Equinor third quarter 2024 results
Equinor (OSE: EQNR, NYSE: EQNR) delivered adjusted
operating income* of USD 6.89 billion and USD 2.04 billion after
tax in the third quarter of 2024. Equinor reported net operating
income of USD 6.91 billion and net income at USD 2.29 billion.
Adjusted net income* was USD 2.19 billion, leading to adjusted
earnings per share* of USD 0.79.
Financial and operational performance
- Solid financial results
- Effective execution of extensive turnaround programme
- Strong cash flow from operations
Strategic progress
- All-time high production from the Troll field in the gas
year
- Northern Lights facility completed and ready to receive
CO2
- Acquired a 9.8 percent stake in Ørsted in October
Capital distribution
- Third quarter ordinary cash dividend of USD 0.35 per share,
extraordinary cash dividend of USD 0.35 per share and fourth
tranche of share buy-back of up to USD 1.6 billion
- Total capital distribution for 2024 in line with announced
level of around USD 14 billion
Anders Opedal, President and CEO of Equinor ASA:
“With solid operational performance and results, we are well on
track to deliver strong cashflow from operations in line with what
we said at the capital markets update in February.”
“Over time, we have upgraded the capacity in the gas value
chain. This has contributed to an all-time high production from the
Troll field in the gas year. In the quarter, the Johan Sverdrup
field delivered a production record of more than 756 000 barrels of
oil in one day and reached the milestone of one billion barrels
produced since the start-up five years ago. This strengthens our
position to deliver safe and reliable energy to Europe.”
“We continue to invest in renewables and develop low carbon
value chains. In the quarter, the world’s first commercial storage
facility, Northern Lights, was completed and is now ready to
receive CO2 from customers.”
Operational performance
Equinor delivered a total equity production of 1,984 mboe per
day in the third quarter, down from 2,007 mboe in the same quarter
last year.
On the Norwegian continental shelf (NCS), production increased
by 2 percent compared to the third quarter 2023. This was due to
high gas production from the Troll field and positive contributions
from Aasta Hansteen and Oseberg. The increase was partially offset
by extensive turnarounds, natural decline and reduced ownership in
the Statfjord area.
Internationally, new wells contributed positively to the
production. However, the international production was negatively
impacted by offshore turnarounds and hurricanes in the United
States.
In the quarter, Equinor completed nine offshore exploration
wells with one commercial discovery. Four wells were ongoing at the
quarter end. Two wells were expensed.
Equinor produced 677 GWh from renewable assets in the third
quarter, up 82 percent from the same quarter last year. The
increase was driven by the addition of onshore power plants in
2024. The offshore wind parks Dudgeon, Sheringham Shoal and Arkona
also contributed positively to the production.
The progress at Dogger Bank A is slower than expected. Based on
this, the expected growth in power production from renewable assets
in 2024 is adjusted to around 50 percent.
Strategic progress
Equinor continued to optimise the portfolio through projects and
strategic business development in the quarter.
On the NCS, the Johan Castberg production vessel was securely
anchored at the field in the Barents Sea and hook-up is on track
for production start before year-end. In the quarter, Troll B and C
became partly powered from shore, contributing to the company’s
efforts to strengthen competitiveness and halve operated emissions
by 2030.
The recent acquisition of a 9.8 percent stake in Ørsted, gives
Equinor exposure to premium offshore wind assets in operation and a
solid project pipeline. In the quarter, Equinor also won an
offshore wind lease in the U.S. Atlantic Ocean at an attractive
price, adding optionality of around 2 gigawatt capacity to its
existing portfolio. Furthermore, the company started recalibrating
its portfolio of early phase renewable projects to reduce cost and
focus business development toward core markets.
Equinor continues to progress its low carbon solutions
portfolio. The Northern Lights facility was completed on estimated
time and budget. In the UK, two key partner-operated low-carbon
solution projects secured funding from the government.
Solid financial results
Equinor delivered adjusted operating income* of USD 6.89
billion. USD 5.88 billion come from Exploration and Production
Norway, USD 407 million from E&P International and USD 207
million from E&P USA. Marketing, Midstream & Processing
delivered adjusted operating income* of USD 545 million, driven by
LNG, power trading and geographical arbitrage for LPG. Adjusted
operating income* from Renewables was negative USD 115 million, as
the costs of project development exceeded the earnings from assets
in operation.
Cash flow from operating activities before taxes paid and
working capital items amounted to USD 9.23 billion for the third
quarter. Cash flow from operations after taxes paid* was USD 6.25
billion for the quarter, and USD 14.0 billion year to date.
Equinor paid one NCS tax instalment of USD 2.87 billion in the
quarter and total capital expenditures were USD 3.14 billion.
Organic capital expenditure* was USD 3.08 billion for the quarter
and USD 8.73 billion year to date. The organic capital expenditure*
guiding for the year is adjusted to USD 12-13 billion. After taxes,
capital distribution to shareholders and investments, net cash
flow* ended at negative USD 3.42 billion in the third quarter. The
Norwegian state’s share of the share buy-back programme of USD 4.02
billion in July impacted the net cash flow*.
Adjusted net debt to capital employed ratio* was negative 2.0
percent at the end of the third quarter, compared to negative 3.4
percent at the end of the second quarter of 2024.
Capital distribution
The board of directors has decided an ordinary cash dividend of
USD 0.35 per share and an extraordinary cash dividend of USD 0.35
per share for the third quarter of 2024. This is in line with
communication at the capital markets update in February.
The board has decided to initiate a fourth and final tranche of
share buy-back for 2024 of up to USD 1.6 billion. The fourth
tranche will commence on 25 October and end no later than 31
January 2025. This fourth tranche will complete the announced share
buy-back programme of up to USD 6 billion for 2024. It will also
conclude total capital distribution for 2024 of around USD 14
billion.
The third tranche of the share buy-back programme was completed
on 16 October 2024 with a total value of USD 1.6 billion.
All share buy-back amounts include shares to be redeemed by the
Norwegian state.
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* For items marked with an asterisk throughout this report,
see Use and reconciliation of non-GAAP financial measures in the
Supplementary disclosures.
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Further information from:
Investor relations
Bård Glad Pedersen, senior vice president Investor relations,
+47 918 01 791 (mobile)
Press
Sissel Rinde, vice president Media relations,
+47 412 60 584 (mobile)
This information is subject to the disclosure requirements
pursuant to Section 5-12 of the Norwegian Securities Trading
Act
- Equinor Third quarter 2024 Financial statements and review
- CFO presentation - 3rd quarter 2024 results
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