Norwegian oil firm Statoil reported lower-than-expected earnings due to impairment charges mainly related to lower output from its unconventional onshore assets in North America.
Statoil's adjusted operating profit reached $2.3 billion in the third quarter, up from $0.7 billion during the same period a year ago but compared to expectations of $2.45 billion.
Statoil's international division posted a loss $27m in the quarter against expectations for a profit of $73m. Still, this was an improvement on a year ago when the division posted a loss of $596m.
"Net operating income was impacted by net impairment charges of $0.8 billion, mainly related to an unconventional onshore asset in North America of $0.9 billion, triggered by lower than expected production," Statoil said in a statement.
Statoil did not name the asset.
Over the past year the company has been trying to turn around its operations in North America, which mostly consist of offshore production in the Gulf of Mexico, as well as shale oil and gas in Texas, North Dakota, Pennsylvania, Ohio and New York.
Statoil said its year-on-year results were up due to higher prices for both oil and gas, high production levels and strong refinery margins.
Like other oil companies, Statoil has been cutting costs in order to cope with a 50% drop in crude prices since 2014.
