Norwegian energy giant and LNG operator Statoil posted a near 70 percent drop in its adjusted operating profit in the second quarter due to low oil and gas prices.
Statoil’s adjusted operating profit stood at $913 million in the second quarter as compared to $2.9 billion a year ago.
Net operating income was $180 million in the second quarter compared to 3.63 billion in the same period of 2015.
The reduction was primarily due to the drop in prices for oil and gas and lower refinery margins, Statoil said in its statement on Wednesday.
Statoil delivered equity production of 1,959 mboe per day in the second quarter. The underlying production growth in the quarter, after adjusting for divestments, was 6 percent compared to the second quarter of last year, the company said.
Statoil lowered its capex guidance for 2016 from $13 billion to $12 billion and its exploration guidance from $2 billion to $1.8 billion.
“We delivered solid operational performance with strong production growth and progress on project development and execution. Our financial results were affected by low oil and gas prices in the quarter,” said Eldar Sætre, President and CEO of Statoil.