Monday May 11, 10:02 AM
StatoilHydro profits tumble 77% on lower oil price
OSLO (AFP) - Norwegian energy group StatoilHydro (Oslo: STL.OL - news) said on Monday its net profit plunged by 77 percent in the first quarter as the lower oil price eclipsed an increase in production.
StatoilHydro's net profit was 3.7 billion kroner (423.8 million euros, 579 million dollars) in the January to March period compared to 16.0 billion a year earlier.
Earnings were impacted by a 41-percent drop in the oil price, unfavourable exchange rates and fiscal items, the company said.
On the positive side, the average price of natural gas climbed by 23 percent during the period, while oil and gas production rose by one percent to the record level of 2.07 million barrels of oil equivalent per day.
"I am pleased with our operations," StatoilHydro's chief executive Helge Lund told reporters.
"Production is high, the level of regularity (of oil and gas deliveries) is high, and revenues remain high despite the drop in the oil price," he said.
Faced with slowing demand due to the global economic crisis, StatoilHydro plans to continue efforts to reduce costs, Lund said.
Operating profit dropped by 31 percent to 35.5 billion kroner, but that was sharply higher than analysts' forecasts of 30.3 billion.
Pre-tax profit shrank by 43 percent to 31.6 billion, while sales fell by 29 percent to 112.7 billion.
Despite the largely positive earnings report, the price of the StatoilHydro share shed 1.21 percent to 139 kroner in early trading on the Oslo stock exchange, which was down by 0.73 percent.
StatoilHydro, which is 67-percent owned by the Norwegian state, maintained its production target of 1.95 million barrels of oil equivalent per day for 2009, barring any decrease in quotas by OPEC (Organization of Petroleum Exporting Countries), and 2.2 million in 2012, Lund said.
Norwegian producers, in line with all producers with interests in OPEC countries, are affected by OPEC production cuts
OPEC reductions slashed Norway's production by 13,000 barrels during the first three months, he said.
|
|
|
Send Article by Email
Send Article by IM
Blog This with Y! 360
Printable View
