Norway's Statoil posted weaker-than-expected first-quarter profit due to lower oil and gas prices on today, but said it was poised to grow after resolving production problems at several North Sea fields.
Shares in Statoil, the Nordic region's biggest industrial company by turnover, were down 1.1 per cent to 164.75 crowns at 8.39am, while the DJ Stoxx Oil and Gas index was down 0.95 per cent.
Statoil sold its retail and commercial division division in the Republic to Topaz Energy Group. It is also a partner with Shell E&P Ireland and Marathon in the Corrib Gas project.
Operating profit fell 28 per cent year-on-year to 23.79 billion crowns ($4 billion) in the three months to end-March, missing all 17 forecast from a Reuters poll of analysts.
Statoil said its average realised oil price fell 11 per cent year-on-year in the quarter and the gas price by 14 per cent.
"We are delivering strong results despite lower oil and gas prices," Chief Executive Helge Lund said.
Statoil repeated that it faced technical difficulties at its high-temperature, high-pressure North Sea fields Kvitebjoern and Kristin, delays on which had already forced the company to cut its output target for 2007 earlier this month.
"While addressing these short-term challenges, we are continuing to build positions for future growth," Lund added.
With output declining in many maturing North Sea oilfields, Statoil has sought to expand abroad. In past months it has agreed to buy a privately held Canadian oil sands venture and secured new exploration acreage in Indonesia and Tanzania.
Statoil also said it was on track to complete its nearly $30 billion takeover of Norsk Hydro's oil and gas assets by October, which will make it one of the world's biggest offshore production groups specialising in deep-water areas.