StatoilHydro, an oil seller and supplier of natural gas to the European market, has reported a net income of NOK10.7 billion in the third quarter of 2007, up 26% compared to NOK8.5 billion in the prior year period.
The company reported net operating income of NOK24.4 billion in the third quarter of 2007, compared to NOK30.2 billion in the third quarter of 2006. The decrease was mainly due to lower downstream results, a 15% decrease in gas prices measured in NOK, an increase in unrealized profit on inventories of NOK1.9 billion and higher total operating expenses. The decrease in net operating income was partly offset by increased lifted volumes of oil and gas in International E&P.
Total oil and gas production in the third quarter of 2007 was 1,056,000 barrels of oil equivalent (boe) per day, compared to 1,076,000 boe per day in the third quarter of 2006. The 2% decrease was mainly related to reduced production on the Norwegian continental shelf (NCS), and was partly offset by higher production from new fields in international E&P.
Total oil and gas liftings in the third quarter were 1,078,000 boe per day, compared to 1,054,000 boe per day in the same period of 2006. This is equivalent to an overlift of 22,000 boe per day in the third quarter of 2007.
Helge Lund, StatoilHydro’s CEO, said: We continue to deliver strong financial results. On October 1 we completed the merger between Statoil and Hydro’s oil and gas activities. I am very pleased to see that we have established a global, competitive energy company while delivering safe and efficient day to day operations. The agreement is an important milestone for us. We are looking forward to co-operating with Gazprom and Total to realize this frontier project.
We have completed the Snohvit, Ormen Lange and Statfjord Late Life projects, strengthening StatoilHydro’s strategic position in the European and US gas markets. StatoilHydro has also been successful in both licensing rounds in the Gulf of Mexico, adding valuable exploration acreage for future activities.