Equinor shares fall despite Q4 profit beat, rising output
By Nora Buli and Nerijus Adomaitis
LONDON/OSLO (Reuters) -Equinor reported a smaller than expected fall in fourth-quarter profit on Wednesday and joined many rivals in promising higher oil and gas output while scaling back renewables, but its shares fell amid some disappointment over shareholder payouts.
The Norwegian oil and gas producer said its adjusted earnings before tax for October-December fell to $7.90 billion from $8.56 billion a year earlier. That beat the $7.71 billion expected in a poll of 24 analysts compiled by Equinor.
Equinor's Oslo-listed shares closed down 4.1%, underperforming a 0.3% rise for Europe's oil and gas index. Year-to-date, the shares are up 0.4%, lagging a 6% gain in European petroleum stocks.
Jefferies analyst Giacomo Romeo said Equinor's planned payout to shareholders in 2025 was lower than expected, while spending cuts on renewables were anticipated.
The ordinary cash dividend for the fourth quarter was raised to $0.37 per share from $0.35 in the third. Including share buybacks, Equinor plans to return to shareholders a total of $9 billion this year.
Chief Executive Anders Opedal told Reuters the capital distribution was "competitive".
"Equinor is well positioned for further growth and competitive shareholder returns ... Our oil and gas production outlook is increased to more than 10% growth from 2024 to 2027," he said.
In 2030, the company expects to produce around 2.2 million barrels of oil equivalent per day in oil and gas, up from the previous plan of 2 million, Equinor said in a statement.
At the same time, the company scaled back plans for renewable energy capacity expansion, in line with European peers Shell and BP.
"Inflation, interest rates, supply chain issues and regulatory uncertainty reduce the pace of energy transition ... We adapt to these realities, both phasing and prioritising investments to maximize returns, Opedal told an investor presentation.
The company reduced its 2030 target for renewable energy capacity to between 10-12 gigawatts from 12-16 gigawatts previously, and scrapped plans to spend more than 50% of its gross capital on renewables and low-carbon solutions by 2030.
It also reduced organic capital spending plans for 2025 to $13 billion, down from guidance of $14 billion to $15 billion a year ago.
"The result of the above change appears to be a business that has moderated the pace of its transition, which should in theory mean more robust cash flows over time," RBC Capital Markets analyst Biraj Borkhataria said in a note to clients.
In 2025, Equinor's plans to increase oil and gas production by 4% from 2024, as new fields are set to come on stream.
Kjetil Hove, Equinor's head of Norwegian operations, told Reuters he expected the Johan Sverdrup oilfield, the largest in Europe, to produce at around 720,000 barrels of oil equivalent per day in 2025, close to the levels in 2023-2024.
Its Troll gas field, which hit a record output last year, was also expected to continue producing at elevated levels this year, he added.
Equinor in 2022 overtook Russia's Gazprom as Europe's biggest supplier of natural gas when Moscow's invasion of Ukraine upended decades-long energy ties. Norway now meets around one-third of the continent's demand.
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There is no further information to be disclosed in relation to the appointment of Tralisa Maraj pursuant to AIM Rule 17 or Schedule Two, paragraph (g) (i)-(viii) of the AIM Rules for Companies. -ENDS- For further information, please contact: UK Corporate and Investor Relations ContactPantheon Resources plcJustin Hondris+44 20 7484 5361contact@ Nominated Adviser and BrokerCanaccord Genuity LimitedHenry Fitzgerald-O'Connor, James Asensio, Charlie Hammond+44 20 7523 8000 Public Relations ContactBlytheRayTim Blythe, Megan Ray, Matthew Bowld+44 20 7138 3204 USA Investor Relations ContactMZ GroupLucas Zimmerman, Ian Scargill+1 949 259 4987PTHRF@ About Pantheon ResourcesPantheon Resources plc is an AIM-listed Oil & Gas company focused on developing its 100% owned Ahpun and Kodiak fields located on State of Alaska land on the North Slope, onshore USA. 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Once the Company achieves financial self-sufficiency, it will apply the resultant cashflows to support the FID on the Kodiak field planned, subject to regulatory approvals, targeted by the end of 2028 or early 2029. A major differentiator to other ANS projects is the close proximity to existing roads and pipelines which offers a significant competitive advantage to Pantheon, allowing for shorter development timeframes, materially lower infrastructure costs and the ability to support the development with a significantly lower pre-cashflow funding requirement than is typical in Alaska. Furthermore, the low CO2 content of the associated gas allows export into the planned natural gas pipeline from the North Slope to Southcentral Alaska without significant pre-treatment. The Company's project portfolio has been endorsed by world-renowned experts. Netherland, Sewell & Associates estimate a 2C contingent recoverable resource in the Kodiak project that total 1,208 mmbbl (million barrels) of ANS crude and 5,396 bcf (billion cubic feet) of natural gas. Cawley Gillespie & Associates estimate 2C contingent recoverable resources for Ahpun's western topset horizons at 282 mmbbl of ANS crude and 803 bcf of natural gas. Lee Keeling & Associates estimated possible reserves and 2C contingent recoverable resources totalling 79 mmbbl of ANS crude and 424 bcf natural gas. For more information visit This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@ or visit SOURCE: Pantheon Resources PLC View the original press release on ACCESS Newswire Error 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
