Austria's OMV saw profits slide during the second quarter of the year as lower revenue and higher expenses hit the company's bottom line.
Net profit for the second quarter totalled €174.8 million ($233.6 million), down from a profit of €343 million during the same quarter last year.
Hitting profits was higher depreciation in Norway, as it was not included in the prior quarter results, and in Tunisia.
OMV also blamed higher production costs in Norway and Romania for its fall in profits, while the weaker US dollar against the euro also hit results.
Exploration expenses were also higher in the recent quarter, coming in at €182 million compared to €98 million a year ago, following several unsuccessful wells.
The exploration write-offs included the Padouck Deep, Affanga Deep and Okala wells in Gabon, the Brugdan well in the Faroe Islands and the Byrkje and Apollo wells in Norway.
Production costs, excluding royalties, from the company's exploration and production arm were also up 42% mainly due to the change in the country mix, with contribution from Norway, lower production volumes in Libya, as well as higher costs in Romania.
The fall in profits came as revenue also slipped 12% to €9.3 billion, compared to the nearly €10.6 billion generated in the second quarter of 2013.
The fall in revenue came despite output during the second quarter remaining relatively flat year-on-year, at about 297,000 barrels of oil equivalent per day.
OMV noted that lower Libyan production, as volumes were affected by security issues, offset the increased contribution from newly acquired assets in Norway.
“In the first half of 2014, our results were adversely impacted by lower refining margins, a weaker US dollar and political instability in Libya and Yemen,” OMV chief executive Gerhard Roiss said.
OMV gave a stronger forecast for the remainder of the year, saying it expected the 2014 output level to be at about 310,000 boepd as the combined production from Gudrun and Gullfaks in Norway was expected to rise to 40,000 boepd by year-end.
Output in New Zealand is also expected to be higher on a yearly basis following the successful completion of the refurbishment programme at the Maari oilfield in 2013 and additional production coming from the Maari growth project this year.