Finland Times

Norwegian oil and gas company Statoil on Thursday reported a net loss of 35.4 billion Norwegian kroner (4.7 billion U.S. dollars) in the first quarter of 2015 due to impairment charges and lower oil prices.

     In the same period last year, Statoil achieved a net profit of 23.7 billion kroner. The Norwegian energy giant reported a net loss of 8.9 billion kroner in the fourth quarter of 2014, according to the company's latest quarterly report.

     Statoil's net operating income in the first quarter of 2015 was negatively impacted by significant accounting charges related to asset impairments of 46.1 billion kroner, most of which are related to the U.S. onshore unconventional assets.

     Adjusted earnings for the first quarter of 2015 were 22.9 billion kroner compared to 46.0 billion kroner in the first quarter of 2014, and adjusted earnings after tax were 7.0 billion kroner, compared to 15.8 billion kroner in the same period last year.

     The reduction was mainly a result of the significant drop in the liquids prices, lower European gas prices and increased depreciation and operating costs. The increase in depreciation and operating cost was largely a result of starting and ramping up production, and was impacted by the strong U.S. dollar to Norwegian krone exchange rate.

     "Statoil's first quarter reported figures are significantly impacted by impairment charges. Our adjusted earnings and cash flows were affected by the reduced price levels. We continue to deliver strong underlying operational performance and solid results from marketing and trading," Statoil's president and chief executive officer Eldar Saetre said.

     Statoil's production in the quarter was 2.056 million barrels of oil equivalent per day, compared to 1.978 million barrels per day in the same period last year.

     The production increase was a result of start-up and ramp-up of production on various fields as well as higher gas sales from the Norwegian continental shelf compared to the first quarter of 2014, the company said.