Oslo - Record-high oil and gas prices helped boost Norwegian energy giant Statoil Hydro's first-quarter earnings to new highs, the group said Tuesday.
Net income was 16 billion kroner (3.15 billion dollars), up 61 per cent on the corresponding business quarter in 2007.

Turnover increased 33 per cent to 157.69 billion kroner, the group said.

"We deliver a good first quarter result characterized by solid production in a market with high oil and gas prices," Statoil Hydro chief executive Helge Lund said in a statement.

The group was created in October with the merger between Norwegian oil and gas groups Statoil and Norsk Hydro.

Statoil Hydro said its average daily oil and gas output during first quarter 2008 was 1,889,000 barrels of oil equivalent per day, compared to 1,811,000 barrels during the corresponding business period 2007.

The group reported a rise in exploration spending from 2.7 billion to 3.9 billion kroner, reflecting "higher drilling activity" and costs for seismic surveys.

Production costs also increased in first-quarter 2008 the group said, citing "restructuring costs, start-up of new fields, increased maintenance cost and general industry cost pressure."

Gas prices were on average 16 per cent higher in first-quarter 2008 measured in Norwegian kroner compared to 2007, while the average oil price was 42 per cent higher.

Among developments in the quarter was a deal signed with Anadarko of Brazil that would make Statoil Hydro full operator of the Peregrino project. (dpa)