Equinor third quarter 2024 results

24 Oct 2024 06:45 CEST

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

More information:
Access the news on Oslo Bors NewsWeb site

630237_Equinor Third quarter 2024 Financial statements and review.pdf
630237_CFO presentation - 3rd quarter 2024 results.pdf