Equinor Q3 Earnings Miss Estimates, Revenues Increase Y/Y

Core Insights - Equinor ASA reported third-quarter 2025 adjusted earnings per share (EPS) of 37 cents, missing the Zacks Consensus Estimate of 57 cents, and reflecting a 53.2% decline from the previous year's EPS of 79 cents due to net impairments from a lower price outlook [1][10] Financial Performance - Total quarterly revenues reached $26 billion, an increase from $25.4 billion in the prior-year quarter, and exceeded the Zacks Consensus Estimate of $24.3 billion, driven by a 7% growth in production from Johan Sverdrup and Johan Castberg [2][10] - The company generated a negative net cash flow of $3,565 million in the quarter, an improvement from a negative net cash flow of $3,984 million in the year-ago period [10][11] - Organic capital expenditures amounted to $3.4 billion in the third quarter [11] Segment Analysis - Exploration & Production Norway (E&P Norway): Adjusted earnings were $5,618 million, down 4.4% from $5,875 million in the year-ago quarter, impacted by natural declines in fields and lower liquid prices [3] - E&P International: Adjusted operating profit totaled $396 million, a decrease of 2.7% from $407 million in the previous year, primarily due to lower production volumes and liquid prices [5] - E&P USA: Adjusted operating profit fell 82% to $37 million from $207 million in the third quarter of 2024, affected by lower liquid prices and higher operating expenses, with impairments of $385 million related to two producing assets [7] - Marketing, Midstream & Processing: Reported adjusted earnings of $299 million, a 45% decline from $545 million a year ago [9] - Renewables: Adjusted loss narrowed to $64 million from a loss of $115 million in the previous year, attributed to reduced operating expenses [9] Production Metrics - Average daily production of liquids and gas increased by 8.7% to 1,422 thousand barrels of oil equivalent per day (MBoe/d) from 1,308 MBoe/d in the prior-year quarter, supported by new fields coming online [4] - Average daily equity production of liquids and gas in E&P USA declined by 20% to 267 MBoe/d from 334 MBoe/d in the year-ago quarter due to asset divestments and production halts [6] - The integrated firm's average equity production of liquids and gas was 441 MBoe/d, up 29% from 342 MBoe/d in the year-ago period, driven by increased gas production from Appalachia [8] Balance Sheet - As of September 30, 2025, the company reported $8,114 million in cash and cash equivalents, with long-term debt of $25,070 million [12] Outlook - Equinor reiterated its 2025 oil and gas production guidance, expecting a 4% year-over-year growth, and restated its organic capital spending budget of $13 billion for the year [13]