Press release 25 July SECOND QUARTER RESULTS. Statoil's second quarter 2013 operating and financial review. Second quarter results 2013

Transcription

1 Press release 25 July SECOND QUARTER RESULTS Statoil's second quarter 2013 operating and financial review Statoil's second quarter 2013 net operating income was NOK 34.3 billion. Adjusted earnings were NOK 38.0 billion. "Statoil delivered an operationally solid quarter. We produced as planned, delivering record production from our portfolio outside Norway. We are on track and maintain our guidance for 2013," says Helge Lund, Statoil's president and CEO. "Our financial results were impacted by lower prices for liquids and gas and weak trading results. However, we have maintained good cost control and delivered strong earnings, particularly from our international portfolio," says Lund. In the quarter, Statoil ramped up several fields. The company continues to have a high activity level in projects on the Norwegian continental shelf, with major field developments ongoing such as Gudrun, Åsgard subsea compression and Valemon. "The activity level on new field developments is high. We are executing our projects according to plan," says Lund. Statoil continued its exploration progress with five discoveries in the quarter. The company has accessed attractive exploration acreage in Norway, Russia, Azerbaijan, Tanzania and Australia, further strengthening its position for profitable long-term growth. Second quarter results 2013 Statoil's net operating income was NOK 34.3 billion compared to NOK 62.0 billion in the second quarter of Adjusted earnings [5] were NOK 38.0 billion, compared to NOK 45.8 billion in the second quarter of Adjusted earnings after tax [5] were NOK 11.3 billion, compared to NOK 11.5 billion in the second quarter of Net income was NOK 4.3 billion compared to NOK 26.6 billion in the second quarter of Second quarter First half Full year change change 2012 Net operating income (NOK billion) (45%) (40%) Adjusted earnings (NOK billion) [5] (17%) (23%) Adjusted earnings after tax (NOK billion) [5] (1%) (18%) 55.1 Net income (NOK billion) (84%) (74%) 69.5 Basic earnings per share (NOK) (83%) (74%) Average liquids price (NOK/bbl) [1] (7%) (8%) 602 Average invoiced gas prices (NOK/scm) (11%) (11%) 2.19 Equity production (mboe per day) 1,967 1,980 (1%) 1,983 2,087 (5%) 2,004 Serious incident frequency (SIF) Press release 2nd quarter

2 Key events since first quarter 2013: Revitalising Statoil's legacy position on the Norwegian continental shelf (NCS) by progressing new projects as planned, including Gudrun, Åsgard subsea gas compression, Valemon and Aasta Hansteen. Two category- J rigs acquired by the licence partners of Gullfaks and Oseberg Area Unit to increase recovery and extend field life. Johan Castberg project postponed for review, due to updated project estimates and pending clarification in the fiscal framework. Accessing attractive acreage in the Barents Sea, Brazil, Tanzania, Russia, Caspian and Australia. Oil discoveries announced offshore Newfoundland in Canada and in the Grane area in Norway. Important Johan Sverdrup appraisal completed, confirming the extent and characteristics of the reservoir. Stepping up our activity in unconventional resources by assuming operatorship for all activities in the eastern part of our Eagle Ford asset in Texas. Statoil now has operational activities in all onshore assets in the US (Bakken, Marcellus and Eagle Ford). Building offshore clusters by sanctioning the Julia and Heidelberg developments in the Gulf of Mexico. Creating value from a superior gas position: The Shah Deniz consortium announced that it has selected the Trans Adriatic Pipeline (TAP) to deliver gas from the Shah Deniz Stage 2 project. Press release 2nd quarter

3 OPERATIONAL REVIEW We maintained stable equity production in the second quarter with record international production. Rampup and start-up of several fields offset expected natural decline and lower gas deliveries from the NCS. The activity level was high with project execution according to plan. Second quarter First half Full year Operational data change change 2012 Average liquids price (USD/bbl) (5%) (7%) USDNOK average daily exchange rate (1%) (2%) 5.82 Average liquids price (NOK/bbl) [1] (7%) (8%) 602 Average invoiced gas prices (NOK/scm) (11%) (11%) 2.19 Refining reference margin (USD/bbl) [2] (17%) % 5.7 Production (mboe per day) Entitlement liquids production % 968 1,008 (4%) 966 Entitlement gas production (3%) (6%) 839 Total entitlement liquids and gas production [3] 1,768 1,786 (1%) 1,786 1,878 (5%) 1,805 Equity liquids production 1,160 1,158 0% 1,128 1,184 (5%) 1,137 Equity gas production (2%) (5%) 867 Total equity liquids and gas production [4] 1,967 1,980 (1%) 1,983 2,087 (5%) 2,004 Production cost (NOK/boe, last 12 months) Production cost entitlement volumes % % 47 Production cost equity volumes % % 42 The statements below are related to developments in the second quarter of 2013 compared to the second quarter of 2012, and developments in the first half of 2013 compared to the first half of 2012, respectively. Second quarter 2013 Total equity liquids and gas production [4] was down 1% to 1,967 mboe per day in the second quarter. The slight decrease was mainly due to expected natural decline on mature fields, operational disruption at some fields and decreased gas deliveries from the NCS. Ramp-up of production on various fields and production start-up on new fields, partly offset the decrease. Total entitlement liquids and gas production was down 1% to 1,768 mboe per day, impacted by the decrease in equity production as described above. The average Production Sharing Agreement (PSA) effect was 182 mboe per day compared to 194 mboe per day in the second quarter of In addition, a minor adjustment of tax oil barrels from previous periods had a negative impact on the entitlement production in the second quarter of Production cost per boe of entitlement volumes [8] was NOK 49 for the 12 months ended 30 June 2013, compared to NOK 47 for the 12 months ended 30 June Based on equity volumes [4], the production cost per boe for the two periods was NOK 46 and NOK 43, respectively. The 9% increase was mainly related to lower equity volumes. Exploration expenditure (including capitalised exploration expenditure) was NOK 5.1 billion, at the same level as in the second quarter of Reduced drilling activity in the international business and more expensive wells being drilled in the second quarter last year, were offset by higher drilling activity on the NCS in the second quarter of Press release 2nd quarter

4 Exploration expenses Second quarter First half Full year (in NOK billion) change change 2012 Exploration expenditure (activity) % (8%) 20.9 Expensed, previously capitalised exploration expenditure (80%) (85%) 2.7 Capitalised share of current period s exploration activity (1.5) (0.6) >100% (3.5) (3.9) (12%) (5.9) Impairment / Reversal of Impairment % % 0.4 Exploration expenses IFRS (21%) (14%) 18.1 In the second quarter of 2013, a total of 12 exploration wells were completed before 30 June 2013, seven on the NCS and five internationally. A total of five wells were announced as discoveries in the second quarter, four on the NCS and one internationally. First half 2013 Total equity liquids and gas production [4] was down 5% to 1,983 mboe per day in the first half of 2013, primarily because of expected natural decline on mature fields, unplanned shutdowns at some fields, decreased gas deliveries from the NCS and lower ownership share at the Kvitebjørn field. Total entitlement liquids and gas production was 1,786 mboe per day in the first half of 2013, down 5% compared to the first half of 2012, impacted by the decrease in equity production as described above. The PSA effect was 188 mboe per day compared to 208 mboe per day in the first half of 2012, and the reduction is mainly due to production growth on fields with lower PSA effects and production decline on fields with higher PSA effects. Exploration expenditure (including capitalised exploration expenditure) was reduced by 8% to NOK 10.2 billion in the first half of Drilling activity was at the same level as in the first half of 2012, but with less expensive wells being drilled. In the first half of 2013, Statoil completed 24 exploration wells, 13 on the NCS and 11 internationally. A total of 12 wells were announced as discoveries in the period, eight on the NCS and four internationally. Press release 2nd quarter

5 FINANCIAL REVIEW The second quarter results were impacted by lower prices for liquids and gas and weak trading results. Depreciation normally fluctuates with production, but ramp-ups and start-ups are increasing the depreciation unit cost. Record international production contributed to strong international earnings. Condensed income statement under IFRS Second quarter First half Full year (in NOK billion) change change 2012 Total revenues and other income (26%) (22%) Purchases [net of inventory variation] (72.5) (100.6) (28%) (153.1) (199.3) (23%) (363.1) Operating expenses and selling, general and administrative expenses (21.1) (17.4) 21% (46.4) (38.6) 20% (75.1) Depreciation, amortisation and net impairment losses (16.4) (15.5) 6% (31.1) (30.1) 4% (60.5) Exploration expenses (4.1) (5.2) (21%) (7.1) (8.3) (14%) (18.1) Net operating income (45%) (40%) Net financial items (6.9) (2.5) >100% (12.6) (3.0) >100% 0.1 Income before tax (54%) (49%) Income tax (23.1) (32.9) (30%) (48.9) (75.0) (35%) (137.2) Net income (84%) (74%) 69.5 The statements below are related to developments in the second quarter of 2013 compared to the second quarter of 2012, and developments in the first half of 2013 compared to the first half of 2012, respectively. Second quarter 2013 Net operating income was NOK 34.3 billion in the second quarter, a decrease of 45% compared to the second quarter of Measured in NOK, the 7% lower average liquids price and the 11% lower average invoiced gas price negatively affected net operating income in the second quarter. Gain from sale of assets and the reversal of a provision related to the early retirement pension, both recorded in the second quarter of 2012, significantly contributed to the decrease. Adjusted earnings is a supplemental non-gaap measure to Statoil's IFRS measure of net operating income which management believes provides an indication of Statoil's underlying operational performance in the period and facilitates a better evaluation of operational developments between periods. See Use and reconciliation of non-gaap financial measures for more information on Adjusted earnings and a reconciliation from Net operating income. Press release 2nd quarter

6 Adjusted earnings [5] Second quarter First half Full year (in NOK billion) change change 2012 Adjusted total revenues and other income (19%) (19%) Adjusted purchases (28%) (23%) Adjusted operating expenses and selling, general and administrative expenses (3%) (5%) 79.6 Adjusted depreciation, amortisation and net impairment losses % % 59.3 Adjusted exploration expenses (24%) (15%) 18.3 Adjusted earnings [5] (17%) (23%) In the second quarter of 2013, net operating income was negatively impacted by lower value of products in operational storage (NOK 0.6 billion), lower fair values of derivatives (NOK 0.8 billion), change in over/underlift position (NOK 0.5 billion) and other adjustment (NOK 0.7 billion). Adjusted for these items and the effects of eliminations (NOK 1.2 billion), Adjusted earnings were NOK 38.0 billion in the second quarter of 2013, which is a decrease of 17% compared to the same period in In the second quarter of 2012, lower value of products in operational storage (NOK 0.9 billion), impairment losses (NOK 0.7 billion) and lower fair values of derivatives (NOK 0.2 billion) and other provisions/adjustments (NOK 0.1 billion) had a negative impact on net operating income, while gain on sale of assets (NOK 13.5 billion) mainly related to the sale of Statoil Fuel and Retail ASA and the divestment of assets on the NCS to Centrica, reversal of a provision related to the discontinued part of the early retirement pension (NOK 3.8 billion), and change in over/underlift position (NOK 0.1 billion) had a positive impact on net operating income. Adjusted for these items and the effects of eliminations (NOK 0.8 billion), adjusted earnings were NOK 45.8 billion in the second quarter of The 17% decrease in Adjusted earnings was mainly due to the lower prices for both liquids and gas and reduced earnings from marketing and trading activities. Adjusted total revenues and other income were down 19% mainly because of the lower prices for both liquids and gas, measured in NOK. The drop in revenues due to the divestment of the Fuel and Retail segment in the second quarter of 2012, added to the decrease. Adjusted purchases, which represent Statoil's purchase of SDFI [6] and 3rd party volumes, decreased by 28% mainly because of the lower prices for liquids and gas, measured in NOK. The drop in purchases as a result of the divestment of the Fuel and Retail segment in the second quarter of 2012, added to the decrease. Adjusted operating expenses and selling, general and administrative expenses decreased by 3% to NOK 20.5 billion, influenced by the NOK 1.8 billion drop in expenses as a result of the divestment of the Fuel and Retail segment in the second quarter of Increased operating expenses due to start-up and ramp-up on various fields, partly offset the decrease. Adjusted depreciation, amortisation and net impairment losses increased by 11% to NOK 16.4 billion, mainly because of higher depreciation from rampup on various fields, increased investments on major producing fields and because new fields with higher depreciation came on stream. The increase was partly offset by increased reserves estimates and lower production because of decline on mature fields. Adjusted exploration expenses decreased by 24% to NOK 4.1 billion, mainly due to a higher portion of current exploration expenditures being capitalised this quarter because of commercial wells. Also, a lower portion of exploration expenditures capitalised in previous periods was expensed in the first half of Net financial items amounted to a loss of NOK 6.9 billion in the second quarter of 2013, compared to a loss of NOK 2.5 billion in the second quarter of The increased loss was mainly due to negative currency effects from positions in NOK related to foreign exchange and liquidity management, as well as losses on derivative financial instruments related to long term debt. 28 June 31 December 29 June Exchange rates USDNOK EURNOK Press release 2nd quarter

7 Adjusted for the items in the table below, net adjusted financial items before tax was loss of NOK 0.2 billion in the second quarter of Gains (losses) Interest income Net foreign derivative Interest and Net financial items in the second quarter of 2013 and other exchange financial other finance (in NOK billion) financial items gains (losses) instruments expenses Net before tax Financial items according to IFRS 0.7 (3.3) (3.6) (0.7) (6.9) Foreign exchange (FX) impacts (incl. derivatives) (0.3) Interest rate (IR) derivatives Subtotal (0.3) Financial items excluding FX and IR derivatives (0.7) (0.2) Income taxes were NOK 23.1 billion in the second quarter of 2013, equivalent to an effective tax rate of 84.2%, compared to 55.3% in the second quarter of The tax rate increased mainly due to high capital gains with lower than average tax rate in the second quarter of 2012 and loss on financial items in the second quarter of 2013 with lower than average tax rates. Management provides an alternative tax measure that excludes items not directly related to underlying operational performance. Adjusted earnings after tax, which excludes net financial items and tax on net financial items, is an alternative measure which provides an indication of Statoil's tax exposure to its underlying operational performance in the period, and management believes that this measure better facilitates a comparison between periods. See Use and reconciliation of non-gaap financial measures - reconciliation of adjusted earnings after tax to net income. Adjusted earnings after tax and the effective tax rate on adjusted earnings, are stated in the table below. Adjusted earnings after tax by segment [5] Second quarter Tax on Adjusted Tax on Adjusted Adjusted adjusted earnings Adjusted adjusted earnings (in NOK billion) earnings earnings after tax earnings earnings after tax Development and Production Norway 31.5 (23.2) (29.3) 9.7 Development and Production International 5.9 (2.8) (2.1) 1.2 Marketing, Processing & Renewable energy 0.8 (0.8) (3.0) 0.9 Fuel & Retail (0.0) 0.3 Other (0.3) 0.0 (0.3) (0.8) 0.1 (0.6) Group 38.0 (26.7) (34.3) 11.5 Effective tax rates on adjusted earnings 70.3% 75.1% Adjusted earnings after tax were NOK 11.3 billion, equivalent to an effective tax rate on adjusted earnings of 70.3%, compared to an effective tax rate on adjusted earnings of 75.1% in the second quarter of The tax rate decreased mainly due to relatively lower adjusted earnings from the NCS in the second quarter of Income from the NCS is subject to higher than average tax rates. The decreased tax on adjusted earnings was also caused by a high tax rate on adjusted earnings from Development and Production International in the second quarter of This was mainly due to relatively higher adjusted earnings from high tax regimes. Press release 2nd quarter

8 First half 2013 Net operating income was NOK 72.3 billion, a decrease of 40% compared to the first half of The decrease in production of both liquids and gas, together with lower liquids and gas prices, was the main explanation for the reduction when compared to the first half of 2012, but also gain from sale of assets recorded in the second quarter of 2012, significantly contributed to the decrease. Net operating income was negatively impacted by onerous contract provision and other adjustments (NOK 6.3 billion), lower fair values of derivatives (NOK 2.4 billion), lower values of products in operational storage (NOK 0.4 billion) and change in over/underlift position (NOK 0.1 billion). Adjusted for these items and the effects of eliminations (NOK 1.0 billion), Adjusted earnings were NOK 80.4 billion in the first half of 2013, which is a decrease of 23% compared to the same period in In the first half of 2012, lower fair values of derivatives (NOK 2.0 billion), lower values of products in operational storage (NOK 0.5 billion) and impairment losses (NOK 0.7 billion) negatively impacted net operating income, while gain on sale of assets (NOK 13.5 billion), reversal of a provision related to the discontinued part of the early retirement pension (NOK 4.3 billion) and change in over/underlift position (NOK 0.2 billion) had a positive impact on net operating income. Adjusted for these items and the effects of eliminations (NOK 0.3 billion), adjusted earnings were NOK billion in the first half of The 23% decrease in Adjusted earnings was mainly due to the reductions in production volumes and prices for both liquids and gas, and reduced earnings from marketing and trading activities. Adjusted total revenues and other income were down 19% mainly because of the decreased volumes and lower prices for both liquids and gas. Internationally, a higher portion of the production was gas volumes, which resulted in lower net realised gas prices. The drop in revenues due to the divestment of the Fuel and Retail segment in the second quarter of 2012, added to the decrease. Adjusted purchases, which represent Statoil's purchase of SDFI [6] and 3rd party volumes, decreased by 23% mainly due to lower prices for liquids and gas. The drop in purchases as a result of the divestment of the Fuel and Retail segment in the second quarter of 2012, added to the decrease. Adjusted operating expenses and selling, general and administrative expenses decreased by 5%, impacted by the NOK 3.5 billion drop in expenses as a result of the divestment of the Fuel and Retail segment in the second quarter of Purchase expenses reclassified as operating expenses in the first quarter of 2013 and increased operating cost from start-up and ramp-up on various fields, partly offset the decrease. Adjusted depreciation, amortisation and net impairment losses increased by 6% mainly because of higher depreciation from ramp-up on various fields, increased investment on producing fields and because new fields with higher depreciation came on stream. The increase was partly offset by the reduction in depreciation due to the lower production volumes and increased reserves estimates. Adjusted exploration expenses decreased by 15% mainly due to less expensive wells being drilled, offset by a lower portion of current exploration expenditures being capitalised because of non-commercial wells. Also, a lower portion of exploration expenditures capitalised in previous periods was expensed in the second quarter of Net financial items amounted to a loss of NOK 12.6 billion in the first half of 2013, compared to a loss of NOK 3.0 billion in the same period of The increased loss was mainly due to negative currency effects from positions in NOK related to foreign exchange and liquidity management, as well as losses on derivative financial instruments related to long term debt. Adjusted for the items in the table below, net adjusted financial items before tax was zero in the first half of Gains (losses) Interest income Net foreign derivative Interest and Net financial items in the first half of 2013 and other exchange financial other finance (in NOK billion) financial items gains (losses) instruments expenses Net before tax Financial items according to IFRS 1.9 (7.4) (5.6) (1.5) (12.6) Foreign exchange (FX) impacts (incl. derivatives) (0.4) Interest rate (IR) derivatives Subtotal (0.4) Financial items excluding FX and IR derivatives (1.5) 0.0 Income taxes were NOK 48.9 billion in the first half of 2013, equivalent to an effective tax rate of 81.9%, compared to 64.1% in the first half of The tax rate increased mainly due to high capital gains with lower than average tax in the second quarter of 2012 and the onerous contract provisions in Press release 2nd quarter

9 the first half of 2013, where no tax asset was recognised in relation to the MPR part of the provisions. The increased tax rate was also caused by loss on financial items in the first half of 2013, with lower than average tax rates. Adjusted earnings after tax and the effective tax rate on adjusted earnings, are stated in the table below. Adjusted earnings after tax by segment [5] First half Tax on Adjusted Tax on Adjusted Adjusted adjusted earnings Adjusted adjusted earnings (in NOK billion) earnings earnings after tax earnings earnings after tax Development and Production Norway 66.5 (48.6) (65.0) 21.2 Development and Production International 10.9 (6.2) (4.7) 5.5 Marketing, Processing and Renewable energy 3.5 (2.6) (6.6) 1.9 Fuel & Retail (0.2) 0.5 Other (0.4) 0.1 (0.3) (0.6) (0.3) (0.9) Group 80.4 (57.2) (76.7) 28.2 Effective tax rates on adjusted earnings 71.1% 73.1% Adjusted earnings after tax were NOK 23.3 billion, equivalent to an effective tax rate on adjusted earnings of 71.1%, compared to an effective tax rate on adjusted earnings of 73.1% in the first half of The tax rate decreased mainly due to relatively lower adjusted earnings from the NCS in the second quarter of Income from the NCS is subject to higher than average tax rates. OUTLOOK Organic capital expenditures for 2013 (i.e. excluding acquisitions and capital leases), are estimated at around USD 19 billion. Statoil will continue to mature the large portfolio of exploration assets and expects to complete around 50 wells in 2013 with a total exploration activity level at around USD 3.5 billion, excluding signature bonuses. Our ambition for the unit of production cost continues to be in the top quartile of our peer group. Statoil has an ambition to reach an equity production above 2.5 million barrels of oil equivalent per day in 2020 [7]. The growth is expected to come from new projects in the period from 2014 to 2016 resulting in a 2 to 3% Compound Annual Growth Rate (CAGR) for the period from 2012 to A second wave of projects is expected to come on stream from 2016 to 2020 resulting in an accelerated growth rate (CAGR) of 3 to 4%. The growth towards 2020 will not be linear and the equity production for 2013 is estimated to be lower than the 2012 level. As previously communicated, several events impact the production in Following the closing of the Wintershall transaction, the negative impact on production will be around 40 mboe per day. After a redetermination process in the Ormen Lange Unit production for the second half of 2013 is estimated to be negatively impacted by around 40 mboe per day. Growth in the US onshore gas production is expected to be around 25 mboe lower per day compared to earlier assumptions. In Europe, as part of the value over volume strategy, the company produced somewhat higher gas volumes in 2012 than previously assumed, which reduces estimated 2013 gas production by approximately 15 mboe per day. The current reduced capacity at Troll limits the flexibility in the gas offtake. In addition, the reduced capacity at In Amenas affects the production. Planned maintenance is expected to have a negative impact on quarterly production of approximately 110 mboe per day in the third quarter of 2013, of which most is planned on the NCS and approximately half is liquids. In total, the maintenance is estimated to have a negative impact on equity production of around 45 mboe per day for the full year 2013, of which most is liquids. Deferral of gas production to create value, gas off-take, timing of new capacity coming on stream and operational regularity represent the most significant risks related to the production guidance. These forward-looking statements reflect current views about future events and are, by their nature, subject to significant risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. See "Forward-Looking Statements" below. Press release 2nd quarter

10 FINANCIAL RISK UPDATE Indicative effects on 2013 results (NOK bn) Oil price: + USD 10/bbl 8 19 Financial risk factors The financial results of operations largely depend on a number of factors, most significantly those that affect the price for volumes sold. Specifically, such factors include liquids and natural gas prices, exchange rates, liquids and natural gas production volumes. In turn, these factors depend on entitlement volumes under profit sharing agreements and available petroleum reserves, Statoil's - as well as our partners' - expertise and co-operation in recovering oil and natural gas from those reserves, and also changes in Statoil's portfolio of assets due to acquisitions and disposals. Gas price: + NOK 0.50/scm Exchange rate: USDNOK Net income effect Net operating income effect before tax The illustration shows how certain changes in crude oil prices (a substitute for liquids prices), natural gas contract prices and the USDNOK exchange rate, if sustained for a full year, could impact our net operating income. Changes in commodity prices and currency and interest rates may result in income or expense for the period as well as changes in the fair value of derivatives in the balance sheet. The illustration is not intended to be exhaustive with respect to risks that have or may have a material impact on the cash flows and results of operations. See the annual report for 2012 and the 2012 Annual Report on Form 20-F for a more detailed discussion of the risks to which Statoil is exposed. The sensitivity analysis shows the estimated 12 months effect of changes in parameters. The changes in parameters do not have the same probability. Financial risk management Statoil has policies in place to manage risk for commercial and financial counterparties by the use of derivatives and market activities in general. The Group's exposure towards financial counterparties is considered to have an acceptable risk profile. The markets for short- and long-term financing are currently considered to function well for corporate borrowers with Statoil's credit standing and general characteristics. With regard to liquidity management, the focus is on finding the right balance between risk and reward and most funds are currently placed in short-term money market instruments with minimum single A-rating. In accordance with our internal credit rating policy, we continuously assess counterparty credit risk with a focus on counterparties identified as high risk. We assess our overall credit risk as satisfactory. HEALTH, SAFETY AND THE ENVIRONMENT (HSE) Second quarter 2013 The total recordable injury frequency was 4.0 in the second quarter of 2013, compared to 3.5 in the second quarter of The serious incident frequency was 0.9 in the second quarter of 2013, the same as in the second quarter of There were no fatal accidents in the second quarter of The volume of accidental oil spills decreased from 37 cubic meters in the second quarter of 2012 to 31 cubic meters in the second quarter of The number of accidental oil spills decreased from 128 in the second quarter of 2012 to 60 in the second quarter of Statoil Fuel & Retail are included in the figures up to and including the second quarter of 2012, but were divested at the end of the second quarter of Excluding Statoil Fuel & Retail, the number of accidental oil spills was stable quarter over quarter. Press release 2nd quarter

11 First half 2013 The total recordable injury frequency was 4.2 in the first half of 2013, compared to 3.9 in the first half of The serious incident frequency was 0.8 in the first half of 2013, compared to 1.0 in the first half of Following the fatal terrorist attack on the In Amenas gas production facility in Algeria in January, the board of directors appointed an investigation team to clarify and evaluate the facts related to the terrorist attack. Their investigation report is expected to be final in September The volume of accidental oil spills increased from 43 cubic meters in the first half of 2012 to 57 cubic meters in the first half of The number of accidental oil spills decreased from 215 in the first half of 2012 to 112 in the first half of Excluding Statoil Fuel & Retail from the first half of 2012, the number of accidental oil spills was stable compared to first half Second quarter First half Full year HSE Total recordable injury frequency Serious incident frequency Accidental oil spills (number) Accidental oil spills (cubic metres) References To see end notes referenced in main table and text please download our complete report from our website - Further information from: Investor relations Hilde Merete Nafstad, senior vice president investor relations, (mobile) Morten Sven Johannessen, vice president investor relations USA, (mobile) Press Jannik Lindbæk jr, vice president for media relations, (mobile) Press release 2nd quarter