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Annual Report 2002 2002_Aarsrap_omslag_eng_ny 10.04.03 07:37 Side 3 Annual report and accounts 2002 2002_Aarsrapport_omslag_engelsk 27.03.03 10:51 Side 4 Good net income of NOK 16.8 billion, on a par with Statoil’s best-ever result of NOK 17.2 billion in 2001. Improved profitability with return on capital employed of 14.9 per cent. Matches the best industry players. Production record with 1 074 000 barrels of oil equivalent per day. The goal for 2004 is 1 120 000 barrels. Growth in 2002 was 6.7 per cent. Reserve replacement ratio improved from 0.68 in 2001 to 0.78. The target for 2004 is for new reserves to exceed production. Lower emissions of carbon dioxide, despite record-high output. 2002 New operatorships on the NCS by taking over responsibility for the Snorre,Visund, Tordis and Vigdis fields from Norsk Hydro. Strong international growth with production of 86 000 barrels of oil equivalent per day. Growth in 2002 was 28 per cent. Gained new operatorships – in the South Pars field off Iran and in Plataforma Deltana off Venezuela. New gas sales to the UK. Contract signed with British Gas Trading for supplies of five billion cubic metres annually for ten years. Strengthened market position in Poland, Estonia, Latvia and Lithuania through the acquisition of 140 petrol stations. 2002_Aarsrapport_omslag_engelsk 27.03.03 10:51 Side 6 2002 statistics INCOME CASH FLOW RETURN NOK bn NOK bn Per cent 60 60 25 50 50 20 40 40 15 30 30 10 20 20 5 10 10 1998 1999 2000 2001 2002 1998 1999 2000 2001 2002 1998 1999 2000 2001 2002 Income before financial items, Cash flow used in Return on average capital income taxes, and minority interests investing activities employed after tax Net income Cash flow provided by operating activities OIL PRODUCTION/PRICE GAS PRODUCTION/PRICE OIL/GAS RESERVES 1 000 bbls 1 000 boe USD/barrel per day NOK/scm per day Million boe 30 800 1.75 350 5 000 700 1.50 300 25 4 000 600 1.25 250 20 500 3 000 1.00 200 15 400 0.75 150 300 2 000 10 0.50 100 200 1 000 5 100 0.25 50 1998 1999 2000 2001 2002 1998 1999 2000 2001 2002 1998 1999 2000 2001 2002 Entitlement oil production Sales equity gas production Gas Average oil price Brent Blend Average gas price Oil and NGL TOTAL RECORDABLE INJURY FREQUENCY SERIOUS INCIDENT FREQUENCY CARBON DIOXIDE (CO2) Million tonnes 14 8 10 12 8 6 10 6 8 4 4 6 2 4 2 2 0 -2 1998 1999 2000 2001 2002 1998 1999 2000 2001 2002 1998 1999 2000 2001 2002 CO reductions made through Number of total recordable injuries Number of serious incidents 2 per million working hours measures implemented between per million working hours 1998 and 2002 for Statoil operations Total CO2 emissions from Statoil operations 2002_Aarsrapport_omslag_engelsk 27.03.03 10:51 Side 7 USGAAP - Financial highlights KEY FIGURES IN NOK MILLION 2002 2001 2000 1999 1998 Financial information Total revenues 243,814 236,961 230,425 150,132 114,648 Income before financial items, income taxes and minority interests 43,102 56,154 59,991 17,578 10,287 Net income 16,846 17,245 16,153 6,409 1,640 Cash flow provided by operating activities 24,023 39,173 56,752 29,610 18,050 Cash flow used in investing activities 16,756 12,838 16,014 24,988 27,676 Interest-bearing debt 37,128 41,795 36,982 50,497 44,261 Net interest-bearing debt 23,592 34,077 23,379 42,856 37,538 Net debt to capital employed 28.7% 39.0% 25.0% 42.6% 44.1% Return on average capital employed after tax 14.9% 19.9% 18.7% 6.4% 3.2% Operational information Combined oil and gas production (thousand boe/day) 1,074 1,007 1,005 967 918 Proven oil and gas reserves (million boe) 4,267 4,277 4,317 4,511 4,621 Production cost (USD/barrel) 3.05 2.92 3.08 3.38 3.14 Finding and development cost (USD/barrel) (3-year average) 6.17 9.11 8.21 8.74 - Reserve replacement ratio (3-year average) 0.78 0.68 0.86 1.03 - Share information Net income per share 7.78 8.31 8.18 3.24 0.83 Net income per share adjusted for special items(1) 7.72 7.32 8.18 4.54 - Share price at Oslo Stock Exchange 31 December 58.50 61.50 - - - Weighted average number of ordinary shares outstanding 2,165,422,239 2,076,180,942 1,975,885,600 1,975,885,600 1,975,885,600 (1) Special items covers certain gains on sale of assets, write-downs and provisions. See “Operating and financial review and prospects”. Income adjusted for special items is not calculated for 1998. NET INTEREST- RETURN ON AVERAGE FINDING AND DEVELOP- CARBON SERIOUS INCIDENT BEARING DEBT = CAPITAL EMPLOYED MENT COSTS = DIOXIDE (CO2) = FREQUENCY = Gross interest-bearing AFTER TAX = Calculated from new Carbon dioxide emis- The number of inci- debt less cash and Net income plus proven reserves, sions from Statoil dents of a very seri- cash equivalents minority interests excluding acquisi- operations embrace ous nature per mil- and net financial tions and disposals of all sources such as lion working hours. NET DEBT TO expenses after tax reserves turbines, boilers, An incident is an CAPITAL EMPLOYED = as a percentage of engines, flares, event or chain of The relationship capital employed RESERVE REPLACEMENT drilling of explo- events which has between net interest- RATIO = ration and produc- caused or could have Definitions bearing debt and PRODUCTION COSTS = Additions to proven tion wells and well caused injury, illness capital employed Operating expenses reserves, including testing/workovers. and/or damage associated with pro- acquisitions and dis- Reductions in emis- to/loss of property, AVERAGE CAPITAL duction of oil and posals, divided by sions are accumulat- environmental dam- EMPLOYED = natural gas divided volumes produced ed for the period age or harm to a Average of the capital by total production 1998-2002 third party employed at the (lifting) of oil and BARREL OF OIL beginning and end of natural gas EQUIVALENT (BOE) = TOTAL RECORDABLE the accounting period. Oil and gas volumes INJURY FREQUENCY = Capital employed is expressed as a com- The number of total net interest-bearing mon unit of measure- recordable injuries debt plus share capital ment. One boe is per million working and minority interests equal to one barrel of hours. Employees of crude, or 159 standard Statoil and its con- cubic metres of gas tractors are included 2002_virksomheten_engelsk_3_ny 10.04.03 08:01 Side 1 Bilde: KVITEBJØRN ON COURSE. The topsides for the Sincor eller Girassol Kvitebjørn platform rolled out of the fabri- cation shop at ABB Offshore in Haugesund in December 2002. Weighing 10 800 tonnes, it was moved on 48 transporters with a total of 1 664 wheels. Kvitebjørn is due to start producing gas and condensate in 2004. PAGE 25 HIGHER DIVIDEND. Statoil’s board pro- poses a dividend of NOK 2.90 per share TECHNOLOGY PRIZE for 2002, as against FROM THE WORLD NOK 2.85 for 2001. PETROLEUM CONGRESS. PAGE 19 Statoil won this award for its underground storage of carbon dioxide in the Sleipner area. PAGE 44 STATOIL IS NOW OPERATOR FOR Key figures, 20 FIELDS ON THE NCS. Embraces 18 staffed platforms and produc- definitions Inside front cover tion ships, four unstaffed units and The chief executive 2 STATOIL VETTED 845 17 remotely-operated TANKERS AND subsea installations. Directors’ report 4 REJECTED 12. PAGE 23 Ship’s inspector Tore Group profile, targets Tollefsen is one of the team which checks that vessels used by and strategies 12 the group meet its high standards. Organisation, management 14 PAGE 46 Corporate governance 16 INVESTING HEAVILY ON THE NCS. Shareholder information 19 Statoil is involved in POPULAR 14 new Norwegian TRAINEESHIPS. Statoil through the year 20 offshore projects with Diana Startchenko a total investment from Murmansk is one framework of of 24 trainees selected Business operations 23 NOK 100 billion. from 2 000 applicants. PAGE 25 PAGE 38 Statoil, safety and society 36 The environment 42 HSE accounting 48 Operating and financial review 56 Contents AccountsSide for 2002 – USGAAPC 68 General information 120 The front-cover picture was taken by photographer Guri Dahl. She met Statoil personnel in their working environment on the Sleipner field. STATOIL 2002 1 2002_virksomheten_engelsk_3 27.03.03 11:24 Side 2 Contents Directors’ report Profile, targets Corporate governance Shareholder The chief executive and strategies information 2 STATOIL 2002 2002_virksomheten_engelsk_3 27.03.03 11:24 Side 3 Business Statoil, safety The environment HSE accounting Operating and Accounts Statoil operations and society financial review group – USGAAP Building for the future 2002 was a good year for Statoil lifetime by systematically develop- through internationally. Output with progress made in most areas. ing technology, forms of organisa- rose considerably. New projects Oil and gas production held a tion and modes of working. were sanctioned in Azerbaijan and record-high level, with an increase We are in the midst of a hectic Angola and we gained our first of seven per cent from 2001. The development phase. Statoil is operatorship in Iran. Although the demand for natural gas was operator for 12 development and project in Iran is not a large one, it greater than ever before. Ongoing modification projects on the NCS. improvement efforts in all of the Snøhvit is the biggest project.
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