Equinor Q4 profit beats forecast, raises 2030 oil output target
Equinor reported slightly higher profits than expected for the final quarter in 2024. It also increased its oil and natural gas production forecast, and scaled back plans to expand renewable energy capacity.
Equinor's poll of 24 analysts predicted that the Norwegian oil and gas company would earn $7.90 billion in adjusted earnings for October-December, down from $8.56 million a year ago.
Equinor released a statement that said "the expected (oil-and-gas) production in 2030 is around 2.2 millions barrels of oil equal per day. This is up from the previous expectation of about 2 million."
It said that the company has reduced its target for renewable energy in 2030 from 12-16 gigawatts to between 10-12 gigawatts.
Equinor announced that it would "reduce (its) investment outlook for low-carbon and renewable solutions in order to adapt to the market conditions and further enhance value creation for its shareholders".
In 2022, the company will overtake Russia's Gazprom to become Europe's largest natural gas supplier when Moscow invades Ukraine and disrupts decades-old energy ties. Norway currently meets about one-third of the continent's natural gas demand.
Equinor has said that oil and gas production is expected to increase by 4% in 2025 compared to 2024. It also added that the giant Johan Sverdrup field, Europe's biggest, will continue to produce at levels similar to those of 2023 and 2024.
Equinor previously stated that the Sverdrup oil field, which is capable of producing up to 755,000 barrels per day, would come off its plateau production by early 2025.
Equinor's annual organic capital expenditure target for 2025 is $13 billion. This is below the previous indicated spending between 2025-2027 of $14 billion to $15 billion per annum on average.
The company expects to distribute capital in the form dividends and share buybacks at $9 billion, which is in line with previous guidance between $8 billion and $10 billion.
The cash dividend was increased to $0.37 from $0.35 per share in the third quarter. Reporting by Nerijus Adomiaitis and Nora Buli; editing by Terje Solsvik and Gwladys Faouche
(source: Reuters)
