Equinor (NYSE: EQNR) announced on Thursday that lower oil prices and production volumes have impacted its earnings for the third quarter. Despite rising natural gas prices and increased output, the Norwegian energy company reported adjusted operating income below expectations.
In Q3, Equinor’s adjusted operating income reached $6.89 billion. This figure represents a 13% decrease compared to the same quarter in 2023 and fell short of the $7.01 billion anticipated by analysts.
Revenues also declined by 2%, primarily due to lower liquid prices that could not be balanced out by the rise in natural gas prices. The company stated that its adjusted net income of $2.191 billion was supported by increased gas prices. However, this was overshadowed by lower production levels, reduced liquid prices, and higher costs compared to the same period last year.
Equinor’s total oil and gas production averaged 1.984 million barrels of oil equivalent per day (boepd) in the third quarter. This was a drop from 2.007 million boepd during the same quarter last year. The decline was attributed to maintenance turnarounds and hurricanes affecting international production in the United States.
In Norway, the company did achieve a 2% year-over-year increase in production, driven by record natural gas output at the Troll field and production milestones at the Johan Sverdrup oilfield.
On the renewables front, Equinor highlighted ongoing investments in low-carbon initiatives. Its renewable power generation surged by 82% compared to the previous year.
However, progress on the Dogger Bank A project, the world’s largest offshore wind farm, has been slower than anticipated. Equinor announced that the startup of Dogger Bank A has been pushed to the second half of 2025. As a result, the company has revised its 2024 growth projection for renewable power production down to around 50%, down from an earlier estimate of 70%.
Despite challenges in the renewables sector, which is still operating at a loss, Equinor remains committed to expanding in this area. Earlier this month, the company acquired a 9.8% stake in Ørsted, the world’s largest offshore wind farm developer, making it the second-largest shareholder after the Danish government.
The acquisition provides Equinor with access to premium offshore wind assets and a robust project pipeline, as noted in their earnings release today.
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