Equinor(US:EQNR)2025-10-29 11:32Financial Data and Key Metrics Changes - Adjusted operating income was $6.2 billion before tax, while net income was -$0.2 billion, impacted by net impairments mainly due to lower long-term oil price outlook [4] - Cash flow from operations after tax was strong at $14.7 billion year to date, with adjusted earnings per share at $0.37 [5][12] - 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, reaching 2,130,000 barrels per day, with a 9% growth on the Norwegian Continental Shelf (NCS) [9] - E&P Norway adjusted operating income totaled $5.6 billion before tax, while E&P International results reflected lower production but also lower depreciation [10][11] - Renewables business operating costs decreased by around 50% compared to the third quarter last year [6] Market Data and Key Metrics Changes - Liquids prices were lower than the same quarter last year, while average gas prices were higher, particularly in the U.S. [10] - U.S. onshore gas production was up 40%, capturing higher prices, while U.S. offshore production increased by 9% [9] - International production outside the U.S. decreased due to temporary stops and divestments [9] Company Strategy and Development Direction - The company aims to maintain production levels on the NCS until 2035, focusing on smaller discoveries and quicker developments [82] - A more active role in Ørsted is being pursued, with plans to nominate a candidate for the board to enhance collaboration [8][17] - The company is cautious about further capital commitments in offshore wind due to current industry challenges [18] Management Comments on Operating Environment and Future Outlook - The management highlighted the volatility in energy markets due to geopolitical unrest and trade tensions, but expressed confidence in the company's solid balance sheet and strong production [5] - Future capital distribution will prioritize cash dividends and share buybacks, with a competitive approach to capital allocation [61][62] - The outlook for the global gas market remains tight in the short term, with significant LNG projects expected to come online [34][36] 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 a gradual reduction is expected 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 previous divestments of gas infrastructure assets [22][23] Question: What is the status of the Peregrino disposal? - Peregrino is currently producing over 100,000 barrels per day, with a divestment expected to close in two phases, totaling a headline 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 in public consultation [76][78] Question: What is the outlook for the NCS supply chain? - The company is optimistic about maintaining high activity levels on the NCS through smaller discoveries and increased exploration efforts [82]