Equinor Q1 profits rise more than expected

Equinor announced a higher than expected increase in its first quarter profit on Wednesday. This was boosted by an increase in European gas prices compared to the same period last year.

Equinor's poll of 20 analysts predicted that the Norwegian oil and gas company would earn $8.51 billion in January-March, but it actually increased to $8.65 from $7.53.

In a press release, Anders Opedal, the Chief Executive Officer of Shell Canada said: "I'm pleased to see that good production and operational performance have resulted in higher gas prices."

Equinor has maintained its projections that oil and gas production will increase by 4% in this year's compared to the previous year. It also kept its forecast of capital expenditures for 2025 at $13 billion.

Equinor, like rivals Shell and BP, promised in February to increase oil and gas production while reducing investment in renewables. The company cited the challenging market conditions of the green energy transformation.

Equinor produced 2.12 million barrels equivalent to oil per day in the first three months of the year, which was in line with the expectations expressed in an analyst poll. However, this is slightly less than the 2.16 millions boed produced one year ago.

In the face of market uncertainty, Equinor’s main objective is to ensure safe, cost-efficient and stable operations, and resilience by maintaining a solid balance sheet, Opedal stated in a statement.

In 2022, the company overtook Russia’s Gazprom to become Europe’s largest natural gas supplier when Moscow's invasion in Ukraine upset decades-long energy relations.

Equinor shares have fallen by 10% this year, trailing a drop of 1.2% in the index of European energy stocks. (Reporting and editing by Terje Solsvik, Nora Buli and Nerijus Adomiaitis)

(source: Reuters)