Equinor has announced its financial results for the second quarter of 2024, delivering an adjusted operating income of USD 7.48 billion and USD 2.15 billion after tax. The company reported a net operating income of USD 7.66 billion and net income of USD 1.87 billion. Adjusted net income was USD 2.42 billion, leading to adjusted earnings per share of USD 0.84.
Financial and Operational Performance
Equinor showcased continued strong operational performance, resulting in solid financial results. The company’s cash flow was impacted by tax payments in Norway and capital distribution.
Strategic Progress
Equinor achieved several milestones, including the initiation of new fields on the Norwegian Continental Shelf, continued high grading of its oil and gas portfolio, and the acquisition of three new CO2 licence awards in Norway and Denmark.
Capital Distribution
The second quarter saw an ordinary cash dividend of USD 0.35 per share, an extraordinary cash dividend of USD 0.35 per share, and the initiation of the third tranche of share buy-backs worth up to USD 1.6 billion. Equinor maintains its expected total capital distribution for 2024 at around USD 14 billion.
Anders Opedal, president and CEO of Equinor ASA, stated, “Our operational performance continued to be strong through the quarter, and we delivered 3 percent production growth. This secured solid financial results. We maintain a competitive capital distribution, expecting to deliver a total of 14 billion dollars to our shareholders in 2024.”
Strong Operational Performance
Equinor’s total equity production reached 2,048 mboe per day in the second quarter, up from 1,994 mboe per day in the same period last year. The NCS saw a 5 percent production growth compared to the second quarter of the previous year, driven by strong performance and new production from the Breidablikk field. High production from the Troll and Oseberg fields resulted in a 13 percent increase in gas production.
Internationally, new wells at the Buzzard field in the UK contributed to new production, though lower production from the US due to turnarounds offshore and planned curtailments onshore offset this.
Equinor completed seven exploration wells offshore, including the Argerich well in Argentina, with no commercial discoveries. Seven wells were ongoing at the quarter’s end.
Renewable energy production reached 655 GWh in the second quarter, a 90 percent increase from the same quarter last year. Onshore power plants, particularly in Brazil and Poland, significantly contributed to this growth, along with strong offshore wind farm production.
Strategic Developments
Equinor’s NCS portfolio saw substantial progress, including an investment decision for further development of gas infrastructure in the Troll West gas province. The Johan Castberg FPSO left the dock for inshore testing and is on track for sail away to the Barents Sea later this summer. Production started from the Hanz field in April and from the Kristin South area in July.
The company continued to optimise its portfolio through strategic business development. This included an agreement with Petoro to harmonise equity interests in the Haltenbanken area and a divestment of interests in the Gina Krog area. Equinor also closed a swap transaction to increase profitability in its US onshore business by exiting the operated position in Ohio and increasing its position in partner-operated assets in Northern Marcellus, Pennsylvania.
Equinor accessed CO2 storage capacity opportunities of 17 million tonnes per year with the awarded licences Kinna and Albondigas on the NCS, and the Kalundborg licence onshore Denmark.
In the UK, construction is progressing on the Dogger Bank A offshore wind farm, with 27 turbines either fully or partly installed. The project targets full commercial operations during the first half of 2025. Consequently, the expected growth in power production from renewable assets in 2024 is adjusted to around 70 percent from the 2023 level.
For more information visit www.equinor.com
source: https://tanknewsinternational.com/equinor-reports-strong-financial-and-operational-performance-for-q2-2024/
