Statoil said its adjusted earnings have also set a new company record: “The first quarter adjusted earnings of NOK 59.2 billion is the highest Statoil has presented in a single quarter” the Norwegian oil giant declared.
President and chief executive Helge Lund highlighted new field start-ups, production increases, efforts on extended oil recovery, and the company's gas optimisation strategy as some of the reasons for the success.
Net income was NOK 15.4 bn in the first quarter this year, down from NOK 16.1 bn in first quarter 2011, but this was put down to a gain on the sale of a 40% stake in an oil sands asset last year.
President and chief executive said the income surge was down to new field start-ups, efforts on improved oil recovery on the Norwegian Continental Shelf – where the recovery rate is now 50% - and international growth.
Exploration success has also been part of the Statoil story in the first quarter with 22 exploration wells drilled in the period, resulting in eight discoveries offshore Norway, Tanzania and Brazil, and another two wells await further evaluation. Another ten wells were still being drilled at the end of the first quarter.
“Since the previous quarter, Statoil has signed a co-operation agreement with Rosneft, to jointly explore frontier areas of Russia and Norway,” Lund declared in Statoil's first quarter results statement today. “We have pre-accepted a cash offer for our shares in Statoil Fuel & Retail ASA, reinforcing our position as a technology-focused upstream company. We continue to leverage our competitive strengths towards delivering on the production outlook of above 2.5 mmboe per day for 2020,” Lund said.