Equinor 1Q Earnings Beat Expectations as Higher Production Helped Offset Lower Prices

By Dominic Chopping

Equinor on Thursday maintained its quarterly and extraordinary dividend after posting higher-than-expected first-quarter earnings, despite a drop in gas prices.

The Norwegian energy major, which is 67%-owned by the Norwegian state, said adjusted earnings--its preferred measure--fell to $11.97 billion from $17.87 billion, against $11.21 billion expected in a company-compiled consensus.

Equinor's realized price for piped gas to Europe fell 37% on year while realized liquids prices were down by 24%, but the lower prices were partly offset by production growth, it said.

The company reported a net profit of $4.96 billion compared with $4.71 billion a year earlier, and against the $3.06 billion expected in a FactSet poll.

Revenue fell 19% to $29.21 billion.

Total equity production in the quarter was 2.130 million barrels of oil equivalent a day, compared with 2.106 million barrels last year.

The company maintained its quarterly dividend at $0.30, and declared another extraordinary dividend of $0.60. It will initiate the second tranche of share buybacks for $1.67 billion and expects total capital distribution of $17 billion this year.

Organic capital expenditure is still seen at between $10 billion and $11 billion in 2023, with an annual average of around $13 billion for 2024-26.

Production in 2023 is still seen at around 3% above the 2022 level.

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

(END) Dow Jones Newswires

May 04, 2023 01:27 ET (05:27 GMT)

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