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Statoil president and CEO Eldar Sætre. Image courtesy of Ole Jørgen Bratland/ Statoil ASA.

Norway’s Statoil reported Tuesday that its first quarter adjusted earnings fell 71 percent year-over-year.

The company’s first quarter adjusted earnings fell to $857 million, down from $2.94 billion in the same period in 2015.

Statoil said the earnings decline was primarily tied to significantly lower liquids and gas prices that were partially offset by good operational performance and reduced underlying operating costs.

First quarter adjusted earnings after tax sank to $122 million in the first quarter, down from $902 million in the same period last year.

Adjusted total revenues and other income for the first quarter fell 35 percent year-over-year to $10.17 billion.

International Financial Reporting Standards (IFRS) net income was $611 million in the first quarter compared to a net loss of $4.57  billion in the same period of 2015.

First quarter net operating income rose to $1.06 billion compared to a $3.30 billion loss in the year ago quarter.

Net impairment reversals of $308 million before tax in the first quarter positively impacted the IFRS results compared to net impairment charges of $5.93 billion before tax in the same period last year, Statoil said.

Statoil delivered equity production of 2.054 million barrels of oil equivalent per day in the first quarter.

Underlying production grew by 2 percent year-over-year after adjusting for divestments.

Production from the Norwegian continental shelf  grew 2 percent in the first quarter of 2016 compared to last year, adjusted for divestments.

Equity production outside of Norway was 734,000 boe per day, in line with the first quarter last year, adjusted for transactions.

Cash flow from operations amounted to $2.20 billion in the first quarter compared to $3.74 billion in the same period last year.

Organic capital expenditure was $2.4 billion in the first three months of 2016.

Total equity and liabilities ticked down to $112.80 billion compared to $123.66 billion in the first quarter of 2015.

The company’s board of directors has decided to pay a dividend of $0.2201 per ordinary share for the first quarter.

“The industry is facing challenges. However, I am pleased to see progress consistent with the priorities we presented in February. We have a firm plan to improve efficiency and make faster and deeper cost reductions,” Statoil president and CEO Eldar Sætre said.