Equinor — Earnings Release 2018

Apr 25, 2018

Statoil ASA: 2018 first quarter results

Statoil ASA: 2018 first quarter results

Statoil (OSE:STL, NYSE:STO) reports adjusted earnings of USD 4.4 billion and USD

1.5 billion after tax in the first quarter of 2018. IFRS net operating income

was USD 5.0 billion and the IFRS net income was USD 1.3 billion.

The first quarter was characterised by:

* Solid earnings across all segments

* Strong cash flow. Net debt ratio reduced from 29.0% to 25.1% [5]

* Strong operational performance with record high international production

"Following strong results from our improvement work we have a lower cost base,

enabling us to capture high value from higher prices and deliver solid earnings

across all segments. We continue our strong operational performance, and

international production was record high. The cash flow from operating

activities was very strong and above 7 billion dollars in the quarter. We have

reduced our net debt ratio from 29.0% to 25.1% after paying for Martin Linge,"

says Eldar Sætre, President and CEO of Statoil ASA.

"In the quarter we have accessed attractive acreage in Brazil and the Gulf of

Mexico, secured acreage for further developing our renewable business in Poland

and taken over the operatorship for Martin Linge. This week, the world's largest

spar platform, arrived at the Aasta Hansteen field in the Norwegian Sea. In

addition, Johan Sverdrup and our project portfolio are progressing according to

plan and we have delivered the development plan for the Askeladd project for

approval," says Sætre.

"Reflecting our always safe, high value, low carbon strategy and our development

as a broad energy company, the board of directors has proposed to the Annual

General Meeting in May to change the name of the company to Equinor," says

Sætre.

Adjusted earnings [5] were USD 4.4 billion in the first quarter, up from USD

3.3 billion in the same period in 2017. Adjusted earnings after tax [5] were USD

1.5 billion in the first quarter, up from USD 1.1 billion in the same period

last year. Higher prices for both oil and gas, coupled with high production,

contributed to the increase. The USD/NOK exchange rate development, increased

transportation costs, and increased royalty expenses from higher prices,

contributed to a cost increase. A change in depreciation basis for one of the

fields on the Norwegian continental shelf increased adjusted depreciation

expenses by more than USD 100 million. Excluding the effect of new fields coming

on stream, underlying operating costs and administrative expenses per barrel are

stable from the same quarter last year.

IFRS net operating income was USD 5.0 billion in the first quarter compared to

USD 4.3 billion in the same period of 2017. The increase was partially offset by

reduced value of derivatives. IFRS net income was USD 1.3 billion, up from USD

1.1 billion in the first quarter of 2017.

Statoil delivered equity production of 2,180 mboe per day in the first quarter,

an increase from 2,146 mboe per day in the same period in 2017. The increase was

primarily due to higher production in the US. The underlying production growth

[7] was more than 2% compared to the first quarter of 2017.

As of first quarter 2018, Statoil had completed seven exploration wells with two

commercial discoveries. Adjusted exploration expenses [5] in the quarter were

USD 238 million, up from USD 202 million in the same quarter of 2017, mainly due

to higher drilling activity.

Cash flows provided by operating activities before taxes paid and changes in

working capital amounted to USD 7.1 billion for the first quarter of 2018

compared to USD 5.9 billion same period 2017. Organic capital expenditure [5]

was USD 2.1 billion for the first three months of 2018. End of quarter, net debt

to capital employed [5] was reduced from 29.0% to 25.1%, after value enhancing

transactions.

The board of directors has decided on a dividend of USD 0.23 per share for the

first quarter, on par with the boards proposal for increased dividend for the

fourth quarter of 2017.

The twelve-month average Serious Incident Frequency (SIF) was 0.5 for the twelve

months ended 31 March 2018, compared to 0.8 in the same period a year ago.

Further information from:

Investor relations

Peter Hutton, Senior vice president Investor relations,

+44 7881 918 792 (mobile)

Helge Hove Haldorsen, vice president Investor Relations North America,

+1 281 224 0140 (mobile)

Press

Bård Glad Pedersen, vice president Media relations,

+47 918 01 791 (mobile)

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.