Statoil, the first of the major oil companies to report third-quarter earnings, posted an unexpected loss for a second quarter in a row amid lower crude and gas prices as it deepened cuts to planned investments.
The adjusted loss, which excludes financial and other items, was $261 million (€239 million), compared with a profit of $445 million a year earlier, Norway’s biggest oil company said on Thursday.
That missed the $136 million average profit estimate of 18 analysts surveyed by Bloomberg.
"The financial results were affected by low oil and gas prices, extensive planned maintenance and expensed exploration wells from previous periods," chief executive Eldar Saetre said in a statement.
Improvement programme
“Strict prioritisation and continued good results from our improvement programme” allowed further lowering of the 2016 capital expenditure and exploration guidance, he said.
Statoil, 67 per cent owned by the Norwegian government, and rivals such as BP have slashed spending and reduced costs to protect cash flow and preserve shareholder payouts.
Mr Saetre now plans to lower capital expenditure to about $11 billion this year from an earlier target of $12 billion and 45 per cent lower than the 2014 record of $20 billion.
Exploration spending will be $1.5 billion, down from $1.8 billion previously.
The adjusted loss was the company’s second consecutive one, after it posted the first negative figure in that measure in second quarter of 2016.
