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Statoil profits slide
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February 19, 2002: 5:04 a.m. ET
Norway's biggest oil company feels pinch of tumbling crude prices, Q4 down 45%
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OSLO, Norway (CNN) - Statoil, the Norwegian state-controlled oil company, said on Tuesday fourth-quarter profit fell 45 percent as crude prices tumbled.
Net income declined to 2.61 billion Norwegian crowns ($290 million) from 4.72 billion a year ago. Analysts polled by Reuters had forecast a profit of 2.57 billion crowns. Sales sipped more than 7 percent to 62.2 billion crowns.
Statoil, along with other major oil and gas companies, has been hit by falling prices as global demand slowed because of a downturn in the economy. Royal Dutch/Shell, Europe's largest oil company, said earlier this month profit was almost halved in the fourth quarter.
Brent crude prices took a tumble after September 11 amid concerns of a global recession. While demand has slowed, crude prices averaged about $19.40 a barrel in the last three months of 2001, compared with $29.65 a year earlier.
"The decline in income in the fourth quarter largely reflects lower oil and gas prices, narrower refining margins and a weaker financial result," said Statoil Chief Executive Olav Fjell.
Statoil, which is Norway's biggest listed company and still two-thirds owned by the government, said profits before tax and other costs halved to 8.79 billion crowns. Analysts has forecast an average of 9.93 billion crowns.
The company's stock, which has fallen more than 10 percent since it made its stock market debut in June, slipped 2.4 percent to 60 crowns in early Oslo trading on Tuesday.
Norway is the third biggest oil exporter behind Saudi Arabia and Russia and produces about 3 million barrels per day. Statoil said it planned investments of 25 billion crowns in 2002, aiming to diversify away from its stronghold on the Norwegian continental shelf to areas including West Africa, Venezuela and the Caspian Sea. 
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