Equinor first-quarter profit down 37% on lower gas prices
Reuters
Published Apr 25, 2024 01:00
Updated Apr 25, 2024 03:03
OSLO (Reuters) -Equinor posted a sharp fall in first-quarter profit on Thursday, hit by tumbling natural gas prices in Europe, though strong energy trading and rising output limited the decline.
The Norwegian oil and gas producer's adjusted earnings before tax for January-March fell almost 37% to $7.53 billion but beat the $7.2 billion forecast in a poll of 22 analysts compiled by Equinor.
"Production on the Norwegian continental shelf was high,and the international portfolio contributed with solid production growth," Equinor CEO Anders Opedal said in a statement.
The company overtook Russia's Gazprom (MCX:GAZP) as Europe's biggest supplier of natural gas in 2022 when Moscow's invasion of Ukraine upended decades-long energy ties.
The Dutch TTF front-month gas contract, Europe's benchmark, averaged 27.51 euros per megawatt hour (MWh) in the first quarter, down from 52.73 euros/MWh a year earlier, reflecting a mild winter and well-filled storage sites.
"Equinor's operating income beat the market consensus due to slightly higher output in the United States and strong results from both liquids and LNG trading," RBC (TSX:RY) analyst Biraj Borkhataria said in a note.
Equinor pumped 2.16 million barrels of oil equivalent per day in the first quarter, in line with expectations in the analyst poll, and maintained a projection that this year's oil and gas output will remain flat against 2023.
International oil and gas output rose by 3% from a year earlier, helped by last year's acquisition of Suncor Energy (TSX:SU)'s British North Sea (NYSE:SE) oil and gas assets and a 1% rise in domestic production.
Equinor's Market, Midstream and Processing (MMP) division, which includes its trading business, posted a profit of $887 million, down from $1.3 billion a year ago but ahead of a poll forecast of $592 million.
The MMP result exceeded Equinor's guidance range of between $400 million and $800 million, which the group said was thanks to strong results from liquids and LNG trading.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.