Statoil: 2012 Third Quarter Results


STAVANGER, NORWAY--(Marketwire - Oct 26, 2012) -

Statoil's (OSE:STL, NYSE:STO) third quarter 2012 net operating income wasNOK40.9 billion, a 4% increase compared to NOK 39.3 billion in the thirdquarter of2011.

"Statoil delivered solid financial results in the quarter. By ramping upnewfields, we have grown production year to date by 10% compared to the sameperiodlast year, and 8% compared to the 2011 average. This is in line with ourplans.Our operational performance is solid and we progressed an extensivemaintenanceprogramme according to plan. We are on track, and maintain our guidance for2012," says Helge Lund, Statoil's president and CEO.

In 2012, Statoil has increased cash flows from underlying operations by 12%toNOK 188 billion. Successful exploration activities have added largervolumes toStatoil's resource base in the first nine months of 2012 than in all of2011.

"We maintain momentum in realising our strategy for growth towards 2020,withnew discoveries and investments for improved oil recovery on the NCS, andcontinued profitable growth in our production outside Norway," says Lund.

Adjusted earnings were NOK 40 billion, 7% lower than in the same period of2011. The company increased gas sales while realising higher prices.However,higher exploration costs and lower liquids volumes in accordance withexpectations, more than offset the increase.

Statoil has further strengthened its financial position, and the companynowholds NOK 85 billion in liquid assets. Portfolio management has contributedNOK29 billion in proceeds from sale of assets and business this year.

"This week's agreement with Wintershall gives a more focused portfolio,consolidates our position as the largest player on the Utsira High,enhancesStatoil's financial flexibility and demonstrates the value of our NCSassets,"says Lund.

After the divestments of NCS assets, Statoil expects 2013 production to belowerthan in 2012. However, the company is on track for an average growth of 2to 3%from 2012 to 2016 and equity production above 2.5 million barrels per dayof oilequivalent in 2020.

The serious incident frequency (SIF) was 0.9 in the third quarter of 2012,compared to 1.1 in the third quarter of 2011.

Equity production was 1,811 mboe per day in the third quarter, up 3% from1,764mboe per day in the same period in 2011.

Adjusted earnings were NOK 40.0 billion in the third quarter, down 7% fromNOK43.1 billion in the third quarter last year.

Adjusted earnings after tax were NOK 11.9 billion, compared to NOK 11.4billionin the third quarter of 2011.

Net income was NOK 14.5 billion in the third quarter, up 47% from NOK 9.9billion in the same period in 2011.

Key events since second quarter:

* Continuing value creation through portfolio management and revitalisingthe NCS with high-value barrels: Signed agreement with Wintershall to exit the Brage license, farm down Gjøa and Vega, and enter the Edvard Grieglicense. The transaction is subject to governmental approval. Agreed considerationis USD 1.45 billion. Entered strategic partnership with Wintershall and BASFto develop new insights and technologies on improved oil recovery (IOR).

* Applying technology to increase recovery: Sanctioned four IOR projectson the NCS, commenced building of Norwegian IOR centre and announced average recovery rate of 50% for Statoil's NCS portfolio.

* Developing a leading global exploration company: Added barrels to theJohan Sverdrup field through the Geitungen discovery, confirmed potential of Peregrino South oil discovery through new exploration well, signed agreements for Russian offshore exploration with Rosneft, and announced a nine well drilling campaign for 2013 in the Norwegian Barents Sea.

* Growing unconventionals and taking strategic mid-stream positions:Started transporting Bakken crude from North Dakota in the U.S. to market by rail, significantly increasing the oil's value.

* Utilising oil and gas competencies to open new renewable energy opportunities: Opened Sheringham Shoal offshore wind farm and acquired a 70% share of the Dudgeon offshore wind farm project in the UK.

This information is subject of the disclosure requirements pursuant tosection5-12 of the Norwegian Securities Trading Act.

Press release Results 3rd quarter 2012:

Financial statements and review 3rd quarter 2012:

Presentation 3rd quarter 2012 Torgrim Reitan CFO:

This announcement is distributed by Thomson Reuters on behalf ofThomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and other applicable laws; and

(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Statoil via Thomson Reuters ONE


Further information from:

Investor relations
Hilde Merete Nafstad
senior vice president investor relations,
+ 47 957 83 911 (mobile)

Morten Sven Johannessen
vice president investor relations USA,
+ 1 203 570 2524 (mobile)

Jannik Lindbæk jr
vice president for media relations,
+ 47 977 55 622 (mobile)

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