Statoil's Q3 results made for mixed reading. Strong operational performance continued and Statoil upped its 2017 production growth guidance to an impressive 6%. There was also further progress on costs and the 2017 budget was cut by 10% to US$10 billion. Operational efficiency has pushed the budget down without a reduction in activity. But an US$856 million impairment on unconventional assets in the US Eagle Ford hit reported net income leading to a quarterly net loss that undershot market expectations.Quarterly free cash flow generation was also weak despite higher output and prices. Financial gearing remained static at 28%.