Norwegian state-controlled oil and gas group Statoil reported a 40 per cent rise in second-quarter pre-tax profits yesterday, boosted by sales of non-core assets and beating market estimates. But the company cautioned that stronger oil and gas prices also helped and it was unclear whether prices could be maintained due to the uncertainties about the world economy which could affect energy demand, Statoil said.

"This result is good," said Mr Olav Fjell, chief executive officer. said in a statement. "We have benefited from good prices in most of our markets." The company, partly privatised in the nation's biggest state sell-off on June 18th, adjusted profits last year to reflect its purchase of 15 per cent of the State Direct Financial Interest (SDFI) in the oil and gas sector in May.