European Utilities Key Player Profiles: Statoil

DATAMONITOR VIEW 1
CATALYST 1
SUMMARY 1
METHODOLOGY 1
ANALYSIS 2
European Utilities Key Player Profile: Statoil 2
Datamonitor's Key Player Scorecard examines 31 leading utilities drawn from across Europe's competitive arenas 4
Key Players dominate power generation capacity market share in the Wmed competitive arena 5
Key Players dominate power generation output market share in the Wmed and CEE competitive arenas 6
Despite ongoing industry consolidation, in no competitive arenas do Key Players dominate power supply volume market share 7
Despite ongoing industry consolidation, in no competitive arenas do Key Players dominate gas volume market share 8
The Key Player Scorecard assesses utilities across four pillars: Performance, Scale, Growth and Exposure 9
The Performance pillar combines 5 financial metrics to measure business performance 10
The Scale pillar combines financial and operational metrics to measure the size of a utility 11
The Growth pillar measures the rate of growth of a utility's financial and energy resources 12
The Exposure pillar combines both operational and financial measurements of risk 13
Statoil scores 47.9/100 on Datamonitor's European Utility Scorecard and ranks 3 out of the 31 Key Players covered 14
Statoil ranks highly in each of the four pillars 16
Statoil achieves an overall ranking of 3, with a utility score of 47.9 21
Statoil's overall ranking is helped by very high Performance and Exposure Scores 22
Compared to its top ten peers, Statoil is a top performer, yet with less risk (a higher Exposure score) 23
In terms of Growth, Statoil ranks below its top ten peers, yet in Scale it is the median company 24
Statoil scores well on return on investment but lags on return on sales, attaining an overall ranking of 3 25
Statoil has a strong return on its fixed assets, but lags significantly the average in return on sales 26
Statoil's return on sales underperforms the Key Player average 27
In return on investment, Statoil ranks 2 amongst all Key Players 28
Statoil exceeds the Key Player average on Scale, attaining a score of 7.3 29
Statoil ranks 7 in Scale, despite the lack of power supply volumes 30
Statoil does not have generation capacity 31
Statoil does not have power supply volumes, and markets its equity gas with large commercial users and in wholesale markets 32
Statoil focuses on wholesale volumes and does not have retail customers 33
Statoil ranks 7 in terms of gas supply volume 34
Statoil ranks 4 and 5 in terms of revenue and net income respectively 35
Statoil's Growth ranking of 5 is pulled down by weaker profit growth and a lack of power sales 36
Statoil has very strong cash flow growth, though only average profit growth 37
Statoil outperforms on operating profit margin, but has a price earnings ratio only slightly above the median 38
From 2001 to 2005, Statoil's annual profit growth (12.3%) far exceeded its revenue growth (8.7%) 39
Statoil's cash flow growth (51.6%) from 2004 to 2005 has far surpassed its growth in gas supply volume (9%) 40
Statoil's Exposure ranking of 3 is driven by its balanced gas NTR 41
Statoil's high operating cash flow growth exceeds the growth in its energy volume 42
Statoil markets all of its equity gas to large customers and wholesale customers 43
Statoil does not have power supply volumes 44
Compared to most top ten utilities Statoil has a low debt-to-equity ratio of 30.3% 45
Amongst all Key Players, Statoil ranks 8 in debt leverage 46
Statoil's operating cash flow has increased faster than its gas supply volume 47
APPENDIX 48
Databook 48
Definitions 67
Datamonitor Consulting 67
List of Tables
Table 1: The Key Players are drawn from across a diverse range of markets 3
Table 2: The Performance pillar combines 5 financial metrics to measure business performance 10
Table 3: The Scale pillar combines financial and operational metrics to measure the size of a utility 11
Table 4: The Growth pillar measures the rate of growth of a utility's financial and energy resources 12
Table 5: The Exposure pillar combines both operational and financial measurements of risk 13
Table 6: Statoil scores 47.9/100 on Datamonitor's European Utility Scorecard and ranks 3 out of the 31 Key Players covered 15
Table 7: Statoil scores 15/25 on the Performance pillar, and ranks 5 out of 31 on this measurement 17
Table 8: Statoil scores 7.3/25 on the Scale pillar, and ranks 7 out of 31 on this measurement 18
Table 9: Statoil scores 10.3/25 on the Growth pillar, and ranks 5 out of 31 on this measurement 19
Table 10: Statoil scores 15.3/25 on the Exposure pillar, and ranks 3 out of 31 on this measurement 20
Table 11: Statoil scores well on return on investment but lags on return on sales, attaining an overall ranking of 3 25
Table 12: Statoil exceeds the Key Player average on Scale, attaining a score of 7.3 29
Table 13: Statoil's Growth ranking of 5 is pulled down by weaker profit growth and a lack of power sales 36
Table 14: Statoil's Exposure ranking of 3 is driven by its balanced gas NTR 41
Table 15: Return on fixed assets 48
Table 16: Return on sales 49
Table 17: Operating profit margin 50
Table 18: Return on energy volume 51
Table 19: Return on investment 52
Table 20: Generation Capacity / EU25 market total 53
Table 21: Power Supply Volume / EU25 market total 54
Table 22: Gas Supply Volume / EU25 market total 55
Table 23: Net income / Net income of 94 leading utilities 56
Table 24: Revenue / Revenue of 94 leading utilities 57
Table 25: Revenue growth, 2001-2005 CAGR 58
Table 26: Profit growth, 2001-2005 CAGR 59
Table 27: Growth in operating cash flow, 2004 to 2005 60
Table 28: Gas supply volume growth, 2004-2005 61
Table 29: Growth in power supply volume, 2004 to 2005 62
Table 30: Power NTR / Power supply volume 63
Table 31: Gas NTR / Gas supply volume 64
Table 32: Debt leverage 65
Table 33: Growth in operational cash flow - Growth in energy volume 66
List of Figures
Figure 1: Datamonitor's Key Player Scorecard examines 31 leading utilities drawn from across Europe's competitive arenas 4
Figure 2: Key Players dominate power generation capacity market share in the Wmed competitive arena 5
Figure 3: Key Players dominate power generation output market share in the Wmed and CEE competitive arenas 6
Figure 4: Despite ongoing industry consolidation, in no competitive arenas do Key Players dominate power supply volume market share 7
Figure 5: Despite ongoing industry consolidation, in no competitive arenas do Key Players dominate gas volume market share 8
Figure 6: Statoil achieves an overall ranking of 3, with a utility score of 47.9 21
Figure 7: Statoil's overall ranking is helped by very high Performance and Exposure Scores 22
Figure 8: Compared to its top ten peers, Statoil is a top performer, yet with less risk (a higher Exposure score) 23
Figure 9: In terms of Growth, Statoil ranks below its top ten peers, yet in Scale it is the median company 24
Figure 10: Statoil has a strong return on its fixed assets, but lags significantly the average in return on sales 26
Figure 11: Statoil's return on sales underperforms the Key Player average 27
Figure 12: In return on investment, Statoil ranks 2 amongst all Key Players 28
Figure 13: Statoil ranks 7 in Scale, despite the lack of power supply volumes 30
Figure 14: Statoil does not have generation capacity 31
Figure 15: Statoil does not have power supply volumes, and markets its equity gas with large commercial users and in wholesale markets 32
Figure 16: Statoil focuses on wholesale volumes and does not have retail customers 33
Figure 17: Statoil ranks 7 in terms of gas supply volume 34
Figure 18: Statoil ranks 4 and 5 in terms of revenue and net income respectively 35
Figure 19: Statoil has very strong cash flow growth, though only average profit growth 37
Figure 20: Statoil outperforms on operating profit margin, but has a price earnings ratio only slightly above the median 38
Figure 21: From 2001 to 2005, Statoil's annual profit growth (12.3%) far exceeded its revenue growth (8.7%) 39
Figure 22: Statoil's cash flow growth (51.6%) from 2004 to 2005 has far surpassed its growth in gas supply volume (9%) 40
Figure 23: Statoil's high operating cash flow growth exceeds the growth in its energy volume 42
Figure 24: Statoil markets all of its equity gas to large customers and wholesale customers 43
Figure 25: Statoil does not have power supply volumes 44
Figure 26: Compared to most top ten utilities Statoil has a low debt-to-equity ratio of 30.3% 45
Figure 27: Amongst all Key Players, Statoil ranks 8 in debt leverage 46
Figure 28: Statoil's operating cash flow has increased faster than its gas supply volume 47