Norwegian energy giant Statoil Hydro's third-quarter net income fell 57 per cent, the group said Monday, citing a stronger US dollar rate that pushed up tax rates, reported dpa.
Net income for the quarter was 6.3 billion kroner (937 million dollars), compared to 14.6 billion kroner in the corresponding business period of 2007.
Net operating income increased 31 per cent to 47 billion kroner, while turnover was up 35 per cent to 170 billion kroner, the group said.
"Our operating performance and operating income are strong and we are well positioned industrially and financially in a time with great uncertainty in the financial markets," Statoil Hydro chief executive Helge Lund said in a statement.
Statoil Hydro said its average daily oil and gas third-quarter output was 1,550,000 barrels of oil equivalent per day, down 8 per cent on the corresponding business period 2007.
The group reported a rise in exploration spending, reflecting higher exploration activity.
Just over half of the 60 exploration wells drilled during January to September were made outside the Norwegian continental shelf.
In all 26 discoveries were declared, including eight outside the Norwegian continental shelf, the group said.
Gas prices were on average 55 per cent higher in third-quarter year-on-year measured in Norwegian kroner, while the average oil price was 36 per cent higher.
The group was created in October 2007 with the merger of Norwegian oil and gas groups Statoil and Norsk Hydro.
Third-quarter production costs increased "significantly," the group said, citing "restructuring costs relating to the merger, start-up of new fields, increased maintenance cost and general industry cost pressure."