State-controlled StatoilHydro ASA: profits up 37 percent

Saturday, August 2nd 2008

State-controlled StatoilHydro ASA has recently told the press that a 37 percent rise in second-quarter profit Friday because of an increase in oil and gas prices and higher production.

The company, based in the western Norwegian city of Stavanger, said profit for the April to June period came to 18.77 billion kroner ($3.7 billion), up sharply from 13.71 billion kroner in the same three months a year ago.

Revenues in the quarter soared to 170.61 billion kroner ($33.2 billion), compared with 127.39 billion kroner in the year-ago period.

StatoilHydro Chief Executive Helge Lund called the results “record earnings” and said the company was on track to deliver on 2008 production targets.

Lund said he was pleased with the results of his company’s explorations in 2008. “In the first half of 2008 we have completed a total of 49 exploration wells, out of which 18 have been declared as discoveries. For the full year we plan to drill at least 70 wells,” he said.

In its outlook, the company noted that “2008 has so far been one of the most volatile periods in the product, gas liquid and crude oil markets.”

It said the first half of the year saw high prices that were expected to stay “relatively high and volatile at least in the near term.”

StatoilHydro, with more than 30,000 staff in 40 countries, is the key producer on the offshore fields that make Norway a major oil and natural gas exporter.

It was created in October when state-controlled oil company Statoil ASA took over the oil division of Norwegian rival Norsk Hydro ASA.