Statoil Posts Higher Second-Quarter Profit
Posted on: Monday, 1 August 2005, 15:01 CDT
OSLO, Norway - Statoil ASA said Monday that second-quarter profit surged 55 percent, mainly because of higher prices for oil and natural gas.
The state-controlled company said net profit in the three-month period ended June 30 rose to 6.75 billion kroner (859 million) from 4.36 billion kroner in the same period last year. Sales rose to 92.75 billion kroner (11.80 billion) from 70.96 billion kroner.
"This has been another strong quarter for Statoil, with our best-ever result from operations," Chief Executive Helge Lund said. "The improved result is mainly due to higher oil and gas prices, increased international production and good regularity in refining."
Lund said international production increased 77 percent in the quarter compared with a year ago. And with Statoil's $2 billion acquisition of Encana Corp.'s deepwater portfolio in the Gulf of Mexico in April, the company's long-term growth was moving ahead, he said.
Norway is the world's third-largest oil exporter, after Saudi Arabia and Russia, with a daily capacity of 3.2 million barrels as well as natural gas. Statoil, founded by the government in 1972 to oversee Norway's petroleum interests, employs 24,000 people in 29 countries.
While the company's realized oil price increased 41 percent to $50.30 per barrel in the quarter from $35.60 a year ago, total production was up 5 percent at 1.128 million barrels of oil equivalent from 1.073 million barrels.
Oil equivalents measure the energy content rather than the volume of oil and natural gas.
Net profit came in above some analysts' expectations, with higher-than-expected production levels. Statoil shares were flat, though, closing at 141 kroner (17.94) on the Oslo exchange.
Looking forward, Lund said the level of activity on the Norwegian continental shelf is high, with nine projects approved.
Source: Associated Press/AP Online
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