Equinor Q4 Earnings Fall Despite Record Production

Main Summary

Equinor announced a decline in fourth-quarter adjusted net income to $2.04 billion, a significant drop from $3.64 billion the previous year. The decrease was primarily driven by lower realised liquids prices and impairment charges totaling $626 million.

Performance Overview

Despite the profit decline, the Norwegian energy group reported a 6% year-on-year increase in total equity production to 2.20 million barrels of oil equivalent per day. This growth was fueled by new fields on the Norwegian continental shelf and higher U.S. gas output, leading to record-level production for the full year. Realised liquids prices fell to $58.6 per barrel from $77.7.

Shareholder Returns and Outlook

In a move to bolster shareholder value, Equinor proposed a fourth-quarter dividend of $0.39 per share and announced a share buyback program of up to $1.5 billion for 2026. The company maintains its outlook for approximately 3% production growth in 2026, signaling confidence in future operations.

Summary

While lower commodity prices impacted Equinor's Q4 earnings, the company's record production levels and commitment to shareholder returns through increased dividends and buybacks present a mixed but forward-looking financial picture. Investors will monitor how the balance between production growth and price volatility unfolds.

FAQ

Q: Why did Equinor's Q4 profit fall?

A: The profit fell mainly due to weaker oil prices, with realised liquids prices dropping to $58.6 per barrel, and significant impairment charges.

Q: Did Equinor's production increase or decrease?

A: Production increased by 6% year-on-year in the fourth quarter, reaching a record level for the full year.

Source: Investing.com