Norway's Statoil's net income fell to $2.9 billion in 2016 from $5.1 billion in 2015, the company announced on Friday.
Statoil said that 2016 was a challenging year for the oil and gas industry.
"Across the industry, the financial results were impacted by the continued low price environment and Statoil ended up with a negative net income in this situation. It is encouraging to see how well the company has delivered on its improvement program and that the operational performance has continued to be strong," Oystein Loseth, chair of the board said in a written statement.
Loseth said that Statoil is now well positioned for the future.
He noted that the board of directors has focused its work on short-term measures to secure the company's position in a challenging environment and also in the long term through modifying the company's strategy.
The Norwegian company noted in its annual report that it has reduced exploration-drilling activity outside Norway in 2016 and prioritized new access efforts and prospect maturation to support increased drilling activity for 2017 onwards.
The company said that Brazil is one of Statoil's core exploration areas.
The company noted that it secured a position in Turkey through a partnership with Canadian Valeura Energy in the Thrace region in the European northwestern part of Turkey.
Statoil completed nine exploratory wells and made three discoveries internationally in 2016.
"In 2017 Statoil’s international exploration drilling activity will comprise growth opportunities in basins where Statoil already is established with discoveries and producing fields, such as Canada, Brazil and the U.K. as well as new frontier opportunities like Suriname and Indonesia," Statoil said and added that it expects to complete 12 to 14 exploration wells internationally in 2017.
By Murat Temizer