UPDATE: Statoil Posts Rise In Q2 Profit, Production Drops 9%

Statoil ASA

reported a strong rise in its second-quarter net profit. Statoil's quarterly net profit surged to 11.9 billion Norwegian kroner ($1.92 billion), versus a year-ago profit of 4.3 billion kroner. However, analysts were expecting a profit of 11.47 billion kroner. Earnings per share rose to NOK 3.75 from NOK 1.38. Its earnings before interest and taxes came in at 32 billion kroner, versus estimates of 37.69 billion kroner. Its adjusted earnings dropped 15% to NOK 32.3 billion. The net adjustments of NOK 0.3 billion are associated to gains and impairments. Adjusted earnings after tax dropped to NOK 9.9 billion, from NOK 11.3 billion. Its revenue declined to 142.6 billion kroner from 147.8 billion kroner. Analysts expected revenue of 153.94 billion kroner. The company's board also proposed a dividend payment of 1.80 kroner per share. Its oil-and-gas production slipped 9% to 1.799 million barrels of oil equivalent a day. The company's adjusted earnings from upstream activities in Norway slipped to NOK 24.1 billion from NOK 31.5 billion, while earnings from upstream activities outside Norway surged to NOK 6.3 billion versus NOK 5.9 billion. Its earnings from the midstream jumped to NOK 2.4 billion versus NOK 0.8 billion. Helge Lund, Statoil's president and CEO said, "Statoil delivered solid operational performance in the quarter, with continued high production regularity on the Norwegian continental shelf and project execution according to plan. We have deferred gas production to enhance value, but remain on track for delivering on our production guiding for 2014. Our quarterly earnings were impacted by divestments, seasonal effects and lower gas prices. For the first half of the year, earnings were around the same level as in the same period last year." Statoil shares fell 0.36% to close at $30.49 yesterday.