Equinor Posts Mixed Q2: Increases Renewables Output, Boosts Shareholder Returns

Equinor ASA EQNR shares are trading higher after the company reported second-quarter FY24 results.

Adjusted revenue and other income rose 12% Y/Y to $25.54 billion, above the consensus of $23.72 billion.

Total equity liquids and gas production rose 3% Y/Y to 2,048 mboe per day, with equity liquids production falling 1% Y/Y to 1,080 mboe per day and equity gas production rising 7% Y/Y to 968 mboe per day.

Production benefited from performance at NCS, driven by Troll and Oseberg, along with the ramp-up of new fields.

The contribution from the Buzzard field in the U.K. and new wells partially offset lower production in the U.S.

Group average liquids price rose 10% Y/Y to $77.6/bbl, and realised piped gas price U.S. was $1.53/mmbtu.

Equinor produced 655 GWh from renewables, up 90% Y/Y, in the quarter. Onshore power plants, notably in Brazil and Poland, and strong offshore wind farm production drove over half of the quarter’s output.

Equinor reported an adjusted operating income of $7.48 billion in the quarter, with $6.13 billion from E&P Norway, $699 million from E&P International, and $264 million from E&P USA.

Adjusted EPS of $0.84, missing the consensus of $0.85.

Operating cash flow stood at $1.61 billion, down 13% Y/Y, in the quarter.

Dividend: The board of directors declared a first-quarter ordinary cash dividend per share of $0.35 and an extraordinary cash dividend of $0.35, payable on November 29, to shareholders of record as of November 19.

Repurchase: The board has launched a third tranche of its share buyback program, totaling up to $1.6 billion, running from July 25 to October 22.

In February 2024, the board of directors disclosed a two-year share buyback program for 2024-2025 of $10 billion-$12 billion in total, with up to $6 billion for 2024. 

In the quarter, Equinor drilled seven exploration wells offshore, including the Argerich well in Argentina, but made no commercial discoveries. Seven wells were still in progress at the end of the quarter.

FY24 Outlook: Equinor continues to expect total capital distributions of $14 billion in FY24.

Anders Opedal, President and CEO, said, “Field developments and high production contributes to energy security for Europe. To unlock further long-term value creation, we continue to optimise our portfolio. We also progressed our renewables projects and accessed three new licences for CO2 storage, to build a profitable business for a future low carbon energy system.”

Also Read: Equinor Extends 35-Year Partnership: Nippon Steel and Sumitomo to Supply OCTG for Up to 9 Years

Investors can gain exposure to the stock via Amplify ETF Trust Amplify Natural Resources Dividend Income ETF NDIV and SGI Enhanced Global Income ETF GINX.

Price Action: EQNR shares are up 0.84% at $26.40 premarket at the last check Wednesday.

Photo by anna-jimenez for Unsplash

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