Statoil announced its third quarter results, reporting declining financial results as a result of a weaker market and higher operating costs.
The Norwegian oil major reported a net operating income of US$737 million (£604.48 million), down by US$146 million (£119.5 million) in the same period last year.
“The financial results were affected by low oil and gas prices, extensive planned maintenance and expensed exploration wells from previous periods,” Statoil CEO Eldar Sætre, said.
Statoil Posts Losses and Lowers Spending
“We delivered solid operational performance with strong cost improvements and progress on project execution. Strict prioritisation and continued good results from our improvement programme allow us to further lower our 2016 capex and exploration guidance,” he added.
According to the CEO, the reduction in net operating income was mainly a result of the decline in oil prices, expenses with improvement operations and exploration wells in the Gulf of Mexico and lower refinery margins.
Statoil CEO Eldar Sætre
“Our financial position remains robust with a positive net cash flow in the quarter. We continue with the scrip dividend programme and have
reduced the net debt ratio”, he stated further.
Production Declines over Q3-2016
Over the period, Statoil delivered equity production of 1,805 million barrels of oil equivalent (mboe) per day, suffering a decline compared to the 1,909 mboe produced per day in the same period of 2015.
According to the company’s report, this reduction was mainly due to planned maintenance and deferral of gas sales.
However, excluding these elements and divestments, underlying production growth was at 5% compared to the third quarter of 2015.
By the end of September this year, Statoil had completed 21 exploration wells.
For the rest of the year, the company is lowering its capital expenditure guidance from US$1.8 billion (£1.47 billion) to approximately US$1.5 billion (£1.22 billion) with a 1% production growth expected from 2014 to 2017.