[Second Quarter 2025 Highlights](index=2&type=section&id=Equinor%20second%20quarter%202025%20results) [Financial and Operational Overview](index=2&type=section&id=Financial%20and%20Operational%20Overview) Equinor delivered solid Q2 2025 results with $6.53 billion in adjusted operating income and a 2% rise in production Q2 2025 Key Financial and Operational Metrics | Metric | Value | Unit | | :--- | :--- | :--- | | Adjusted Operating Income* | 6.53 | USD Billion | | Net Operating Income | 5.72 | USD Billion | | Net Income | 1.32 | USD Billion | | Adjusted Earnings Per Share* | 0.64 | USD | | Equity Oil & Gas Production | 2,096 | mboe/d | | Renewable Power Generation | 0.83 | TWh | - CEO Anders Opedal highlighted strong operational performance, production growth from Johan Castberg, and significant value creation from the US onshore gas portfolio, which saw a **50% production increase** and nearly **80% higher prices** year-over-year[5](index=5&type=chunk) - Total equity liquids and gas production increased by **2% year-over-year**, from 2,048 mboe/day in Q2 2024 to 2,096 mboe/day in Q2 2025[9](index=9&type=chunk)[11](index=11&type=chunk) [Strategic Progress and Capital Distribution](index=2&type=section&id=Strategic%20Progress%20and%20Capital%20Distribution) The company advanced key projects, recognized impairments on Empire Wind, and maintained its $9 billion capital distribution target for 2025 - Key strategic milestones achieved include Johan Castberg field reaching plateau, financial close of Bałtyk 2 & 3 offshore wind projects, and the announced divestment of the Peregrino field for **USD 3.5 billion**, though impairments were recognized on Empire Wind[7](index=7&type=chunk) - The board has decided on an ordinary cash dividend of **$0.37 per share** for Q2 2025[7](index=7&type=chunk)[23](index=23&type=chunk) - A third tranche of the 2025 share buy-back program was initiated, valued at up to **$1.265 billion**, with an expected total capital distribution for 2025 of **$9 billion**[7](index=7&type=chunk)[24](index=24&type=chunk) [Second Quarter 2025 Review](index=5&type=section&id=Second%20quarter%202025%20review) [Group Review](index=5&type=section&id=Group%20review) Group net operating income fell 25% to $5.72 billion, impacted by lower liquids prices and a $955 million impairment on US offshore wind assets Group Financial Performance (Q2 2025 vs Q2 2024) | Metric (USD million) | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net operating income/(loss) | 5,721 | 7,656 | (25)% | | Net income/(loss) | 1,317 | 1,872 | (30)% | | Adjusted operating income* | 6,535 | 7,482 | (13)% | | Adjusted net income* | 1,670 | 2,417 | (31)% | | Cash flow from operations after taxes paid* | 1,938 | 2,097 | (8)% | - Net operating income was negatively impacted by a **$955 million impairment** related to the Empire Wind projects in the US, driven by regulatory changes and increased tariff exposure[15](index=15&type=chunk)[35](index=35&type=chunk) - The net debt to capital employed adjusted ratio increased to **15.2%** at the end of Q2 2025, up from 6.9% at the end of Q1 2025, mainly due to a liability to the Norwegian state for share buy-backs[18](index=18&type=chunk)[42](index=42&type=chunk) [Outlook](index=6&type=section&id=Outlook) Equinor reaffirms its 2025 guidance, projecting 4% production growth and approximately $13 billion in organic capital expenditures - Oil & gas production for 2025 is estimated to grow by **4%** compared to 2024[49](index=49&type=chunk) - Organic capital expenditures are estimated at **$13 billion** for 2025[49](index=49&type=chunk) - Scheduled maintenance is expected to reduce equity production by around **30 mboe per day** for the full year of 2025[49](index=49&type=chunk) [Exploration & Production Norway](index=7&type=section&id=Exploration%20%26%20Production%20Norway) The E&P Norway segment's net operating income fell 7% to $5.71 billion, as higher gas prices were offset by lower liquids prices E&P Norway Key Metrics (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net operating income (USD million) | 5,706 | 6,129 | (7)% | | Entitlement production (mboe/day) | 1,359 | 1,375 | (1)% | | Average liquids price (USD/bbl) | 65.4 | 80.6 | (19)% | | Average internal gas price (USD/mmbtu) | 10.60 | 8.47 | 25% | - Production remained robust and stable compared to the same quarter last year, as contributions from new fields (Johan Castberg, Halten East) and high efficiency from Johan Sverdrup offset natural decline and maintenance at Hammerfest LNG[55](index=55&type=chunk) [Exploration & Production International](index=8&type=section&id=Exploration%20%26%20Production%20International) E&P International's net operating income fell 41% to $415 million, driven by a 9% production drop from asset divestments E&P International Key Metrics (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net operating income (USD million) | 415 | 699 | (41)% | | Equity production (mboe/day) | 306 | 336 | (9)% | | Average liquids price (USD/bbl) | 60.1 | 75.4 | (20)% | - The decrease in production was mainly due to the **divestment of assets in Azerbaijan and Nigeria**, partially offset by new wells and improved production efficiency in Brazil[62](index=62&type=chunk) [Exploration & Production USA](index=8&type=section&id=Exploration%20%26%20Production%20USA) The E&P USA segment saw a 28% production surge to 431 mboe/day, though net operating income declined 31% due to higher costs E&P USA Key Metrics (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net operating income (USD million) | 183 | 264 | (31)% | | Equity production (mboe/day) | 431 | 337 | 28% | | Average liquids price (USD/bbl) | 56.3 | 68.0 | (17)% | | Average internal gas price (USD/mmbtu) | 2.41 | 1.32 | 83% | - Production growth was primarily driven by increased gas output from the **Appalachia onshore assets** following the acquisition of additional interests in late 2024[60](index=60&type=chunk) [Marketing, Midstream & Processing (MMP)](index=9&type=section&id=Marketing%2C%20Midstream%20%26%20Processing) The MMP segment's net operating income decreased 34% to $329 million, impacted by lower LNG and crude trading results MMP Key Metrics (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net operating income (USD million) | 329 | 497 | (34)% | | Adjusted operating income* (USD million) | 333 | 521 | (36)% | | Realised piped gas price Europe (USD/mmbtu) | 12.00 | 9.94 | 21% | - The segment's results were impacted by lower contributions from LNG trading, primarily due to turnaround activities at **Hammerfest LNG**, and reduced crude and product trading results[30](index=30&type=chunk) [Renewables (REN)](index=9&type=section&id=Renewables) The Renewables segment reported a $1.0 billion net operating loss, driven almost entirely by a $955 million impairment on US offshore wind assets Renewables Key Metrics (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net operating income/(loss) (USD million) | (1,002) | (90) | >(100)% | | Adjusted operating income/(loss)* (USD million) | (75) | (90) | 17% | | Renewable power generation (TWh) | 0.78 | 0.63 | 24% | - Net operating income includes a significant impairment of **USD 955 million** related to US offshore wind assets, primarily Empire Wind 1 and 2[35](index=35&type=chunk)[109](index=109&type=chunk) - The growth in power generation is primarily attributed to the ramp-up of production from **Dogger Bank A** and a new onshore acquisition in Sweden[74](index=74&type=chunk) [Condensed Interim Financial Statements and Notes](index=10&type=section&id=Condensed%20interim%20financial%20statements%20and%20notes) [Consolidated Financial Statements](index=10&type=section&id=Consolidated%20Financial%20Statements) The statements show Q2 net income of $1.32 billion, total assets of $139.1 billion, and operating cash flow of $2.48 billion Consolidated Statement of Income (Q2 2025) | (in USD million) | Q2 2025 | | :--- | :--- | | Total revenues and other income | 25,145 | | Net operating income/(loss) | 5,721 | | Net income/(loss) | 1,317 | Consolidated Balance Sheet (as of June 30, 2025) | (in USD million) | At 30 June 2025 | | :--- | :--- | | Total assets | 139,091 | | Total equity | 41,972 | | Total liabilities | 97,119 | Consolidated Statement of Cash Flows (Q2 2025) | (in USD million) | Q2 2025 | | :--- | :--- | | Cash flows provided by operating activities | 2,477 | | Cash flows provided by/(used in) investing activities | 880 | | Cash flows provided by/(used in) financing activities | (2,579) | [Notes to the Condensed Interim Financial Statements](index=13&type=section&id=Notes%20to%20the%20Condensed%20Interim%20Financial%20Statements) Key notes detail a $955 million impairment, a $491 million gain on an asset swap, dividend declarations, and geopolitical risks - Note 1: The company changed its accounting policy for classifying cash collaterals, resulting in the **restatement of comparative figures** for 2024[102](index=102&type=chunk)[104](index=104&type=chunk) - Note 2: A net impairment of **$955 million** was recognized in the Renewables segment related to US offshore wind projects (Empire Wind 1/SBMT and Empire Wind 2) due to regulatory changes and increased tariff exposure[109](index=109&type=chunk) - Note 8: The board declared a Q2 2025 cash dividend of **$0.37 per share** and initiated a third share buy-back tranche of up to **$1.265 billion** as part of its 2025 program[132](index=132&type=chunk)[134](index=134&type=chunk) - Note 9: Geopolitical and market uncertainty, particularly regarding US international trade policy, is cited as a key risk and a factor contributing to the **$955 million impairment** on US offshore wind projects[137](index=137&type=chunk) [Supplementary Disclosures](index=19&type=section&id=Supplementary%20disclosures) [Use and Reconciliation of Non-GAAP Financial Measures](index=19&type=section&id=Use%20and%20reconciliation%20of%20Non-GAAP%20financial%20measures) This section reconciles reported results to adjusted non-GAAP measures, showing a Q2 adjusted operating income of $6.54 billion - Non-GAAP measures like 'Adjusted operating income' are used to separate out effects that may not be correlated to underlying operational performance, such as impairments, gains/losses on asset sales, and fair value changes of certain derivatives[144](index=144&type=chunk)[149](index=149&type=chunk)[157](index=157&type=chunk) Reconciliation of Net Operating Income to Adjusted Operating Income (Q2 2025) | (in USD million) | Amount | | :--- | :--- | | **Net operating income/(loss)** | **5,721** | | Impairment | 955 | | Other adjusting items | (142) | | **Sum of adjusting items** | **813** | | **Adjusted operating income/(loss)** | **6,535** | Reconciliation of Net Income to Adjusted Net Income (Q2 2025) | (in USD million) | Amount | | :--- | :--- | | **Net income/(loss)** | **1,317** | | Adjusting items (impacting operating & financial items) | 670 | | Tax effect on adjusting items | (317) | | **Adjusted net income** | **1,670** | [Forward-Looking Statements](index=26&type=section&id=Forward-looking%20statements) This section cautions that projections are subject to significant risks, including price volatility, regulatory changes, and geopolitical instability - The report identifies numerous risks that could cause actual results to differ from forward-looking statements, including levels of industry supply and demand, price volatility, exchange rate fluctuations, and regulatory changes[190](index=190&type=chunk) [End Notes](index=27&type=section&id=End%20notes) The end notes clarify key terminology, including the distinction between equity and entitlement volumes and transactions with the SDFI - The distinction between equity and entitlement volumes is explained: equity volumes represent Equinor's ownership share, while entitlement volumes are the share distributed after deductions for royalty and the host government's profit oil, which can increase in times of high prices[192](index=192&type=chunk) - Equinor sells natural gas from the Norwegian state's Direct Financial Interest (SDFI) in its own name, but for the state's account and risk[191](index=191&type=chunk)

Financial Performance - Adjusted earnings per share were USD 0.64[6] - Adjusted operating income reached USD 6.5 billion[6] - Net income amounted to USD 1.3 billion[6] - Cash flow from operations after tax totaled USD 9.3 billion year-to-date[6] Production and Operations - Oil and gas production experienced a growth of over 2%[21] - Renewable production increased by 26%[21] - Organic capex is projected to be USD 13 billion for 2025[28] Capital Distribution and Balance Sheet - A significant capital distribution of USD 1.3 billion was executed[27] - The company expects a total capital distribution of USD 9 billion in 2025[7,28] - Cash, cash equivalents, and financial investments stand at USD 23.8 billion[27] Safety and Environment - Serious Incident Frequency (SIF) was recorded at 0.27 per Q2 2025[10] - Total Recordable Injury Frequency (TRIF) was 2.2 per Q2 2025[12]

Core Viewpoint - Equinor is set to commence the third tranche of its share buy-back program for 2025, amounting to up to USD 1,265 million, with a specific focus on purchasing shares worth up to USD 417.5 million in the market [1][2]. Group 1: Share Buy-Back Program Details - The total share buy-back program for 2025 is up to USD 5 billion, which includes shares to be redeemed from the Norwegian State, and is structured into tranches [2]. - The third tranche will be executed under a non-discretionary agreement with a third party, allowing independent trading decisions [2]. - The maximum number of shares that can be purchased in the market is 84 million, with 67,622,812 shares remaining available at the start of the third tranche [5]. Group 2: Cancellation and Redemption Process - All shares purchased in the third tranche will be cancelled through a capital reduction at the annual general meeting in May 2026 [4]. - The Norwegian State will vote for the cancellation of shares purchased in the market and redeem a proportionate number of its shares to maintain a 67% ownership stake [6][8]. Group 3: Regulatory Compliance - Share purchases will be conducted on the Oslo Stock Exchange and possibly other trading venues within the EEA, adhering to applicable safe harbour conditions and regulations [7]. - The board of directors will propose the cancellation of shares purchased in the third tranche at the annual general meeting in May 2026 [8].

Core Points - Equinor (OSE: EQNR, NYSE: EQNR) has announced a cash dividend of 0.37 USD for the second quarter of 2025 [1] - The last day to include rights for the dividend is 12 November 2025 [1] - The ex-date for Oslo Børs is 13 November 2025, and for the New York Stock Exchange, it is 14 November 2025 [1] - The record date for the dividend is set for 14 November 2025 [1] - The payment date for the dividend is scheduled for 26 November 2025 [1] - The approval date for the dividend was 22 July 2025 [1] - The cash dividend per share in NOK will be communicated on 20 November 2025 [1] Regulatory Compliance - The information is published in accordance with the Euronext Oslo Børs Continuing Obligations [2] - It is subject to the disclosure requirements pursuant to Section 5-12 in the Norwegian Securities Trading Act [2]

Financial Performance - Equinor reported an adjusted operating income of USD 6.53 billion and an adjusted net income of USD 1.67 billion for Q2 2025, leading to adjusted earnings per share of USD 0.64 [1][8] - The net operating income decreased to USD 5.72 billion from USD 7.66 billion in the same quarter last year, impacted by an impairment of USD 955 million due to regulatory changes [9] - Cash flows from operating activities before taxes and working capital items amounted to USD 9.17 billion for the quarter [10] Production and Operational Highlights - Total equity production reached 2,096 mboe per day, a 2% increase from 2,048 mboe in Q2 2024 [4] - The US onshore assets contributed to a 28% increase in oil and gas production compared to the same period last year [5] - The Johan Castberg field reached production plateau shortly after starting operations, contributing to strong operational performance [14] Strategic Developments - Equinor is progressing its renewable energy portfolio, with financial closure on the Baltyk 2 and 3 offshore wind projects in Poland, totaling EUR 6 billion [16] - The company announced the divestment of the Peregrino field in Brazil for USD 3.5 billion, focusing on the Bacalhau field start-up expected later in 2025 [15] - A long-term gas sales agreement was signed with Centrica for 55 TWh of natural gas per year over ten years, emphasizing the importance of gas supplies from the Norwegian continental shelf [14] Capital Distribution - An ordinary cash dividend of USD 0.37 per share was declared, with an expected total capital distribution of USD 9 billion for 2025, including a share buy-back program of up to USD 5 billion [17][18] - The third tranche of the share buy-back program, valued at up to USD 1.265 billion, is set to commence on July 24, 2025 [18]

Summary of Global Oil and Gas Valuation Report Industry Overview - The report focuses on the **Global Oil and Gas** industry, providing insights into major companies and market dynamics as of **July 18, 2025** [1][2]. Key Companies Mentioned - **India**: Bharat Petroleum, Hindustan Petroleum, Indian Oil, ONGC, Reliance Industries - **Europe**: BP, BW LPG, Ceres Power, ENI, Fuchs Petrolub, Galp, Industrie De Nora, ITM Power, MOL, Motor Oil - **North America**: Aemetis, Antero Resources, APA Corp, Chevron, ExxonMobil, Halliburton, Suncor Energy, Valero Energy - **China**: CNOOC, Petrochina, Sinopec - **Saudi Arabia**: Saudi Aramco - **Others**: Companies from South Africa, Thailand, South Korea, Japan, Australia, and Latin America are also included [2]. Core Insights and Arguments - **Valuation Metrics**: The report provides various valuation metrics such as **EV/DACF**, **FCF Yield**, and **P/E Ratios** for major oil companies, indicating their financial health and market performance [9]. - **Performance Ratings**: Companies are rated based on their performance, with **Chevron** and **ExxonMobil** receiving "Buy" ratings, while **Equinor** is rated as "Sell" [9]. - **Growth Projections**: The report includes **CAGR** estimates for 2024-2027, indicating expected growth rates for different companies, with **Cenovus Energy** projected to have a **78%** upside potential [9]. - **Market Trends**: The report highlights trends in the oil and gas sector, including shifts towards renewable energy and the impact of geopolitical factors on oil prices [6]. Important but Overlooked Content - **Analyst Conflicts of Interest**: The report discloses potential conflicts of interest due to UBS's business relationships with covered companies, which may affect the objectivity of the analysis [4][5]. - **Macro Assumptions**: The report includes macroeconomic assumptions that underpin the valuations, sourced from reputable databases like Bloomberg and Reuters [6]. - **Definitions and Metrics**: Key financial metrics and definitions are provided to ensure clarity in the analysis, such as the **Nelson Complexity Index** for refining capacity [8]. Conclusion - The **Global Oil and Gas Valuation Report** provides a comprehensive analysis of the industry, highlighting key players, financial metrics, and growth projections while also addressing potential conflicts of interest and macroeconomic assumptions that could influence investment decisions [1][2][4][5][9].

Group 1 - BASF and Equinor have signed a long-term strategic agreement to secure up to nearly 2 billion cubic meters of natural gas annually over the next ten years [1] - This agreement ensures a significant portion of BASF's natural gas supply needs in Europe [1] - Deliveries under this agreement are set to commence on October 1 [1]

巴斯夫与挪威国家石油公司确认战略合作伙伴关系，并签署为期十年的天然气供应协议。 ...

Core Insights - TechnipFMC has been awarded a significant integrated Engineering, Procurement, Construction, and Installation (iEPCI) contract by Equinor for the Heidrun extension project in the Norwegian North Sea, valued between $75 million and $250 million [1][2][8] - The contract reflects TechnipFMC's growing influence in mature offshore oil and gas regions and is part of its inbound orders for Q2 2025 [2][8] Integrated Execution and Design - TechnipFMC conducted a Front-End Engineering and Design (iFEED) study in collaboration with Equinor, optimizing subsea layout and minimizing lifecycle costs [3][4] - The transition from iFEED to full iEPCI scope demonstrates TechnipFMC's capability to integrate conceptual design with execution, setting a benchmark for subsea project delivery [3][4] Project Impact and Infrastructure - The Heidrun platform, operational since 1995, is crucial for Norway's offshore oil production, and the extension project aims to enhance its production lifecycle and subsea infrastructure [5][6] - The project will design, procure, fabricate, and install subsea infrastructure that ties back to existing assets, aiming to reduce environmental impact and capital expenditure [5][6] Efficiency and Cost Management - TechnipFMC's iEPCI model simplifies project execution by eliminating interface risks and streamlining management under a single contract, leading to reduced lead times and capital costs [7][8] - The integrated approach ensures faster project turnaround and optimized resource allocation, particularly beneficial in high-cost environments like Norway's Continental Shelf [9][8] Strategic Collaboration - The ongoing partnership between TechnipFMC and Equinor is driven by shared values of innovation, efficiency, and environmental responsibility, enhancing operational outcomes through digital technologies [10][11] - The contract reflects Equinor's confidence in TechnipFMC's technical capabilities and project delivery performance, aligning on long-term field development strategies [11] Innovation in Subsea Engineering - TechnipFMC is advancing its technology portfolio to support complex offshore projects, including advanced ROV systems and real-time data analytics [12][13] - The deployment of cutting-edge technologies in the Heidrun extension will enhance field recovery, reduce emissions, and extend the asset's lifespan [13] Strategic Roadmap and Future Outlook - The Heidrun project award is a key addition to TechnipFMC's 2025 strategic roadmap, reinforcing financial resilience and accelerating growth in integrated subsea services [14] - As global energy demand shifts, TechnipFMC is positioned to support operators with low-carbon, cost-efficient subsea solutions, validating its role in energy transition strategies [15][14] Conclusion - The iEPCI contract awarded to TechnipFMC for the Heidrun extension project marks a significant moment in subsea field development, showcasing the effectiveness of early collaboration and integrated execution [16][17] - TechnipFMC continues to redefine subsea project delivery, reinforcing its technical credibility and commitment to sustainable energy solutions [17]

Group 1 - Equinor ASA has awarded a sizeable EPCIC contract to Aker Solutions for the Fram Sør subsea development, marking a significant step in enhancing gas supply to Europe [1][2][9] - The contract value is estimated between NOK 0.5 billion and NOK 1.5 billion ($49-$150 million), with work already commenced and first production targeted for the end of 2029 [2][9] - The Fram Sør project will utilize existing infrastructure, with plans to develop 12 wells and additional slots for future development in the Fram/Troll area [3][5][9] Group 2 - Aker Solutions will lead the project execution from its Bergen office, with support from its Mumbai team, handling detailed engineering and procurement [4] - Equinor holds a 45% stake in the Fram Sør project, with Vår Energi and Inpex Idemitsu Norge holding 40% and 15% stakes, respectively [5]