Oslo: Norway's Statoil cut its 2012 oil and gas production guidance yesterday after posting a smaller-than-expected pick-up in second quarter earnings amid weak results beyond its Norwegian base.
Statoil's trimmed its 2012 production guidance to 2.06-2.16 million barrels of oil equivalent per day from 2.1-2.2 million after selling part of its stake in the Peregrino field off Brazil to China's Sinochem Corp.
Second-quarter profits of big oil companies have jumped on higher oil prices and refining margins.
"We anticipate that commodity prices will continue to be volatile and that gas markets will be challenging in the near term," Statoil said in a statement, adding that planned maintenance stops in the third quarter would be high.
Statoil affirmed its 2010 production goal of 1.925-1.975 million barrels of oil equivalent per day.
Adjusted operating profit at Norway's biggest company rose to 36.4 billion crowns (Dh21 billion) in April-June from 29.2 billion a year ago and lagged all 18 analyst forecasts from a Reuters poll, whose average prediction was 38.2 billion.
Below forecast
"Gas prices were particularly weak, but the realised oil price is also below the consensus forecast," said analyst Trond Omdal at Arctic Securities. "International production was weaker than expected, while it was surprisingly strong on the Norwegian continental shelf. Overall, it's a bit negative."
Statoil has interests in nine Gulf of Mexico discoveries or producing wells and calls itself "a significant player in the exploration and development of oil and gas deposits" in the region which may be facing protracted delays in new drilling after a massive oil spill by BP.
- 2.16m: new 2012 production goal (in barrels per day)
- 2.2m: previous 2012 guidance (in barrels per day)
- 1.975m: 2010 production goal (in barrels per day)
