Equinor eyes tighter gas market as lower oil prices hit Q2 profit
Europe's biggest gas producer said the prospect of a rebound in pipeline gas flows from rival supplier Russia had also diminished in recent months, citing political opposition in Germany and elsewhere.
Equinor reported on Wednesday a 13% drop in second-quarter profits, as expected, as declining oil prices outweighed an increase in the price of gas in Europe and the United States.
The Norwegian energy group's adjusted earnings before tax for April-June fell to $6.54 billion from $7.48 billion a year earlier, in line with the $6.53 billion predicted in a poll of 21 analysts compiled by the company.
EU gas stores are currently 65.4% full, according to data from Gas Infrastructure Europe, down from around 83% at the same time last year.
"This can create a more tight (gas) market during the autumn or during the winter," CEO Anders Opedal told Reuters on the sidelines of Equinor's earnings presentation.
The supply situation remains dependent on factors such as the weather-related demand and production regularity, as well as imports from outside the region, he added.
"In June, we saw 25% less LNG ships into Europe compared to before, meaning that the competition tightens a little bit," Opedal said.
Equinor maintained a projection that its oil and gas output would increase by 4% this year compared to 2024 and kept its forecast for capital expenditure in 2025 of $13 billion.
The company on Wednesday booked a $955 million writedown on an offshore wind project in the United States, citing U.S. tariffs and the uncertainty of the regulatory environment under President Donald Trump.
In February, Equinor followed rivals such as Shell (SHEL.L), opens new tab and BP (BP.L), opens new tab in promising higher oil and gas output while scaling back investment in renewables, citing challenging market conditions for the green energy transition.
Equinor in the second quarter pumped 2.1 million barrels of oil equivalent per day (boed), slightly ahead of expectations in the analyst poll for 2.06 million boed, and up from 2.05 million boed a year earlier.
Equinor's share price was down 1% at 1145 GMT, lagging a 1.6% rise in the European energy stock index (.SXEP), opens new tab.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
an hour ago
- Reuters
Hims and Hers beats quarterly profit on steady subscription growth
NEW YORK, Aug 4 (Reuters) - Hims and Hers Health (HIMS.N), opens new tab beat Wall Street estimates for second-quarter profit on Monday, aided by continued subscription growth and surging volume in the telehealth company's weight-loss business. The company reported a quarterly profit of 17 cents per share, higher than the average analyst estimate of 15 cents, according to LSEG data. However, shares fell about 10% in extended trading as quarterly revenue of $544.8 million missed analysts' average expectation of $551.6 million.
Reuters
2 hours ago
- Reuters
Trump threatens to raise tariffs on goods from India over Russian oil purchases
WASHINGTON, Aug 4 (Reuters) - Donald Trump said on Monday he will substantially raise tariffs on goods from India over its Russian oil purchases, while New Delhi said it would take measures to safeguard its interests and called its targeting by the U.S. president "unjustified." Trump said last week Washington was still negotiating with India on trade after announcing the U.S. would impose a 25% tariff on goods imported from the country starting last Friday. India has faced pressure from the West, including the U.S., to distance itself from Moscow after Russia invaded Ukraine in early 2022. New Delhi has resisted that pressure, citing its longstanding ties with Russia and economic needs, opens new tab. "India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits. They don't care how many people in Ukraine are being killed by the Russian War Machine," Trump said in a post on Truth Social. "Because of this, I will be substantially raising the Tariff paid by India to the USA." He did not elaborate on what the tariff would be. Over the weekend, two Indian government sources told Reuters that India will keep purchasing oil from Russia despite Trump's threats. The sources did not wish to be identified due to the sensitivity of the matter. Washington has cited geopolitical disagreements with India to explain why it has not yet been able to reach a trade deal with New Delhi. Other than India's ties with Russia, Trump has cast the BRICS group of developing nations - of which India is a key part - as hostile to the U.S. Those nations have dismissed that accusation, saying the group promotes the interests of its members and of developing countries at large. A spokesperson for India's foreign ministry said India will "take all necessary measures to safeguard its national interests and economic security." "In this background, the targeting of India is unjustified and unreasonable," the spokesperson added. India began importing oil from Russia because traditional supplies were diverted to Europe after the outbreak of the Ukraine conflict, the Indian statement said. The spokesperson said India's imports were meant to ensure affordable energy costs for Indian consumers and were a "necessity compelled by global market situation." The statement also noted the West's, particularly the European Union's, bilateral trade with Russia: "It is revealing that the very nations criticizing India are themselves indulging in trade with Russia." India also has been frustrated by Trump repeatedly taking credit for an India-Pakistan ceasefire that he announced on social media on May 10. The ceasefire halted days of hostilities between the nuclear-armed Asian neighbors. India's position has been that New Delhi and Islamabad must resolve their issues directly without outside involvement. Trump has reached a trade deal with Pakistan.
Glasgow Times
3 hours ago
- Glasgow Times
Ryanair boarding pass policy to change to paperless system
From November, the budget airline will be moving to paperless boarding passes. This means that passengers will no longer download and print a physical paper boarding pass. Here is all you need to know about the change and how it will affect you. What's the best seat to book on a plane? Ryanair boarding pass policy to change to paperless system Currently, Ryanair offers different options regarding its boarding passes. Customers can print out a physical paper boarding pass at home to bring with them, or by using the app, can get a 'mobile pass'. There is also an option to request a paper boarding pass at the airport for £55. As of November, later this year, Ryanair will introduce a new boarding pass policy, which will not allow its passengers to print physical paper copies. Ryanair passengers will use the digital boarding pass generated in their 'myRyanair' app during check-in instead. While the internet is needed to access the boarding pass, once downloaded, it can be displayed without internet. When discussing the possibility of a phone dying or breaking at an airport, Ryanair told Which? that they will be "assisted by staff at the gate" and their details will be "cross-checked and validated against our flight manifest and boarded as normal". Ryanair says almost 80% of the airline's 200 million passengers already use this digital boarding pass, and that the move will enable passengers to reduce their carbon footprint by eliminating unnecessary paper, saving over 300 tonnes in paper waste each year. It also said that using the myRyanair app also "enhances customers' travel experience". Other app functions include an order to seat feature, live flight information and updates, terminal, gate and boarding status updates, and more. On the change, Ryanair CMO, Dara Brady, said previously: 'This move to 100% paperless boarding passes will allow us to deliver an enhanced travel experience for customers. "Like other ticket industries (concert, sports venues, rail, etc.) there has been a massive switch to using mobile, and with almost 80% of Ryanair customers already using the myRyanair app, it is time to transition the remaining passengers to digital, which will see them reduce their carbon footprint and receive a smoother and enhanced travel experience." Your rights if your flight is cancelled or delayed It is important to note that Turkey and Morocco do not accept mobile boarding passes yet, according to Ryanair's website. So if you are travelling to these countries, you will still need to print a copy off if you're heading to either of those countries. Other changes to Ryanair policy The upcoming change is not the only one Ryanair has seen, with the airline also increasing the size of the underseat 'free bag' following an EU rule change. It currently allows people a small "personal bag" that must fit under the seat in front for free, which must be less than 40x25x20cm. Recommended reading: Under new rules, this would increase to 40x30x20cm. Despite it only being a 5cm increase, the volume will be 24 litres instead of 20 litres. The date for the change isn't clear yet, but Ryanair said the change would be "implemented over the coming weeks, as our airport bag sizers are adjusted" - and would mean it's exceeding the EU's recommended minimum size.
