Key facts
- Equinor's second-quarter profit increased by 93% year-over-year.
- Adjusted operating income after tax reached $3.225 billion.
- Higher global liquid and European natural gas prices were key drivers of profit.
- Total equity production rose by 3% to 2.165 million barrels of oil equivalent per day.
- Cash flow from operations increased to $9.47 billion.
Equinor reported a significant 93% increase in its second-quarter profit compared to the previous year, driven by a substantial spike in oil and gas prices. The Norwegian energy giant announced an adjusted operating income after tax of $3.225 billion for the quarter, surpassing last year's $1.670 billion. This windfall was primarily attributed to higher global liquid prices and a sharp rise in European natural gas prices, which were only partially offset by lower U.S. natural gas prices.
Equinor's adjusted operating income surged by 76% to $11.482 billion, exceeding analyst consensus estimates. The company realized a European gas price of $15.8 per million British thermal units (MMBtu), a 32% increase year-over-year, and a liquids price of $97.9 per barrel, up 55%. Higher group oil and gas production also contributed to the strong financial results, with total equity production rising by 3% to 2.165 million barrels of oil equivalent per day. This increase was bolstered by rising output offshore Norway and volumes from joint ventures in the UK and Brazil.
Cash flow from operations soared to $9.47 billion from $2.477 billion, reflecting the impact of higher production and prices. Equinor's president and CEO, Anders Opedal, stated that strong production enabled the company to capture value from higher prices, leading to robust cash flow and financial outcomes. He emphasized the importance of reliable energy delivery in a volatile world marked by geopolitical tensions.
Equinor was the first European major to release its second-quarter results, with other major energy firms also expected to report strong profits due to the surge in oil and gas prices, improved refining margins, and increased trading earnings.