Norwegian oil and gas producer Norsk Hydro has seen its share price fall despite delivering a large profits increase for the second quarter of 2005.
Norsk Hydro’s operating profit for the second quarter increased by 36% to 11.26 billion Norwegian crowns ($1.72 billion), up from 8.29 billion crowns in the previous year. However, analysts had expected even larger profits of around 11.9 billion crowns. The shortfall depressed the energy company’s share price by 1.7%.
The shortfall in profits came from a mixed performance from the company’s restructuring metals division and under production in oil and gas. According to Reuters, the fossil fuel production fell in the quarter because of longer-than-expected maintenance halts at some of the company’s North Sea fields, including Oseberg and Grane.
Norsk Hydro had been expected to produce 566,000 barrels of oil equivalent (boe) per day but in reality achieved just 539,000 boe. The company also suffer from not achieving the world average price per barrel of oil. Its average price of $49.8 per barrel fell short of the global average of $51.63 a barrel.