European Utilities Key Player Profiles: Statoil

Table of Contents

• VIEW
  • CATALYST
  • SUMMARY
  • METHODOLOGY
• ANALYSIS
  • Key Player Scorecard examines 31 leading utilities drawn from across Europe' s competitive arenas
  • Key Players dominate power generation capacity market share in the Wmed competitive arena
  • Key Players dominate power generation output market share in the Wmed and CEE competitive arenas
  • Despite ongoing industry consolidation, in no competitive arenas do Key Players dominate power supply volume market share
  • Despite ongoing industry consolidation, in no competitive arenas do Key Players dominate gas volume market share
    • The Key Player Scorecard assesses utilities across four pillars: Performance, Scale, Growth and Exposure
      • The Performance pillar combines 5 financial metrics to measure business performance
      • The Scale pillar combines financial and operational metrics to measure the size of a utility
      • The Growth pillar measures the rate of growth of a utility' s financial and energy resources
      • The Exposure pillar combines both operational and financial measurements of risk
  • Statoil scores 46.8/100 on Datamonitor' s European Utility Scorecard and ranks 2 out of the 31 Key Players covered
  • Statoil ranks highly in each of the four pillars
    • Statoil achieves an overall ranking of 2, with a utility score of 46.8
    • Statoil' s overall ranking is helped by very high Performance and Exposure Scores
    • Compared to its top ten peers, Statoil is a top performer, yet with less risk (a higher Exposure score)
    • In terms of Growth, Statoil ranks below its top ten peers, yet in Scale it is the median company
  • Statoil scores well on return on investment but lags on return on sales, attaining an overall ranking of 2
    • Statoil has a strong return on its fixed assets, but lags significantly the average in return on sales
    • Statoil' s return on sales underperforms the Key Player average
    • In return on investment, Statoil ranks 2 amongst all Key Players
  • Statoil exceeds the Key Player average on Scale, attaining a score of 7.3
    • Statoil ranks 7 in Scale, despite the lack of power supply volumes
    • Statoil does not have generation capacity
    • Statoil does not have power supply volumes, and markets its equity gas with large commercial users and in wholesale markets
    • Statoil focuses on wholesale volumes and does not have retail customers
    • Statoil ranks 7 in terms of gas supply volume
    • Statoil ranks 4 and 5 in terms of revenue and net income respectively
  • Statoil' s Growth ranking of 5 is pulled down by weaker profit growth and a lack of power sales
    • Statoil has very strong cash flow growth, though only average profit growth
    • Statoil outperforms on operating profit margin, but has a price earnings ratio only slightly above the median
    • From 2001 to 2005, Statoil' s annual profit growth (12.3%) far exceeded its revenue growth (8.7%)
    • Statoil' s cash flow growth (51.6%) from 2004 to 2005 has far surpassed its growth in gas supply volume (9%)
  • Statoil' s Exposure ranking of 3 is driven by its balanced gas NTR
    • Statoil' s high operating cash flow growth exceeds the growth in its energy volume
    • Statoil markets all of its equity gas to large customers and wholesale customers
    • Statoil does not have power supply volumes
    • Compared to most top ten utilities Statoil has a low debt-to-equity ratio of 30.3%
    • Amongst all Key Players, Statoil ranks 8 in debt leverage
    • Statoil' s operating cash flow has increased faster than its gas supply volume
    • Statoil is an oil and gas producer serving large customers and wholesale markets
• APPENDIX
  • Definitions
  • Datamonitor Consulting
  • List of Tables
    • Table 1: The Key Players are drawn from across a diverse range of markets
    • Table 2: The Performance pillar combines 5 financial metrics to measure business performance
    • Table 3: The Scale pillar combines financial and operational metrics to measure the size of a utility
    • Table 4: The Growth pillar measures the rate of growth of a utility' s financial and energy resources
    • Table 5: The Exposure pillar combines both operational and financial measurements of risk
    • Table 6: Statoil scores 46.8/100 on Datamonitor' s European Utility Scorecard and ranks 2 out of the 31 Key Players covered
    • Table 7: Statoil scores 14.3/25 on the Performance pillar, and ranks 4 out of 31 on this measurement
    • Table 8: Statoil scores 7.3/25 on the Scale pillar, and ranks 7 out of 31 on this measurement
    • Table 9: Statoil scores 10/25 on the Growth pillar, and ranks 5 out of 31 on this measurement
    • Table 10: Statoil scores 15.2/25 on the Exposure pillar, and ranks 3 out of 31 on this measurement
    • Table 11: Statoil scores well on return on investment but lags on return on sales, attaining an overall ranking of 2
    • Table 12: Statoil exceeds the Key Player average on Scale, attaining a score of 7.3
    • Table 13: Statoil' s Growth ranking of 5 is pulled down by weaker profit growth and a lack of power sales
    • Table 14: Statoil' s Exposure ranking of 3 is driven by its balanced gas NTR
    • Table 15: Return on fixed assets
    • Table 16: Return on sales
    • Table 17: Operating profit margin
    • Table 18: Return on energy volume
    • Table 19: Return on investment
    • Table 20: Generation Capacity / EU25 market total
    • Table 21: Power Supply Volume / EU25 market total
    • Table 22: Gas Supply Volume / EU25 market total
    • Table 23: Net income / Net income of 94 leading utilities
    • Table 24: Revenue / Revenue of 94 leading utilities
    • Table 25: Revenue growth, 2001-2005 CAGR
    • Table 26: Profit growth, 2001-2005 CAGR
    • Table 27: Growth in operating cash flow, 2004 to 2005
    • Table 28: Gas supply volume growth, 2004-2005
    • Table 29: Growth in power supply volume, 2004 to 2005
    • Table 30: Power NTR / Power supply volume
    • Table 31: Gas NTR / Gas supply volume
    • Table 32: Debt leverage
    • Table 33: Growth in operational cash flow - Growth in energy volume
  • List of Figures
    • Figure 1: Datamonitor' s Key Player Scorecard examines 31 leading utilities drawn from across Europe' s competitive arenas
    • Figure 2: Key Players dominate power generation capacity market share in the Wmed competitive arena
    • Figure 3: Key Players dominate power generation output market share in the Wmed and CEE competitive arenas
    • Figure 4: Despite ongoing industry consolidation, in no competitive arenas do Key Players dominate power supply volume market share
    • Figure 5: Despite ongoing industry consolidation, in no competitive arenas do Key Players dominate gas volume market share
    • Figure 6: Statoil achieves an overall ranking of 2, with a utility score of 46.8
    • Figure 7: Statoil' s overall ranking is helped by very high Performance and Exposure Scores
    • Figure 8: Compared to its top ten peers, Statoil is a top performer, yet with less risk (a higher Exposure score)
    • Figure 9: In terms of Growth, Statoil ranks below its top ten peers, yet in Scale it is the median company
    • Figure 10: Statoil has a strong return on its fixed assets, but lags significantly the average in return on sales
    • Figure 11: Statoil' s return on sales underperforms the Key Player average
    • Figure 12: In return on investment, Statoil ranks 2 amongst all Key Players
    • Figure 13: Statoil ranks 7 in Scale, despite the lack of power supply volumes
    • Figure 14: Statoil does not have generation capacity
    • Figure 15: Statoil does not have power supply volumes, and markets its equity gas with large commercial users and in wholesale markets
    • Figure 16: Statoil focuses on wholesale volumes and does not have retail customers
    • Figure 17: Statoil ranks 7 in terms of gas supply volume
    • Figure 18: Statoil ranks 4 and 5 in terms of revenue and net income respectively
    • Figure 19: Statoil has very strong cash flow growth, though only average profit growth
    • Figure 20: Statoil outperforms on operating profit margin, but has a price earnings ratio only slightly above the median
    • Figure 21: From 2001 to 2005, Statoil' s annual profit growth (12.3%) far exceeded its revenue growth (8.7%)
    • Figure 22: Statoil' s cash flow growth (51.6%) from 2004 to 2005 has far surpassed its growth in gas supply volume (9%)
    • Figure 23: Statoil' s high operating cash flow growth exceeds the growth in its energy volume
    • Figure 24: Statoil markets all of its equity gas to large customers and wholesale customers
    • Figure 25: Statoil does not have power supply volumes
    • Figure 26: Compared to most top ten utilities Statoil has a low debt-to-equity ratio of 30.3%
    • Figure 27: Amongst all Key Players, Statoil ranks 8 in debt leverage
    • Figure 28: Statoil' s operating cash flow has increased faster than its gas supply volume
    • Figure 29: Statoil is an oil and gas producer serving large customers and wholesale markets