Equinor Sees Profit Uptick In Q2

Norway’s Equinor managed to increase profits despite a dip in revenues in the second quarter, according to financial results published on July 25.

Net income reached $1.48bn in April through to June up from $1.22bn in the same period last year. Revenues slumped to $17.1bn, however, from $18.14bn a year earlier. Equinor blamed this decline on lower prices, higher turnaround activity and some quarter-specific items.

Oil and gas output averaged 2.012mn boe/day, slightly down on the 2.028mn boe/day produced in the second quarter of 2018, as natural decline was mostly offset by rising yields at new projects. There had also been operational difficulties offshore.

“We deliver overall solid operational performance and maintain high production in a quarter with lower commodity prices and high maintenance activity,” Equinor CEO Eldar Saetre said in a statement.

Equinor revealed that it had lowered cost projections for the first phase of the flagship Johan Sverdrup oil and gas project by an additional kroner 3bn ($347mn), bringing the total spend to kroner 40bn. The operator has cut planned capex at Sverdrup several times since its development plans for the North Sea field were first approved in 2015, when it estimated costs at kroner 123bn.

“With a planned start up later this year, and faster ramp up to reach plateau production during summer next year, the project will produce and create substantial value for decades to come,” Saetre said.

Sverdrup is due on stream in November, with its first stage targeting an output plateau of 440,000 b/day. Pending closure of a deal with Sweden’s Lundin Petroleum, Equinor’s stake in the development is set to rise from 40% to 42.6%.