Statoil stung by hedging derivatives losses

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Statoil, Europe's largest natural gas producer after Russia's Gazprom, has revealed a range of losses from derivatives it used to hedge against fluctuations in foreign currency, interest rates and commodity prices in the second quarter of 2010.

Compared with the same period last year, Q2 cashflows provided by operating activities were hit by a Nkr15.1 billion loss in derivatives, worth $2.4 billion, due to divestment, says the company.

Adjusted earnings in Q2 2010 stood at Nkr36.4 billion, up 25