Financial results 3Q 2008 2 Solid performance financial strength - PDF document

Financial results 3Q 2008

2 Solid performance – financial strength � Production growth � Strong NCS performance � Net income impacted by weaker NOK � Strong cash generation and balance sheet * * * Adjusted NOI: Adjusted (underlying) net operating income

3 Financial review disclosure � Adjusted (underlying) net operating income (NOI) � Operating cost break-down � Natural gas sub segments

4 Equity production up Oil Gas + 5% + 1% 1 900 1 892 2 1798 2 1 733 1 1 722 1 1 000 boepd equity production 702 649 582 605 1900 1190 1151 1149 1117 3Q 2007 3Q 2008 2007 YTD 2008 YTD 2008 guidance 1) Average PSA effect is 183 000 boepd in 3Q 2008 compared to 125 000 boepd in 3Q 2007. 2) Average PSA effect is 177 000 boepd for the first 9 months of 2008 compared to 106 000 boepd for the first 9 months of 2007

5 Net income overview + 59% 5.1 9.7 NOK bn 52.1 31.0 32.8 6.3 Items impacting Taxes Financial Net income Adjusted NOI* Adjusted NOI* NOI items 3Q 2008 3Q 2007 3Q 2008 * Adjusted NOI: Adjusted (underlying) net operating income

6 Net financial items 3Q 2008 Financial Currency income (13.8) bn Net financial 1.6 items 3Q 08 Currency: USDNOK exchange (5.1) rate up 0.75 in 3Q � Currency loss on long- term debt: NOK 5.1 bn (9.7) � Currency loss from NOK bn liquidity management: NOK 8.7 bn (8.7) Securities Financial 2.4 expenses 0.1

7 Adjusted NOI – E&P Norway � Oil price up 38% in NOK 43.8 � USD/bbl up 48% � NOK/USD down 7% NOK bn 28.3 � Gas transfer price up 38% � Liquids production up – gas production down � Operational improvements � Improved drilling performance � Successful maintenance programme 3Q 2007 3Q 2008

8 Adjusted NOI – International E&P 3.8 3.4 � Liquids price up 29% in NOK NOK bn � Price realization affected by lifting schedule � Gas price up 16% in NOK � Equity production up 6% � Entitlement production down 11% 3Q 2007 3Q 2008

9 Adjusted NOI – Natural Gas Processing and Transportation Marketing and Trading 2.2 NOK bn 0.7 1.0 � Natural gas price up 55% � Gas transfer price up 38% 1.6 1.6 � Higher transportation cost (0.6) 3Q 2007 3Q 2008

10 Adjusted NOI – Manufacturing & Marketing Oil sales, trading and supply Manufacturing Energy and Retail Other 2.7 0.3 � Increased crude trading results 0.2 NOK bn � Positive currency effect on commercial storage 2.3 0.4 � Large turnaround at Mongstad 0.2 0.5 (0.1) (0.3) 3Q 2007 3Q 2008

11 Items impacting income statement 3Q 2008 3Q 2007 (NOK bn) Before tax After tax Before tax After tax Impairment (3.1) (2.9) (0.4) (0.3) Derivatives 0.9 0.8 1.5 0.3 Over/underlift (1.3) (0.3) 2.3 0.7 Other (1.6) (1.0) (0.3) (0.2) Impact on Net Income (5.1) (3.4) 3.1 0.5

12 Operating costs Upstream production costs Natural Gas and Manufacturing & Marketing operating costs 33.2 32.1 31.6 31.2 29 6.3 5.9 5.5 1.0 NOK/boe last 12 months 1.5 5.2 5.2 7.5 6.9 6.8 NOK bn 6.5 NOK bn 5.2 3Q07 4Q 07 1Q 08 2Q 08 3Q 08 3Q07 4Q 07 1Q 08 2Q 08 3Q 08 Production costs excl. restructuring and gas injection cost Items impacting non upstream operating costs Equity unit production cost last 12 months

13 Strong cash generation and balance sheet Cash flow ytd 2008 Sale of assets 5 Funds from Dividend paid NOK bn Operations* 27 113 � Solid cash flow Investments � Strong balance sheet 46 � Financial flexibility � Firm dividend policy Sources of funds Uses of funds * Cash flows provided by operating activities exclusive increase current financial investments

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

15 Supplementary information page Net Operating Income by business area 16 Segment taxes 17 Robust financial position 18 Cash flow as of 3Q 2008 19 ROACE 29% in 3Q 2008 20 Exploration StatoilHydro group 21 E&P Norway production per field Q3 2008 StatoilHydro operated 22 E&P Norway production per field Q3 2008 Partner operated 23 International E&P equity production per field 3Q 2008 24 PSA effects on 2008 production (kboed) 25 Manufacturing & Marketing Refining margins and methanol prices 26 Manufacturing & Marketing Dated Brent development NOK vs USD 27 Manufacturing & Marketing Monthly NGL Cracks (NWE) 28 Sensitivities 2008: Indicative effects of changes in parameters 29 Reconciliation ROACE 30 Reconciliation of overall operating expenses to production cost 31 Normalised production cost per boe 32 Reconciliation net debt and capital employed 33 Forward looking statements 34 End notes 35 Investor relations in StatoilHydro 36

16 Net Operating Income by business area Items Items impacting Adjusted impacting Business area 3Q 2008 NOI NOI 3Q 2007 NOI Adjusted NOI (NOK bn) E&P Norw ay 40.4 3.4 43.8 31.8 (3.5) 28.3 International E&P 0.6 3.2 3.8 3.1 0.3 3.4 Natural Gas 3.5 (1.3) 2.2 1.2 (0.2) 1.0 Manufacturing & Marketing 2.0 0.7 2.7 0.2 0.2 0.4 Other (0.5) 0.1 (0.4) (0.3) 0.0 (0.3) Eliminations 1.0 (1.0) (0.2) 0.2 0.0 0.0 Net Operating Income (NOI) 47.0 5.1 52.1 35.8 (3.1) 32.8

17 Segment taxes Tax on net operating income in: YTD 2007 YTD 2008 3Q 2007 3Q 2008 (NOK mill) Exploration and Production Norway 68,077 102,578 23,904 30,209 International Exploration and Production 3,839 8,503 1,046 1,730 Natural Gas 2,412 3,750 1,163 2,745 Manufactoring and Marketing 1,616 1,392 193 613 Other 0 0 0 0 Eliminations (110) 209 (74) 248 Tax on financial items and other tax adjustments 2,390 (2,919) 1,557 (4,555) Total: 78,226 113,513 27,791 30,990

18 Robust financial position Net financial liabilities Net debt to capital employed* 43.8 37.5 21% 19% 25.5 12% NOK bn 1% ** ** 2.1 ** (0.5) ** ** 4.2 (0)% 2% (7)% (13.3) (12)% (21.1) 2005 2006 2007 1Q 08 2Q 08 3Q 08 2005 2006 2007 1Q 08 2Q 08 3Q 08 *Debt to capital employed ratio = Net financial liabilities/capital employed ** Adjusted for increase in cash for tax payment

19 Cash flow as of 3Q 2008 250 Change in Change in Taxes Depreciations non-current working paid and non cash 200 items capital items 1.0 4.7 34.4 Income before tax (82.2) 150 NOK bn Cash flows investing activities (Net) 100 (41.1) 154.7 Dividend paid New LT Repayment of Net ST Change in borrowings LT borrowings borrowings liquid assets (27.1) = 45.5 bn 2.6 (2.2) 50 0.6 Current fin. inv. =29.5 Cash = 16.0 0

20 ROACE 29% in 3Q 2008 StatoilHydro Peer group 1 0% 1 0% 20% 30% 40% 1) Peer group includes (listed in alphabetical order): Anadarko, BG, BP, CNQ, Devon, Encana, Lukoil, Occidental, Petrobras, Repsol YPF, Shell, Total (source: Morgan Stanley)

21 Exploration StatoilHydro group NOK bn 3Q 2008 3Q 2007 Exploration expenses 1.6 0.9 Exploration expenses - Norway 3.0 2.1 Exploration expenses - International NOK bn 3Q 2008 3Q 2007 Exploration expenditure 4.3 3.4 Exploration expenditure (activity) 2.0 0.4 Expensed, previously capitalised exploration expenditure (1.7) (0.7) Capitalised share of current period's exploration expenditure 0.0 0.0 Reversal of impairment 4.6 3.0 Exploration expenses Exploration 2008 YTD Exploration activity 4.3 3.4 International E&P (1.1) 2.0 (4.6) 4.6 E&P Norway 6.1 2.0 7.2 NOK bn 2.3 5.8 1.4 3.6 Activity Capitalised From prev Rev. Expenses 3Q 2007 3Q 2008 years impairment