Norway's Statoil is cutting costs further as the falling oil price takes its toll on yet another oil company's performance.
Third quarter adjusted operating profit almost halved compared to the same period last year and was worse than expected.
"Obviously the oil price is in a downturn, looking at our results they were highly impacted by that. Compared to last year the oil price...is more than 50 percent lower. So it is a situation which has had a big impact on our company." Eldar Saetr CEO of Statoil told CNBC.
Statoil is just the latest to feel the effects of the tumble in crude prices and cut costs in response. On Tuesday U.K.oil giant BP announced it was slashing costs as it prepares for a long term low oil price environment, planning for decline in oil price to $60 per barrel.
The group has continued to reduce operational costs and its capital expenditure by $1 billion to around $16.5 billion. Statoil also announced the delay in production of its Aasta Hansteen gas field project in Norway from 2017 to the second half of 2018.
"I am pleased with the way we are taking costs down, but the continued low prices in the third quarter demonstrates that we must continue to chase further cost efficiencies," Saetr said in a statement.
As the price of oil continues its decline, economists have warned of a lack of upward price pressures for the commodity for at least another two years. The norm for oil for the last decade has been $90 - $100 per barrel, but Brent is currently trading closer to $45 a barrel.
The group also reported an impairment charge, asset impairments and provisions for disputes totaling 9.4 billion krone. "As we have a volatile price environment we are exposed to impairments and reversals on several of our assets, that is what we see in this quarter," Saetr said.
The firm remained committed to its dividend policy amid the market volatility however, he said.
New discoveries and projects.
The Norwegian company has recently made two discoveries on the Norwegian continental shelf (NCS), a region of Norway which is rich in oil. Production in the NCS grew 10 percent in the third quarter from the same period a year earlier.
Other discoveries and oil projects announced by Statoil include the Julius prospect in the King Lear area in the North Sea. Statoil said it has secured access to frontier acreages offshore Nicaragua and Myanmar.
By CNBC's Tanzeel Akhtar, follow her on Twitter @Tanzeel_Akhtar