Equinor has announced its fourth quarter 2022 and year end results. The Company delivered adjusted earnings of USD 15.1 billion and USD 5.80 billion after tax in the fourth quarter of 2022. Net operating income was USD 16.6 billion and net income was USD 7.90 billion.
The fourth quarter and full year were characterised by:
- Solid operational performance, contributing to energy security.
- Strong adjusted earnings.
- High value creation from marketing and trading.
- Strong cash flow, further strengthening of balance sheet.
- Cost focus and capital discipline to address inflation.
- Proposed 50% increase in ordinary cash dividend to
USD 0.30 per share. - Expected capital distribution in 2023 of USD 17 billion.
Going forward, Equinor is:
- Well positioned to deliver strong returns through the energy transition, expecting above 15% return on average capital employed to 2030(1).
- Expecting around USD 20 billion in average annual cash flow from operations after tax towards 2030(1).
- Investing in a profitable and robust project portfolio, contributing to energy security and decarbonisation.
- Progressing on the energy transition plan.
Anders Opedal, president and CEO of Equinor, said:
'Equinor is uniquely positioned to provide energy and contribute to decarbonisation, while delivering strong returns. Strong earnings and cash flow will enable continued competitive capital distribution and investments in high-value, resilient projects within oil and gas, renewables, and low carbon solutions.'
'In 2022, we responded to the energy crisis and contributed to energy security. With strong operational performance, we delivered record results and cash flow from operations. We stepped up capital distribution to shareholders, while continuing to invest in a balanced energy transition and contributing to society with high tax payments. On the back of strong earnings, outlook, and balance sheet, we step up capital distribution to expected 17 billion dollars in 2023.'
'Our ambition is to be a leading company in the energy transition.'
Strong operational performance with new fields on stream
Equinor delivered a total equity production of 2,046 mboe per day for the fourth quarter, down from 2,158 mboe per day in the same quarter of 2021, impacted by turnarounds in the US offshore, the exit from Russian assets and deferral of gas production from the Norwegian continental shelf (NCS) to periods with higher demand.
During the quarter, Equinor brought on stream the Peregrino phase 2 project in Brazil and Askeladd, Johan Sverdrup Phase 2 and Njord Future on the NCS.
The floating offshore windfarm Hywind Tampen on the NCS generated its first power in the fourth quarter and will be completed in 2023. Production from renewable energy sources was 517 GWh in the quarter, down 2% from the same quarter in 2021. Including gas-to-power, total power production for the quarter ended at 1,332 GWh.
Equinor completed five exploration wells offshore with one commercial discovery in the quarter and four wells were ongoing at the quarter end.
(1) Based on Brent blend 70 USD/bbl, Henry Hub 3.5 USD/mmbtu and European gas price 2023: 20 USD/mmbtu, 2024: 20 USD/mmbtu, 2025: 15 USD/mmbtu and 2026 onwards: 9 USD/mmbtu.
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Source: Equinor
