Natural Gas Daily: May 7th, 2020
Equinor Books Q4 Loss, Suspends Output Guidance
Norway's Equinor suffered a net loss of $705mn for the first quarter, it reported, after booking $2.45bn in impairments to account for a weaker oil price outlook.
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The Big Picture:
- The company said on May 6 it had divested its remaining 4.88% stake in Sweden's Lundin Energy, in order to raise $336mn. In response to the Covid-19 crisis, it has also suspended its $5bn buyback scheme, raised $5bn in debt and lowered its dividend.
Pittsburgh-based EQT, the largest natural gas producer in the US, reported a Q1 2020 net loss of $167mn, reversing a $191mn profit in the comparable period a year ago.
The Big Picture:
- Unlike many US and Canadian operating companies, EQT refrained from blaming its loss on either the Covid-19 pandemic or the crude price war launched in March by Russia, Saudi Arabia and other Opec+ combatants.
Work Halts at Russian Gas Field after Covid-19 Outbreak: Press
A key contractor at Gazprom's Chayandinskoye gas field in eastern Siberia has said it is halting work there because of Covid-19 lockdown measures, Russia's RBC news agency reported on May 6.
The Big Picture:
- Some 3,000 workers tested positive for the virus, Russian health authorities say.
- Chayandinskoye has been pumping gas to China via the Power of Siberia since the pipeline's launch in December. Work is underway to bring its production capacity to a plateau rate of 25bn m3/yr by 2022-2023.
Gasum Hit by Low Demand, Prices in Q1
Finnish state utility saw its Q1 net income fall to €7mn from €12.8mn in the same period last year, as low commodity prices and demand hit its business.
The Big Picture:
- On the bright side, gas continued to grow as a maritime transport fuel and the company signed an LNG delivery agreement with the Norwegian energy company Equinor.
Uniper Has Good Q1 Built on Gas
German utility Uniper reported a big year-on-year increase in its adjusted pre-tax Q1 profits, which it said was mainly due to the gas business. The restoration of the UK capacity market, which pays plants for availability, if not commodity, was another factor, it said.
The Big Picture:
- The leading German generator and energy trader is entering a new era as a subsidiary of Fortum where it will set to work on its net-zero carbon strategy.
Tourmaline Posts Q1 Loss on Oil Asset Impairment
Tourmaline Oil, Canada’s largest natural gas producer, said May 6 it had a Q1 2020 net loss of C$35.8mn (US$25.3mn) compared with net earnings of C$87.7mn in the year ago period, and attributed much of the swing to a reduced valuation of its only oil-weighted asset.
The Big Picture:
- "Natural gas fundamentals for 2021 are steadily improving as the North American gas price environment improves," it said.
- Fellow Canadian producer ARC Resources said May 6 its net loss in Q1 2020 increased to C$558.4mn from C$54.6mn in Q1 2019, blaming much of the increased loss on impairment charges related to collapsing commodity prices.
