Statoil posts 34% increase in Q1 profit

Norwegian energy group Statoil reported a 34 per cent rise in first-quarter operating profit.

Norwegian energy group Statoil reported a 34 per cent rise in first-quarter operating profit.

Operating profit at the industrial company by revenues rose to 21.50 billion Norwegian crowns ($3.40 billion) in the period from January to March from 16.05 billion in the same quarter a year earlier.

"The improved result is mainly due to higher prices of oil and gas, favourable margin developments for refining and petrochemicals, as well as good control of costs," Statoil chief executive Helge Lund said today.

Total revenues grew 26 per cent from a year ago to 84.62 billion crowns in the quarter.

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Statoil repeated its 2005 oil and gas production target of 1.175 barrels of oil equivalents per day, its 2007 output goal of 1.4 million boed, and its 2007 target for normalised return on average capital employed of 13 per cent.