“In a quarter with lower commodity prices, we deliver higher after-tax results than in the same period last year. Our cash flow from operating activities was strong at US$6.5 billion in the quarter, and we have reduced our net debt ratio to 19.4%. We maintain high production, continue with strong cost focus and strict capital discipline, and we are on track to deliver on our guidance from our Capital Markets Update in February,” said Eldar Sætre, President and CEO of Equinor ASA.
“Johan Sverdrup will start production later this year, and our project developments are on track to deliver production growth towards 2025. So far this year, we have accessed attractive new acreage in Norway and Argentina, announced the investment decision for a new platform at the ACG field offshore Azerbaijan and had the official opening of the Arkona wind farm in Germany,” said Sætre.
Adjusted earnings were US$4.19 billion in 1Q19, down from US$4.41 billion in 1Q18. Adjusted earnings after tax were US$1.54 billion, up from US$1.47 billion in the same period last year. Production was maintained at a high level, but lower prices impacted the result. Underlying operating costs and administrative expenses per barrel increased somewhat from the same quarter last year, mainly due to new fields coming on stream.
Adjusted depreciation expenses was down, mainly due to positive reserve revisions. A one-off provision effect related to earlier periods, negatively impacted the results from the Marketing, Midstream & Processing reporting segment in the quarter. IFRS net operating income was US$4.73 billion in 1Q19, down from US$4.96 billion in 1Q18. IFRS net income US$1.71 billion, up from US$1.29 billion in 1Q18.
Equinor delivered total equity production of 2178 mboe per day in the first quarter, on par with the same period in 2018. Expected natural decline from mature fields was offset by portfolio changes, new wells and new fields coming on stream.
As of the end of 1Q19, Equinor had completed 11 exploration wells with four commercial discoveries. Adjusted exploration expenses in the quarter were US$0.27 billion, up from US$0.24 billion in the same quarter of 2018, mainly due to higher field development costs.
Cash flows provided by operating activities before taxes paid and changes in working capital amounted to US$6.45 billion for 1Q19 compared to US$7.13 billion same period 2018. Organic capital expenditure was US$2.21 billion for the first three months of 2019. At quarter end, net debt to capital employed was reduced to 19.4%. Following the implementation of IFRS 16, the net debt ratio was 25.8%.
The board of directors has decided on a dividend of US$0.26 per share for the first quarter, a 13% increase from the same quarter last year.
The twelve-month average Serious Incident Frequency (SIF) was 0.5 for the twelve months ended 31 March 2019, compared to 0.5 in the same period a year ago.
Read the article online at: https://www.oilfieldtechnology.com/special-reports/03052019/equinor-announces-1q19-results/