Equinor — Earnings Release 2014

Apr 29, 2014

Statoil: 2014 First quarter results

Statoil: 2014 First quarter results

Statoil's (OSE:STL, NYSE:STO) first quarter 2014 net operating income was NOK

51.4 billion, a 35% increase compared to the first quarter of 2013. Adjusted

earnings were up 9% to NOK 46.0 billion.

"We are pleased to present strong financial results for the quarter. Higher

prices and good results from our US gas value chain contributed to a 9% increase

in adjusted earnings, compared to same quarter last year. Our operational

performance is solid, providing the foundation for around 2% rebased organic

production growth in 2014," says Helge Lund, Statoil's president and CEO.

Net operating income was NOK 51.4 billion in the first quarter, an increase of

35% compared to the first quarter of 2013. After quarter specific items,

adjusted earnings were NOK 46.0 billion, a 9% increase compared to the same

quarter last year. The adjustments of NOK 5.4 billion is primarily related to an

award payment following a commercial dispute and gain on sale of assets. The

increased revenue was mainly due to higher prices and improved contribution from

the gas value chain. Adjusted earnings after tax were NOK 15.8 billion, compared

to NOK 12.0 billion in the same period last year.

"With strong cash flows from operations and firm capital discipline, we further

strengthened our financial position. The Board proposes to distribute a dividend

payment of NOK 1.80 per share for the quarter, in line with our commitment to

capital distribution," says Lund.

Underlying operation costs were stable. Exploration expenditure was NOK 4.7

billion, down 7% compared to same quarter last year. Earnings per share were NOK

7.43 in the quarter, up from NOK 2.02 in the first quarter last year. The net

debt to capital employed at the end of the quarter was 10%.

"To meet the industry cost and capital intensity challenge we have initiated

new, comprehensive measures in the quarter to further strengthen our efficiency

and cost competitiveness, while we reached important milestones in the ongoing

process of reducing our cost base. We are on track, executing on our plan to

deliver high value growth," says Lund.

Statoil delivered a production of 1,978 mboe per day in the first quarter, down

1% compared to first quarter in 2013. Continued strong project development and

execution enabled concept selection for the Johan Sverdrup field and brought the

Gudrun field on stream. Johan Sverdrup will be Statoil's largest field

development since the 1980s. The field centre will be developed in multiple

phases, with a field capacity in the first phase of 315,000 barrels of oil

equivalent per day. The Gudrun project was delivered below cost and on time,

utilising the global supplier market.

The continued progress in the Serious incident frequency per million man hours

(SIF) was overshadowed by a fatality. A contractor was fatally injured while

working on clearing the path for a future pipeline in the US.

The SIF in the quarter was 0.6, compared to 0.7 in the same period last year.

Key events since fourth quarter 2013:

* Production started from the Gudrun project and the fast-track projects

Svalin and Vilje Sør on the Norwegian continental shelf (NCS).

* The concept selection for the Johan Sverdrup phase 1 project on the NCS was

approved by the pre-unit owners.

* Gas and oil was discovered in the Valemon Nord, Askja East and West, F-West

and Sao Bernardo wells.

* Statoil was awarded a deep-water exploration block together with

ConocoPhillips in the Myanmar waters of Bay of Bengal.

* Statoil's acquisition of 25% equity in the BM-ES-22A concession in the

Espírito Santo basin offshore Brazil was approved.

* Statoil was awarded interests in ten production licenses in the Awards in

Predefined Areas 2013 on the NCS.

* Statoil has signed an agreement to divest a 15% interest in the Statoil-

operated block 39 offshore Angola in the Kwanza pre-salt basin. Statoil

retains an interest of 40%.

* The agreement to divest 3.33% of Statoils 25.5% holdings in the Shah Deniz

gas field in Azerbaijan and the South Caucasus Pipeline was closed. The

agreement to divest further 6.67% is expected to close in the second quarter

of 2014.

Further information from:

Investor relations

Hilde Merete Nafstad, senior vice president investor relations,

+47 957 83 911 (mobile)

Morten Sven Johannessen, vice president investor relations USA,

+ 1 203 570 2524 (mobile)

Press

Jannik Lindbæk jr., vice president for media relations,

+47 977 55 622 (mobile)

This information is subject of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

[HUG#1780711]