“We capture value from higher prices and deliver solid results and cash flow from operations. This quarter we deliver very strong results from our international operations, while new fields, increased maintenance and some quarter specific items contribute to somewhat higher costs at the NCS. This underlines the importance of continued cost focus across the organisation. We are on track to deliver on our guiding to the capital market,” said Eldar Sætre, President and CEO of Equinor ASA.
"We continue to build on our industrial strengths and develop our portfolio. In the quarter we have closed the Roncador and Carcara transactions in Brazil and the North Platte transaction in the US, and we have secured new and attractive exploration acreage in Brazil, the UK and Norway. We have started field installation at Johan Sverdrup and have high project activity with several projects in execution. In July, we delivered the development plan for the very profitable Troll Phase 3 project for approval,” added Sætre.
Adjusted earnings were US$4.3 billion in 2Q18, up from US$3 billion in the same period in 2017. Adjusted earnings after tax were US$1.7 billion in the second quarter, up from US$1.3 billion in the same period last year, which included a reversal of a provision in Angola of US$0.7 billion. Higher prices for both liquids and gas, coupled with high production, contributed to the increase. Due to increased maintenance and some quarter and field specific items, underlying operating costs and administrative expenses per barrel are slightly up compared to same quarter last year, adjusted for new fields in production.
IFRS net operating income was US$3.8 billion in 2Q18 compared to US$3.2 billion in 2Q17. In the quarter, Equinor had a net impairment reversal of US$0.3 billion and a negative effect from changes in the unrealised fair value of derivatives of US$0.5 billion. IFRS net income was US$1.2 billion, down from US$1.4 billion in 2Q17.
Equinor delivered equity production of 2028 mboe per day in the second quarter, an increase from 1996 mboe per day in the same period in 2017. The increase was primarily due to higher production in the US. The production growth was 2% compared to 2Q17.
As of 2Q18, Equinor had completed 10 exploration wells with four commercial discoveries. Adjusted exploration expenses in the quarter were US$234 million, up from US$224 million in the same quarter of 2017, mainly due to higher drilling activity.
Cash flows provided by operating activities before taxes paid and changes in working capital amounted to US$13.2 billion for the first half of 2018 compared to US$10.5 billion same period 2017. Organic CAPEX was US$4.6 billion for the first six months of 2018. End of June, net debt to capital employed increased from 25.1% to 27.2%, after value enhancing transactions and increased working capital.
The board of directors has decided to maintain a dividend of US$0.23 per share for the second quarter.
The twelve-month average Serious Incident Frequency (SIF) was 0.5 for the twelve months ended 30 June 2018, compared to 0.7 in the same period a year ago.
Read the article online at: https://www.oilfieldtechnology.com/offshore-and-subsea/27072018/equinor-announces-2q18-and-1h18-results/