Equinor Q3 Earnings Boosted By Oil & Gas Prices – Earnings Review

0

By Dominic Chopping


Equinor ASA released its third quarter results on Wednesday. Here’s what we looked at:


NET EARNINGS: Equinor reported net income of $ 1.41 billion from a loss of $ 2.13 million a year earlier, a FactSet analyst survey expecting net income of $ 2.47 billion dollars.

Adjusted profit – his preferred measure – fell from $ 780 million to $ 9.77 billion, from $ 8.36 billion expected in a consensus compiled by companies.


REVENUES: Revenues more than doubled to $ 23.11 billion from $ 11.25 billion a year earlier. Analysts polled by FactSet expected revenue of $ 22.28 billion.


WHAT WE WATCHED:


–OIL AND GAS: Net operating income was impacted by higher gas and liquid prices, significant positive effects from derivatives mainly related to European gas and a net write-back of $ 0.51 billion.

“The unprecedented level and volatility of European gas prices underline the market uncertainty … we have taken steps to increase our gas exports to meet the strong demand,” said Managing Director Anders Opedal.


–PRODUCTION: The company delivered total equity production of 1.996 million barrels of oil equivalent per day in the quarter compared to 1.994 million barrels last year. A consensus compiled by companies saw total stock production in the quarter reach 2.022 million barrels of oil equivalent per day. Production from a new field and increased production from the Johan Sverdrup field, as well as strong production efficiency and optimized gas production were partially offset by the divestiture of Bakken and the closure of the Hammerfest plant LNG.


– GUIDANCE: Based on updated estimates, taxes payable on the Norwegian Continental Shelf in the fourth quarter are expected to be around $ 6.32 billion, of which $ 4.99 billion was paid on October 1st. Half of the oil taxes to Norway linked to 2021 will be paid in the first half of 2022, he said.

Organic investments and production targets have been maintained. Equinor is still forecasting an annual average organic capital expenditure of $ 9-10 billion in 2021-2022 and around $ 12 billion for 2023-24, while production for 2021 is estimated at around 2% au- above 2020 levels. Organic capital spending for 2021 is estimated at around $ 8 billion.


–CASH: Cash flow from operating activities before taxes paid and changes in working capital was $ 10.80 billion for the third quarter, compared to $ 3.34 billion for the same period in 2020.


Write to Dominic Chopping at [email protected]

Leave A Reply

Your email address will not be published.