Equinor earns 249 billion in the third quarter – E24

Equinor earns 249 billion in the third quarter - E24

Equinor’s revised third-quarter result was stronger than expected at a record high of NOK 249 billion. The company raises additional profits.

In September, Equinor CEO Anders Opedal brought Prime Minister Jonas Gahr Støre to the Sleipner stand. The energy crisis, the explosion of gas pipelines in the Baltic Sea, and the surveillance of drones on the Norwegian continental shelf are creating uncertainty in the industry, but the money is flowing into the coffers.

In recent quarters, higher oil and gas prices have contributed to very strong numbers for producers such as Equinor.

The company itself considers adjusted operating profit to be the best indicator of how the company is actually performing.

Equinor’s adjusted operating profit before tax was $24.3 billion (249 billion kronor) in the third quarter, up from $9.77 billion at the same time last year.

Up front, a pre-tax adjusted operating profit of $23.53 billion (241 billion NOK at today’s exchange rate) was expected, according to number Compiled by Equinor itself from 26 analysts.

Equinor’s best adjusted result before this was $18 billion in the first quarter of this year.

The Norwegian oil and gas business accounts for the vast majority of the company’s production and income (see fact box).

Equinor’s revenue rose to $42.3 billion in the third quarter, from $23.1 billion in the same period last year. The after-tax result (bottom line) was $9.38 billion, up from $1.41 billion in the same quarter last year.

Very strong financial results

High production and continued high price levels have resulted in very strong financial results, with an adjusted operating result of more than $24 billion before tax, Equinor CEO Anders Opedal says in message.

Dividends enable us to continue investing in the energy transition, while at the same time building resilience in uncertain times. It also led to an increase in tax payments. Altogether, we paid nearly $17 billion in taxes during the quarter, according to Obidal.

See also  Volvo XC40: It's new - but you'll struggle to see it

The amount corresponds to 174 billion Norwegian kroner. Equinor expects to pay NOK 140 billion in taxes in the fourth quarter.

In the aftermath of the explosions on two Russian gas pipelines in the Baltic Sea, there was a high level of alert on the Norwegian continental shelf. Obidal recently moved Prime Minister Jonas Gahr Stoer to Sleipner Square where they confirmed that safety is taken very seriously.

– Together with partners and authorities, we have implemented additional measures to increase security in this case, says Obedal.

Increases the additional return

Equinor increases its additional dividend to $0.70 per share in the third quarter, from $0.50 per share in the second quarter. This corresponds to an additional profit increase of $635 million (6.5 billion kronor) from the previous quarter.

The total additional earnings are now $2.2 billion, which is equivalent to 22.8 billion crowns.

The regular dividend is kept at $0.20 per share for the third quarter.

See also  With this, Audi really entered the premium class

Equinor will begin its fourth and final round of share buybacks. It’s about $1.83 billion, out of a total planned buyback of $6 billion this year.

The company now expects to return a total of $13.7 billion to its owners during 2022. This is equivalent to NOK 140 billion.

Standard gas production

Equinor gas demand was strong in Europe. Russia cut off much of its supplies, which drove prices up. Equinor says the company increased gas production by 11 per cent compared to the third quarter of last year.

Obedal says Norway and Equinor’s role as a reliable energy supplier is more important than ever.

The Russian war in Ukraine has changed energy markets, reduced energy access and increased prices. Equinor continues to deliver stable, high production, with gas volumes from the Norwegian continental shelf at record levels, it says.

See also  Sigvi Breck, Telenor | Telenor CEO of AI: - This is a 'rat race'

Equinor wrote values ​​for a total of $1.09 billion for the quarter. This included write-offs of $891 million related to the MMP Marketing and Processing unit and changes in expectations for refineries, and $195 million in writedowns related to the US business.

In total, Equinor produced 2.021 million barrels of oil equivalent per day in the third quarter, up from 1.996 million barrels per day in the same period last year. It was previously expected to produce 2.067 million barrels of oil equivalent per day.

Read also

Analysts expect Equinor to profit more than 251 billion

Gas agreements in Denmark and Poland

Recently, Equinor entered into agreements to supply long-term gas to Denmark and Poland via its newly built Baltic Pipe gas pipeline.

The company will deliver gas to Denmark’s Ørsted from 2023 to 2024, and has entered into a ten-year agreement on shipments to Poland’s PGNiG.

In its quarterly report, Equinor also reported that the company had applied to expand Britain’s Sheringham Shoal and Dudgeon offshore wind farms totaling 719 megawatts.

The company has also made an investment decision for the Blandford Road battery storage project. The company’s first commercial plant of this type could store 50,000 kWh of electricity for short periods.

At the beginning of October, Equinor CFO Ulrica Fearn left the company to become its CFO Carlsberg. Equinor New CFO He is Torgrim Reitan, who was also the company’s chief financial officer between 2010 and 2015.

Read also

European gas prices are falling, but the jubilation may be short-lived

Dalila Awolowo

Dalila Awolowo

"Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff."

Leave a Reply

Your email address will not be published. Required fields are marked *