Financial result 2Q 2008 2 Record financial result High - PDF document

Financial result – 2Q 2008

2 Record financial result • High production • New fields on stream • New projects sanctioned • Good exploration results

3 Financial result Net operating income up 74% • Liquids price up 44% in NOK Net income – Oilprice* up 48% in NOK Net operating income – NGL price up 27% in NOK • Gas price up 49% • Lifting up 8%, equity production up 6% NOK bn 62.6 • Positive derivative effects 36.1 18.9 13.9 2Q 2007 2Q 2008 *Oilprice includes condensate

4 Equity production up 6% Oil Gas 2 1973 1900 1 2 1898 1837 1 1786 1 000 boepd equity production 762 703 673 638 1900 1195 1211 1164 1148 2Q 2007 2Q 2008 2007 YTD 2008 YTD 2008 guidance 1) Average PSA effect is 188 000 boepd in 2Q 2008 compared to 115 000 boepd in 2Q 2007. 2) Average PSA effect is 174 000 boepd for the first 6 months of 2008 compared to 97 000 boepd for the first 6 months of 2007

5 Continued cost focus 32.1 31.6 31.2 per boe 1 K O Production unit cost N 2007 Equity 1Q 08 Equity 2Q 08 Equity 1 Excluding merger & restructuring costs and gas injection cost. 12 month average Production unit cost

6 Exploration drilling YTD 2008 Activity: 59 wells NCS 1 GOM Completed: 50 wells • Galtvort • Gam m a � Big Foot North ( Chevron) • Galtw ort appraisal • Marulk � Green Bay ( Anadarko) • M-structure • Richards � Hal ( ExxonMobil) • Ververis • Obesum � St Malo 3 ( Chevron) • Delta S2 • Afrodite North Africa � Big Foot Sidetrack ( Chevron) • Alve/ Tilje • Huldra Statfjord � Julia 2 ( ExxonMobile) • Noatun • Natalia � NC 1 8 6 V- 1 ( Repsol) � St Malo 4 ( Chevron) • • Dagny Draupne � NC 1 8 6 X1 ( Repsol) � Sturgis North ( Chevron) • Hazel/ Theta � NC 1 8 6 P1 ( Repsol) � Jack 3 ( Chevron) Cook � NC 1 8 6 Z1 ( Repsol) � NC 1 8 6 AA1 ( Repsol) 2 2 4 � NC 1 8 6 Q2 ( Repsol) Azerbaijan � NC 1 8 6 J5 ( Repsol) � NC 1 8 6 Y- 1 ( Repsol) � SDX 5 � NC 1 8 6 L2 ( Repsol) UK/ I reland � HM TMS- 1 ( StatoilHydro) � Am os ( Hess) � HM TNK W 1 ( StatoilHydro) � Cashel ( StatoilHydro) 1 � HM TNK2 East Flank ( StatoilHYdro) 9 1 2 W est Africa � BL 1 5 Clochas ( ExxonMobil) 1 1 � Bl 1 5 Mavacola ( ExxonMobil) � Bl 3 1 Palas ( BP) � Bl 3 1 Dione1 ( BP) � Bl 3 1 Astraea 3 ( BP) � Bl 3 1 Elara 1 ( BP) Under evaluation � Bl1 5 0 6 Sangos 1 ( ENI ) � Bl 1 5 0 6 Ngom a 1 ( ENI ) Discovery � Bl 1 7 Zinia 1 ( Total) Ongoing � Bl 1 7 Acacia 4 B ( Total) � Bl 4 UM 7 ( Sonangol) 1 Excludes exploration extensions and dry wells

7 Net operating income - E&P Norway • Liquids price up 43% in NOK – Oilprice* up 48% in NOK – NGL price up 27% in NOK • Gas transfer price up 38% • Lifting up 9%, production up 5% 53.8 – Gas lifting up 9% – Oil lifting up 10% NOK bn • Positive change in fair value of derivatives 27.8 2Q 2007 2Q 2008 *Oilprice includes condensate

8 Net operating income - International E&P • Liquids price up 48% in NOK • Lifting up 2%, equity production up 11% • Reversal of impairments 9.6 NOK bn 3.7 2Q 2007 2Q 2008

9 Net operating income – Natural gas • Natural gas price up 49% in NOK • Transfer price up 38% 1 in NOK • Negative change in fair value of derivatives NOK bn 1.4 -0.6 2Q 2007 2Q 2008 1) A revised price formula between E&P Norway and Natural Gas was implemented in the first quarter of 2008.

10 Net operating income - Manufacturing and Marketing • Lower trading result • Reduced refining margins in NOK • Restructuring cost in Sweden 2.9 NOK bn 1.2 2Q 2007 2Q 2008

11 Net operating income by business area Items Adjusted net Items Adjusted net impacting operating impacting operating Business area 2Q 2008 NOI income 2Q 2007 NOI income (NOK billions) E&P Norw ay 53.8 -7.2 46.6 27.8 1.5 29.3 International E&P 9.6 -3.2 6.4 3.7 0.6 4.3 Natural Gas -0.6 2.5 1.9 1.4 -0.1 1.3 Manufacturing & Marketing 1.2 0.0 1.2 2.9 -1.2 1.7 Other -0.1 -0.2 -0.3 -0.1 0.0 -0.1 Eliminations -1.3 1.3 0.4 -0.4 0.0 0.0 Net Operating Income (NOI) 62.6 -6.8 55.8 36.1 0.4 36.5

12 Outlook 3Q 2008 • Maintenance affecting production by close to 100 000 boe per day in 1 3Q 2008 • New projects start up • Lower gas off-take • Continued high exploration activity 1) The NCS effect of planned maintenance includes liquids only.

13 Guiding 2008 • Equity production (mill boepd) 1.9 1 • Capex (NOK bn) 65 • Exploration activity (NOK bn) <18 2012 • Equity production (mill boepd) 2.2 2 • Production cost (NOK/ boe 2008 - 2012) 33 - 36 1) Actual YTD and currency assumption of 5.25 NOK/USD for 3Q and 4Q 2) Production cost range during the period 2008-2012, based on equity volumes and excluding gas purchase

14 Supplementary information Page Items impacting income statement 15 Segment taxes 17 Net financial items 18 Net debt to capital employed 19 Simplified cash flow 20 ROACE 21 Key figures StatoilHydro group 22 Exploration StatoilHydro group 25 E&P Norway 26 E&P Norway production 29 International E&P 31 International E&P production 34 PSA effect 35 Natural Gas 36 Manufacturing & Marketing 38 Sensitivities 44 Reconciliation ROACE 45 Normalised production cost per boe 46 Reconciliation net debt and capital employed 47 Forward-looking statements 48 End notes 49

15 Items impacting income statement 2Q 2008 2Q 2007 (NOK billions) Before tax After tax Before tax After tax Reversals of Impairment 2.1 1.7 0.0 0.0 INT 2.1 1.7 0.0 0.0 Derivatives IAS 39 3.3 0.2 0.4 0.3 EPN 6.5 1.4 -0.3 -0.1 NG -2.2 -0.5 0.1 0.0 OTHER 0.2 0.1 0.0 0.0 Deferred gains on inventories IAS 39 (M&M) -1.2 -0.8 0.5 0.4 Underlift/Overlift 1.9 0.9 -1.9 -0.7 EPN: Overlift 15,000 boe/Underlift 43,000 boe 0.7 0.2 -1.3 -0.3 INT: Overlift 27,000 boe /Underlift 23,000 boe 1.1 0.7 -0.6 -0.4 Other -0.4 -0.1 1.1 0.4 Operational storage (M&M) 1.4 1.0 0.7 0.5 Restructuring Sweden (M&M) -0.2 -0.1 0.0 0.0 ARO accrual (NG) -0.3 -0.1 0.0 0.0 Eliminations -1.3 -0.9 0.4 0.0 Net impact operating income 6.8 2.7 -0.4 0.1

16 Items impacting income statement 2Q 2008 2Q 2007 (NOK billions) Before tax After tax Before tax After tax Reversal of Impairment 2.1 1.7 0 0 Derivatives 3.3 0.2 0.4 0.3 Over (+)/underlift (-) 1.9 0.9 -1.9 -0.7 Other -0.4 -0.1 1.1 0.4 Impact on Net Income 6.8 2.7 -0.4 0.1

17 Segment taxes

18 Net financial items 2Q 2008 vs 2007 Financial Currency income (2 301) mill. 0.7 Net financial items 2Q 07 (1.1) 2.6 NOK mill (1.2) Financial expenses (0.8) Securities Net financial items 2Q 08 (0.7) (0.5)

Development in net debt to capital employed Net debt to capital employed* Net financial liabilities 43.8 37.5 * * 21% * * 19% 25.5 12% NOK bn * * 2% 2.1 * * 4.2 1% (12)% (21.1) 2005 2006 2007 1Q 08 2Q 08 2005 2006 2007 1Q 08 2Q 08 *Debt to capital employed ratio = Net financial liabilities/capital employed ** Adjusted for increase in cash for tax payment

20 Cash flows 2Q 2008 150 Change in Depreciations working capital and non cash Change in non- items current items Taxes (7.4) paid 18.6 (3.9) 125 Income before tax (52.1) 100 Cash flows NOK bn investing activities (Net) 75 117.5 (25.4) Dividend paid 50 (27.1) Change in Repayment Net ST liquid assets of LT 25 borrowings borrowings = 21.4 4.3 (3.1) Current fin. inv. = 19.6 Cash = 1.8 0

21 ROACE 24% in 2 Q 2008 StatoilHydro Peer group 1 0 % 10 % 20 % 30 % 1) Peer group includes (listed in alphabetical order): Anadarko, BG, BP, CNQ, Devon, Encana, Lukoil, Occidental, Petrobras, Repsol YPF, Shell, Total (source: Morgan Stanley) * Not included

22 Net operating income – 1Q 2008 vs. 2Q 2008 70 5.3 2.5 0.2 0.8 2.6 11.5 60 50 40 62.6 30 51.4 20 10 0 1Q 2008 E&P Norway International Natural Gas Manufacturing Other Eliminations* 2Q 2008 E&P & Marketing

23 Net operating income – 2Q 2007 vs. 2Q 2008 70 5.9 2.0 1.7 0.1 1.8 26.0 60 50 40 62.6 30 20 36.1 10 0 2Q 2007 E&P Norway International Natural Gas Manufacturing Other Eliminations* 2Q 2008 E&P & Marketing

24 Net operating income – YTD 2007 vs. YTD 2008 120 7.0 0.7 2.2 1.4 0.7 37.2 100 80 60 114.1 40 70.5 20 0 2Q 2007 E&P Norway International Natural Gas Manufacturing Other Eliminations* 2Q 2008 E&P & Marketing

25 Exploration StatoilHydro group NOK mill 2Q 2008 2Q 2007 2008 2007 Exploration expenditure 3.725 3.009 7.616 5.697 Exploration expenditure (activity) 196 Expensed, previously capitalised exploration expenditure and impairments 1,485 520 - 710 -1.070 -1365 Capitalised share of current period's exploration activity -2.930 -2414 1.945 1.840 6.171 3.803 Exploration expenses NOK mill 2Q 2008 2Q 2007 2008 2007 Exploration expenses 1.445 479 Exploration expenses - Norway 2036 1302 500 1.361 Exploration expenses - International 4135 2501 Exploration 2008 YTD Exploration activity 3.7 3.0 (1,1) (2,9) 2,6 4,1 2.0 n b K O 1.8 4,1 N NOK bn International E&P E&P Norway 3,5 1.7 2,0 1.3 Activity Capitalised From prev Rev. Expenses years impairment 2Q 2007 2Q 2008