Equinor delivers a greatly improved operating result in the second quarter. High prices are one of the main reasons, says CEO Anders Opedal.
– We achieved a solid result in the second quarter. Good operating operations and continued focus on value creation have meant that we create greater value from rising commodity prices. Strict capital discipline and a net cash flow of more than $ 4.5 billion reduce our debt ratio to 16.4 percent and make us resistant to future commodity price volatility, Opedal says in a press release.
The corona pandemic and falling oil prices last year badly affected last year’s results for Equinor, but now it looks much better.
Adjusted operating profit in the second quarter ended at $ 4.64 billion, compared to $ 350 million in the same period in 2020. Adjusted operating profit after taxes was $ 1.58 billion, compared to $ 650 million last year.
The company points to higher prices, a continuous focus on creating value and strict capital discipline as the main reasons for the result. Despite what Opedal describes as strong operations and progress in the project portfolio, some projects were negatively affected by the corona pandemic.
Opdeal believes that systematic improvements over time on the Norwegian continental shelf have contributed to the company getting more revenue during this accounting period.
– We have made progress in our project portfolio with the approval by the Norwegian authorities of the Breidablikk development plan, the launch of Martin Linge on the Norwegian platform and the final investment decision in phase 1 of Bacalhau in Brazil. Projects under implementation are progressing despite the impact of covid-19, says Opedal.
The company agreed to a cash dividend of $ 0.18 per share, in addition to launching a share buyback program.
The state participates in buybacks
The first tranche of the loan amount, the tranche, of the buyback program is up to US $ 300 million.
– In accordance with an agreement between Equinor and the Norwegian state, represented by the Ministry of Oil and Energy, the Norwegian state will participate in the repurchase of a proportional number of shares, and thus ensure that the state’s stake in Equinor remains unchanged at 67 percent, Equinor says.
The share buyback program is expected to amount to approximately $ 600 million this year, including shares redeemed from the Norwegian state.
Offshore wind power in Poland
Opedal says that investment in renewable energy is now accelerating through strategic positions and partnerships. Among other things, this applies to offshore wind projects in Poland.
– In Poland, we made significant progress with the allocation of the support scheme for Baltics II and III with a possible total capacity of 1,440 megawatts. We continue with the work to reduce greenhouse gas emissions. This quarter, we delivered the plan for the development and operation of the Troll Vest electrification, and we have made good progress at Hywind Tampen, which will be the world’s first floating wind farm to supply electricity to oil and gas platforms, Opedal says.