Like every other European oil and gas major, Norway's Statoil (STL.OL) has suffered as a result of the pull-back in crude prices, but the state-backed energy giant has added pressure in that it plays the central role in supporting the nation's massive sovereign wealth fund.
The problem came home at the start of the month when the group revealed that it was offering to pay shareholders dividends in stock after logging a net loss of NOK 9.2bn (£741m) for the fourth quarter of 2015. Norway's government, which owns 67 percent of the group, backs the plan, which seeks to ease the pressure on Statoil's balance sheet.
The group's dividend cover ratio stands at 0.96, so the move to strengthen its balance sheet position is hardly surprising, but total cash receipts to the government will be reduced if other shareholders choose the scrip option, which is being offered at a 5 per cent discount.
