Norwegian operator Statoil widened its losses as its income for the third quarter of the year dropped to $737million compared with $883million the year previously.
The company said it has adjusted earnings of $636million in the third quarter.
The financial outlook was impacted by continued weak markets, planned maintenance and expensed exploration wells.
Chief executive Eldar Saetre said: “The financial results were affected by low oil and gas prices, extensive planned maintenance and expensed exploration wells from previous periods. We delivered solid operational performance with strong cost improvements and progress on project execution.”
“Strict prioritisation and continued good results from our improvement programme allow us to further lower our 2016 capex and exploration
guidance.
“Our financial position remains robust with a positive net cash flow in the quarter. We continue with the scrip dividend programme and have reduced the net debt ratio.”
Statoil said in addition to the continued low prices, the result reflects reduced overall operating costs mainly as a result of the on-going cost improvement initiatives.
Adjusted earnings after tax were negative $261 million in the third quarter, down from positive USD 445 million in the same period last year.
The company said it expensed exploration wells capitalised in previous period in the amount of $324million.
This was mainly related to two exploration wells in the Gulf of Mexico.
Statoil delivered equity production of 1,805 mboe per day in the third quarter compared to 1,909 mboe per day same period in 2015.
The reduction was primarily due to planned maintenance and deferral of gas sales.
Excluding these elements and divestments, the underlying production growth was 5% compared to the third quarter last year.
It was also revealed the number of serious incidents involving the operator had risen.
The company also plans to continue investments in the Norne field.
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