Equinor announces 3Q18 financial results

“With solid operational performance and production efficiency, we delivered strong results and cash flow across all segments. We continued to strengthen our balance sheet and reduced our net debt ratio to 25.7% in the quarter,” said Eldar Sætre, President and CEO.

“We have achieved significant cost improvements in recent years, allowing us to capture more value from higher prices. We will continue with a strong cost focus to further strengthen our competitive position. As a result of capital discipline and efficient project execution, we are able to reduce our organic CAPEX guiding for 2018 to around US$10 billion,” said Sætre.

“Project activity remains high, and we have submitted development plans for the next phases of the high value, low carbon Johan Sverdrup and Troll fields. In October we announced the acquisition of a 40% operated interest in the Rosebank field in the UK and the divestments of two non-core assets in Norway. We also continue to develop our portfolio within renewable energy. The Apodi solar project in Brazil is on track, and we delivered first electricity from the Arkona offshore wind project in Germany,” added Sætre.

Adjusted earnings were US$4.8 billion in the third quarter, up from US$2.3 billion in the same period in 2017. Adjusted earnings after tax were US$2.0 billion in the third quarter, up from US$0.8 billion in the same period last year. Higher prices for both liquids and gas, coupled with high production, contributed to the increase. Adjusted for new fields in production and portfolio changes, underlying operating costs and administrative expenses per barrel increased slightly compared to the same quarter last year, mainly due to increased turnarounds and preparation for start-up of new fields.

IFRS net operating income was US$4.6 billion in the third quarter compared to US$1.1 billion in the same period of 2017. IFRS net income was US$1.7 billion, up from negative US$0.5 billion in 3Q17.

Equinor delivered total equity production of 2066 million boe/d in the third quarter, an increase of 1% from 2045 million boe/d in the same period in 2017. The increase was primarily due to start-up of new fields, portfolio changes and additional wells coming on stream, partially offset by high maintenance.

As of 3Q18, the company has completed 15 exploration wells with seven commercial discoveries. The appraisal of the Cape Vulture discovery confirmed the doubling of the remaining reserves at Norne, extending the life and value of the field. Adjusted exploration expenses in the quarter were US$239 million, down from US$416 million in the same quarter of 2017, mainly due to a higher capitalisation rate and lower drilling activity.

Cash flows provided by operating activities before tax amounted to US$20.4 billion in the first nine months of 2018 compared to US$15.2 billion for the same period last year. Organic CAPEX was US$7.2 billion for the first nine months of 2018. At the end of the quarter, net debt to capital employed was reduced from 27.2% to 25.7%.

The board of directors has decided to maintain a dividend of US$0.23 per share for the third quarter.

The twelve-month average Serious Incident Frequency (SIF) was 0.5 for the twelve months ending 30 September 2018, compared to 0.7 in the same period a year ago.

Read the article online at: https://www.oilfieldtechnology.com/offshore-and-subsea/25102018/equinor-announces-3q18-financial-results/