Statoil profits hit by lower oil, gas prices

AP News
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Posted: Oct 29, 2014 6:56 AM

HELSINKI (AP) — Norwegian energy company Statoil says impairment charges and lower oil and gas prices pushed it into net loss of 4.8 billion kroner ($727 million) in the third quarter.

Earnings fell from a net profit of 14.3 billion kroner in the same period in 2013. Revenue dropped 9 percent to 147 billion kroner.

The company said Wednesday that it "delivered strong operational performance" in the period even as operating income fell by more than half to 17 billion kroner.

Statoil said it continues to expect capital expenditure of some $20 billion this year and that total exploration activities, of some 50 wells, would amount to $3.5 billion this year.

Two weeks ago, CEO Helge Lund resigned and was replaced by Eldar Saetre, a senior Statoil executive.