Statoil hit again by lower oil prices

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Norway’s state oil company Statoil reported another decline in pre-tax profits on Tuesday, but not as steep as many analysts had predicted. Operating results were around NOK 10 billion less than they were in the second quarter of last year.

The results were actually better than some analysts had expected, reported several Norwegian media outlets. Statoil earned around 28 percent less in Norwegian kroner for every barrel of oil it sold, but also boosted production of oil and gas by around 4 percent.

Statoil itself said it delivered adjusted earnings of NOK 22.4 billion (USD 2.8 billion at current exchange rates) and adjusted earnings after tax of NOK 7.2 billion in the second quarter. Statoil’s new CEO Eldar Sætre called the operational performance “encouraging,” citing “good production growth and high regularity” while the company continued to cut costs.

For the full earnings report from Statoil, click here (external link). staff