Norwegian energy giant Equinor posted better-than-expected results in the second quarter, despite the decline in natural gas prices.
Net profit reached $2.08 billion, a 9% decrease compared to the same period last year, primarily due to lower gas prices.
However, the adjusted operating profit, Equinor’s preferred indicator, reached $7.48 billion, exceeding analysts’ forecasts of just under $7 billion. Quarterly revenue also increased to $25.53 billion, compared to $22.87 billion a year ago.
CEO’s Remarks
CEO Anders Opedal hailed the “good results,” highlighting that the decline in gas prices was partially offset by an 8% increase in the price of Brent crude oil and a 3% rise in hydrocarbon production.
Hydrocarbon Production
Gas production in Norway increased by 13% thanks to the Oseberg and Troll fields. Equinor and its partners agreed in May to invest $1.1 billion to further develop Troll, which covers about 10% of Europe’s gas needs.
The company confirmed that hydrocarbon production for the full year is expected to remain stable compared to 2023.
Renewable Energy
Equinor remains committed to its renewable energy goals, despite a slight delay in its roadmap. The company now expects its renewable electricity production to grow by around 70% this year, instead of doubling as initially planned, due to a delay in installing turbines at the Dogger Bank wind farm off the UK coast.
Carbon Capture and Storage (CCS)
Equinor continues to expand in CCS, securing the capacity to potentially store over 50 million tons of carbon dioxide per year.
Its flagship project, Northern Lights, which will store CO2 from industrial or energy facilities under the North Sea, is on track to be completed this fall.
Focus on Profitability
Equinor emphasizes the importance of project profitability over meeting production targets, especially in the current environment of high costs and declining electricity prices.
Equinor’s strong Q2 performance demonstrates its resilience in a challenging market. The company’s focus on profitability, combined with its investments in renewable energy and CCS, positions it well for future growth.