Statoil reports profit jump

Comment on this story
Statoil Reuters. Norwegian energy firm Statoil's logo is pictured at the company's headquarters in Stavanger, Norway.

Oslo - Norwegian oil giant Statoil almost quadrupled its first quarter profits, the group announced on Tuesday, thanks to higher oil and gas prices and lower expenditure.

Profits leaped to 23.6 billion kroner ($3.94 billion, 2.84 billion euros) compared to 6.4 billion kroner a year previously.

Despite a one-percent drop in production, the company said it benefited from higher oil prices and good results from its US gas operations.

The increased profits were also due to a significant drop (4.7 billion kroner) in oil exploration spending.

“Our operational performance is solid, providing the foundation for around 2% re-based organic (oil) production growth in 2014,” chief executive Helge Lund said in a statement.

Hit by soaring costs in the oil services sector, Statoil along with its competitors recently announced cut-backs in investments in order to build up its cash flow.

In February the oil group - which is 67-percent owned by the Norwegian state - reduced its investment spending forecast for 2014-2016 to $20 billion per year from $21.7 billion. - Sapa-AFP

sign up

Comment Guidelines

  1. Please read our comment guidelines.
  2. Login and register, if you haven’ t already.
  3. Write your comment in the block below and click (Post As)
  4. Has a comment offended you? Hover your mouse over the comment and wait until a small triangle appears on the right-hand side. Click triangle () and select "Flag as inappropriate". Our moderators will take action if need be.

  5. Verified email addresses: All users on Independent Media news sites are now required to have a verified email address before being allowed to comment on articles. You are only required to verify your email address once to have full access to commenting on articles. For more information please read our comment guidelines