Norwegian oil and gas production major Statoil said that it is on track to deliver an additional billion dollars in annual improvements in 2017 after it unveiled higher adjusted net earnings in the first quarter of the year which surpassed analysts’ expectations helped by a rebound in oil prices and higher production levels.
Adjusted earnings after tax were $1.11 billion from $122 million in the same period last year, the company said on Thursday. The result was higher that the approximate $768.2 million average estimate of analysts polled by Capital IQ. The company said that higher prices for both oil and North American gas and operational performance had contributed to the increase. The increased production, though, also resulted in higher royalty costs and production fees, which contributed negatively to the results, it said. Total revenue climbed 54% to $15.53 billion, higher than the approximate $14.42 billion Capital IQ estimate. “Our solid financial result and strong cash flow across all segments was driven by higher prices, good operational performance and an organic production growth of 5%,” Eldar Saetre, the company’s chief executive, said.”We continue to capture efficiency gains and are on track to deliver an additional billion dollars in annual improvements in 2017″.