Strong production and continued high deliveries of energy to Europe
Equinor delivered a total equity production of 2,130 mboe per day for the first quarter, up from 2,106 mboe per day in the same
quarter of 2022. The growth was driven by the ramp-up of new fields and wells,
and fields back in production, such as Johan Sverdrup
phase 2 and Snøhvit in Norway and Peregrino in Brazil. Short-term operational issues
at Johan Sverdrup early in the quarter impacted
the increase.
Gas production on the Norwegian continental shelf (NCS) remained high and stable, contributing
to European energy security.
Production from renewable energy sources was 524 GWh in the quarter, slightly up from the same quarter last year, driven by good
availability for the offshore wind farms and production from the floating wind farm Hywind Tampen on the NCS. Including gas-to-power
production in the UK, total power production for the quarter ended at 1,163 GWh.
Continued strategic and industrial progress
Since the start of the year, Equinor has brought the satellite field Bauge on stream in the Norwegian Sea. The partner-operated
Vito
field was put on stream in the US Gulf of Mexico.
Equinor continued to optimise the oil and gas portfolio, deepening in core areas by entering into
an agreement to acquire Suncor
Energy UK. An interest in the Statfjord area on the NCS was divested in the quarter.
Equinor completed nine exploration wells offshore with three commercial discoveries in the quarter, and three wells were ongoing at
the quarter end. Two of the discoveries were in the Troll area in the North Sea, where Equinor also agreed to acquire a further equity
interest in five discoveries. Equinor was awarded 26 new production licences on the NCS.
In the UK, the Dogger Bank offshore wind farm is progressing towards first power this summer. Together with SSE, Equinor is
exploring the option of developing a fourth phase, Dogger Bank D.
In the quarter, Equinor closed the acquisition of BeGreen, a leading solar project developer in Northwest Europe, with a project
pipeline of over 6 GW in the early to medium stages of maturity.
Equinor continued to develop low-carbon value chains in collaboration with industrial partners and
entered into a partnership with the
German energy company RWE aiming to develop large-scale value chains for low-carbon hydrogen.
Strong financial results and cash flow
Equinor realised a price for piped gas to Europe of USD 18.8 per mmbtu and realised
liquids prices were USD 73.8 per bbl, down by
37% and 24%, respectively, compared to the first quarter 2022.
Equinor delivers strong IFRS net operating income at USD 12.5 billion and IFRS net income USD
5.0 billion after tax. This is down
from the same quarter last year due to lower prices for liquids and gas but partly offset by production growth. The
Marketing,
Midstream & Processing (MMP) segment contributed with strong IFRS net operating income,
main driven by crude, products and
liquids trading.
Cash flow provided by operating activity before taxes paid and working capital items amounted to USD
15.3 billion for the first quarter.
Equinor paid the first of three equal NCS tax instalments of USD 5.42 billion in the quarter
and will pay the next two in the second
quarter. Organic capital expenditure* was USD 2.31 billion for the quarter, and total capital expenditures were USD 3.18 billion. After
taxes, capital distribution to shareholders and investments, net cash flow* ended at USD
4.20 billion for the first quarter.
Strong cash flow, a reduction in working capital and a reduction in collateral deposits resulted in a further strengthening of the financial
position. Adjusted net debt to capital employed ratio* was negative 52.3% at the end of the first quarter, from negative 23.9% at the
end of the fourth quarter of 2022.
Competitive capital distribution
The board of directors has decided an ordinary cash dividend of USD 0.30 per share and an extraordinary
cash dividend of USD 0.60
per share for the first quarter of 2023, in line with communication at the Capital Markets
Update in February.
Expected total capital distribution for 2023 is USD 17 billion, including a share buy-back programme
of USD 6 billion. The board has
decided to initiate a second tranche of the share buy-back programme of USD 1.67 billion. The
second tranche will commence on 11
May, end no later than 25 July 2023 and is subject to authorisation from the annual general meeting on 10 May 2023.
The first tranche of the share buy-back programme for 2023 was completed on 20 March
2023 with a total value of USD 1 billion.
All share buy-back amounts include shares to be redeemed by the Norwegian State.