Maersk Oil’s profit soars on cost cuts

Maersk Oil's profit soars on cost cuts

Danish oil company Maersk Oil posted a $145 million profit for the third quarter of 2016, an increase from $32 million profit achieved a year ago.

The company said that the profit was positively affected by higher operational efficiency and lower costs. It reduced operating expenses excluding exploration by 21% to $468 million from $594 million a year ago.

Maersk Oil said that cost reductions were progressing ahead of plan “with scrutiny of all projects leading to lower costs”.

To remind, it was announced during the third quarter that Jakob Bo Thomasen would step down as CEO of Maersk Oil on October 1, 2016. He left the Maersk Group November 1, 2016. Gretchen Watkins has been appointed as his replacement.

Providing guidance for the remainder of 2016, Maersk Oil said it still expects a positive underlying result.

According to the Danish oil firm, a breakeven result is now expected to be reached with an oil price below $40 per barrel versus previously in the range of $40–45 per barrel.

Maersk Oil expects entitlement production of 320,000-330,000 boepd above last year’s 312,000 boepd, and exploration costs significantly below last year’s $423 million.

Offshore Energy Today Staff

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