Norwegian energy giant Statoil today posted strong 2010 results due to a hike in oil prices, but said production dropped due to maintenance and the situation would not likely be rectified until 2012.
Amid a rising barrel price, the company saw its net profit more than double last year to 38.1 billion kroner (€4.8 billion), up from 18.3 billion in 2009, on sales up 13.8% at 529.6 billion kroner.
In the fourth quarter, Statoil's net profit swelled 33% to 9.5 billion kroner, but that figure was far below the expectations of analysts, who had predicted a net profit of 12.1 billion kroner.
While the company was boosted by ballooning oil and gas prices, it also suffered a significant drop in production linked in large part to security problems at the Gullfaks field in the North Sea which has forced Statoil to close dozens of wells.
Between the third and fourth quarter, the Norwegian company saw its production drop 5% to 1.9 million barrels of oil equivalent per day (mboe/d), while production for the whole year was down 4% compared to 2009 at 1.89 mboe/d.
'Whilst production volumes were below our expectations in the second part of the year due to high maintenance, specific operational issues and reduced production permits,
'Statoil continues to deliver strong financial results and cash flows,' company chief executive Helge Lund said.
But Lund said the company's difficulties were expected to persist this year. 'We expect production for 2011 to be around the 2010 level, or slightly below,' he said, adding thought that Statoil hopes to reverse the trend next year.
