Double-barrel profit hike for Norway’s Statoil

Double-barrel profit hike for Norway's Statoil
Photo: Håkon Mosvold Larsen/Scanpix (File)
The Norwegian oil group Statoil said on Wednesday that its net profit doubled in 2011 to 78.8 billion kroner ($14.3 billion) on higher prices and sustained output.

In the last three months of the year, the group's profit leapt to 25.5 billion kroner from 9.5 billion in the same period a year earlier, largely owing to capital gains from the sale of a stake in the Gassled pipeline network.

Statoil, which is the biggest northern European company by market capitalisation, said its sales had climbed by 22.5 percent last year to 645.6 billion kroner.

It was also able to present a reserve replacement ratio of 1.17 which means it had discovered more energy sources than it had consumed and was in a better position for the future.

In particular, Statoil found a giant oil reserve in the North Sea last year that might become the third-biggest ever discovered on Norwegian territory.

Hyrdocarbon production fell in 2011 to 1.85 million bpd oil equivalent from 1.89 million bpd in 2010, the company reported.

Statoil confirmed its goal to reach hydrocarbon production of 2.5 million bpd oil equivalent by 2020.

In morning trading, Statoil shares rose 2.53 percent on an Oslo stock exchange up by 0.85 percent.

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