Archive photo: An oil rig at sunset, not identified as an Equinor facility. A P/Pexels (cropped)
Equinor raised its forecast for 2026 oil and gas production growth to about 4% from 3% Wednesday after higher energy prices and strong refining performance helped more than double its third-quarter operating income.
The Norwegian energy company reported net operating income of $11.95 billion, up from $5.27 billion a year earlier, and net income of $2.54 billion, according to its third-quarter results.
Higher output lifts the production outlook
Total equity production reached 2.166 million barrels of oil equivalent a day, a 2% increase from the same quarter last year. Chief Executive Anders Opedal said high production allowed Equinor to capture additional value from higher prices.
Production on the Norwegian continental shelf was stable from a year earlier as new fields and wells offset natural decline and unplanned losses at Johan Castberg and Troll. International oil and gas production rose 21%, helped by Adura in the United Kingdom, Bacalhau in Brazil and lower turnaround activity.
U.S. production fell as planned downtime and natural decline offshore outweighed high onshore output.
Refining and prices support earnings
Adjusted operating income was $12.35 billion, while adjusted net income was $2.86 billion, or $1.20 per share. These adjusted figures are non-GAAP measures and differ from the company’s reported results.
Equinor said higher liquids prices and European gas prices supported earnings. It realized a European gas price of $20 per million British thermal units and a liquids price of $92.30 a barrel during the quarter.
The Marketing, Midstream and Processing business benefited from high refining margins, strong refining operations and liquefied natural gas trading. The Mongstad refinery delivered a record contribution.
Cash flow from operations after taxes paid, an adjusted measure, was $8.14 billion. Organic capital expenditure, also an adjusted measure, was $3.28 billion, compared with total capital expenditure of $3.82 billion.
Final buyback tranche starts Thursday
The board approved a fourth and final share-buyback tranche of up to $1.125 billion, starting October 29 and ending no later than February 1, 2027. It is part of the existing 2026 program of up to $3 billion, not a new $3 billion authorization. Equinor announced the increase to that annual program at its June 16 Capital Markets Day.
The third tranche, also worth $1.125 billion, was completed October 22. All buyback amounts include shares to be redeemed by the Norwegian state.
The board also set a third-quarter cash dividend of 39 cents per share, in line with its earlier guidance.
JBizNews Desk | Oslo
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