Equinor Earnings Weighed by Impairments, Writedowns -- Earnings Review
February 10 2021 - 9:33AM
Dow Jones News
By Dominic Chopping
Equinor ASA reported results for the fourth quarter on
Wednesday. Here's what we watched:
NET INCOME: Equinor reported a net loss of $2.42 billion
compared with a loss of $236 million a year earlier and a $512
million profit expected in a FactSet poll.
Earnings for the quarter were weighed by impairments of $1.30
billion related to U.S. assets held for sale and a previously
announced writedown of $982 million at its Tanzania LNG
project.
REVENUE: Revenue fell 20% to $11.88 billion versus $12.74
billion expected.
WHAT WE WATCHED:
ASSET SALE: Equinor said it is selling U.S. onshore assets for
$900 million. The company said it has agreed to divest its
interests in the Bakken field in North Dakota and Montana to
Grayson Mill Energy, backed by EnCap Investments.
PRODUCTION: Equinor delivered total equity production of 2.043
million barrels of oil equivalent a day in the quarter, down from
2.198 million barrels a day for the same quarter of the prior
year.
GUIDANCE: Organic capital expenditure is estimated at an annual
average of $9 billion-$10 billion for 2021-22 while production for
2021 is estimated to be around 2% above 2020 levels.
Exploration activity in 2021 is seen at around $0.9 billion and
it still expects to deliver average annual production growth of
around 3% from 2019 to 2026.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
February 10, 2021 09:18 ET (14:18 GMT)
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