Improved results in third quarter

November 3, 1999, 10:00 CET

The Statoil group made a net profit of NOK 3.3 billion in the third quarter of 1999, compared with NOK 1.2 billion for the preceding three-month period.

Net profit for the first nine months of the year came to NOK 5.2 billion, an increase of NOK 3.9 billion from the same period of 1998.

"These results are positive," says chief executive Olav Fjell. "We are still not making a satisfactory return when compared with our competitors, but we are on the right track."

This improvement primarily reflects higher oil prices and gain on divestments related to the restructuring and focusing of the group's business.

In addition come the positive effects of Statoil's reorganisation and cost-cutting programmes, which are progressing as planned.

Statoil's goal is to reduce its annual operating and administrative costs by NOK 1 billion from 1998 to 2000. A reduction of NOK 450 million had been achieved at 30 September, which is in line with established plans.

The group has booked divestment gains totalling NOK 2.5 billion so far this year, and made write-downs and provisions amounting to NOK 2 billion before tax.

Divestment gains include NOK 1.5 billion from realising the shareholding in Saga Petroleum, which is classified as financial income.

The strengthening of the Norwegian krone against European currencies also contributed to a net financial income of NOK 1.4 billion. That compares with net financial expenses of NOK 1.3 billion for the same period of last year.

Cash flow from operations for the first nine months came to NOK 14.4 billion as against NOK 8.5 billion for the same period of 1998. Net investment to 30 September totalled NOK 14.6 billion compared with NOK 15.1 billion.

Income statement, Statoil group
(amounts in NOK mill.)
1.1 - 30.9 1999
1.1 - 30.9 1998
Operating revenue
93 322
78 260
Profit before financial items
9 556
6 979
E&P Norway
8 417
8 053
International E&P
( -607)
(-1 699)
Refining and marketing
1 948
( -395)
( -210)
Profit before tax
10 963
5 651
Net profit for the period
5 168
1 304

Read the complete Directors' report.