500 |
14,748 |
14,096 |
|
|
|
|
|
Calculation of capital employed [5]: |
|
|
|
|
Capital employed before adjustments to net interest-bearing debt |
A+B1 |
57,373 |
54,159 |
57,165 |
Capital employed before normalisation for cash build up for tax payment |
A+B2 |
58,353 |
55,055 |
58,062 |
Capital employed adjusted |
A+B3 |
58,698 |
55,055 |
58,792 |
|
|
|
|
|
Calculated net debt to capital employed [5]: |
|
|
|
|
Net debt to capital employed before adjustments |
(B1)/(A+B1) |
26.5% |
25.6% |
21.8% |
Net debt to capital employed before normalisation for tax payment |
(B2)/(A+B2) |
27.7% |
26.8% |
23.0% |
Net debt to capital employed adjusted |
(B3)/(A+B3) |
28.1% |
26.8% |
24.0% |
1) Cash and cash equivalents adjustments regarding collateral deposits classified as cash and cash equivalents in the Consolidated balance sheet but considered as non-cash in the non-GAAP calculations as well as financial investments in Statoil Forsikring AS classified as current financial investments.
2) Adjustment to gross interest-bearing debt due to the Norwegian state`s financial interest (SDFI) part of the financial lease in the Snøhvit vessels which are included in Statoil’s Consolidated balance sheet.
3) Adjustment to gross interest-bearing debt due to the Baku-Tbilisi-Ceyhan project loan structure.
4) Normalisation for cash-build-up before tax payment adjusts to exclude 50% of the cash-build-up related to tax payments due in the beginning of February, April, August, October and December, which were USD 690 million and USD 1,503 million as of March 2016 and 2015, respectively.
This report contains certain forward-looking statements that involve risks and
uncertainties. In some cases, we use words such as "ambition",
"continue", "could", "estimate", "expect",
"focus", "likely", "may", "outlook",
"plan", "strategy", "will", "guidance"
and similar expressions to identify forward-looking statements. All statements
other than statements of historical fact, including, among others, statements
regarding future financial position, results of operations and cash flows;
changes in the fair value of derivatives; future financial ratios and
information; future financial or operational portfolio or performance; future
market position and conditions; business strategy; growth strategy; future
impact of accounting policy judgments; sales, trading and market strategies; research
and development initiatives and strategy; projections and future impact related
to efficiency programmes, market outlook and future economic projections and
assumptions; competitive position; projected regularity and performance levels;
expectations related to our recent transactions and projects, completion and
results of acquisitions, disposals and other contractual arrangements; reserve
information; future margins; projected returns; future levels, timing or
development of capacity, reserves or resources; future decline of mature
fields; planned maintenance (and the effects thereof); oil and gas production
forecasts and reporting; domestic and international growth, expectations and
development of production, projects, pipelines or resources; estimates related
to production and development levels and dates; operational expectations,
estimates, schedules and costs; exploration and development activities, plans
and expectations; projections and expectations for upstream and downstream
activities; oil, gas, alternative fuel and energy prices; oil, gas, alternative
fuel and energy supply and demand; natural gas contract prices; timing of gas
off-take; technological innovation, implementation, position and expectations;
projected operational costs or savings; projected unit of production cost; our
ability to create or improve value; future sources of financing; exploration
and project development expenditure; effectiveness of our internal policies and
plans; our ability to manage our risk exposure; our liquidity levels and
management; estimated or future liabilities, obligations or expenses and how
such liabilities, obligations and expenses are structured; expected impact of
currency and interest rate fluctuations; expectations related to contractual or
financial counterparties; capital expenditure estimates and expectations;
projected outcome, objectives of management for future operations; impact of
PSA effects; projected impact or timing of administrative or governmental
rules, standards, decisions, standards or laws (including taxation laws);
estimated costs of removal and abandonment; estimated lease payments, gas
transport commitments and future impact of legal proceedings are
forward-looking statements. You should not place undue reliance on these
forward-looking statements. Our actual results could differ materially from
those anticipated in the forward-looking statements for many reasons.
These forward-looking statements reflect current views about future events and are, by their nature, subject to significant risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements, including levels of industry product supply, demand and pricing; price and availability of alternative fuels; currency exchange rate and interest rate fluctuations; the political and economic policies of Norway and other oil-producing countries; EU directives; general economic conditions; political and social stability and economic growth in relevant areas of the world; the sovereign debt situation in Europe; global political events and actions, including war, terrorism and sanctions; security breaches; the situation in Ukraine; changes or uncertainty in or non-compliance with laws and governmental regulations; the timing of bringing new fields on stream; an inability to exploit growth or investment opportunities; material differences from reserves estimates; unsuccessful drilling; an inability to find and develop reserves; ineffectiveness of crisis management systems; adverse changes in tax regimes; the development and use of new technology; geological or technical difficulties; operational problems; operator error; inadequate insurance coverage; the lack of necessary transportation infrastructure when a field is in a remote location and other transportation problems; the actions of competitors; the actions of field partners; the actions of governments (including the Norwegian state as majority shareholder); counterparty defaults; natural disasters and adverse weather conditions, climate change, and other changes to business conditions; an inability to attract and retain personnel; relevant governmental approvals; industrial actions by workers and other factors discussed elsewhere in this report. Additional information, including information on factors that may affect Statoil's business, is contained in Statoil's Annual Report on Form 20-F for the year ended December 31, 2015, filed with the U.S. Securities and Exchange Commission, which can be found on Statoil's website at www.statoil.com.
Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot assure you that our future results, level of activity, performance or achievements will meet these expectations. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. Unless we are required by law to update these statements, we will not necessarily update any of these statements after the date of this report, either to make them conform to actual results or changes in our expectations.
END NOTES
1. The Group's average liquids price is a volume-weighted average of the segment prices of crude oil, condensate and natural gas liquids (NGL).
2. The refining reference margin is a typical average gross margin of our two refineries, Mongstad and Kalundborg. The reference margin will differ from the actual margin, due to variations in type of crude and other feedstock, throughput, product yields, freight cost, inventory, etc.
3. Liquids volumes include oil, condensate and NGL, exclusive of royalty oil.
4. Equity volumes represent produced volumes under a Production Sharing Agreement (PSA) that correspond to Statoil's ownership percentage in a particular field. Entitlement volumes, on the other hand, represent Statoil's share of the volumes distributed to the partners in the field, which are subject to deductions for, among other things, royalty and the host government's share of profit oil. Under the terms of a PSA, the amount of profit oil deducted from equity volumes will normally increase with the cumulative return on investment to the partners and/or production from the license. As a consequence, the gap between entitlement and equity volumes will likely increase in times of high liquids prices. The distinction between equity and entitlement is relevant to most PSA regimes, whereas it is not applicable in most concessionary regimes such as those in Norway, the UK, the US, Canada and Brazil.
5. These are non-GAAP figures. See report section Use and reconciliation of non-GAAP financial measures for details.
6. Transactions with the Norwegian State. The Norwegian State, represented by the Ministry of Petroleum and Energy (MPE), is the majority shareholder of Statoil and also holds major investments in other entities. This ownership structure means that Statoil participates in transactions with many parties that are under a common ownership structure and therefore meet the definition of a related party. Statoil purchases liquids and natural gas from the Norwegian State, represented by SDFI (the State's Direct Financial Interest). In addition, Statoil sell the State's natural gas production in its own name, but for the Norwegian State's account and risk as well as related expenditures refunded by the State. All transactions are considered to be priced on an arms-length basis.
7. The production guidance reflects our estimates of proved reserves calculated in accordance with US Securities and Exchange Commission (SEC) guidelines and additional production from other reserves not included in proved reserves estimates.
8. The Group's average invoiced gas prices include volumes sold by the MMP segment.
9. The internal transfer price paid from MMP to DPN.
10. Since different legal entities in the group lend to projects and others borrow from banks, project financing through external bank or similar institutions will not be netted in the balance sheet and will over-report the debt stated in the balance sheet compared to the underlying exposure in the Group. Similarly, certain net interest-bearing debt incurred from activities pursuant to the Marketing Instruction of the Norwegian government are off-set against receivables on the SDFI. Some interest-bearing elements are classified together with non-interest bearing elements, and are therefore included when calculating the net interest-bearing debt.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
STATOIL ASA
(Registrant)
Dated: April 27, 2016
By: ___/s/ Hans Jakob Hegge
Name: Hans Jakob Hegge
Title: Chief Financial Officer
EXHIBITS
The following exhibit is filed as part of this quarterly report:
EXHIBIT 12.1 Calculation of ratio of earnings to fixed charges