Norwegian oil company Statoil announced in its 2Q15 interim results statement today that it will trim its 2015 capital expenditure by USD500 million from an earlier forecast to an expected USD17.5 billion.
It was the second time this year the company reduced its 2015 capital expenditure plans having said in its 1Q15 interim report that capital expenditure would be estimated at around USD18.0 billion for the current year.
“We continue to progress our effort to improve operational and capital efficiency, and reduce cost. Reduced underlying operational expenses both on the Norwegian Continental shelf (NCS) and in our international operations, as well as reduced capital expenditures, demonstrate that our initiatives are effective,” said Statoil CEO Eldar Sætre.
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“In June we announced adjustments to the company’s structure and operating model to further strengthen our competitiveness.”
However, operators of offshore services vessels have been concerned by these cuts in capital expenditure, Statoil having reduced the figure to USD18.0 billion from USD20.0 billion in February. Lower oil prices have resulted in several oil and gas producers needing to cut back their offshore investment plans.
Statoil made a 2Q15 group net profit of NOK10.1billion (USD1.24 billion), down from NOK12.0 billion a year earlier. Revenues declined to NOK124.4 billion from NOK142.6 billion.
In 1H15 the group reported a net loss of NOK25.4 billion compared with a profit of NOK35.7 billion in the same period last year. Revenues decreased to NOK243.9 billion from NOK312.5 billion in 1H14.