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Statoil moves higher despite surprise Q3 loss, another capex cut

Published 10/27/2016, 10:38 AM
Statoil moves higher despite surprise Q3 loss, another capex cut
  • Statoil (OL:STL) (STO +2.2%) is higher despite posting a surprise loss for the second quarter in a row and cutting its 2016 capex by another $1B.
  • STO says Q3 profits were hurt in part because it produced less oil and gas than normal as it carried out extensive maintenance work on its operations.
  • But investors appear to be heeding the advice of Bernstein analyst Oswald Clint to “ignore the earnings miss,” and focus instead on cash and the potential for further expansion with lower spending and costs.
  • STO says it will cut full-year capex to $11B from $12B and its exploration spending to $1.5B from $1.8B.
  • Produced 1.8M boe/day during Q3 vs. 1.91M boe/day in the year-ago quarter, but maintains its target of annual organic production growth of 1% during 2014-17.
  • STO says it lowered its net-debt-to-capital-employed ratio to 30.3% at the end of September from 31.2% three months earlier, as it seeks to drop below 30%.

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