Equinor Asa · OSL:EQNR
Equinor Asa — Statoil — Q1 2014 Earnings Presentation
24 slides from Equinor Asa's earnings presentation, 2014
Slide 1: 1st Quarter 2014
1st Quarter 2014 Torgrim Reitan, CFO
Slide 2: Highlights
Highlights • Strong financial results and operational performance • Good contribution from North America value chain • Project execution on track, − Gudrun on stream, − Johan Sverdrup concept selection • Firm cost control • Proposed 1Q 2014 dividend of 1.80 NOK/share 2
Slide 3: Financial results
Financial results • Lower liquid price and increased gas price 1Q 2014 NOK bn − Strengthening on NOK 23.7 51.4 (5.4) 46.0 (30.2) 15.8 • Firm cost control >100% 35% 9% 32% − Higher transportation − New field start-up • Lower tax rate Net income Reported Adjustments Adjusted Tax on adj. Adjusted NOI e
Slide 4: Adjusted earnings by segment
Adjusted earnings by segment Statoil Group 1) D&P Norway D&P International MPR On-time project delivery Strong production High value gas trading and optimisation Drilling rig in Barents Sea Gudrun on stream Pazflor field, Angola Manhattan gas pipeline NOK bn Pre tax After tax Pre tax After tax Pre t
Slide 5: Production
Production • Production as expected, Equity production − high liquids production mboe/d 1978 1998 1940 − lower gas offtake − divestments, redetermination and decline as expected 864 903 825 • High regularity on NCS Liquids Gas 1114 1095 1115 1Q2014 1Q2013 FY2013 5
Slide 6: Realising strong prices
Realising strong prices Average 3 invoiced prices • Modernised European gas sales øre/sm European gas North American gas1) portfolio 239 235 245 262 257 − Increased gas indexation and direct sales 149 − Increased flexibility 88 78 89 • Secured access to premium markets 77 in North America − Strong c
Slide 7: Cash flow 2014
Cash flow 2014 NOK bn Cash flow from operating activities Taxes paid 67 (18) Proceeds from Cash flows sale of assets to investments 3 (29) Net 24 7
Slide 8: Outlook
Outlook 2014 • ~ 2% production growth from rebased level • Organic capex ~ USD 20 billion • Exploration activity ~ USD 3.5 billion • ~ 50 exploration wells • Planned maintenance ~ 55 mboed − 2Q ~ 110 mboed, 3Q ~ 60mboed 8
Slide 9: Thank you
Thank you L }* Statoil
Slide 10: Supplementary Information
Supplementary Information Items impacting net operating income 11 Sensitivities – Indicative effects on 2014 results 20 Tax rate reconciliation 12 Indicative PSA and royalty effect 21 Cost and DD&A 13 Reconciliation of Adjusted Earnings to Net Operating Income 22 Net financial items 14 Forward looki
Slide 11: Items impacting net operating income 1Q
Items impacting net operating income 1Q NOK bn 1Q 2014 1Q 2013 Before tax After tax Before tax After tax Impairments (Net of reversal) 0.2 0.2 0.0 0.0 DPI 0.4 0.4 0.0 0.0 MPR (0.2) (0.1) 0.0 0.0 Derivatives IAS 39 0.1 (0.1) 1.6 0.5 DPN 0.4 0.1 0.8 0.2 MPR (0.3) (0.2) 0.8 0.3 (Overlift)/Underlift (0.
Slide 12: Tax rate reconciliation 1Q 2014
Tax rate reconciliation 1Q 2014 Composition of tax expense and effective tax rate Adjusted earnings Tax on adjusted Tax rate earnings D&P Norway 34.2 (25.2) 74 % D&P International 6.9 (3.0) 43 % Marketing, Processing & Renewable energy 5.9 (2.4) 41 % Other (0.9) 0.4 39 % Total adjusted earnings 46.0
Slide 13: Cost and DD&A
Cost and DD&A Focus on cost1) New production increases DD&A1) Adjusted opex and SG&A, NOK bn Adjusted DD&A, NOK bn 5.5 4.9 4.8 5.8 7.9 8.5 5.4 6.9 7.0 6.5 7.5 8.5 0.7 0.8 0.7 0.7 7.4 7.1 7.7 0.6 8.5 8.0 8.0 8.2 7.3 6.6 7.0 6.2 6.3 6.7 1Q13 2Q13 3Q13 4Q13 1Q14 1Q13 Q2 13 Q3 13 Q4 13 Q1 14 DPN MPR D&P
Slide 14: Net Financial Items 1Q 2014
Net Financial Items 1Q 2014 Gains/losses derivative financial Interest and other instruments finance expenses 1.5 (1.8) NOK bn Net foreign exchange gains/losses Interest income and 0.4 Net financial items other financial items 1Q 14 0.7 0.7 14
Slide 15: Development in net debt to capital employed
Development in net debt to capital employed Net financial liabilities Net debt to capital employed 1) (NOK bn) 100.0 30 % 80.0 26 % 77.4 76.0 20 % 21 % 60.0 63.7 15 % 40.0 45.1 7.7 2) 12 % 10 % 33.8 2 % 2) 8% 20.0 0.0 0% 2010 2011 2012 2013 1Q 14 2010 2011 2012 2013 1Q 14 1) Net debt to capital empl
Slide 16: MPR Adjusted Earnings – Break down
MPR Adjusted Earnings – Break down 5.9 1.2 NOK bn 2.6 Other 4.7 1.0 Crude oil processing, marketing and trading 1.7 Natural gas processing, marketing and trading (0.1) 1Q 2014 1Q 2013 16
Slide 17: Statoil Equity Production per Field
DPN 1Q 2014 Statoil Equity Production per Field 17
Slide 18: Statoil Equity Production per Field
DPI & DPNA 1Q 2014 Statoil Equity Production per Field 18
Slide 19: Exploration Statoil group
Exploration Statoil group Exploration Expenses First quarter (in NOK billion) 2014 2013 Exploration Expenditure (Activity) 4.7 5.1 Capitalised Exploration (1.8) (2.0) Expensed from Previous Years 0.4 0.0 Impairment/Reversal of Impairment 0.4 0.0 Exploration Expenses IFRS 3.7 3.1 Items Impacting (0.4
Slide 20: Sensitivities – Indicative effects on 2014 results
Sensitivities – Indicative effects on 2014 results 1) NOK bn 1) The sensitivity analysis shows the estimated 12 months effect of change in parameters. The change in parameters 20 do not have the same probability
Slide 21: Indicative PSA and royalty effects
Indicative PSA and royalty effects Indicative Indicative royalty effect PSA effect USA and Canada (mmboe/d) (mboe/d) Assumed oil price 2014 $110 0 20 40 60 $80 0 0.1 0.2 21
Slide 22: Reconciliation of Adjusted Earnings to Net Operating Income
Reconciliation of Adjusted Earnings to Net Operating Income Items impacting net operating income First quarter (in NOK billion) 2014 2013 Net operating income 51.4 38.0 Total revenues and other income (5.7) (0.8) Change in Fair Value of derivatives 0.2 1.4 Periodisation of inventory hedging effect (
Slide 23: Forward looking statements
Forward looking statements This presentation contains certain forward-looking statements that involve risks and uncertainties. In some cases, These forward-looking statements reflect current views about future events and are, by their nature, subject to we use words such as "ambition", "continue", "
Slide 24: Investor Relations in Statoil
Investor Relations in Statoil Main Desk: +47 22 97 20 42 E-mail: irpost@statoil.com 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