Equinor's profit doubles on soaring oil and gas prices, raises output target

By Nora Buli and Nerijus Adomaitis

OSLO, Oct 28 (Reuters) - Equinor reported its strongest quarterly profit in almost four years on Wednesday as the Middle East conflict sent oil and gas prices surging, while strong output prompted the Norwegian group to raise its full-year production target.

The group's adjusted earnings before tax for the July to September third-quarter period rose to $12.4 billion from $6.2 billion a year earlier, ahead of the $12.19 billion predicted in a poll of 21 analysts compiled by Equinor.

It was the highest profit since the final quarter of 2022.

"The basis for this result is, of course, that we have increased production and, just as importantly, that prices have risen significantly," CEO Anders Opedal told Reuters.

Equinor now expects its oil and gas output to rise by around 4% this year, up from 3% growth seen previously, as recently opened fields ramp up production, the group said.

But production may decline somewhat in 2027 from this year's "extraordinary" level, Equinor's Chief Financial Officer Torgrim Reitan later said.

The share price of majority state-owned Equinor is up 86% year to date, trading at all-time highs in recent weeks. It rose 0.3% by 1140 GMT on Wednesday.

The stock is outperforming a 43% increase in European energy peers, reflecting Equinor's position as a major supplier of oil and gas to Europe and with no direct exposure to the Middle East.

The group said in June it would double its share buybacks, returning some $3 billion to owners this year, but Equinor kept its regular quarterly dividend unchanged at $0.39 per share, and unlike some of its peers did not announce any extraordinary dividend payments.

Reitan said Equinor would continue to use buybacks, rather than special dividends, to distribute excess capital.

Equinor produced 2.17 million barrels of oil equivalent per day (boed) in the third quarter, exceeding analysts' expectations of 2.13 million boed, and up from 2.13 million boed a year ago.

The downstream division, which includes energy trading, reported a profit of $893 million for the quarter, exceeding the $793 million expected by analysts, while beating the unit's $400 million quarterly profit guidance.

(Reporting by Nora Buli and Nerijus Adomaitis, editing by Terje Solsvik and Elaine Hardcastle)