Page 10 - EurOil Week 30 2021

EurOil PERFORMANCE EurOil

Equinor profits soar in

Q2 on price rally

NORWAY EQUINOR posted strong figures in the third proceeds from divestments such as the sale
quarter, on the back of higher oil and gas prices of its Bakken operations and lower dividend
High prices offset a and increased demand. payouts. Equinor reduced capital expenditure
decline in Equinor’s Norway’s Equinor reported a surge in pre- to $1.75bn in the three-month period, from
production.d tax profits to $4.64bn in the three months end- $2.15bn in the same period last year. It also
ing June 30, after generating only $354mn in the managed to bring its net debt-to-capital ratio
same period last year. Its net income also surged to 16.4% as of the end of June, compared with
to $1.94bn, marking a reversal from a $251mn 24.6% three months earlier.
loss a year earlier. Besides higher oil and gas “Strict capital discipline and a net cash flow
prices, Equinor also pointed to the reversal of of more than $4.5bn ... make us robust for vola-
impairment charges in the quarter. tility in commodity prices going forward,” CEO
These factors more than offset a drop in Anders Opedal said in a statement.
Equinor’s oil and gas production to 1.997mn Equinor has promised to step up investments
barrels of oil equivalent per day from 2.011mn in renewables and other low-carbon technolo-
boepd a year earlier. The closure of the Ham- gies in response to shareholder pressure. It is
merfest LNG plant last September after a serious striving to spend $23bn in capital on renewables
fire weighed down on the company’s production between 2021 and 2026, and sees its energy tran-
figures, as did the sale in April of its assets in the sition business accounting for half of its annual
US Bakken formation. But the company gained investments by 2030, compared with only 4%
from further increases at the Johan Sverdrup oil last year.
project. It also pumped out more flexible gas vol- However, while Equinor’s oil and gas business
umes, capitalising on soaring spot gas prices in earned well in the second quarter, its renewables
Europe. division performed poorly, posting an operating
Free cash flow (FCF) came in at $4.51bn, loss of $31mn. The company blamed the result
compared with negative $1.853bn a year ear- on increased activity and higher costs as a result
lier, owing to the price rally, reduced taxation, of projects moving forward. ™

P10 www. NEWSBASE .com Week 30 29•July•2021