This excerpt taken from the STO 6-K filed Aug 1, 2008.
RECORD RESULTS AND HIGH PRODUCTION
StatoilHydro's second quarter 2008, operating and financial review
StatoilHydro's second quarter 2008 result was influenced by high production and high prices. Net income in the second quarter of 2008 amounted to NOK 18.9 billion, up 36% compared to NOK 13.9 billion in the second quarter of 2007. Net income in the first half of 2008 amounted to NOK 35.0 billion, compared to NOK 23.9 billion in the first half of 2007.
The increase in net income from the second quarter of 2007 to the second quarter of 2008 was mainly due to a 44% increase in realised liquids (crude oil, condensate and NGL) prices measured in NOK, a 49% increase in natural gas prices and an 8% increase in lifted volumes. The increase was partly offset by negative net financial income and higher taxes.
The increase in net income from the first half of 2007 to the first half of 2008 was mainly due to a 44% increase in realised liquids prices measured in NOK, and a 31% increase in natural gas prices. The increase was partly offset by increased operating expenses, exploration expenses and higher taxes.
"The second quarter result is primarily influenced by high oil and gas prices. Our record earnings are also coming as a result of operational focus contributing to high production", says Helge Lund, StatoilHydro's chief executive.
"Our equity production increased 6% from the second quarter of 2007, mainly due to new capacity both on and outside the Norwegian Continental Shelf (NCS) and higher gas offtake. A number of our fields will undergo planned turnarounds in the next quarter. In total we are on track to deliver on our 2008 production ambition", Lund says.
"We are also satisfied with our exploration results this year. In the first half of 2008 we have completed a total of 49 exploration wells, out of which 18 have been declared as discoveries. For the full year we plan to drill at least 70 wells", Lund adds.