Energy giant Statoil's third-quarter net income up 6 per cent

Oslo - Norwegian energy giant Statoil's net income increased by 6 per cent in the third quarter of 2009 despite lower oil and gas prices, the state-owned group said Wednesday. Net income for the quarter was 6.6 billion kroner (1.1 billion dollars) compared to 6.3 billion kroner for the corresponding quarter 2008. Net operating income declined 40 per cent to 28.3 billion kroner, while year-on-year revenues fell 30 per cent to 122 billion kroner, Statoil said. 'Although we see signs of improvement in the global economy, there is no firm evidence that industry investment, employment and private consumption have recovered. This calls for cautiousness,' Statoil chief executive Helge Lund said in a statement. In October 2007, the Norwegian oil and gas groups Statoil and Norsk Hydro merged and became known as Statoil Hydro. As of Monday, the combined group said it would be known only as Statoil. The Statoil head described the third-quarter results as solid, with production increased year-on-year, and costs were being reduced. In its outlook, the group expected crude oil and gas liquids prices to remain 'volatile, at least in the near term.' The average third-quarter oil price measured in kroner was down 31 per cent year-on-year, while the average natural gas price was 32 per cent lower measured in the Norwegian currency, the group said. Statoil said its average daily oil and gas output was some 1.8 million barrels of oil equivalent per day during the third-quarter, up 8 per cent year-on-year. The group reported a 55-per-cent drop in exploration spending to 2.1 billion kroner, but for the nine-month period expenditure was up 9 per cent. Statoil drilled operated nine exploration wells during third- quarter 2009, including four outside the Norwegian continental shelf.