StatoilHydro 1Q Net Profit Plunges 75 Percent

OSLO (AP) — State-controlled oil company StatoilHydro ASA on Monday reported a 75 percent plunge in first quarter net profits due largely to lower crude prices and higher taxes.

The Stavanger-based group said its net profit for the January through March quarter was 4 billion kroner ($618 million) compared to 16 billion kroner a year earlier when oil prices were regularly hitting new highs.

A news release said oil prices fell 41 percent from a year ago, and that the earnings were hit by currency exchange rates, unusually high Norwegian taxes and greater costs, especially for exploration.

It said that was partly offset by a 23 percent rise in natural gas prices and increased oil and gas production.

"Recession and uncertainty in the world economy is continuing to impact energy demand and energy prices," said company Chief Executive Helge Lund. "Facing the turmoil, we are continuing to pursue further cost reductions, increased efficiency and operational improvements."

The company said revenues for the quarter were 112.8 billion kroner, a decline of 29 percent from a year earlier.