Equinor 2Q Net Profit Beats on Higher Prices, Cost Controls

By Dominic Chopping

Equinor ASA swung to a higher-than-expected second-quarter net profit, it reported Wednesday, on higher oil and gas prices and cost controls.

The company, which is 67%-owned by the Norwegian state, said adjusted earnings--its preferred measure--rose to $4.64 billion from $354 million, against $4.63 billion expected in a FactSet poll.

It reported a net profit of $1.94 billion from a loss of $254 million a year earlier, as revenue more than doubled to $17.38 billion.

Analysts had expected a net profit of $1.58 billion on revenue of $17.74 billion.

"Solid operational performance and continued focus on value creation have enabled us to capture additional value from higher commodity prices," said Chief Executive Anders Opedal.

"Strict capital discipline and a net cash flow of more than $4.5 billion, reduce our net debt ratio to 16.4% and make us robust for volatility in commodity prices going forward."

The company delivered total equity production of 1.997 million barrels of oil equivalent a day in the quarter, down from 2.011 million barrels in the same quarter last year.

Equinor still expects organic capital expenditure at an annual average of $9 billion-$10 billion for 2021-22 and 2021 production around 2% above the 2020 level. Organic capital expenditure for 2023-2024 is seen at an annual average of around $12 billion.

Write to Dominic Chopping at [e-mail]

(END) Dow Jones Newswires

July 28, 2021 01:47 ET (05:47 GMT)

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