Norwegian energy giant Statoil Hydro's second-quarter earnings were boosted by record-high oil and gas prices, the group said Friday according to DPA. Net income was 18.91 billion kroner (3.68 billion dollars), up 36 per cent on the corresponding business quarter in 2007. Turnover increased 34 per cent to 170.6 billion kroner, the group said, noting that net operating income surged 74 per cent to 62.6 billion kroner. "The second quarter result is primarily influenced by high oil and gas prices," Statoil Hydro chief executive Helge Lund said in a statement. Statoil Hydro said its average daily oil and gas output during second quarter 2008 was 1,736,000 barrels of oil equivalent per day, up 8 per cent on the corresponding business period 2007. The group reported a rise in exploration spending, reflecting higher exploration activity. "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 said. Gas prices were on average 49 per cent higher in second-quarter 2008 measured in Norwegian kroner compared to 2007, while the average oil price was 44 per cent higher. Production costs increased "significantly" in second-quarter 2008 the group said, citing "restructuring costs relating to the merger, start-up of new fields, increased maintenance cost and general industry cost pressure." The group was created in October 2007 with the merger of Norwegian oil and gas groups Statoil and Norsk Hydro.
