Equinor Posts Key Profit Measure Beat on Higher Production and Oil Prices

By Dominic Chopping

Equinor reported forecast-beating second-quarter earnings as higher production volumes and oil prices more than offset lower gas prices.

The Norwegian energy major said Wednesday that adjusted operating income--its preferred measure--fell to $7.48 billion from $7.8 billion, against the $6.96 billion expected in a company-compiled consensus.

The company reported a net profit of $1.86 billion compared with $1.82 billion a year earlier, and versus the $2.09 billion expected in a FactSet poll.

Revenue rose 11% to $25.46 billion.

Annual power production from renewable sources is now expected to rise 70% on last year, having previously aimed to double production, it said Wednesday. This is as construction is progressing on the U.K. Dogger Bank A offshore wind farm with 27 turbines either fully or partly installed. The project targets full commercial operations during the first half of 2025.

The company still expects stable oil and gas production this year compared to 2023, with organic capital expenditure of around $13 billion.

Equinor proposed a quarterly dividend of $0.35, an extraordinary dividend of $0.35 and initiated the third tranche of its buyback worth up to $1.6 billion, all of which is in line with the company's planned 2024 total capital distribution of $14 billion.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

July 24, 2024 01:33 ET (05:33 GMT)

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