North Sea operator Maersk said its oil operations have stabilised, despite seeing third quarter profits fall 22%.
The oil arm of the Danish shipping giant posted a third quarter profit of £119million as high exploration costs took their toll on results.
However, the company arrested the decline in its production, with a slight rise of 3000boed to 229,000 compared to last year following the return of the Gryphon FPSO to full production. Maersk warned it expected overall production for the year to be down to 235,000boed, compared to a previously expected 250,000, due to lower output in Qatar and selloffs from its Danish operations.
Maersk drilling saw profits rise significantly for the quarter, up 76% TO £93million after seeing its entire fleet of contracts on contract during the period. The company said it had also secured contracts for six of the eight new rigs it has under construction.
“We are very satisfied with the operational result which is a consequence of strong performances in most businesses,” said Maersk group chief executive Nils Andersen.
“Maersk Drilling continues its solid operational performance. Maersk Oil’s production has bottomed out and stabilised.”
Overall net profit at Maersk rose to £755million, up from £587million the year before.
Watch Nils S. Andersen, Maersk group chief executive, discuss the company’s third quarter performance below.
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