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billion. Adjusted net income* was USD 1.79 billion, leading to adjusted earnings
per share* of USD 0.66.
Strong financial and operational performance
- Strong financial results and cash flow
- Solid oil and gas production
Strategic progress
- Successful start-up of the Johan Castberg and Halten East fields
- Final investment decision on Northern Lights phase 2
Capital distribution
- First quarter cash dividend of USD 0.37 per share
- Proposed second tranche of share buy-back of up to USD 1.265 billion
- Expected total capital distribution for 2025 of up to USD 9 billion
Anders Opedal, President and CEO of Equinor ASA:
“Equinor delivers strong financial results in the first quarter. I am pleased to
see the good operational performance and solid production capturing higher gas
prices. With the current market uncertainties, Equinor’s core objective is safe,
stable and cost efficient operations and resilience through a strong balance
sheet.”
“We maintain a competitive capital distribution and expect to deliver a total of
USD 9 billion in 2025.”
“The production start-up of the Johan Castberg field strengthens Norway’s role
as a reliable energy exporter to Europe. The field opens a new region in the
Barents Sea and is expected to contribute to energy supply, value creation and
ripple effects for at least 30 years to come.”
“We have invested in Empire Wind after obtaining all necessary approvals, and
the order to halt work now is unprecedented and in our view unlawful. This is a
question of the rights and obligations granted under legally issued permits, and
security of investments based on valid approvals. We seek to engage directly
with the US Administration to clarify the matter and are considering our legal
options.”
Solid production
Equinor delivered a total equity production of 2,123 mboe per day in the first
quarter, down from 2,164 mboe in the same quarter last year.
The operational performance for most of the fields on Norwegian continental
shelf is strong, including the Johan Sverdrup and Troll fields. This almost
offsets the negative production impact from the shut-in at Sleipner B after the
fire in fourth quarter 2024 and planned and unplanned maintenance at Hammerfest
LNG.
In the US, production increased from the same period last year. This was due to
increased production from the fields and transactions increasing Equinor’s
ownership interest in onshore gas assets in 2024.
The production from the international upstream segment, excluding US, is down
compared to the same quarter last year, due to exits from Nigeria and Azerbaijan
in 2024.
The total power generation from the renewable portfolio was 0.76 TWh, on par
with the same period last year.
In the quarter, Equinor completed five offshore exploration wells on the NCS
with two commercial discoveries.
Strong financial results
Equinor delivered adjusted operating income* of USD 8.65 billion. and USD 2.25
billion after tax* in the first quarter of 2025. The results are driven by solid
gas production and higher gas prices.
Equinor realised a European gas price of USD 14.8 per mmbtu and realised liquids
prices were USD 70.6 per bbl in the first quarter.
Adjusted operating and administrative expenses* increased from the same quarter
last year driven by overlift, higher maintenance activity and some one-off
costs. This was partially offset by active measures to reduce costs for business
development and early phase projects in renewables and low carbon solutions.
A strong operational performance generated a cash flow from operating
activities, before taxes paid and working capital items, of USD 10.6 billion for
the first quarter. Equinor paid one NCS tax instalment of USD 3.09 billion in
the quarter.
Cash flow from operations after taxes paid* ended at USD 7.39 billion.
Organic capital expenditure* was USD 3.02 billion for the quarter, and total
capital expenditures were USD 4.50 billion.
Equinor continues to demonstrate capital discipline and strengthen financial
robustness with a net debt to capital employed adjusted ratio* of 6.9% at the
end of the first quarter, compared to 11.9% at the end of the fourth quarter of
2024.
Empire Wind 1
After quarter close, Equinor received a halt work order from the US government
on the offshore construction on the outer continental shelf for the Empire Wind
project. The lease was obtained in 2017 and the project was fully permitted in
2024. It has a potential for delivering power to half a million New York homes,
and is approximately 30% to completion.
Equinor is complying with the order and is seeking dialogue with the proper
authorities and assessing legal options. The Empire Wind project has per 31
March 2025 a gross book value of around USD 2.5 billion, including South
Brooklyn Marine Terminal.
Strategic progress
A major milestone was reached when production was started from the Johan
Castberg field in the Barents Sea on 31 March. Production also started at the
Halten East development in the Norwegian Sea, with estimated recoverable
reserves of 100 million boe and one year pay-back time.
Equinor continues to optimise and strengthen long-term value creation on the
NCS, and was awarded 27 new production licenses in the Awards in Predefined
Areas round (APA) in January. The ambition is to drill around 250 exploration
wells on the NCS by 2035.
In the quarter, the Bacalhau floating production, storage and offloading vessel
(FPSO) arrived at its destination in the Santos Basin in Brazil’s pre-salt
region. First oil is expected in 2025.
Within low carbon solutions, Equinor together with partners Shell and
TotalEnergies made a final investment decision to progress phase two of the
groundbreaking Northern Lights carbon transport and storage development in
Øygarden. The NOK 7.5 billion investment is expected to increase the total
injection capacity from 1.5 million tonnes of CO2 per year (Mtpa) to at least 5
Mtpa and further develop the commercial market for transport and storage of CO2.
The appraisal wells for carbon storage at Smeaheia were completed in the quarter
on time and on cost.
Competitive capital distribution
The board of directors has decided a cash dividend of USD 0.37 per share for the
first quarter 2025, in line with communication at the Capital Markets Update in
February.
Expected total capital distribution for 2025 is USD 9 billion, including a share
buy-back programme of up to USD 5 billion. The board has decided to initiate a
second tranche of the share buy-back programme of up to USD 1.265 billion. The
second tranche is subject to an authorisation from the company’s annual general
meeting 14 May 2025 and will commence after this. The tranche will end no later
than 21 July 2025.
The first tranche of the share buy-back programme for 2025 was completed on 24
March 2025 with a total value of USD 1.2 billion.
All share buy-back amounts include shares to be redeemed by the Norwegian State.
*For items marked with an asterisk throughout this report, see Use and
reconciliation of non-GAAP financial measures in the Supplementary disclosures.
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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