Norwegian energy giant and LNG operator Statoil posted a net loss of US$427 million in the third quarter of 2016 due to continued weak markets.
In its quarterly report, Statoil said the losses increased by 24 percent in comparison to the corresponding quarter in 2015 when the company recorded a $342 million loss.
Speaking of the results, Statoil’s CEO Eldar Sætre said, “the financial results were affected by low oil and gas prices, extensive planned maintenance and expensed exploration wells from previous periods.”
Company’s adjusted earning stood at $636 million, 67 percent below the 2,02 billion in the same quarter of 2015. Net operating income reached $737 million, 16 percent under the $883 million in the corresponding quarter of the previous year.
The reduction was primarily due to lower oil and gas prices, expensed exploration wells and lower refinery margins, the company said.
Statoil delivered equity production of 1,805 mboe per day in the third quarter compared to 1,909 mboe per day same period in 2015. The reduction was primarily due to planned maintenance and deferral of gas sales.
Statoil also lowered its capex guidance for 2016 from USD 12 billion to around USD 11 billion and its exploration guidance for 2016 from $1.8 billion to around $1.5 billion. Production guidance remains unchanged, and expected annual organic production growth is 1 percent from 2014 to 2017.