Norway energy giant Statoil doubles third-quarter net income

Nov 3, 2010, 9:41 GMT

Oslo - Norwegian energy giant Statoil's net income doubled during the 2010 third-quarter but oil and gas production fell by almost a fifth over increased maintenance, the group said Wednesday.

Net income for the quarter was 13.8 billion kroner (2.3 billion dollars) compared to 6.6 billion kroner in the corresponding business period 2009. This reflected higher oil and gas prices, strong net financial income and lower taxes.

Revenues in the quarter 2010 were 127.4 billion kroner, up 4 per cent year-on-year, the state-controlled group said.

Statoil said its average daily oil and gas output was some 1.5 million barrels of oil equivalent per day during the quarter, a 17 per cent drop in production year-on-year.

'Extensive planned maintenance activities throughout the third quarter have affected both our oil and gas production significantly,' chief executive Helge Lund said in a comment.

The average third-quarter oil price measured in kroner was up 14 per cent year-on-year, while the average natural gas price was 8 per cent higher measured in the Norwegian currency, the group said.

Statoil said it had lowered its production guidance for full-year 2010 due to recent decisions to temporarily reduce production at two North Sea fields over additional well drilling.

The share price was down 4 per cent in early trading on the Oslo bourse.

The group drilled nine exploration wells during third-quarter 2010, including five outside the Norwegian continental shelf. Five of the wells resulted in discoveries, Statoil said.

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