Equinor profits better than expected as oil and gas output target halved

27/10/2023

EQUINOR has posted better-than-expected profits for the third quarter, despite them falling by more than two-thirds from the year previous.

The Norwegian energy group has also cut its oil and gas production growth target due to heavy maintenance at many of its offshore fields.

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Pre-tax profits dropped to $8.02billion between July and September, more than the $7.59billion forecasts predicted. It’s a 67% drop from the same period last year when oil and gas prices soared amid Russia’s invasion of Ukraine.

Equinor’s adjusted net-income is down 62% at $2.73billion, down from $7.19b last year though still beating the £2.24billion forecasted by analysts.

Total equity production for the quarter averaged 2.007million barrels of oil equivalent per day, slightly lower than the 2.021million barrels achieved in the same period in 2022.

Amid a difficult fiscal regime for oil and gas companies, Equinor remains optimistic that it’s production in 2023 will be 1.5% more than last year.

The forecast indicates a slight revision from their previous expectation of around 3% growth.

Equinor’s impressive demonstrates resilience, despite the ongoing challenges faced by oil and gas companies.

Anders Opedal, president and CEO of Equinor ASA, said: “Equinor delivered strong cash flow and earnings in a quarter with considerably lower gas prices than last year.

“Through strong operational performance, we delivered high oil production from Johan Sverdrup and our international portfolio. The gas production from the Norwegian continental shelf was impacted by planned maintenance and extended turnarounds. We continue with significant capital distribution and will deliver a total distribution of 17 billion dollars in 2023.”

“We continue our transition, with first power from Dogger Bank in the UK – the world’s largest offshore wind farm, further expanding in onshore renewables in Brazil and Poland, and investing in the Bayou Bend CCS project in the US. With the approved plan for electrification of Hammerfest LNG, and start-up of power from shore for Gina Krog, we continue to reduce our own emissions.”

“We continue to contribute to energy security by developing profitable oil and gas projects with low emissions from production, through the development of the Rosebank field in the UK and the start-up of the Breidablikk field on the NCS.”

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