Latest news with #AndersOpedal
Reuters
6 days ago
- Business
- Reuters
Equinor eyes tighter gas market as lower oil prices hit Q2 profit
OSLO, July 23 (Reuters) - Europe's gas market could tighten further ahead of the winter season as storage levels remain well below last year and the continent faces competition from Asia for LNG shipments, the CEO of Norway's Equinor ( opens new tab told Reuters on Wednesday. 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.
Yahoo
6 days ago
- Business
- Yahoo
Equinor takes $1 bn hit from US wind farm regulations, tariffs
Norwegian energy company Equinor said on Wednesday that its giant offshore wind project in New York -- once halted by the US administration -- had lost nearly $1bn in value following regulatory changes and tariffs. Equinor chief executive Anders Opedal said the company's net operating income had been hit by a $955 million impairment related to its Empire Wind project "due to regulatory changes" affecting synergies in future offshore wind farms, as well as "increased exposure to tariffs". Construction of the first phase of Empire Wind, a complex of 54 turbines capable of powering 500,000 homes in Brooklyn, was temporarily halted by the US administration in mid-April. US President Donald Trump has repeatedly expressed opposition to wind energy -- claiming turbines are unsightly and dangerous -- and signed a series of executive orders targeting the sector shortly after returning to the White House in January. Those included a temporary freeze on federal permitting and loans for offshore and onshore wind projects. But the administration reversed its decision to block the project in May. "We continue to progress our portfolio in renewables, and the Empire Wind 1 project development is back in execution," Opedal said on Wednesday. Of the total $955 million impairment, Opedal said $763 million related to the Empire Wind 1 project and the South Brooklyn Marine Terminal, while the rest is tied to the second phase of the project. "The construction of the terminal and port facilities was based on the assumption that several wind farms would use them. This is not very relevant under current conditions," Opedal said during a press conference. "The impairment also includes the impact of higher steel tariffs," set at 50 percent by the administration of US President Donald Trump, he added, while stressing that Empire Wind 1 remained "a profitable project". The depreciation weighed on second-quarter results, with Equinor reporting a 30 percent year-on-year drop in net profit to $1.3 billion. Performance was also affected by the decline in oil prices, which did not suffice to offset the rise in natural gas prices and increased production, which is nearing 2.1 million barrels of oil equivalent per day. In early morning trading, Equinor shares fell 0.5 percent on the Oslo Stock Exchange, while the broader market was up 0.35 percent. phy/ef/abx/djt/rl Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
France 24
6 days ago
- Business
- France 24
Equinor takes $1 bn hit from US wind farm regulations, tariffs
Equinor chief executive Anders Opedal said the company's net operating income had been hit by a $955 million impairment related to its Empire Wind project "due to regulatory changes" affecting synergies in future offshore wind farms, as well as "increased exposure to tariffs". Construction of the first phase of Empire Wind, a complex of 54 turbines capable of powering 500,000 homes in Brooklyn, was temporarily halted by the US administration in mid-April. US President Donald Trump has repeatedly expressed opposition to wind energy -- claiming turbines are unsightly and dangerous -- and signed a series of executive orders targeting the sector shortly after returning to the White House in January. Those included a temporary freeze on federal permitting and loans for offshore and onshore wind projects. But the administration reversed its decision to block the project in May. "We continue to progress our portfolio in renewables, and the Empire Wind 1 project development is back in execution," Opedal said on Wednesday. Of the total $955 million impairment, Opedal said $763 million related to the Empire Wind 1 project and the South Brooklyn Marine Terminal, while the rest is tied to the second phase of the project. "The construction of the terminal and port facilities was based on the assumption that several wind farms would use them. This is not very relevant under current conditions," Opedal said during a press conference. "The impairment also includes the impact of higher steel tariffs," set at 50 percent by the administration of US President Donald Trump, he added, while stressing that Empire Wind 1 remained "a profitable project". The depreciation weighed on second-quarter results, with Equinor reporting a 30 percent year-on-year drop in net profit to $1.3 billion. Performance was also affected by the decline in oil prices, which did not suffice to offset the rise in natural gas prices and increased production, which is nearing 2.1 million barrels of oil equivalent per day.
Reuters
6 days ago
- Business
- Reuters
Equinor Q2 core profit down 13% on weaker oil price
OSLO, July 23 (Reuters) - Equinor's ( opens new tab second-quarter profit fell as expected by 13% from a year earlier, its earnings report showed on Wednesday, as declining oil prices outweighed a rise in the price of gas. 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, opens new tab of 21 analysts compiled by the company. Equinor maintained a projection that its oil and gas output will grow by 4% this year compared to 2024 and kept its forecast for capital expenditure in 2025 of $13 billion. "We are on track to deliver production growth in 2025 in line with our guidance," CEO Anders Opedal said in a statement. 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. The company in 2022 overtook Russia's Gazprom ( opens new tab as Europe's biggest supplier of natural gas when Moscow's invasion of Ukraine upended decades-long energy ties. Equinor's share price has declined by 1.5% so far this year, lagging a 10% rise in the broader European energy stock index (.SXEP), opens new tab. The company's oil sold for an average price of $63.0 per barrel in the second quarter, down 19% from a year earlier, while its European piped gas price rose 21% to $12 per million British thermal units. The majority state-owned company maintained its quarterly dividend at $0.37 per share, and confirmed plans to return to shareholders a total of $9 billion this year, including $5 billion in share buybacks.
Yahoo
6 days ago
- Business
- Yahoo
Equinor second quarter 2025 results
Equinor (OSE:EQNR, NYSE:EQNR) delivered an adjusted operating income* of USD 6.53 billion and USD 1.74 billion after tax* in the second quarter of 2025. Equinor reported a net operating income of USD 5.72 billion and a net income of USD 1.32 billion. Adjusted net income* was USD 1.67 billion, leading to adjusted earnings per share* of USD 0.64. Solid financial results Strong operational performance and production growth Higher US onshore gas production capturing higher prices Stable cost and capex in line with guidance Balance sheet remains robust through lower price environment Strategic progress Delivered key milestones on Johan Castberg, Johan Sverdrup phase 3 and Fram South/Troll Announced divestment of the Peregrino field in Brazil for USD 3.5 billion Financial close of Baltyk 2 & 3 offshore wind projects in Poland Empire Wind 1 project development back in execution. Impairments driven by regulatory changes for future offshore wind projects leading to a loss of future synergies on South Brooklyn Marine Terminal, and increased exposure to tariffs Capital distribution Ordinary cash dividend of USD 0.37 per share, third tranche of share buy-back of up to USD 1.265 billion Expected total capital distribution of USD 9 billion in 2025 Anders Opedal, President and CEO of Equinor ASA: 'We are on track to deliver production growth in 2025 in line with our guidance. Strong operational performance and Johan Castberg reaching plateau are key contributors this quarter. In today's volatile markets we stay committed to being a long-term energy provider to Europe.' 'Last year, we strengthened our onshore gas portfolio in the US and this has created substantial value this quarter, with a fifty percent increase in gas production at prices almost eighty percent higher than the same time last year.' 'We continue to progress our portfolio in renewables, and the Empire Wind 1 project development is back in execution. We have reached financial close for the Baltyk 2 & 3 offshore wind projects in Poland at favourable terms, contributing to strong returns.' Solid production Equinor delivered a total equity production of 2,096 mboe per day in the second quarter, up 2% from 2,048 mboe in the same quarter last year. On the Norwegian continental shelf the operational performance was strong. New production from the Johan Castberg field reaching plateau and Halten East contributed. Together, this offset natural decline, impact from the turnaround at Hammerfest LNG and maintenance at the Kollsnes processing plant. The acquisition of additional interests in US onshore assets in 2024, and higher production from these assets, contributed to a 28% increase in oil and gas production from US in the second quarter, compared to the same period last year. The production from the international upstream segment, excluding US, is down compared to the same quarter last year, due to exits from Nigeria and Azerbaijan in 2024. Higher production in Brazil, and new wells in Argentina and Angola, contributed positively. The total power generation from the renewable portfolio was 0.83 TWh. The increase compared to second quarter last year is due to ramp up of power production from Dogger Bank A and new production from the onshore wind farm Lyngsåsa in Sweden which was acquired in first quarter 2025. In the quarter, Equinor completed 5 offshore exploration wells on the NCS with 2 commercial discoveries. Strong financial results Equinor delivered an adjusted operating income* of USD 6.53 billion and USD 1.74 billion after tax* in the second quarter of 2025. The results are affected by lower liquids prices, which were partially offset by higher gas prices and higher production. The reported net operating income of USD 5.72 billion is down from USD 7.66 billion in the same quarter last year. This is impacted by an impairment of USD 955 million due to regulatory changes causing loss of synergies from future offshore wind projects and increased exposure to tariffs. Of this, USD 763 million is related to Empire Wind 1/South Brooklyn Marine Terminal project and the remainder is related to the Empire Wind 2 lease. Equinor realised a European gas price of USD 12.0 per mmbtu and realised liquids prices were USD 63.0 per bbl in the second quarter. Adjusted operating and administrative expenses* are stable from the same quarter last year. Strong operational performance generated cash flows provided by operating activities, before taxes paid and working capital items, of USD 9.17 billion for the second quarter. Equinor paid two NCS tax instalments totalling USD 6.85 billion in the quarter. From August, the payments of tax on the NCS will be changed to ten installments annually, and for third quarter Equinor expects to pay two installments of NOK 19.7 billion each. Cash flow from operations after taxes paid* ended at USD 1.94 billion. Organic capital expenditure* was USD 3.40 billion for the quarter, and total capital expenditures were USD 3.58 billion. The net debt to capital employed adjusted ratio* was 15.2% at the end of the second quarter, compared to 6.9% at the end of the first quarter of 2025. The calculation of net debt ratio includes the effect of the Norwegian state's share of the share buy-back, at USD 4.26 billion paid in July. Strategic progress Since the end of the last quarter, Equinor progressed projects to facilitate long-term production and value creation on the Norwegian continental shelf. The plan for development and operation on Fram South was submitted and final investment decision was made on Johan Sverdrup phase 3 in the North Sea which are expected to increase the recoverable volumes from the field by 40-50 million boe. After less than three months in production, the Johan Castberg field in the Barents Sea reached plateau on 17 June. The same month, an oil discovery estimated at approximately 9-15 million barrels was made in the area and can contribute with additional reserves for the field. Equinor and Centrica signed a long-term gas sales agreement of 55 TWh of natural gas per year for a period of 10 years, demonstrating the importance of long-term gas supplies from the NCS to support the UK's energy security. Equinor continues to high-grade its international portfolio. In the quarter, the sale of the Peregrino field in Brazil for USD 3.5 billion was announced. Equinor will focus on the start-up of the Bacalhau field expected on stream later in 2025 and progressing the Raia gas project. New exploration acreage in the Santos basin was awarded. Financial close was announced on the Baltyk 2 and Baltyk 3 offshore wind projects with financing packages totalling EUR 6 billion. The wind projects are located offshore Poland with an expected total capacity of 1.4 GW. Competitive capital distribution The board of directors has decided a cash dividend of USD 0.37 per share for the second quarter of 2025, in line with communication at the Capital Markets Update in February. Expected total capital distribution for 2025 is USD 9 billion, including a share buy-back programme of up to USD 5 billion. The board has decided to initiate a third tranche of the share buy-back programme of up to USD 1.265 billion. The tranche will commence on 24 July and end no later than 27 October 2025. The second tranche of the share buy-back programme for 2025 was completed on 17 July 2025 with a total value of USD 1.265 billion. All share buy-back amounts include shares to be redeemed by the Norwegian state. – – – *For items marked with an asterisk throughout this report, see Use and reconciliation of non-GAAP financial measures in the Supplementary disclosures. – – – Further information from: Investor relationsBård Glad Pedersen, Senior vice president Investor relations,+47 918 01 791 (mobile) PressSissel Rinde, Vice president Media relations,+47 412 60 584 (mobile) This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act Attachments Equinor Second quarter 2025 Financial Statements and Review CFO presentation - Second quarter 2025 resultsError in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
