NewsOil & gas production on the rise but Equinor’s profit plummets as...

Oil & gas production on the rise but Equinor’s profit plummets as energy prices go down

Home Fossil Energy Oil & gas production on the rise but Equinor’s profit plummets as energy prices go down

While Norway’s energy giant Equinor has continued supplying Europe with energy, managing to boost its hydrocarbon production in the process, the company’s net profit in the first quarter of 2024 has taken a hit, dropping by 46% compared to the figure recorded in 1Q 2023, amid a downturn in oil and gas prices.

Johan Sverdrup; Credit: Arne Reidar Mortensen/Equinor

On April 25, 2024, Equinor reported that its net operating income in 1Q 2024 fell to $7.63 billion from $8.75 billion in 4Q 2023 and $12.5 billion in 1Q 2023. The reported net income in 1Q 2024 was $2.67 billion, slightly higher than the $2.61 billion in 4Q 2023, but significantly lower than the $4.97 billion during the same period last year.

The company’s adjusted operating income showed a similar trend, amounting to $7.53 billion in the first quarter of 2024, which represents a decrease from 4Q 2023, when it was $8.56 billion, and a nearly 37% drop compared to the same period last year when it amounted to $11.92 billion. According to the company, the reasons for this are lower gas prices, but the decrease was partially offset by production growth and increased liquids prices.

The Norwegian company reported that the price for piped gas to Europe went down by 50% compared to 1Q 2023, amounting to $9.41 per MMbtu. However, the average liquids price was $76.0 per bbl, up 3% compared to the same period last year. 

Anders Opedal, President and CEO of Equinor, commented: “Equinor delivered solid financial results driven by strong operational performance across the business. Production on the Norwegian continental shelf was high, and the international portfolio contributed with solid production growth. We continue with significant capital distribution and expect to deliver a total distribution of 14 billion dollars in 2024.”

The Norwegian giant delivered total equity production of 2,164 mboe per day in the first quarter, down from 2,197 mboe per day in 4Q 2023, but up from 2,130 mboe per day in 1Q 2023. The company attributes production growth to its strong operational performance, including increased capacity at Johan Sverdrup field, which reached a record-high production level of 755,000 barrels of oil per day during a capacity test in May 2023.

Additionally, the activity level on the Norwegian continental shelf was said to be high throughout the quarter, which was further boosted by the start-up of the Breidablikk field four months ahead of schedule. The company completed nine exploration wells offshore with two commercial discoveries, three wells were ongoing at the quarter-end, and it won 39 new production licenses on the NCS.

  • Posted: 6 months ago

“We remain a safe and reliable provider of energy to Europe. On the NCS we got approval for the Eirin project and the Sleipner and Gudrun fields are now partially operating with power from shore,

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