Equinor with weaker than expected result in the third quarter of 2020 – NRK Norway – Summary of news from different parts of the country

– Our financial results are characterized by weak prices, as regions around the world are still severely affected by the pandemic. We see the results of our powerful response to market turmoil, with significant cost improvements and strict financial discipline, CEO Eldar Sætre says in a press release.

Adjusted operating profit before tax was $ 780 million, corresponding to approximately NOK 7.3 billion.

$ 780 million is well below what an analyst sample expected beforehand. The average of their estimates was $ 1,034 million.

The result was also much weaker than the corresponding figures for the same quarter of 2019. At that time, the result was $ 2.59 billion.

Much of the reason for the weak numbers is due to the price of oil. This is known to have decreased as a result of the corona pandemic.

Equinor says they received an average of $ 52.5 per barrel in the third quarter of last year, while the average price in the third quarter of this year was $ 38.3 per barrel.

The consolation is that the numbers are at least better than in the previous quarter.

Write down values ​​for NOK 27 billion

Equinor also made writedowns of $ 2.93 million in the quarter, or just over 27 billion kronor.

This is mainly due to the fact that the company’s expectations for future oil and gas prices have been lowered. Additionally, estimates of how much oil and gas is left in Equinor’s fields have been lowered somewhat.

– There is still considerable uncertainty associated with the future evolution of commodity prices, emphasizing the importance of strengthening competitiveness and financial soundness, says Sætre.

Most of the amortizations come from Equinor’s international operations. $ 1.38 billion is taken in the US, 1.18 billion in general international business, and $ 0.37 billion in Norway.

The company also boasts of cost cuts in the stock exchange announcement that follows the quarterly figures:

“Equinor is on track to meet the $ 3 billion action plan launched in March 2020 to strengthen financial resilience, including a reduction in operating costs of $ 0.70 billion,” says the report.

Much uphill in 2020

So far 2020 is also a lot less to shout about than 2019 was for Equinor.

In the first nine months of the year, Equinor’s adjusted operating profit is $ 3.181 billion. The corresponding figure for the first nine months of 2019 was $ 9.934 billion.

This corresponds to a drop in earnings of 68 percent.

However, the company can be satisfied that production has increased by about 9 percent compared to the same quarter last year. Equinor produced an average of 1,994 million barrels of oil equivalent per day in the third quarter.

The new man takes over the helm

This will also be the last time that CEO Eldar Sætre presents the quarterly results to Equinor. Earlier this year, he announced that he would resign as a senior manager after six years and more than 40 years at Equinor.

Anders Opedal will take over as the new CEO on November 2.