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leading to adjusted earnings per share* of USD 0.63.
The fourth quarter and full year results were characterised by:
- Solid financial performance and 21% return on average capital employed* in
2024
- Strong operational performance with stable oil and gas production
- Continued industrial progress and value driven transactions
Capital distribution
- Proposed fourth quarter cash dividend of USD 0.37 per share
- Announced share buy-back of up to USD 5 billion for 2025
- Expected total capital distribution for 2025 of up to USD 9 billion
- Stronger expected free cash flow*, supporting sustained competitive capital
distribution
Equinor is well positioned for stronger cash flow and growth:
- Strategy to deliver competitive shareholder returns. Consistent value driven
execution - expecting above 15% return on average capital employed* towards
2030
- Strengthening free cash flow*, expecting USD 23 billion for 2025-2027 by
reducing capex and addressing costs
- Increasing oil and gas production, expecting more than 10% growth from
2024-2027
- Reducing investments to renewables and low carbon solutions to around USD 5
billion in total after project financing for 2025-2027
- Lowering expected capacity in renewables to 10-12 gigawatt by 2030
Anders Opedal, President and CEO of Equinor ASA:
“Equinor is well positioned for further growth and competitive shareholder
returns. We expect to deliver industry-leading return on average capital
employed, above 15% all the way to 2030. Our oil and gas production outlook is
increased to more than 10% growth from 2024 to 2027. We strengthen our expected
free cash flow significantly compared to last year’s outlook. We do this by
high-grading the portfolio, reducing the investment outlook for renewables and
low carbon solutions and improving cost across our organisation.”
“Today we announce total capital distribution of up to USD 9 billion for 2025.
Supported by stronger free cash flow, we expect to continue to grow the
quarterly cash dividend and use share buy backs to ensure a competitive capital
distribution also going forward.”
“We have a consistent growth strategy and our strategic direction remains the
same. We continue to reduce emissions from our production and build profitable
business in renewables and low carbon solutions towards our net zero ambition in
2050. By adapting to market situation and opportunities, we are set to create
shareholder value for decades to come.”
“In 2024 we delivered solid financial results and high production through strong
operational performance. We now expect the 2025 Johan Sverdrup production to be
close to the level of the last two years. This shows how we work systematically
to improve our producing assets to remain a safe and reliable provider of
energy.”
Strong operational performance
Equinor had strong operational performance and stable production levels in the
fourth quarter. The total equity production was 2,072 mboe per day, down from
2,197 mboe in the same quarter last year.
On the Norwegian continental shelf (NCS), production levels were sustained by
the ramp-up of Breidablikk and the addition of new gas wells. However, the
production levels are lower compared to the same period last year, due to
natural decline, outage at Sleipner B and planned maintenance. For the full
year, Equinor sustained high production level at the NCS, with record high
production from the Troll and Johan Sverdrup fields.
The production at the Johan Sverdrup field is expected to continue to be close
to 2023 and 2024 levels in 2025. The recovery rate ambition has been increased
from 65% in the plan for development and operations to 75% now, including Johan
Sverdrup phase 3. Effective turnarounds and lower unplanned losses contributed
to the slight increase in production from the NCS in 2024 compared to 2023.
Internationally, the upstream business delivered lower production for the fourth
quarter compared to the same period in 2023. The divestments in Azerbaijan and
Nigeria, natural decline, higher turnaround activities and curtailments in the
US contributed to the decline also for the full year. The decline was partially
offset by the ramp up of new wells on stream and volumes from the Buzzard field
in the UK.
In the quarter, Equinor completed 10 offshore exploration wells with 4
commercial discoveries. The Himalia and Cappahayden wells were expensed during
the quarter.
The addition of onshore power plants in Brazil and Poland during 2023, along
with the start-up of the Mendubim solar projects in 2024, contributed to a 19%
increase in renewables power generation in the quarter and a 51% increase for
the full year compared to the same periods in 2023.
Solid financial results in the fourth quarter
Equinor delivered adjusted operating income* of USD 7.90 billion. and USD 2.29
billion after tax* in the fourth quarter of 2024.
In the quarter, Equinor recognised net impairments of USD 280 million, primarily
related to acquired early phase project rights within onshore markets in
renewables.
Equinor realised a European gas price of USD 13.5 per mmbtu and realised liquids
prices were USD 68.5 per bbl in the fourth quarter.
The Marketing, Midstream and Processing segment delivered solid results through
equity and third-party LNG trading. These results were further supported by
physical and financial trading of LPG.
A strong operational performance generated a cash flow from operating
activities, before taxes paid and working capital items, of USD 9.81 billion for
the fourth quarter. Cash flow from operations after taxes paid* ended at USD
3.91 billion for the fourth quarter, bringing the cash flow from operations
after taxes paid* to USD 17.9 billion for the year.
Equinor paid two NCS tax instalments of a total of USD 5.78 billion in the
quarter.
Organic capital expenditure* was USD 3.37 billion for the quarter, and USD 12.1
billion for the full year. Total capital expenditure was USD 5.41 billion for
the fourth quarter and USD 16.7 billion for 2024.
After taxes, capital distribution to shareholders and investments, net cash
flow* ended at negative USD 4.57 billion for the fourth quarter and at negative
USD 12.2 billion for the full year. Equinor retains a strong financial position
with net debt to capital employed adjusted ratio* at 11.9% by the end of the
fourth quarter, compared to negative 2.0% at the end of the third quarter of
2024. The ratio is impacted by the Ørsted acquisitions and working capital
effects over year-end to take advantage of commodity market situations.
Strategic progress
Equinor continues to develop the portfolio and deliver on its strategy in the
quarter.
On the NCS, Equinor increased ownership to 69.5% in the Halten East Unit in The
Norwegian Sea, an important project in a core area with strong profitability and
low emissions. A discovery was made near the Fram field in the North Sea. The
activity level on the NCS is high with 19 ongoing projects towards 2027.
The international portfolio will be strengthened by the agreement to establish
UK’s largest independent oil and gas company with Shell. The new company is
expected to produce over 140,000 barrels of oil equivalent per day in 2025 and
play a crucial role in securing UK’s energy supply. Equinor increased its stake
in the Northern Marcellus asset in the US and exited the upstream businesses in
Azerbaijan and Nigeria.
A major milestone in the carbon capture and storage portfolio was realised with
the final investment decision and financial close on two of UK’s first carbon
capture and storage infrastructure projects.
The acquisition of a 10% stake in Ørsted was completed in the quarter giving
Equinor exposure to premium offshore wind assets in operation and a solid
project pipeline.
In 2024 Equinor added proved reserves mainly through estimate revisions,
transactions and improved recovery projects. The reserve replacement ratio (RRR)
in 2024 was 151%.
Absolute scope 1+2 GHG emissions for Equinor’s operated production, on a 100%
basis, were 11.0 million tonnes CO2e in 2024. This represents a decrease of
0.60 million tonnes CO2e compared to last year.
The twelve-month average serious incident frequency (SIF) for the period was
0.3, a decrease from 2023. The 2024 result represents the lowest frequency on
record.
Competitive capital distribution
The board of directors proposes to the annual general meeting an ordinary cash
dividend of USD 0.37 per share for the fourth quarter 2024, an increase of USD
0.02 per share from the third quarter of 2024, in line with previously announced
ambition. The Equinor share will trade ex-dividend on Oslo Børs from and
including 15 May and New York Stock Exchange from and including 16 May 2025.
The interim cash dividends for the first, second and third quarter of 2025, are
to be decided by the board of directors on a quarterly basis and in line with
the company’s dividend policy, subject to existing and renewed authorisation
from the annual general meeting, and are expected to be at the same level as for
the fourth quarter of 2024.
The fourth tranche of the share buy-back programme for 2024 was completed on 14
January 2025 with a total value of USD 1.6 billion. Following this, the total
share buy-backs under the share buy-back programme for 2024 amounts to USD 6
billion.
The board of directors has decided to announce share buy-back for 2025 of up to
USD 5 billion in total to conclude the two-year programme for 2024-2025. The
2025 share buy-back programme will be subject to market outlook and balance
sheet strength. The first tranche of up to USD 1.2 billion of the 2025 share
buy-back programme will commence on 6 February and end no later than 2 April
2025. Commencement of new share buy-back tranches after the first tranche will
be decided by the board of directors on a quarterly basis in line with the
company’s dividend policy and will be subject to existing and new board
authorisations for share buy-back from the company’s annual general meeting and
agreement with the Norwegian State regarding share buy-back.
All share buy-back amounts include shares to be redeemed by the Norwegian state.
Capital markets update: Firm strategic direction - stronger free cash flow* and
growth
Equinor maintains a firm strategic direction and has taken action to strengthen
free cash flow* and returns(1). With a profitable project portfolio and strict
capital discipline, Equinor expects to deliver high-value production growth in
selected markets creating value for shareholders.
Key messages:
- Firm strategy - high returns: Remaining value driven in the execution.
Expecting return on average capital employed* above 15% to 2030
- Strengthening free cash flow*: Expecting strengthened free cash flow* to USD
23 billion for 2025 - 2027 by reducing capex and addressing costs
- Increasing production growth: Expecting above 10% oil and gas production
growth driven by developing an attractive project portfolio and value adding
transactions, increasing expected 2030 production from 2 to 2.2 million boe
per day
- Building resilient business for the future: Lowering investment outlook for
renewables and low-carbon solutions to adapt to market conditions and
further strengthen value creation for shareholders. Lowering 2030 renewable
capacity ambition to 10-12 gigawatt including financial investments, and
introducing range for ambition for net carbon intensity reduction.
Maintaining strategic direction towards net zero
Growth in free cash flow*
Equinor has significantly increased the free cash flow* outlook by reducing
investments and addressing costs. Expected organic capital expenditure* of USD
13 billion for 2025 and on average for the period 2025-2027. After project
financing of Empire Wind I, organic capital expenditure* is expected at USD 11
billion for 2025 and on average USD 12.5 billion for 2026-2027.
Stronger free cash flow provides capacity for Equinor to continue to deliver
competitive capital distribution.
Equinor also strengthens its resilience and can be cash flow neutral after all
investments at an oil price around 50 dollars per barrel.
Oil and gas - delivering long term value
Equinor expects an oil and gas production growth of above 10% from 2024 to
2027. In 2030 expected production is around 2.2 million boe per day, up from
previous expectation of around 2 million. For the NCS, production is expected to
maintain at a high level of around 1.2 million boe per day all the way to 2035.
Equinor will continue to develop existing fields and an attractive project
portfolio both on the NCS and internationally. Driving increased recovery and
exploration near infrastructure is expected to bring high value volumes with
short lead time, low cost and low emissions.
From the international upstream portfolio, Equinor expects the annual free cash
flow* to grow to more than USD 5 billion in 2030.
A CO2 intensity* around 6 kg per boe is expected by 2030 and the company is on
track to deliver on the 2030 ambition of net 50 percent reduction in operated
scope 1 and 2 CO2 emissions.
Renewables and low carbon - adjusting ambitions to realities
Equinor has high-graded the project portfolios in renewables and low carbon
solutions, and reduced cost and early phase spend to improve the value creation
for shareholders.The portfolio is expected to deliver more than 10% life-cycle
equity returns. For renewables, the ambition for installed capacity is reduced
to 10-12 gigawatt by 2030, including the Ørsted and Scatec ownership positions.
Equinor demonstrates a leading position in carbon capture and storage and has
projects with a storage capacity of 2.3 million tonnes CO2 installed or under
development. The ambition to store 30-50 million tonnes of CO2 per annum by
2035 is maintained, and Equinor has secured licenses with capacity to store more
than 60 million tonnes annually.
To underline that value creation is at the core of decision making, the ambition
to allocate 50% of gross capital expenditures to renewables and low carbon
solutions by 2030 is retired.
Updated Energy transition plan
The Energy transition plan describes how Equinor creates value, cuts emissions
and develops new energy solutions to reach net zero by 2050. The ambition for
cutting scope 1 and 2 emissions by 50% within 2030 is upheld.
The pace of transition depends on frame conditions and market opportunities to
create value. Adjusting to the market situation and opportunity set, the range
for the net carbon intensity (NCI) ambition will be 15-20% in 2030 and 30-40% in
2035.
Updated outlook for 2025:
- Organic capex expenditures* are estimated at USD 13 billion for 2025 (2).
- Oil & gas production for 2025 is estimated to grow 4% compared to 2024
level.
This press release contains Forward Looking Statements. Please see the Forward
Looking Statement disclaimer published on Equinor.com/investors/cmu-2025-
forward-looking-statements.
- For items marked with an asterisk throughout this report, see Use and
reconciliation of non-GAAP financial measures in the Supplementary disclosures.
(1) All forward looking financial numbers are based on Brent blend 70 USD/bbl,
Henry Hub 3.5 USD/MMBtu and European gas price 2025: 13 USD/MMBtu, 2026: 11
USD/MMBtu and thereafter: 9 USD/MMBtu
(2) USD/NOK exchange rate assumption of 11
Further information from:
Investor relations
Bård Glad Pedersen, Senior vice president Investor relations,
+47 918 01 791 (mobile)
Press
Sissel Rinde, Vice president Media relations,
+47 412 60 584 (mobile)
This information is subject to the disclosure requirements pursuant to Section
5-12 of the Norwegian Securities Trading Act
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