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Statoil (STO) Incurs Loss in Q4, Revenues Increase Y/Y

Statoil ASASTO posted fourth-quarter 2016 adjusted loss of 2 cents per ADR, which compared unfavorably with the Zacks Consensus Estimate of earnings of 17 cents. A significant drop in liquids prices resulted in the quarterly loss. The company had posted adjusted earnings of 5 cents per share in the year-earlier quarter.

In the fourth quarter, total revenue inched up 0.8% year over year to NOK 113.6 billion ($13.55 billion). In 2016, total revenue fell nearly 17% year over year to NOK 393.8 billion ($47.0 billion).

Operational Performance

In the reported quarter, total equity production of liquids and gas increased 2.4% year over year to 2,095 million barrels of oil equivalent per day (MMBOE/d). The improvement is attributable to the ramp-up of new fields and strong operational performance.

In the reported quarter, total entitlement production of liquids and gas grew 0.7% to 1,934 MMBOE/d (54% liquids and 46% natural gas), primarily due to lower equity production.

The company's realized liquids prices averaged $43.8 per barrel, down 14.1% year over year.

As of Dec 31, 2016, Statoil completed 23 wells. Adjusted exploration expenses in the reported quarter were $607 million compared with $490 million in the fourth quarter of 2015.

Financials

During the quarter, total organic capital investment was $10.1 billion. In 2016, the company generated cash flow from operations worth $10.7 billion. Net debt-to-capital employed ratio was 35.6% in the year.

Statoil ASA Price, Consensus and EPS Surprise

Statoil ASA Price, Consensus and EPS Surprise | Statoil ASA Quote

Outlook

Statoil expects organic capital expenditure in 2017 to be $11 billion. Production for 2017 is projected to grow between 4% and 5%.

Organic production growth for 2016-2020 is expected at a CAGR of about 3% from a 2016 level rebased for production. Growth is expected from the commissioning of new projects.

In 2017, exploration activity is estimated at about $1.5 billion.

Zacks Rank

Statoil currently carries a Zacks Rank #3 (Hold). Some better-ranked players in the same space include Denbury Resources Inc. DNR , Holly Energy Partners LP HEP and W&T Offshore Inc. WTI . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Denbury Resources posted a positive earnings surprise of 100.00% in the last reported quarter. It had an average earnings surprise of 283.33% in the four trailing quarters.

Holly Energy Partners posted a negative earnings surprise of 23.26% in the preceding quarter. It had an average negative earnings surprise of 0.96% in the four trailing quarters.

W&T Offshore posted a positive earnings surprise of 44.19% in the preceding quarter. It beat estimates in all the four preceding quarters and has an average positive earnings surprise of 31.49% in the four trailing quarters.

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Statoil ASA (STO): Free Stock Analysis Report

Holly Energy Partners, L.P. (HEP): Free Stock Analysis Report

Denbury Resources Inc. (DNR): Free Stock Analysis Report

W&T Offshore, Inc. (WTI): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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