Statoil Q3 lags forecast, cuts capex again
Norwegian oil firm Statoil cut its 2016 capital expenditure again after posting third-quarter earnings below forecast on Thursday due to lower-than-expected output and persistently low oil prices.
Like other oil companies, Statoil has been slashing investments, jobs and projects to cope with a 56-percent decline in the price of crude since mid-2014.
On Thursday it said it would cut its capital expenditure for 2016 to $11 billion from $12 billion and its exploration spending to $1.5 billion from $1.8 billion.
In July, the company had already reduced those figures from $13 billion and $2 billion respectively.
"The financial results were affected by low oil and gas prices, extensive planned maintenance and expensed exploration wells from previous periods," Statoil CEO Eldar Saetre said in a statement.
The firm's adjusted operating profit fell to $636 million in the third quarter from $2 billion a year ago, well below analysts' expectations for $950 million. All three divisions of the company missed forecasts.