Equinor Asa · OSL:EQNR
Equinor Asa — Statoil — Q2 2010 Earnings Presentation
25 slides from Equinor Asa's earnings presentation, Jul 29, 2010
Slide 1: Second quarter results
Second quarter results Eldar Sætre, CFO Analyst conference 2Q 2010 July 29 2010
Slide 2: Overview – 2Q 2010
Overview – 2Q 2010 • Higher production 2Q 2010 (NOK bn.) • Higher oil prices 3.1 26.6 9.8 36.4 (25.9) 10.6 • Lower gas prices on long term contracts • Non cash accounting provisions Tax on Adjusted Net Reported Adjusted adjusted earnings Income NOI Adjustments earnings earnings after tax 2Q 2009 (NO
Slide 3: Equity production up 6%
Equity production up 6% • Production on track 1845 1957 1925-1975 2000 • Stable oil production up 1% 1 000 boepd equity production • Gas production up 14% 809 1500 708 • Guiding for 2010 maintained • Seasonal gas business 1000 • High 3Q maintenance activity 1137 1147 500 0 2Q 2009 2Q 2010 2010 guida
Slide 4: Adjusted earnings by business areas
Adjusted earnings by business areas (NOK bn.) 2Q 2010 2Q 2009 Adjusted earnings Adjusted earnings Business area pre tax after tax pre tax after tax E&P Norway 29.1 7.6 20.7 5.6 International E&P 2.9 1.4 2.8 1.9 Natural Gas 3.3 0.8 4.2 0.8 Manufacturing & Marketing 0.7 0.5 1.4 0.5 Other 0.5 0.3 0.2 (
Slide 5: Value driven gas business
Value driven gas business • Stronger European gas markets • Oil indexed contract prices down • European spot and forward prices up • Market prices reflected in E&P Norway • Good adjusted trading results • High value creation from deferred gas volumes • Non cash derivative trading losses • Cost provi
Slide 6: Guiding
Guiding 2010 • Equity production and production cost: • 1.925-1.975 million boepd • Unit Production Cost at NOK 35-36 per boe • Capex and exploration: • Stable capital expenditures* ~USD 13bn. • Exploration activity ~USD 2.3bn. 2012 • Equity production: • 2.060 - 2.160 million boe/d *Exclusive of ca
Slide 7: Slide 7
Slide 8: Supplementary information 2Q 2010
Supplementary information 2Q 2010 Items impacting net operating income 2Q 9 Tax rate reconciliation 10 Cash Flows from Operations 11 Net Financial Items 12 Development in net debt to capital employed 13 Long term debt portfolio redemption profile 14 Adjusted earnings break down Natural Gas 15 Adjust
Slide 9: Items impacting net operating income 2Q
Items impacting net operating income 2Q (NOK billions) 2Q 2010 2Q 2009 Before tax After tax Before tax After tax Impairments 3.0 2.4 3.3 3.0 INT (0.2) (0.2) 1.4 1.4 M&M 3.0 2.4 2.2 1.9 NG 0.2 0.2 (0.3) (0.3) Derivatives IAS 39 1.5 (0.0) 0.5 1.2 EPN (1.3) (0.3) (0.6) 0.1 NG 3.7 0.9 (0.6) (0.1) M&M De
Slide 10: Tax rate reconciliation 2Q 2010
Tax rate reconciliation 2Q 2010 Composition of tax expense Before tax Tax Tax rate and effective tax rate Total adjusted earnings 36.4 (25.9) 71.0 % Adjustments (9.8) 1.7 16.9 % Net Operating Income 26.6 (24.2) 91.0 % Net financial items: Tax on NOK 4.8 bn. Tax deductible currency losses 1.0 Financi
Slide 11: Cash flow from operations 2Q 2010
Cash flow from operations 2Q 2010 Cash flow from underlying operations Taxes paid 911 (40) NOK bn. Cash flows investing activities (Net) (35) Dividends paid (19) 1 Income before tax (64) + Non cash adjustments (27)
Slide 12: Net Financial Items 2Q 2010
Net Financial Items 2Q 2010 Interest income Net foreign and other financial exchange items gains/losses Net financial 0.4 items 2Q 10 NOK bn. Interest and other net finance (0.8) expenses (3.3) 2.1
Slide 13: Development in net debt to capital employed
Development in net debt to capital employed Net financial liabilities Net debt to capital employed* 85.3 75.3 74.5 ** 69.1 29 % 27 % 26 % ** NOK bn. 24 % 21 % 46.0 43.8 18 % 12 % 25.5 2006 2007 2008 2009 1Q 10 2Q 10 2006 2007 2008 2009 1Q 10 2Q 10 *Debt to capital employed ratio = Net financial tal
Slide 14: Long term debt portfolio redemption profile
Long term debt portfolio redemption profile Low refinancing risk 30.06.2010 16 14 12 10 % 8 6 4 2 0 2012 2013 2016 2027 2030 2010 2011 2014 2015 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2028 2029 2031
Slide 15: Adjusted earnings break-down - Natural gas
Adjusted earnings break-down -Natural gas 4.2 NOK bn. 3.3 2.4 1.5 1.8 1.8 2Q 2009 2Q 2010 Marketing and Trading Processing and Transportation
Slide 16: Adjusted earnings break-down - Manufacturing & Marketing
Adjusted earnings break-down -Manufacturing & Marketing 1.4 0.4 0.7 NOK bn. 1.5 0.6 0.1 0.1 -0.5 Energy and Retail 2Q 2009 2Q 2010 Manufacturing Oil sales, trading and supply Other
Slide 17: Statoil NCS E&P production per field 2Q 2010
Statoil NCS E&P production per field 2Q 2010 Statoil-operated Statoil share Produced volumes Partner-operated Statoil share Produced volumes 1000 boed Oil Gas Total 1000 boed Oil Gas Total Alve 85.00 % 7.9 12.6 20.5 Ekofisk 7.60 % 14.3 2.6 16.9 Brage 32.70 % 11.4 1.0 12.4 Enoch 11.78 % 0.5 0.0 0.5 F
Slide 18: Statoil International E&P equity production per field 2Q 2010
Statoil International E&P equity production per field 2Q 2010 E&P International Produced equity volumes - Statoil share 1000 boed Statoil share Liquids Gas Total Alba 17.00 % 4.8 4.8 Jupiter 30.00 % 1.0 1.0 Schiehallion 5.88 % 2.5 0.1 2.6 Azeri Chiraq (ACG EOP) 8.56 % 73.1 73.1 Shah Deniz 25.50 % 9.
Slide 19: Exploration Statoil group
Exploration Statoil group NOK bn. 2Q 2010 2Q 2009 Exploration expenses IFRS 1.3 1.4 Exploration expenses - Norway 2.3 3.0 Exploration expenses - International NOK bn. 2Q 2010 2Q 2009 Exploration expenditure 3.8 4.0 Exploration expenditure (activity) 1.0 2.2 Expensed, previously capitalised explorati
Slide 20: Reconciliation of adjusted earnings to net operating income
Reconciliation of adjusted earnings to net operating income
Slide 21: Reconciliation of adjusted earnings after tax to net income
Reconciliation of adjusted earnings -after tax to net income
Slide 22: Indicative PSA effects
Indicative PSA effects • ~65% of international equity production in Indicative PSA effect (million boepd) 2012 subject to PSA • Limited effect of oil price changes going Assumed oil price 2009-12 $100 forward ~0.26 • Higher PSA effect expected in 2010 compared to 2009 $75 ~0.24 $50 ~0.2 0.0 0.1 0.2
Slide 23: Forward looking statements
Forward looking statements • This Operating and Financial Review contains certain forward-looking statements that • These forward-looking statements reflect current views with respect to future events and involve risks and uncertainties. In some cases, we use words such as "aim", are, by their natur
Slide 24: Investor Relations in Statoil
Investor Relations in Statoil Name Title E-mail Telephone Lars Troen Sørensen senior vice president [email protected] +47 51 99 77 90 Anne Lene Gullen Bråten IR officer [email protected] +47 99 54 53 40 Odd Marius Hygen IR officer [email protected] +47 48 29 57 55 Lars Valdresbråten IR officer lava@sta
Slide 25: Statoil is an integrated technology-based international energy company
• Statoil is an integrated technology-based international energy company primarily focused on upstream oil and gas operations • Headquartered in Norway we have more than 30 years of experience from the Norwegian continental shelf, pioneering complex offshore projects under the toughest conditions. •