Equinor Q3 Profit Down Year-on-Year as Output Dips

Equinor ASA on Thursday reported $2.3 billion in net income for the third quarter, down about nine percent compared to the same three-month period last year as project turnarounds offset stronger production in Norwegian waters.

Quarter-on-quarter, however, the latest figure marks a 22.1 percent increase. When adjusted for non-recurring or extraordinary items, Equinor’s net earnings stood at $2.19 billion, or $0.79 per share, according to the July–September results published on the company’s website.

Norway’s primarily state-owned Equinor closed 2.3 percent higher at NOK 274.7 ($25.2) on the Oslo exchange and 3.6 percent higher at $25.09 in New York on Thursday. On Friday, it opened at NOK 274.8 in Oslo.

Equinor produced 1.98 million barrels of oil equivalent (boe) a day in the third quarter, down 1.1 percent compared to the same quarter in 2023 and 3.1 percent compared to the prior quarter in 2024. While production on the Norwegian continental shelf rose two percent year-over-year driven by an increase in the Troll field, Equinor’s output at home “was partially offset by extensive turnarounds, natural decline and reduced ownership in the Statfjord area”, the company said in a statement.

“Over time, we have upgraded the capacity in the gas value chain”, president and chief executive Anders Opedal said in the statement on Equinor’s website. “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”.

“Internationally, new wells contributed positively to the production”, Equinor said. “However, the international production was negatively impacted by offshore turnarounds and hurricanes in the United States”.

In the power segment, Equinor increased generation from renewable sources by 82 percent year-on-year to 677 gigawatt hours, driven by plants put onstream this year.

Equinor logged $6.9 billion in net operating income, down 7.4 percent year-on-year, though cash flow from operating activities grew 34.8 percent.

Renewable assets posted negative $115 million in adjusted operating income “as the costs of project development exceeded the earnings from assets in operation”, Equinor said in the statement.

“Net cash flow decreased by USD 4,901 million from the same quarter in the prior year to an outflow of USD 3,422 million primarily reflecting substantial cash distribution of USD 4,564 million in the quarter as part of the share buy-back program”, it said in a separate report detailing quarterly results.

The board of directors decided an ordinary cash dividend of $0.35 per share and an extraordinary cash dividend of $0.35 per share for the third quarter. The board approved the launch of the fourth and final tranche of the year’s buyback program, authorizing the redemption of up to $1.6 billion worth of shares between October 2024 and January 2025. The 2024 repurchase program is up to $6 billion. Equinor expects a total of approximately $14 billion in capital distribution for 2024.

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