Daily Management Review

Statoil publishes positive reporting: Oil companies are recovering from stress


This morning, the Norwegian oil company Statoil reported on the results of its activities in the first quarter. The quarterly profit has been a record since 2014 due to the recovery in oil prices and the growth in the production of petroleum products. Experts do not exclude that the results of Statoil can only be the beginning of a positive season for reporting by the world's largest oil and gas companies, which will reveal their performance this week.

Arild Vågen
Arild Vågen
According to the Norwegian Statoil report, published on Wednesday, the company's profit for the first quarter was $ 1.5 billion, which is the highest for this period indicator since 2014. Compared to the first quarter of last year, profit grew by 21%. Revenue was $ 19.8 billion, which is 28% more than a year earlier. Analysts expected from Statoil more modest quarterly revenue - around $ 18.4 billion.

The company explained good reporting by changing market conditions and its own efforts. "After our optimization work, we can work at a lower cost," said Statoil CEO Eldar Sætre. "Given the increase in oil prices, this has led to a noticeable increase in performance in all segments of our business." 

Based on a survey of experts, Bloomberg does not rule out that, against the backdrop of the recovery in oil prices, other leading international companies reporting this week may show good quarterly results. On April 26, the Dutch-British Shell, the French Total, the Chinese Sinopec, the Brazilian Petrobras and the American ConocoPhillips will report, and the US Exxon Mobil and Chevron, the Chinese Petrochina and the Italian Eni will publish their reports on April 27.

Last Monday, the American oil service company Helix Energy reported an increase in revenue for the first quarter by 63% and a profit of $ 13 million, while in the fourth quarter of last year the company incurred a loss of $ 825 thousand. At the same time, the American oil service company Halliburton reported growth in 34% of revenue in the first quarter compared with the first quarter of last year.

As early as mid-March, the Alaska authorities issued a forecast for the growth of revenues to the budget from oil production: in 2018, $ 256 million more than previously expected, in 2019 - by $ 212 million more. The state authorities explained this by restoring oil prices. Fitch agency gave a similar forecast about revenues to the budget of the state of Texas in late January - if earlier in 2018 the revenue projections were at the level of $ 2.6 billion, now the agency has raised the forecast to $ 3.3 billion.

source: bloomberg.com