Equinor Misses Q1 Earnings Estimates, Expects '25 Output to Grow 4%

Core Viewpoint - Equinor ASA reported weaker-than-expected earnings for Q1 2025, with adjusted EPS of 66 cents, missing the consensus estimate of 83 cents, and a 32% decline from the previous year's 96 cents. However, total revenues increased to $29.92 billion from $25.14 billion year-over-year, surpassing the consensus estimate of $28.21 billion. The decline in earnings was attributed to lower production and weaker commodity prices [1]. Segmental Analysis - E&P Norway: Adjusted earnings rose to $7,453 million, a 29.5% increase from $5,756 million in the prior-year quarter, driven by higher gas prices despite lower production volumes [2]. - E&P International: Adjusted operating profit decreased to $531 million from $616 million year-over-year, impacted by lower liquid prices [4]. - E&P USA: Adjusted profit increased to $511 million, up 35.5% from $377 million in Q1 2024, supported by elevated gas prices and increased gas production [6]. - Marketing, Midstream & Processing: Adjusted earnings fell to $253 million, a significant drop of 71.5% from $887 million a year ago [7]. - Renewables: Reported an adjusted loss of $48 million, an improvement from a loss of $70 million in the previous year, due to reduced operating and administrative costs [8]. Production and Cash Flow - Average daily production of liquids and gas decreased by 5% to 1,390 thousand barrels of oil equivalent per day (MBoe/d) from 1,462 MBoe/d in the prior-year quarter, due to natural depletion and maintenance activities [3]. - Average daily equity production declined by 12.2% to 309 MBoe/d from 352 MBoe/d, affected by natural declines and asset divestments, although partially offset by new wells [5]. - Equinor generated a net cash flow of $2,086 million in the March-end quarter, compared to a free cash flow of $125 million in the year-ago period [9]. Financial Position - As of March 31, 2025, Equinor reported cash and cash equivalents of $7,370 million and long-term debt of $22,737 million [10]. Outlook - For 2025, Equinor anticipates a 4% year-over-year growth in oil and gas production and has set an organic capital spending budget of $13 billion. The company aims to keep unit production costs within the top 25% of its peer group, with planned maintenance expected to reduce equity production by approximately 30 thousand barrels of oil equivalent per day throughout the year [11].