Norwegian energy giant Statoil posted a slump in second-quarter earnings on Wednesday, as low oil prices continued to weigh on the industry.
Statoil reported net operating income of $180 million and adjusted earnings of $913 million for the second quarter of 2016. Analysts polled by the company had expected adjusted earnings before tax of $1.365 billion, with earnings after tax seen at $313 million.
"The main driver is the continued low oil and gas prices," Statoil CEO Eldar Sætre told CNBC on Wednesday after the earnings release.
Sætre forecast near-term volatility in oil prices, as the market rebalanced from a period of very levels of storage globally.
"In the medium-term, we are very confident we will see a higher price level," he told CNBC.
Oslo-listed shares of Statoil fell by more 3 percent on the day on Wednesday.