The government will sell 100 million shares of Statoil ASA, reducing its overall stake in the company to 71.7 percent, the oil ministry said Wednesday. Norway began the partial privatization of the company in 2001 by selling a 17.5 percent stake. Under a mandate from parliament, the government can sell off its holdings in the company to as low as 66 percent. The shares will be priced at 106.10 kronor to 106.50 kroner (¤12.68-12.72, US$16.48-16.54). Statoil shares fell less than 1 percent to 106 kroner (¤12.65, US$16.46) on the Oslo stock exchange. In the past year, the shares traded there have gained about 35 percent. "The current market environment allows us to further reduce the government's holding in Statoil ASA," said oil minister Thorhild Widvey. "The state will remain the dominant shareholder in the company, and thus be the main beneficiary from any further improvements in the share price." The ministry said the sale would be soon, but offered no specifics. On Monday, Statoil reported record earnings, buoyed by high oil prices. For 2004, the Stavanger-based company reported a net profit of 24.9 billion kroner (US$3.87 billion,¤2.98 billion), a 51 percent increase from 2003. Revenue rose 22 percent to 306.2 billion kroner (US$47.55 billion, ¤36.58). Analyst John Olaisen of the Carnegie investment house said the timing of the offer was good.
