Significantly lower oil and gas prices is the main reason why Statoil’s first quarter result is 70 percent lower this year than it was last year. The company will cut costs everywhere it can.
Statoil had an adjusted operating result of $ 857 million in the first quarter, compared with 2.945 million in the same quarter last year. The decline was expected. Statoil has this quarter on average received $ 29 per barrel, compared with 47 a barrel on average in the same period last year. At the same time the price slide is offset by operational efficiency and reduced underlying operating costs, according to Statoil.
– We are on track to reducing costs and thereby affect the elements and circumstances we can control. We are working on simplifying the work processes and getting rid of things, activities and products which are not necessary. There is much that needs to be done. The level of costs have been high for many years, head of Statoil, Eldar Sætre, says.
Since the oil price slump began in 2014, the company has announced that over 4,500 positions will be cut.
Source: NTB scanpix / Norway Today