Equinor Maintains Dividends Despite Second-Quarter Earnings Drop

By Dominic Chopping

Equinor on Wednesday maintained its quarterly and extraordinary dividends, despite a sharp drop in second-quarter earnings as gas prices fell from the extraordinary levels seen last year.

The Norwegian energy major, which is 67%-owned by the Norwegian state, said adjusted earnings–its preferred measure–fell to $7.54 billion from $17.57 billion, against the $7.64 billion expected in a company-compiled consensus.

Equinor’s realized price for piped gas to Europe fell 58% on year, while realized liquids prices were down 34%, it said.

The company reported a net profit of $1.82 billion compared with $6.76 billion a year earlier, and against the $2.21 billion expected in a FactSet poll.

Revenue fell 37% to $22.87 billion.

Total equity production in the quarter was 1.994 million barrels of oil equivalent a day, compared with 1.984 million barrels last year.

The company maintained its quarterly dividend at $0.30, and declared another extraordinary dividend of $0.60. It will initiate the third tranche of share buybacks for $1.67 billion and still expects total capital distribution of $17 billion this year.

Organic capital expenditure is still seen at between $10 billion and $11 billion in 2023, with an annual average of around $13 billion for 2024-26.

Production in 2023 is still seen around 3% above the 2022 level.

Write to Dominic Chopping at [email protected]

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