Statoil losses worsen with more cuts looking likely as the Norwegian oil major continues to struggle with the size of its global expenditure.
The news comes in the wake of the Norwegian State run oil and gas major’s 2015 Q4 results released Thursday.
Statoil Losses Worsen
The results showed a deepening loss of NOK 9.2 billion (US$1.08bn) against a loss of NOK 8.9 billion (US$1.04bn) in the same period the previous year.
Statoil CEO, Eldar Sætre, said: ”The result in the fourth quarter is highly impacted by the weak commodity price. However, we continue to make strong progress on costs and efficiency.”
As a reaction to the deepening losses Statoil announced that it would lower its capital expenditure to $13 billion during 2016, down from $14.7 billion during 2015; but said it would maintain its dividend.
The move will see Statoil increase its already hard cost-cutting program, from US$ 1.7 billion to US$ 2.5 billion during 2016, or in Statoil’s words “Delivering faster and deeper cost reductions”.
Oil Major Results
Statoil’s results come hot on the heels of the 2015 Q4 results from oil and gas supermajors BP and Shell, with BP reporting a loss of US$ 2.2 billion and Shell reporting a 56% reduction but still managing to post a profit of US$ 10.7 billion.