OSLO - Equinor ASA (NYSE: NYSE:EQNR) reported first-quarter earnings that surpassed analyst expectations, with adjusted earnings per share (EPS) of $0.96, which was $0.22 higher than the consensus estimate of $0.74. This sent the stock up 1.99% Thursday morning.
However, the company's revenue for the quarter fell short of expectations, coming in at $25.14 billion compared to the analyst forecast of $27.37 billion.
The Norwegian energy company's financial results showed a robust operational performance, with a strong contribution from its marketing and trading segments. Despite lower gas prices compared to the same period last year, the company's production growth and increased liquids prices helped offset the impact, contributing to solid financial results and cash flow.
Equinor's total equity production for the quarter was 2,164 mboe per day, a slight increase from 2,130 mboe per day in the first quarter of the previous year. This growth was driven by strong operational performance, particularly on the Norwegian continental shelf and international fields. Renewable energy production also saw a significant uptick, with a 48% increase in power production primarily from onshore power plants in Brazil.
Strategically, Equinor made progress with the approval of the Eirin field development and the commencement of power-from-shore operations for the Sleipner and Gudrun fields, which are expected to reduce emissions. The company also optimized its portfolio with a swap transaction in the US onshore business and continued exploration efforts with two commercial discoveries.
In terms of capital distribution, Equinor maintained its commitment to shareholder returns, announcing an ordinary cash dividend of $0.35 per share and an extraordinary cash dividend of the same amount for the first quarter. The company expects to deliver a total capital distribution of $14 billion in 2024, including a share buy-back program of up to $6 billion.
The company's adjusted net debt to capital employed ratio stood at negative 19.8% at the quarter's end, reflecting a strong balance sheet.
Anders Opedal, President and CEO of Equinor, commented on the results, "Equinor delivered solid financial results driven by strong operational performance across the business. We continue with significant capital distribution and expect to deliver a total distribution of 14 billion dollars in 2024.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.