Statoil of Norway said it plans to further cut spending after reporting a drop in fourth-quarter profit on Thursday.
The Norwegian oil and gas giant is reducing organic capital expenditure from $14.7 billion in 2015 to around $13 billion in 2016.
Statoil reported a net loss for the fourth quarter of 9.2 billion Norwegian kroner ($1.08 billion), compared with a loss of 8.9 billion kroner a year earlier.
“The result in the fourth quarter is highly impacted by the weak commodity price. We are now further stepping up our improvement programme, and tightening our capital and exploration expenditures. These are key elements in navigating the business during a period of low oil prices“, said president and CEO of Statoil, Eldar Sætre.
“Statoil is well positioned to capture value from an expected upturn in the market. We have substantially improved our non-sanctioned project portfolio. More than 80% of the operated projects, with start-up by 2022, have a break-even oil price below USD 50 per boe,” Sætre added.
Statoil said its Board of Directors will propose to the Annual general meeting to maintain a dividend of $0.2201 per share fourth quarter 2015 and the introduction of a two-year scrip dividend programme starting from the fourth quarter 2015.
The scrip programme will give shareholders the option to receive quarterly dividends in cash or in newly issued shares in Statoil, at a 5% discount for the fourth quarter 2015, the company said.