🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Equinor Q2 profit down 57% as oil and gas prices fall

Published 26/07/2023, 05:54
© Reuters. FILE PHOTO-Equinor logo and stock graph are seen displayed in this illustration taken, May 3, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
NG
-

By Gwladys Fouche

OSLO (Reuters) -Equinor posted on Wednesday a 57% year-on-year decline in second quarter core profit, in line with expectations as oil and gas prices fell, while maintaining its dividend and share buyback levels, sending its shares slightly lower.

The Norwegian energy group's adjusted earnings before interest and tax for April-June fell to $7.54 billion from $17.6 billion a year earlier, broadly in line with the $7.64 billion predicted in a poll of 21 analysts compiled by Equinor.

It was down from $12.0 billion in the first quarter.

"We deliver solid results ... at a time when energy prices are very different from last summer," CEO Anders Opedal told a news conference.

Equinor maintained its plan to distribute $17 billion to shareholders this year in the form of $11 billion in dividend payments and $6 billion in share buybacks, he added.

Equinor's Oslo-listed stocks were down 1.1% at 0917 GMT versus an Oslo benchmark index down 0.4%.

They have fallen 11% year to date as gas prices tumbled, underperforming a 0.4% drop in European petroleum company stocks.

"Equinor's results clearly show that the days of windfall profits from high European prices are drawing to a close for the company," said Elif Binici, an analyst at AlphaValue.

Equinor, Europe's largest supplier of natural gas, is the continent's first major energy group to report results for the second quarter.

Oil and gas prices soared last year as Russia's invasion of Ukraine led to supply disruptions but the cost of energy has since fallen as fears of shortages eased amid global economic headwinds.

© Reuters. FILE PHOTO-Equinor logo and stock graph are seen displayed in this illustration taken, May 3, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

Majority state-owned Equinor's overall oil and gas production rose 1% year on year to 1.99 million barrels of oil equivalent per day (boed) and the company maintained its full-year production growth target of 3% for the year, boosted by a bump in output from the Johan Sverdrup oilfield, Europe's biggest producing entity.

The company reiterated its forecasts for capital expenditure of between $10 billion and $11 billion this year and about $13 billion each year from 2024 to 2026.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.