Equinor(US:EQNR)2025-10-29 11:32Financial Data and Key Metrics Changes - Adjusted operating income was reported at $6.2 billion before tax, while net income was -$0.2 billion, affected by net impairments primarily due to a lower long-term oil price outlook [4][12] - Year-to-date cash flow from operations after tax reached $14.7 billion, with adjusted earnings per share at $0.37 [5][13] - Cash flow from operations for the quarter was $9.1 billion, with total cash and cash equivalents exceeding $22 billion [12][13] Business Line Data and Key Metrics Changes - Production increased by 7% year-over-year, totaling 2,130,000 barrels per day, with a 9% growth on the Norwegian Continental Shelf (NCS) [9][10] - Adjusted operating income from E&P Norway was $5.6 billion before tax, while E&P International results reflected lower production but also lower depreciation [10][11] - Renewables business saw operating costs decrease by around 50% compared to the same quarter last year, with expectations of a 30% annual decrease [6][12] Market Data and Key Metrics Changes - Liquids prices were lower compared to the same quarter last year, while average gas prices increased, particularly in the U.S. [10] - U.S. onshore gas production rose by 40%, while U.S. offshore production increased by 9% year-over-year [9][10] - International production outside the U.S. declined due to temporary shutdowns and divestments in Azerbaijan and Nigeria [9] Company Strategy and Development Direction - The company aims to maintain production levels on the NCS through 2035, focusing on smaller discoveries and quicker developments [82] - A more active role in Ørsted is being pursued, with plans to nominate a board candidate to enhance collaboration and shareholder value [8][17] - The company is cautious about further capital commitments in offshore wind due to current industry challenges, while still developing existing projects [18][33] Management's Comments on Operating Environment and Future Outlook - The management highlighted ongoing geopolitical unrest and market volatility impacting pricing and trading conditions [5] - There is an expectation of a tighter gas market this winter, with storage levels around 83%, which is 12% below last year [34] - The company remains committed to capital distribution, with a cash dividend of $0.37 per share and a share buyback program totaling up to $1.266 billion [8][13] Other Important Information - The company reported net impairments of $754 million, primarily due to lower long-term oil price assumptions [12] - A tragic fatality occurred at Munkstad, emphasizing the need for continued focus on safety [8] Q&A Session Summary Question: What is the outlook for unit depreciation charge in Norway? - The unit depreciation charge is up about 13% from Q2, driven by new assets coming online, particularly Johan Castberg, and is expected to gradually reduce going forward [15][16] Question: Can you elaborate on the decision to take a board seat in Ørsted? - The company aims to take a more active role as a shareholder to improve collaboration and create shareholder value, especially during the current downturn in the offshore wind industry [17][24] Question: What factors influenced the change in MMP guidance? - The guidance was changed to around $400 million per quarter due to market conditions and the divestment of gas infrastructure assets, which had a $40 million quarterly impact [21][22][56] Question: What is the status of the Peregrino disposal? - Peregrino resumed production on October 17th, and the divestment of the 60% ownership position is expected to close in two phases, with a total transaction value of $3.5 billion [43][44] Question: What is the latest on the Rosebank approval process? - The permit was taken away due to Scope 3 emissions concerns, and the company has submitted a response that is currently under public consultation [76][78]