Equinor first quarter 2021 results
April 29 2021 - 12:44AM
Equinor (OSE: EQNR, NYSE: EQNR) reports adjusted
earnings of USD 5.47 billion and USD 2.66 billion after tax in the
first quarter of 2021. IFRS net operating income was USD 5.22
billion and the IFRS net income was USD 1.85 billion.
The first quarter of 2021 was characterised by:
- Strong results due to price recovery, sustained cost
improvements and strict capital discipline.
- Very strong cash flow and a 7.1 percentage points reduction of
adjusted net debt ratio to 24.6%.
- Solid operational performance and high production efficiency.
Some impact from Covid-19 and restrictions on projects in
execution.
- Significant gain of USD 1.38 billion from farm downs in
offshore wind assets.
- Cash dividend of USD 0.15 per share.
“With sustained improvements and capital discipline, we are able
to capture value from recovering oil and gas prices and achieve our
best quarterly results since 2014. We deliver a net cash flow above
5 billion dollars and reduce our adjusted net debt ratio to below
25 percent. The forceful response and solid operational performance
delivered by our organisation during the pandemic is providing for
a strong position for safe operations, value creation and cash flow
generation in 2021 and going forward,” says Anders Opedal,
President and CEO of Equinor ASA.
“Equinor aims to be a leader in the energy transition and during
the quarter we strengthened our position within offshore wind with
the awarded offtake contracts from New York State for Empire Wind 2
and Beacon Wind 1. We also booked capital gains of around 1.4
billion dollars from farm downs, demonstrating our ability to
create value from accessing and maturing renewable projects. Within
low carbon solutions we have started construction of the Northern
Lights terminal and secured funding for three low carbon projects
in the UK,” says Opedal.
Adjusted earnings [5] were USD 5.47 billion in the first
quarter, up from USD 2.05 billion in the same period in 2020.
Adjusted earnings after tax [5] were USD 2.66 billion, up from USD
0.56 billion in the same period last year.
Higher realised prices for gas and liquids positively impacted
the results from all upstream segments, further supported by
sustained costs improvements and strict capital discipline.
Results from the Marketing, midstream and processing segment
were impacted by losses on derivatives for gas forward sales, shut
down of the Hammerfest LNG plant and weak refinery margins.
The Renewables segment delivers strong financial results with a
capital gain from farm downs of around USD 1.4 billion, included in
both IFRS and adjusted results, from the divestments of a 50%
non-operated interest in the offshore wind projects Empire Wind and
Beacon Wind in the US and a 10% equity interest in the Dogger Bank
A and B in the UK.
IFRS net operating income was USD 5.22 billion in the first
quarter, up from USD 0.06 billion in the same period in 2020. IFRS
net income was USD 1.85 billion in the first quarter, compared to
negative USD 0.71 billion in the first quarter of 2020. Net
operating income was impacted by higher prices for gas and liquids,
gains from transactions, and lower impairments of USD 0.43 billion
in the first quarter of 2021.
Equinor delivered total equity production of 2,168 mboe per day
in the first quarter, down from 2,233 mboe per day in the same
period in 2020. Shut down of the Hammerfest LNG plant and
maintenance at Peregrino were partially offset by higher flex gas
volumes, increased gas volumes from the US onshore and increased
production from Johan Sverdrup and Snorre Expansion. Equity
production of renewable energy for the quarter was 450 GWh, down
from 558 GWh for the same period last year, impacted by lower winds
than expected for the season.
At the end of first quarter 2021, Equinor has completed 5
exploration wells with 4 commercial discoveries and 11 wells were
ongoing. The 4 discoveries at the Norwegian continental shelf have
added around 60 million boe net to Equinor near existing
infrastructure. Adjusted exploration expenses in the first quarter
were USD 0.23 billion, compared to USD 0.30 billion in the same
quarter of 2020.
Cash flows provided by operating activities before taxes paid
and changes in working capital amounted to USD 6.62 billion for the
first quarter, compared to USD 4.50 billion for the same period in
2020. Organic capital expenditure [5] was USD 1.96 billion for the
first three months of 2021. At quarters end, net debt to capital
employed(1) was 24.6%, down from 31.7% last quarter. Including the
lease liabilities according to IFRS 16, the net debt to capital
employed(1) was 30.6%.
The board of directors has decided a cash dividend of USD 0.15
per share for the first quarter 2021.
The safety statistics for the first quarter of 2021 indicate
fewer serious incidents and personal injuries in Equinor compared
to the same period last year. The twelve-month average Serious
Incident Frequency (SIF) for the period ending at 31 March was 0.5
for 2021, down from 0.6 in 2020. The twelve-month average
Recordable Injury Frequency (TRIF) for the period ending at 31
March was 2.3 for 2021, down from 2.4 in 2020.
* * *(1) This is a non-GAAP figure. Comparison numbers and
reconciliation to IFRS are presented in the table Calculation of
capital employed and net debt to capital employed ratio as shown
under the Supplementary section in the report.[5] These are
non-GAAP figures. See Use and reconciliation of non-GAAP financial
measures in the report for more details.
* * *
Further information from:
Investor relationsPeter Hutton, Senior vice
president Investor relations,+44 7881 918 792 (mobile)
Helge Hove Haldorsen, vice president Investor Relations North
America,+1 281 224 0140 (mobile)
PressBård Glad Pedersen, vice president Media
relations,+47 918 01 791 (mobile)
This information is subject to the disclosure requirements
pursuant to Section 5-12 the Norwegian Securities Trading Act
- Equinor First quarter 2021 Financial statements and review
- Press release Equinor first quarter 2021 results
- CFO presentation First quarter 2021 results
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