The company met its guided production level by increasing equity production by 2%, to 1.962 mboe per day. It also delivered a successful exploration programme while maintaining cost control and capital discipline. However, net operating income was down by 39%, mainly because of lower prices for both oil and gas. Net operating income amounted to NOK 121.6 billion.
Around 80% of the Hydro merger synergies have been achieved, and the remainder are expected to be realised during 2010. Significant cost reductions have secured Statoil's highly competitive operating unit cost position.
The company has had a strong cash flow throughout the financial turmoil and has a sound financial position. Statoil is thus positioned to continue its production growth towards 2012 despite the current weakness in the gas markets, and it has projects and resource potential to underpin profitable growth beyond 2012. The board of directors is proposing an attractive dividend of NOK 6.00 per share for 2009.
