Oil & Gas

3rd Quarter 2015

• Slight sales decrease, primarily due to lower prices
• Earnings considerably down compared with prior third quarter owing to decline in gas trading business

Sales in the Oil & Gas segment were slightly down compared with the previous third quarter (volumes 2%, prices/currencies –6%, portfolio 2%). This was mostly due to a price-related decrease in sales in the Natural Gas Trading business sector. In the Exploration & Production sector, volumes growth and portfolio effects more than offset the sharp drop in the price of oil. We posted a considerable decline in income from operations before special items because of the smaller contribution from Natural Gas Trading. Net income rose significantly as a result of gains from the swap with Gazprom of assets of equivalent value.

We saw a considerable sales increase in the Exploration & Production business sector. The main drivers here were an offshore lifting in Libya during the reporting period as well as higher volumes in Norway, mostly from the activities acquired from Statoil at the end of 2014. At $50 per barrel, the price of Brent blend crude oil in the third quarter of 2015 was half that of the third quarter of 2014. Earnings grew considerably, as increased production from Libya and Norway more than compensated for lower prices.

Sales in the Natural Gas Trading business sector declined slightly due to lower gas prices. Earnings fell considerably compared with the same period of the previous year. In the third quarter of 2014, earnings had been boosted primarily by procurement-end price revisions.