Core Insights - Equinor ASA has decided not to proceed with its planned offshore wind projects in Australia, which is a significant setback for the country's renewable energy sector [1][2] Project Details - The decision specifically impacts the Novocastrian Offshore Wind Farm, a 2 GW floating wind project off the Hunter coast of New South Wales, which was set to begin construction in 2028 and commence operations in 2031 [2] - The project was in partnership with Oceanex Energy and had received a feasibility license from the Australian government earlier this year [2] - Equinor declined the license after failing to agree on terms with Oceanex for the next phase of the project [2] Broader Context - This marks Equinor's third withdrawal from offshore wind projects in Australia, following its exit from the Bass Offshore Wind Project near Tasmania [3] - The Novocastrian project was seen as a leader in advancing deep-water floating wind technology, and Oceanex is still looking for international investors to continue its development despite financial challenges [4] - The decision comes amid rising costs, investment uncertainties, and shifting market conditions affecting offshore wind projects globally, with other companies like Ørsted and Blue Float Energy also shelving major projects [5] Government Commitment - Despite these setbacks, the Australian government remains committed to expanding renewable energy infrastructure, although achieving national clean energy targets will be increasingly difficult if flagship offshore wind projects do not progress beyond the feasibility stage [6]

Core Viewpoint - Equinor ASA announced a cash dividend of USD 0.37 per share for the first quarter of 2025, reflecting the company's ongoing commitment to returning value to shareholders [1]. Group 1: Dividend Announcement - The cash dividend per share for the first quarter of 2025 is set at USD 0.37 [1]. - The NOK cash dividend per share is calculated based on the average USDNOK fixing rate from Norges Bank, which was 10.1999 during the relevant period [1]. - Consequently, the total cash dividend for the first quarter of 2025 amounts to NOK 3.7740 per share [1]. Group 2: Payment Details - The cash dividend will be paid to shareholders on Oslo Børs and to holders of American Depositary Receipts (ADRs) on the New York Stock Exchange on 29 August 2025 [2]. - This announcement complies with the Continuing Obligations and the disclosure requirements of the Norwegian Securities Trading Act [2].

Core Points - Equinor ASA shares will be traded on the Oslo Stock Exchange excluding the first quarter 2025 cash dividend starting today [1] - The ex-dividend date is set for 18 August 2025 [1] - The announced dividend amount is 0.37 USD [1]

Core Viewpoint - Equinor ASA has initiated the third tranche of its share buy-back program, purchasing a total of 519,300 shares at an average price of NOK 258.9479 per share, with a total transaction value of NOK 134,471,659.82 [1][2]. Summary by Sections Buy-Back Program Details - The buy-back tranche was announced on July 23, 2025, and is set to last from July 24 to no later than October 27, 2025 [1]. - The total number of shares purchased during this period is 519,300, with an average price of NOK 258.9479 per share [1][2]. Transaction Overview - On July 24, 2025, Equinor purchased 259,300 shares at a daily weighted average price of NOK 258.5174, resulting in a transaction value of NOK 67,033,561.82 [2]. - On July 25, 2025, the company bought 260,000 shares at a daily weighted average price of NOK 259.3773, with a transaction value of NOK 67,438,098.00 [2]. - The total buy-backs under this tranche amount to 519,300 shares, with a cumulative transaction value of NOK 134,471,659.82 [2]. Ownership Post Transactions - Following these transactions, Equinor ASA now owns a total of 26,085,243 shares, which represents 1.02% of its share capital [2]. - Excluding shares under Equinor's share savings program, the company holds 16,896,488 shares, corresponding to 0.66% of the share capital [2]. Regulatory Compliance - The information disclosed is in accordance with the EU Market Abuse Regulation and the Norwegian Securities Trading Act [3].

Core Viewpoint - Equinor ASA remains a viable investment option despite fluctuations in international oil prices and potential geopolitical developments involving Trump and Putin [1] Company Analysis - Equinor is highlighted as a company with sustained free cash flows, low leverage, and manageable debt levels, making it attractive for value investors [1] - The company is positioned in the oil and gas sector, which is often overlooked by the market, presenting unique investment opportunities [1] Investment Strategy - The focus is on companies in emerging markets that exhibit high margins and potential for medium to long-term growth [1] - A pro-shareholder attitude is emphasized, with a preference for companies that maintain consistent buyback programs or dividend distributions [1]

Core Insights - Equinor ASA has reported impairment costs of $955 million related to its U.S. offshore wind projects, primarily due to regulatory changes and increased tariff exposure [1][4][5] - The regulatory environment under the Trump administration has negatively impacted the offshore wind industry, leading to a loss of synergies for future projects [2][3] - The Biden administration has provided federal support for renewable energy, contrasting with the previous administration's suspension of offshore wind leases [3] Financial Impact - The impairment charges significantly affected Equinor's net operating income in the second quarter, with $763 million attributed to the Empire Wind 1 project and the South Brooklyn Marine Terminal [4][8] - The remaining impairment amount is linked to the lease of the Empire Wind 2 project, which is now uncertain due to the withdrawal of tax credits [4][5] Regulatory Challenges - The withdrawal of investment tax credits has made new offshore wind projects less attractive, contributing to the impairment charges [5][6] - U.S. tariffs on steel have increased the cost of the Empire Wind project by $300 million, further complicating its financial viability [7] Project Viability - The South Brooklyn Marine Terminal was expected to support multiple wind farms, but current regulatory conditions have diminished its potential value [6] - Without tax credits, the development of Empire Wind Phase 2 is unlikely to proceed, raising concerns about the project's future [7][8]

Company Overview - Equinor (NYSE: EQNR) is a major Norwegian oil company, producing over 2 million barrels of oil equivalent per day [2] - The company has a significant presence in renewable energy investments, indicating a diversified portfolio [2] Market Position - Equinor currently has a market capitalization that is not specified but is implied to be lower than expected given its production capacity and investments [2] Investment Strategy - The Value Portfolio focuses on building retirement portfolios through a fact-based research strategy, which includes analyzing 10Ks, analyst commentary, market reports, and investor presentations [2]

Geopolitical Impact - Geopolitical volatility is creating a more challenging environment for Equinor's traders [1] - The situation highlights the risks faced by Europe's oil and gas majors [1]

Financial Data and Key Metrics Changes - The company reported an adjusted operating income of $6.5 billion before tax, with a net income of $300 million impacted by an impairment on U.S. offshore wind projects [6][7] - Adjusted earnings per share was NOK 0.64, with cash flow from operations after tax being strong at $9.2 billion [8][22] - The net debt to capital employed ratio increased to 15.2%, reflecting the state's share of the buyback from last year booked as finance debt [23] Business Line Data and Key Metrics Changes - E&P Norway adjusted operating income totaled $5.7 billion before tax, while E&P International saw higher production from Brazil and new wells in Argentina and Angola [20] - U.S. Onshore gas production increased by 50%, capturing almost 80% higher gas prices [12] - Renewable production increased by 26%, mainly driven by the ramp-up of Dogger Bank A in the UK [19] Market Data and Key Metrics Changes - The European gas market is impacted by lower storage levels, with inventories almost 20 percentage points lower than last year [8] - Liquids prices were lower than the same quarter last year, while gas prices were higher in Europe and the U.S. [19] Company Strategy and Development Direction - The company is focused on maintaining production levels on the Norwegian Continental Shelf (NCS) until 2035, with strategic progress in projects like Johan Castberg and Johan Sverdrup Phase III [11] - Long-term contracts for gas supply to the UK and Germany demonstrate the demand for Norwegian gas in Europe [11] - The company is optimizing its portfolio internationally, with a focus on U.S. Onshore gas and divesting from less strategic assets like the Peregrino field in Brazil [13][44] Management's Comments on Operating Environment and Future Outlook - Management highlighted the impact of geopolitical unrest and trade wars on energy markets, emphasizing a commitment to cost and capital discipline [8][9] - The company expects to maintain a robust financial position despite lower price environments and is focused on delivering capital distributions of around $9 billion for the year [10][16] Other Important Information - The company announced an ordinary cash dividend of $0.37 per share and a share buyback of up to $1.265 billion [16] - An impairment of $955 million was recorded due to changes in regulations for future offshore wind projects in the U.S. [14][15] Q&A Session Summary Question: Empire Wind impairment and discount rate rationale - Management clarified that the 3% discount rate used for Empire Wind is an unlevered real discount rate after tax, justified by a fixed revenue profile for 25 years [28][29] Question: Working capital and volatility - Working capital is currently $5 billion, a reduction of $550 million, driven by upstream segment movements rather than trading activities [30][31] Question: New tax system in Norway - Tax payments will be evenly distributed over the year, with five installments in the second half of 2025 and five in the first half of 2026 [35][36] Question: Peregrino divestment timing and Bacalau project - The divestment of Peregrino is expected to close towards the end of the year, with Bacalau progressing well and expected to contribute significantly to international production [44][46] Question: Unit OpEx costs in Norway - Unit production costs are stable quarter on quarter, with efforts to keep costs flat despite inflation [53][54] Question: Johan Sverdrup production plateau - Production from Johan Sverdrup is expected to remain high, with ongoing efforts to manage water production and enhance recovery rates [92][94] Question: CapEx and competitive distributions - Management emphasized that CapEx is a pretax number, and cash flow from operations is after tax, affecting comparisons with peers [86][87]

Financial Data and Key Metrics Changes - The company reported an adjusted operating income of $6.5 billion before tax and an IFRS net income of $300 million, impacted by an impairment on U.S. offshore wind projects [5][6] - Adjusted earnings per share was NOK 0.64, with cash flow from operations after tax being strong at $9.2 billion [6][20] - The net debt to capital employed ratio increased to 15.2%, reflecting the state's share of the buyback from last year booked as finance debt [21] Business Line Data and Key Metrics Changes - The company produced 2.096 million barrels per day, up more than 2% from last year, with a target of 4% production growth for the year [15] - Liquids production increased by 4%, driven by the ramp-up of Johan Castberg and high regularity on Johan Sverdrup [16] - Renewable production increased by 26%, mainly due to the ramp-up of Dogger Bank A in the UK [17] Market Data and Key Metrics Changes - The European gas market is impacted by lower storage levels, with inventories almost 20 percentage points lower than last year [7] - Gas prices in Europe and the U.S. were higher, while liquids prices were lower compared to the same quarter last year [17] - The company captured almost 80% higher gas prices in the U.S. onshore market [10] Company Strategy and Development Direction - The company is committed to cost and capital discipline, reporting flat cost development in the quarter [8] - Strategic progress includes the ramp-up of Johan Castberg and final investment decisions on Johan Sverdrup Phase III [9] - The company announced two long-term contracts for gas supply to the UK and Germany, indicating strong demand for Norwegian gas [9][61] Management's Comments on Operating Environment and Future Outlook - Management noted that energy markets are affected by geopolitical unrest and trade wars, leading to significant volatility in oil markets [7] - The company remains focused on operations and resilience amid uncertainty, with a robust balance sheet [8] - Management expressed confidence in the long-term role of natural gas in energy transition and electrification [46] Other Important Information - The company expects to deliver around $9 billion in capital distribution for the year, including a cash dividend of $0.37 per share and a share buyback of up to $1.265 billion [14] - An impairment of $955 million was recorded due to changes in regulations for future offshore wind projects in the U.S. [12] Q&A Session Summary Question: On the Empire Wind impairment and discount rate - Management clarified that the 3% discount rate used for impairment testing is an unlevered real discount rate after tax, justified by the fixed revenue profile for 25 years [26][27] Question: On working capital and trading volatility - Working capital is currently $5 billion, a reduction of $550 million, driven by upstream segment movements rather than trading activities [28][29] Question: On the new tax system in Norway - Tax payments will be evenly distributed over the year, with five installments in the second half of 2025 and five in the first half of 2026 [34][35] Question: On the Peregrino divestment and Bacalau project - The divestment of Peregrino is expected to close towards the end of the year, with Bacalau progressing well and expected to contribute significantly to international production [44][45] Question: On CapEx and competitive cash returns - Management emphasized that CapEx is a pretax number, while cash flow from operations is after tax, affecting comparisons with peers [87][88] Question: On Johan Sverdrup production and cost inflation - Johan Sverdrup is expected to maintain high production levels, with ongoing efforts to manage water and improve recovery rates [94][96] - Cost inflation pressures are expected to ease in Norway, while the market remains tight overall [98][99]