Company Reports

Equinor’s adjusted first-quarter results largely topped or met market expectations, with most segments outperforming, benefiting from a full quarter of higher commodity prices and margins. Production increased 3% from a year ago.

Equinor’s adjusted first-quarter results exceeded market expectations as each segment performed better than forecast, powered by higher commodity prices, product margins, and trading results. Production reached record levels, growing 9% from the year before.

Equinor has slowed its push into renewable energy in the short term, pivoting toward increasing oil and gas production to support capital distribution, while reaffirming its commitment to net zero emissions by 2050. After acquiring a 10% stake in Ørsted at the end of 2024, Equinor’s renewable net installed capacity reached 2.4 gigawatts. The firm plans to increase it to 10-12 GW by 2030, down from its previous 12-16 GW target. Central to its strategy is offshore wind, which accounts for most of the 4.5 GW currently under development.

Equinor’s adjusted fourth-quarter results far exceeded market expectations on the strength of its US E&P operations and marketing, midstream, and processing segment. Management announced further reductions in capital spending guidance and a 10% operating cost reduction for 2026.

Equinor’s adjusted third-quarter results fell slightly below expectations, despite strong year-over-year production growth of 7%. Higher depreciations from new fields and price-related impairments weighed on results. Management confirmed production, capital spending, and distribution targets.

We've updated our midcycle oil price assumption. Our 10-year forecast marries our bullish in-house oil demand view with Rystad's supply projections, which align with our revised, long-term take.

Equinor has slowed its push into renewable energy in the short term, pivoting toward increasing oil and gas production to support capital distribution, while reaffirming its commitment to net zero emissions by 2050. After acquiring a 10% stake in Ørsted at the end of 2024, Equinor’s renewable net installed capacity reached 2.4 gigawatts. The firm plans to increase it to 10-12 GW by 2030, down from its previous 12-16 GW target. Central to its strategy is offshore wind, which accounts for most of the 4.5 GW currently under development.

Equinor reported second-quarter results that largely met expectations, as adjusted operating income fell from the year before due to lower liquid prices. It recorded a $955 million impairment charge stemming from regulatory changes and tariff impacts on US offshore wind projects.

Crude oil prices were only up about 1% in early trading on June 23 after the US bombed Iranian nuclear sites over the weekend. Before this rise, oil prices had increased nearly 21% in the last month compared with oil equities, as measured by the Energy Select Sector SPDR Fund's 9% gain.

Equinor has slowed its push into renewable energy in the short term, pivoting toward increasing oil and gas production to support capital distribution, while reaffirming its commitment to net zero emissions by 2050. After acquiring a 10% stake in Ørsted at the end of 2024, Equinor’s renewable net installed capacity reached 2.4 gigawatts. The firm plans to increase it to 10-12 GW by 2030, down from its previous 12-16 GW target. Central to its strategy is offshore wind, which accounts for most of the 4.5 GW currently under development.

Equinor reported first-quarter results below market expectations as adverse tax effects offset strong E&P performance. Despite the weak oil price environment, the firm confirmed its $13 billion capex and $9 billion distribution targets, with the halted Empire Wind project impact still uncertain.

Equinor’s fourth-quarter results largely exceeded market expectations. Management announced plans to grow oil and gas production by more than 10% by 2027 while reducing renewable and low-carbon spending and growth to focus on capital distribution. However, it's lowering its 2025 repurchase rate.

No-moat Equinor's third-quarter adjusted earnings largely exceeded expectations, while falling to $6.9 billion before tax and $2.2 billion after tax, compared with $7.9 billion and $2.9 billion last year, respectively, as extensive turnarounds and lower liquid prices offset higher realized gas prices and favorable production mix. Operating cash flow, excluding working capital and taxes, was $9.2 billion during the quarter, compared with $11.3 billion in 2023. We maintain our fair value estimate of $30.50 and see the stock as undervalued.

We confirm our DKK 540 fair value estimate for no-moat Ørsted after no-moat Norwegian integrated oil and gas company Equinor announced on Oct. 7 that it acquired a 9.8% stake with a current market value of $2.5 billion. In our opinion, this move highlights the undervaluation of Ørsted, which is one of the best-positioned utilities to benefit from a decline in interest rates. The next positive catalyst would be the farmdown of giant project Hornsea 3, which has been derisked after its successful resubmission to the latest UK renewables auctions.

Equinor is accelerating its push into renewable energy in pursuit of its 2050 net-zero goal. Central to its strategy is growth of its burgeoning renewable power business, primarily offshore wind. While net installed capacity only stands at 0.9 gigawatts at end-2023, Equinor plans to grow that to 12-16 GW by 2030.

Equinor's second-quarter adjusted earnings decreased modestly to $7.5 billion before tax and $2.4 billion after tax, compared with $7.8 billion and $2.7 billion last year, respectively, as higher expenses and lower gas prices offset higher oil price realizations. Operating cash flow, excluding working capital and taxes, was $9.7 billion during the quarter, compared with $10.5 billion in 2023. Capital expenditure, which totaled $2.9 billion in the quarter, is still expected to be $13 billion for the full year.

Equinor's first-quarter adjusted earnings decreased to $7.5 billion before tax and $2.6 billion after tax, compared with $12.0 billion and $3.5 billion last year, respectively, largely due to lower gas prices. Operating cash flow, excluding working capital and taxes, was $9.7 billion during the quarter, compared with $15.3 billion in 2023. Capital expenditures, which totaled $2.8 billion in the quarter, are expected to be $13 billion for the full year.

Equinor is accelerating its push into renewable energy in pursuit of its 2050 net-zero goal. Central to its strategy is growth of its burgeoning renewable power business, primarily offshore wind. While net installed capacity only stands at 0.9 gigawatts at end-2023, Equinor plans to grow that to 12-16 GW by 2030.

Equinor’s shares fell as result of fourth-quarter earnings missing expectations and management decreasing the extraordinary dividend. The sharp selloff looks to be an overreaction, in our view. Quarterly adjusted earnings decreased to $8.7 billion before tax and $1.9 billion after tax, compared with $17.0 billion and $4.7 billion last year, respectively, as oil and gas prices continue to fall from extraordinary levels. Equinor posted operating cash flow, excluding working capital and taxes, of $10.9 billion during the quarter compared with $21.0 billion in 2022. The after-tax earnings figure came in below expectations due to a higher-than-expected tax rate from one-off items. Underlying segment operating earnings actually outperformed Equinor’s analyst-compiled consensus figures. As such, we do not view the earnings miss as warranting such a share price drop.

Equinor’s third-quarter adjusted earnings decreased to $8.0 billion before tax and $2.7 billion after tax, compared with $24.5 billion and $7.2 billion last year, respectively, because of oil and natural gas prices falling from extraordinary levels in 2022. Operating cash flow, excluding working capital and taxes, was $11.3 billion during the quarter compared with $24.5 billion in 2022. Capital expenditure totaled $2.6 billion and is still expected to be $10 billion-$11 billion for the full year.