Equinor Posts Higher-Than-Expected Q4 Profit, Trims Payout

Equinor’s Q4 Operating Profit Exceeds Expectations

Equinor posted a slightly higher-than-expected operating profit for the final quarter of 2023 as output rose, with adjusted earnings before tax for October-December falling to $8.68 billion from $17.0 billion a year earlier. This beat the $8.46 billion seen in a poll of 26 analysts compiled by Equinor.

Company’s Growth Outlook and Production

CEO Anders Opedal stated, “We expect to grow our cash flow and sustain competitive returns. We are extending the outlook for stable contribution from oil and gas to 2035.” The group’s combined oil and gas output grew by 2.1% in 2023 thanks to a strong finish to the year, exceeding the company’s October guidance of 1.5% growth. The increase was mainly driven by strong production at the Johan Sverdrup field, the largest in the North Sea, and new wells in production, Equinor said.

Equinor’s Future Plans and Dividend

Equinor said its production would be unchanged in 2024 before rising by 5% by 2026. It would then decline somewhat towards 2030 to around 2 million barrels of oil equivalent per day, down from about 2.2 million in the fourth quarter of 2023. The company also raised its ordinary quarterly dividend payment to $0.35 per share from $0.30 but said its extraordinary cash dividend would be cut to $0.35 per quarter from $0.60.

Equinor’s Performance and Future Projections

Equinor’s full-year adjusted earnings totaled $36.2 billion, down from a record $76.9 billion in 2022 as the price of gas declined sharply. The company’s share price has risen 4.8% in the last 12 months, slightly ahead of a 3.7% rise in the European oil and gas sector.