Friday, April 15, 2011

Statoil: The Goose That Lays the Golden Eggs for Norway

Full article at Seeking Alpha:

Statoil (OSE: STL, NYSE:STO) is an international energy company primarily focused on upstream oil and gas operations. The company is headquartered in Norway and employs over 30,000 people worldwide in 42 countries. The Norwegian state is the largest shareholder in Statoil, with a direct ownership interest of 67%.

Statoil has 40 producing oil and gas fields and is one of the world's largest net sellers of crude oil. It is also the second-largest exporter of gas to Europe. Approximately 80% of oil and gas production of the company comes from Norway. The rest of the operations are scattered throughout the rest of the world.

Strategically, Statoil is positioned as a technology-driven upstream energy company. Currently some 80% of oil and gas production of the company comes from Norway, but in the long run this is likely to change. While the production outlook remains stable towards 2020 in Norway, according to Statoil, it's looking for growth elsewhere in the world.

The Norwegian state benefits immensely from Statoil. It is the largest shareholder in Statoil and also imposes high taxes on the profits (above 70%). Therefore, Statoil is the goose that lays the golden eggs for the state of Norway. Looking at the key figures and the peer review, Statoil is a good choice also for an individual investor. It offers an excellent alternative to US- and UK-based oil giants in a stable region.
I have no position in Statoil.

1 comment:

  1. Do not work for Statoil in the Stamford, CT office if you are a Mother....

    Four Mothers that I know of including myself in the 4 years I have been at the company, have had problems with management. They are not supportive of women that are mothers. If you need to leave at 5pm ("working hours are 8:30am - 5pm", but management feels you should stay in longer even though these are the published hours in the Statoil handbook), to pick up their child from daycare. If child is sick, fever, ear infection (from colds caught at daycare), and you need to take them to the pediatrician, management is not sympathetic. And even though you have the vacation, sick days, personal days, they will still reprimand you for taking your given time off (even if you have it to take). If you choose to nurse your child, and need to pump during the day, they will require that you tell them each and every time that you go to pump (even if it only takes 15-20 minutes), while others (men, or Norwegians make personal phone calls that take much longer and never tell anyone when and where they are going). Management will marginalize you and start to not include you in important meetings.