EQNR Equinor ASA

By Dominic Chopping

Equinor ASA reported results for the first quarter on Thursday. Here's what we watched:

NET INCOME: Equinor said first-quarter adjusted earnings--its preferred measure--rose to $5.47 billion from $2.05 billion, against $4.74 billion expected in a FactSet poll, boosted by higher oil and gas prices and cost improvements. It reported a net profit of $1.85 billion from a loss of $708 million a year earlier, against expectations of $2.42 billion. Equinor posted a gain in the quarter of $1.38 billion from the sale of offshore wind assets.

REVENUE: Revenue rose 7.1% to $16.13 billion against $16.75 billion expected in a FactSet analyst poll.

WHAT WE WATCHED:

-PRODUCTION: The company delivered total equity production of 2.168 million barrels of oil equivalent a day in the quarter, down from 2.233 million barrels in the same quarter last year but better than the 2.075 million barrels expected. The shutdown of the Hammerfest LNG plant and maintenance at the Peregrino oil field offshore Brazil were partially offset by higher flex gas volumes, increased gas volumes from U.S. onshore and increased production from the Johan Sverdrup and Snorre expansion projects.

-GUIDANCE: Equinor backed its guidance, and still expects organic capital expenditure at an annual average of $9 billion-$10 billion for 2021-22 and 2021 production around 2% above the 2020 level. Exploration activity in 2021 is still seen at $900 million and average annual production growth at around 3% from 2020 to 2026.

-CASH RETURNS: Free cash flow in the first quarter of 2021 was $5,170 million compared to $362 million in the first quarter of 2020. The increase was mainly due to higher operating cash flow mainly due to higher liquids and gas prices, increased proceeds from sale of assets, decreased tax payments, decreased dividend paid and lower capital expenditures, partially offset by decreased cash flow from derivatives. The company raised its quarterly dividend to $0.15 from $0.12 in the fourth quarter of 2020.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

April 29, 2021 07:47 ET (11:47 GMT)

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