Equinor Launches New Share Buyback After Earnings Beat Expectations
By Dominic Chopping
Equinor launched a new share buyback program after reporting forecast-beating fourth-quarter earnings, with higher oil production helping counter sharply lower gas prices.
The company said it aims to double its annual power production from renewable sources this year and said it is well positioned for profitable growth with a stronger cash flow, a broader energy offering and lower emissions toward 2035.
"We are extending the outlook for stable contribution from oil and gas to 2035. By 2030 we expect material and rapidly growing cash flow from our renewables and low carbon business," Chief Executive Anders Opedal said.
The Norwegian energy major said adjusted earnings--its preferred measure--fell to $8.68 billion from $17.01 billion, against the $8.46 billion expected in a company-compiled consensus.
The company reported a net profit of $2.6 billion compared with $7.9 billion a year earlier, and against the $2.46 billion expected in a FactSet poll.
Revenue fell 15% to $28.84 billion.
The company expects stable oil and gas production from 2023, with organic capital expenditure of around $13 billion.
Equinor proposed a quarterly dividend of $0.35, an extraordinary dividend of $0.35 and announced a two-year share buyback of $10 billion-$12 billion, with $6 billion expected for 2024.
The total capital distribution in 2024 is expected to be $14 billion.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
February 07, 2024 01:46 ET (06:46 GMT)
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