Norway energy giant Statoil second-quarter net income up nine-fold

Jul 28, 2011, 7:55 GMT

Oslo - Norwegian energy group Statoil's second-quarter net income jumped nine-fold driven by higher gas and oil prices and a divestment in Brazil, it said Thursday.

Net income for the quarter was 27.1 billion kroner (5 billion dollars) compared to 3.1 billion kroner in the corresponding business period 2010.

Statoil remains majority owner in the Peregrino oilfield off Brazil, but earned 7.5 billion kroner net on the completion of the sale of a 40-per-cent stake in the field.

Revenues in the quarter were 159 billion kroner, up 23 per cent year-on-year, the state-controlled group said.

Statoil said its average daily oil and gas output was some 1.48 million barrels of oil equivalent per day during the quarter, a 16 per cent drop in production year-on-year.

The drop was attributed to several factors including the planned maintenance, a reduction in production permits and natural decline in mature fields. Suspended production over the unrest in Libya was also mentioned.

The average second-quarter oil price measured in kroner was up 32 per cent year-on-year, while the average natural gas price was 28 per cent higher measured in the Norwegian currency, the group said.

For 2011, Statoil said it predicted production to be slightly below the 2010 level.

During the quarter the group drilled nine exploration wells, including three outside the Norwegian continental shelf. Six of the wells resulted in discoveries, Statoil said.