Financial Data and Key Metrics Changes - For the second quarter ended June 30, 2025, the company reported a net loss of approximately $4 million compared to a net gain of $128.3 million during the same quarter in 2024, primarily due to a one-time gain from the sale of a 45% interest in two project areas in 2024 [11][12] - General and administrative expenses decreased by $4.5 million, reflecting cost-sharing with joint ventures and strong corporate cost management [12] - The company ended the quarter with strong cash and working capital positions of $33.8 million and £30.6 million respectively [13][14] Business Line Data and Key Metrics Changes - The company completed all planned fieldwork for the first phase of the Southwest Arkansas project, achieving a lithium concentration of 660 mg/L from the Leicester well, the highest recorded to date [9] - Phase one of the Southwest Arkansas project plans for 22,500 tonnes per year of battery-quality lithium carbonate, with first production expected in 2028 [10] Market Data and Key Metrics Changes - The Southwest Arkansas project was selected as one of the first critical mineral production projects under Executive Order 14,241, which aims to increase American mineral production [5] - The company received a $225 million grant from the DOE's Office of Manufacturing and Energy Supply Chains, reinforcing its project development timeline [6] Company Strategy and Development Direction - The company is focused on advancing lithium development projects in partnership with Equinor, with a final investment decision targeted by the end of 2025 [4][16] - The company is also exploring next-generation battery materials, having developed a new process for producing battery-quality lithium sulfide [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the critical milestones achieved in the second quarter and the support from local and federal governments for securing critical minerals production in the U.S. [16] - The company believes it is well-positioned to deliver significant value to shareholders and communities as it progresses towards a final investment decision [16] Other Important Information - The company strengthened its senior management team with two new VP hires, enhancing its capabilities and execution of growth strategy [7] Q&A Session Summary Question: Regarding DOE funding opportunities - Management indicated ongoing support from the DOE and the White House for direct lithium extraction projects, but it is premature to comment on specific funding avenues [19][20] Question: Details on remaining milestone payments - The milestone payments from Equinor are $40 million for Southwest Arkansas and $30 million for East Texas, which will be used to fund the company's share of the projects [21][23] Question: Future expenditures related to Southwest Arkansas - Management expects to be fully funded for commitments prior to FID at Southwest Arkansas through existing cash, Equinor funding, and prudent use of the ATM program [24] Question: Offtake agreements and pricing discussions - The company is in discussions with multiple parties regarding offtake agreements, focusing on both structure and pricing mechanisms, with confidence in concluding discussions by Q4 [43][44] Question: Updates on geological modeling and resource mapping - Management stated that drilling work has refined their understanding of the resource position, with a maiden resource report expected to provide further insights [46][49] Question: Debt financing discussions - Discussions with export credit agencies and commercial banks are progressing well, with confidence in achieving the previously indicated debt financing range [53][54]

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]

Financial Data and Key Metrics Changes - Adjusted EBITDA rose to $1,210 million, reflecting a 170 basis point year-over-year improvement in margins, driven by structural cost actions and stronger operational execution [6][35] - Free cash flow generated was $239 million, with a total of $423 million returned to shareholders, including $196 million in share repurchases [9][36] - GAAP diluted earnings per share were $0.71, while adjusted earnings per share were $0.63, up 11% year-over-year [35] Business Line Data and Key Metrics Changes - Oilfield Services and Equipment (OFSE) revenue was $3,600 million, up 3% sequentially, with EBITDA margins expanding by 90 basis points to 18.7% [40][42] - Industrial and Energy Technology (IET) revenue increased by 5% year-over-year to $3,300 million, with a 190 basis point margin expansion to 17.8% [39][40] - IET orders totaled $3,500 million in the quarter, with a year-to-date total of $6,700 million, indicating strong momentum [34][37] Market Data and Key Metrics Changes - The company booked $1 billion in new energy orders during the quarter, bringing year-to-date bookings to $1.25 billion, already matching the total for last year [21] - LNG demand is expected to grow by over 20% by 2040, with global LNG increasing by at least 75% [23] - The company secured $2.9 billion in gas infrastructure equipment orders over the past six quarters, indicating strong momentum in this area [23] Company Strategy and Development Direction - The company announced three strategic transactions to advance its portfolio optimization strategy, including a joint venture and acquisitions, aimed at enhancing earnings durability and cash flow [10][44] - Focus remains on executing a disciplined capital allocation approach to maximize long-term shareholder value, with a commitment to returning 60% to 80% of free cash flow to shareholders [36][44] - The company is expanding its presence in distributed power solutions, particularly for data centers, which is seen as a compelling growth factor [28][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving IET's full-year order guidance range of $12.5 billion to $14.5 billion, supported by strong demand in new energy and gas infrastructure [9][21] - The macro environment remains uncertain, but long-term fundamentals are strong, with global energy demand expected to grow due to population growth and industrialization [20][19] - Management anticipates continued volatility in oil markets but expects natural gas demand to grow significantly, creating a favorable environment for the company [25][23] Other Important Information - The company ended the quarter with cash of $3.1 billion and a net debt to EBITDA ratio of 0.6 times, indicating a strong balance sheet [36] - The company is focused on enhancing operational discipline and productivity through its business system, which is now in its third year [39][54] Q&A Session Summary Question: Can you unpack the drivers of the margin performance? - Management highlighted that OFSE's EBITDA margins expanded by 90 basis points due to stronger revenue and cost efficiency initiatives, while IET's margins increased by 190 basis points despite tariff-related headwinds [60][63] Question: Can you expand on the IET order performance this quarter? - Management noted that IET secured $3.5 billion in orders, driven by strength in non-LNG markets, gas infrastructure, and data centers, with expectations for strengthening LNG orders in the second half [67][70] Question: What is the net impact from the three transactions announced in June? - Management indicated that the transactions are expected to provide a modest benefit to segment margins, with a net EBITDA impact of just over $100 million anticipated for 2026 [78][79]

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]

[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]