(RTTNews) - StatoilHydro ASA (STO: News ) posted higher profit in its third quarter, helped by a net gain on net financial items and a lower effective tax rate. However, the company's operating results were lower, impacted mainly by declines in oil and natural gas prices.

Net income in the third quarter of 2009 rose to NOK 6.6 billion from NOK 6.3 billion last year. Third-quarter 2009 earnings per share based on net income were NOK 2.33, higher than NOK 2.04 in the comparable period.

The results reflected the net gain on net financial items and a lower effective tax rate, only partly offset by the reduction in net operating income caused by reduced prices.

Third-quarter adjusted earnings were NOK 31.2 billion. Adjusted earnings after tax was NOK 9.3 billion for the quarter, excluding the effect of tax on net financial items, and representing an effective adjusted tax rate of 70% in 2009 third quarter. Adjusted earnings after tax stood at NOK 15.4 billion in the third quarter of 2008.

Total revenues and other income declined to NOK 123.06 billion from NOK 174.48 billion in the prior year quarter.

Net operating income for the latest quarter dipped to NOK 28.3 billion from NOK 47.0 billion in the previous year, mainly attributable to lower prices for both liduids and gas, and to a lesser extent increased depreciation and impairment expense. In the third quarter of 2009, income before tax amounted to NOK 31.5 billion.
Total liquids and gas entitlement production in the third quarter of 2009 was 1,712 mboe per day compared with 1,550 mboe per day in the 2008 period. Total equity production was 1,874 mboe per day, higher than 1,733 mboe per day in the prior year quarter, primarily related to the start-up of new fields and ramp-up of production from existing fields, and only partly reduced by declining production from mature fields, maintenance activities and various operational issues.

For the nine-month period, the company reported a 74% plunge in net income to NOK 10.6 billion from NOK 41.2 billion a year ago, mainly due to reduced operating income caused by lower revenues from liquids and gas sales and a higher effective tax rate, only partly offset by reduced loss on net financial items.

Earnings per share based on net income for the nine-month period plummeted to NOK 3.50 from NOK 12.95 in the 2008 period.

Year-to-date, net operating income fell to NOK 88.1 billion from NOK 161.1 billion in the last year, mainly attributable to lower prices of oil and gas, and increased depreciation, amortisation and impairment losses, partly offset by income from higher volumes.

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