Equinor — Earnings Release 2015

Apr 30, 2015

Statoil ASA: 2015 first quarter results

Statoil ASA: 2015 first quarter results

Despite challenging oil and gas prices in the quarter, Statoil (OSE:STL,

NYSE:STO) delivered Adjusted earnings of NOK 22.9 billion and NOK 7.0 billion

after tax. Statoil reports a negative IFRS Net income of NOK 35.4 billion due to

impairments.

"Statoil's first quarter reported figures are significantly impacted by

impairment charges. Our adjusted earnings and cash flows were affected by the

reduced price levels. We continue to deliver strong underlying operational

performance and solid results from marketing and trading. The free cash flows

after dividend were positive in the first quarter", says president and CEO of

Statoil ASA, Eldar Sætre.

Adjusted earnings for the first quarter of 2015 were NOK 22.9 billion compared

to NOK 46.0 billion in the first quarter of 2014. The reduction was mainly a

result of the significant drop in the liquids prices, lower European gas prices

and increased depreciation and operating costs. The increase in depreciation and

operating cost was largely a result of starting and ramping up production, and

was impacted by the strong USD/NOK exchange rate. Adjusted earnings after tax

were NOK 7.0 billion, compared to NOK 15.8 billion in the same period last year.

Statoil's net operating income in the first quarter of 2015 was negatively

impacted by significant accounting charges related to asset impairments of NOK

46.1 billion, most of which are related to the US onshore unconventional assets.

The impairments were a result of a revision of Statoil's long term economic

planning assumptions.

"We take a more cautious view due to the uncertainty in the commodity markets.

It is important to maintain a solid foundation for our decisions. The underlying

quality of the assets and the operational performance remains unchanged", says

Sætre.

Statoil's equity production in the first quarter was 2,056 mboe per day,

compared to 1,978 mboe per day in the same period in 2014. The production

increase was a result of start-up and ramp-up of production on various fields as

well as higher gas sales from the Norwegian continental shelf (NCS) compared to

the first quarter of 2014. The equity production outside of Norway was 759 mboe

per day.

"We continue to see progress from our cost and capital efficiency programmes and

our systematic effort to improve safety continues. I am pleased to see reduced

field and modification costs on the NCS, reduced international operating

expenses per barrel measured in dollar, in addition to improved drilling and

well performance. Our financial position remains robust. The board of directors

has decided to pay NOK 1.80 per share in dividend for the quarter," says Sætre.

In the first three months of 2015 Statoil reported cash flows from operations of

NOK 29.1 billion compared to NOK 55.0 billion in the first quarter of 2014. The

decrease was a result of falling prices, partially offset by lower taxes paid in

the first quarter of 2015. The free cash flows, after investments, proceeds from

transactions and dividend payments were positive in the first quarter of 2015.

At the end of the quarter, Statoil's adjusted net debt to capital employed

increased to 24 % impacted by impairments as well as currency changes.

Statoil's success on exploration activities continues to perform in the first

quarter of 2015, and has resulted in four discoveries. Discoveries in Tanzania,

the Gulf of Mexico as well as in Norway underline Statoil's position as a global

top explorer. The adjusted exploration expenses amounted to NOK 2.7 billion,

down from NOK 3.3 billion in the first quarter of 2014 as a higher portion of

current exploration expenditures was capitalised in the first quarter this year.

The serious incident frequency (SIF) was 0.7 in the first quarter of 2015

compared to 0.6 in the first quarter of 2014.

The Statoil share will trade ex-dividend on Oslo Stock Exchange (Norway) 14

August 2015.

Key events since fourth quarter 2014:

* Progressing Johan Sverdrup: Plan for Development and Operation (PDO) was

submitted to the authorities in February, and contracts for more than NOK

16 billion were awarded in the quarter.

* New projects on stream: The Valemon field came on stream and production

commenced from Oseberg Delta 2 in the North Sea.

* Developing new projects: Statoil together with its partner submitted

development plan for the Peregrino Phase II.

* Optimising projects: The partners in the Johan Castberg and Snorre 2040

licences decided to spend more time to mature the projects.

* Top tier exploration results: A small oil discovery and a gas discovery on

the NCS and the eighth discovery in Block 2 offshore Tanzania. In April

Statoil announced an oil discovery in the Yeti prospect in the Gulf of

Mexico (GoM).

* Debt capital market transactions: EUR 3.75 billion secured in February.

* Changes to the board of directors: Grace Reksten Skaugen and Catherine

Hughes have resigned from the board of directors, and Rebekka Glasser

Herlofsen was elected as new shareholder representative.

Further information from:

Investor relations

Peter Hutton, Senior vice president Investor relations, +44 7881 918 792

(mobile)

Press

Jannik Lindbæk jr., Vice president Media relations, +47 977 55 622 (mobile)

This information is subject of the disclosure requirements acc. to §5-12 vphl

(Norwegian Securities Trading Act)

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