Statoil Hydro profits cut in half

A high tax bill has hit Statoil Hydro's profits hard

Norwegian oil company Statoil Hydro has seen quarterly profits fall by more than a half because of higher taxes triggered by the strengthening dollar.

Net profits for July to September were 6.3bn kroner ($950m; £590m), compared with 14.6bn kroner for the same period last year.

Statoil sells oil and gas in US dollars. As the dollar risen, it has left the company with "an unusually high" tax bill.

Pre-tax profits were only down 12%.

Revenue was up 35%, from 129.7m kroner to 174.5m kroner, because of higher sales.

"Our operating performance and operating income are strong and we are well positioned industrially and financially," said Helge Lund, chief executive of Statoil Hydro.

The company, based in the western port of Stavanger, is the biggest oil producer on the Norwegian continental shelf.