(Bloomberg) -- Norway’s first-quarter earnings from its oil and gas fields plunged by almost half from a year earlier as natural gas prices tumbled.

The country earned 60 billion kroner ($5.4 billion) from its direct ownership of licenses, according to Petoro AS, which manages the state’s holdings. The decline reflects lackluster demand for gas in Europe, where a relatively mild winter left inventories amply supplied and prices far below year-earlier levels.

“Europe entered the winter season with full stockpiles,” Chief Executive Officer Kristin Kragseth said Thursday in a statement. The weather meant “gas consumption was lower than expected.”

Norway’s gas sales help feed its $1.6 trillion sovereign wealth fund. The country became the continent’s biggest supplier of the fuel after Russian flows slumped following the invasion of Ukraine.

Petoro’s data show gas volumes were 5% higher than a year earlier thanks to increased production from the giant Troll field and the restart of the Dvalin project.

The company manages the state’s stakes in some of Norway’s most important fields, including the Johan Sverdrup oil deposit and Troll, which represents about 60% of gas reserves on the Norwegian continental shelf.

Petoro reported total first-quarter production of 1.12 million barrels of oil equivalent a day, an increase of 31,000 barrels a day from a year earlier.

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