Equinor Asa · OSL:EQNR
Equinor Asa — Statoil — Q3 2013 Earnings Presentation
25 slides from Equinor Asa's earnings presentation, Oct 30, 2013
Slide 1: 3rd Quarter 2013
3™ Quarter 2013 Oslo, 30 October, 2013 Torgrim Reitan, CFO
Slide 2: Third quarter 2013
Third quarter 2013 • Solid earnings • Reported results impacted by refinery impairments and transaction gains • Production as expected • Underlying growth of ~6 % adjusted for divestments and redetermination • Record international production • Continued exploration success • Value-creating portfolio
Slide 3: Financial results
Financial results • Solid underlying earnings 3Q 2013 NOK bn • Stable operations 13.7 39.3 1.1 40.4 (28.3) 12.1 • Gains from divestments (6%) (4%) 1% 2% • Impairments and commercial provisions • Continued good cost control Net income Reported NOI Adjustments Adjusted Tax on adj. Adjusted earnings ea
Slide 4: Production
Production • Equity production as expected Equity production mboe/d • High maintenance activity 1852 1811 1939 1994 as planned • Record international production • NCS impacted by divestments 815 853 and redetermination 735 753 • Ramping up new production 1117 1124 1142 1058 3Q2013 3Q2012 YTD2013 YTD
Slide 5: Adjusted earnings by segment
Adjusted earnings by segment Statoil Group 1) D&P Norway D&P International MPR Continued strong Stable operations Delivering record Strong gas results, exploration performance and good cost control production low refinery margins Bay du Nord: Significant oil NCS: Strong project execution PSVM: Rampi
Slide 6: Cash flow 2013
Cash flow 2013 NOK bn Cash flow from underlying operations Taxes paid 156 1) (81) Dividend paid Cash flows Proceeds from to organic (22) investments sale of assets 11 (84) Net (20) 6 1) Income before tax (99) + Non cash adjustments (57)
Slide 7: Good cost control
Good cost control Focus on cost1) New production increases DD&A1) Strengthening our Adjusted opex and SG&A, NOK bn Adjusted DD&A, NOK bn competitiveness • Project prioritisation 2) 2) 5.7 2)1 4.6 5.8 6.5 ) • Standardisation and 5.4 6.9 7.9 6.6 6.5 industrialisation 6.9 0.7 • Utilising the global sup
Slide 8: Delivering strategic progress
Delivering strategic progress Clear strategy for Realising > USD 17 bn in Leading on discovered value creation proceeds from divestments volume 3rd year in row* Proceeds (USD bn), selected divestments Conventional discovered volume, by company* Progressing with 2013 YTD, mmboe (net to company) OMV 1
Slide 9: Outlook
Outlook • 2013 − Organic capex ~ USD 19 billion − ~ 60 exploration wells, high appraisal activity − Exploration activity ~ USD 3.75 billion − Lower production than 2012 • 2014 − Impact from 2013 divestments and Ormen Lange re-determination estimated at ~110-120 mboe/d − US onshore: Prioritising valu
Slide 10: Thank you
Thank you
Slide 11: Supplementary Information
Supplementary Information Items impacting net operating income 12 Indicative PSA effect 21 Tax rate reconciliation 13 Reconciliation of Adjusted Earnings to Net Operating Income 22 Net financial items 14 Forward looking statements 23 Development in net debt to capital employed 15 Investor Relations
Slide 12: Items impacting net operating income 3Q 2013
Items impacting net operating income 3Q 2013 NOK bn 3Q 2013 3Q 2012 Before tax After tax Before tax After tax Impairments 6.0 4.4 0.0 0.0 DPN 0.4 0.1 0.0 0.0 DPI 1.4 0.7 0.0 0.0 MPR 4.2 3.6 0.0 0.0 Derivatives IAS 39 (1.4) (0.4) 0.8 0.6 DPN (0.9) (0.2) (0.1) 0.1 DPI 0.0 0.0 0.1 0.1 MPR (0.5) (0.2) 0
Slide 13: Tax rate reconciliation 3Q 2013
Tax rate reconciliation 3Q 2013 Adjusted Tax on adjusted Composition of tax expense and effective tax rate Tax rate earnings earnings D&P Norway 30.6 (22.5) 73 % D&P International 6.2 (3.3) 53 % Marketing, Processing & Renewable energy 3.9 (2.4) 60 % Other (0.3) (0.2) (66) % Total adjusted earnings
Slide 14: Net Financial Items 3Q 2013
Net Financial Items 3Q 2013 Interest income and Net foreign exchange Interest and other other financial items gains/losses finance expenses 0.1 NOK bn 1.0 (1.5) Gains/losses derivative financial Net financial items instruments 3Q 13 (0.4) (-)
Slide 15: Development in net debt to capital employed
Development in net debt to capital employed Net interest bearing debt adjusted Net debt to capital employed * (NOK bn) 100.0 14.1** 30 % 80.0 86.2 26 % 3%** 77.4 76.0 8.3** 20 % 21 % 21 % 60.0 62.3 1%** 14.1** 16 % 40.0 45.1 12 % 3%** 37.8 10 % 10 % 20.0 0.0 0% 2010 2011 2012 1Q 13 2Q 13 3Q 13 2010
Slide 16: MPR Adjusted Earnings - Break-down
MPR Adjusted Earnings - Break-down 3.9 4.1 0.5 1,5 Other Crude oil processing, marketing NOK bn and trading 3,8 Natural gas processing, marketing 2,7 and trading (0.4) (0.1) 3Q 2013 3Q 2012 16
Slide 17: Statoil production per field 3Q 2013 (DPN)
DPN 3Q 2013 Statoil production per field 3Q 2013 Statoil-operated Produced volumes Statoil-operated Produced volumes 1000 boed Statoil share Oil Gas Total 1000 boed Statoil share Oil Gas Total Alve 85.00 % 3.2 4.2 7.4 Vilje 28.85 % 5.6 0.0 5.6 Brage *1 1.3 0.1 1.3 Ekofisk 7.60 % 12.7 1.7 14.4 Fram 4
Slide 18: Statoil production per field 3Q 2013 (DPI & DPNA)
DPI & DPNA 3Q 2013 Statoil production per field 3Q 2013 Development and Produced equity volumes - Statoil share DPNA Produced equity volumes - Statoil share Production International (DPI) 1000 boed Statoil share Liquids Gas Total 1000 boed Statoil share Liquids Gas Total ACG 8.56 % 55.4 55.4 Marcell
Slide 19: Exploration Statoil Group
Exploration Statoil Group Exploration Expenses Third quarter For the year Exploration 2013 YTD E&P International (in NOK billion) 2013 2012 2013 2012 E&P Norway Exploration Expenditure (Activity) 5,9 4,9 16,0 16,0 Capitalised Exploration -1,0 -1,3 -4,4 -5,3 4.4 Expensed from Previous Years 0,5 1,5 0
Slide 20: Sensitivities – Indicative effects on 2013 results
Sensitivities – Indicative effects on 2013 results 1) NOK bn Oil price: 8 + USD 10/bbl 19 Gas price: 7 + NOK 0.50/scm 21 Exchange rate: 7 USDNOK +0.50 20 Net income effect Net operating income effect before tax The sensitivity analysis shows the estimated 12 months effect of changes in parameters 1)
Slide 21: Indicative PSA effects
Indicative PSA effects Indicative PSA effect (mmboe/d) Assumed oil price 2013 $110 $80 0,0 0,1 0,2 21
Slide 22: Reconciliation of Adjusted Earnings to Net Operating Income
Reconciliation of Adjusted Earnings to Net Operating Income NOK bn Third quarter First nine months 2013 2012 2013 2012 Net operating income 39.3 40.9 111.6 160.8 Total revenues and other income (4.3) 0.2 (2.6) (12.0) Change in Fair Value of derivatives (1.1) 0.4 1.1 2.5 Periodisation of inventory he
Slide 23: Forward looking statements
Forward looking statements This presentation contains certain forward-looking statements that involve risks and These forward-looking statements reflect current views about future events and are, by uncertainties. In some cases, we use words such as "ambition", "continue", "could", "estimate", their
Slide 24: Investor Relations in Statoil
Investor Relations in Statoil Investor Relations Europe Hilde Merete Nafstad Senior Vice President hnaf@statoil.com +47 95 78 39 11 Lars Valdresbråten IR Officer lava@statoil.com +47 40 28 17 89 Erik Gonder IR Officer ergon@statoil.com +47 99 56 26 11 Gudmund Hartveit IR Officer guhar@statoil.com +4
Slide 25: Thank you
Thank you