Equinor profit doubles on soaring oil and gas prices, sees higher output

By Nora Buli and Nerijus Adomaitis

OSLO, Oct 28 (Reuters) - Equinor on Wednesday reported its strongest quarterly profit in almost four years, driven by a surge in oil and gas prices as the war in the Middle East continued to disrupt global energy supplies, and raised its full-year output target.

The Norwegian group's adjusted earnings before tax for the July to September 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.

"High production in the third quarter enabled us to capture additional value from higher prices," CEO Anders Opedal said in a statement.

Equinor now expects its oil and gas output to rise by around 4% this year, up from 3% growth seen previously.

The shares of majority state-owned Equinor are up 86% year-to-date, trading at all-time highs in recent weeks.

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

The state-controlled group said in June it will double its share buybacks, returning some $3 billion to owners this year as the wartime rise in oil and gas prices filled its coffers.

But Equinor kept its regular quarterly dividend unchanged at $0.39 per share, and unlike some of its peers it did not announce any extraordinary dividend payments.

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)