Statoil Posts Q4 Net Loss, Plans To Lower Spending

posted a net loss in the fourth quarter and announced its plans to cut its capital expenditure by 10%. Norway's Statoil posted a quarterly net loss of 8.9 billion Norwegian kroner ($1.18 billion), versus a year-ago net profit of 14.8 billion kroner. Adjusted earnings dropped to NOK 26.9 billion in the quarter from NOK 42.3 billion, while adjusted earnings after tax slipped to NOK 4.3 billion from NOK 11.0 billion. Its revenue gained to 147 billion kroner, compared with a restated 146.5 billion kroner. Analysts expected revenue of 150.07 billion kroner. Equity production in the quarter climbed to 2,103 mboe per day, from 1,945 mboe per day in the year-ago period. For the fourth quarter, the company's board proposed a dividend of 1.80 kroner per share. Statoil announced its plans to reduce its capital expenditure to $18 billion this year, versus prior forecast of $20 billion. Eldar Saetre, president and CEO of Statoil ASA said, "Statoil's quarterly earnings were affected by the sharp drop in oil prices. Our net income was also impacted by specific accounting charges. Underlying performance and cash flows were solid in 2014, supported by profitable growth, strong operational improvements, and solid marketing- and trading results. Our financial position is robust, and we maintain a stable dividend. Through our significant flexibility in our investment programme we are well prepared for continuous market weakness and uncertainty." Statoil shares gained 2.61% to close at $18.45 yesterday.