Equinor ASA (NYSE:EQNR) stock was volatile premarket Wednesday after the company reported third-quarter fiscal 2025 revenue and other income growth of 2% year-over-year (Y/Y) to $26.05 billion.
Earnings Details
Adjusted revenue increased 2% Y/Y to $26.06 billion, beating the consensus of $23.11 billion.
Equinor reported an adjusted operating income of $6.22 billion in the quarter, with $5.62 billion from E&P Norway, $396 million from E&P International, and $37 million from E&P USA.
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Adjusted EPS of 37 cents missed the consensus of 56 cents.
Operating cash flow (after taxes paid) stood at $5.33 billion in the quarter.
The company reported a net loss of $210 million, a sharp reversal from a $2.3 billion profit in the same quarter last year, primarily driven by a $754 million write-down on asset values.
Key Metrics
Total equity liquids and gas production rose 7% Y/Y to 2,130 mboe per day, with equity gas production increasing 9% Y/Y to 1,022 mboe per day.
Equinor reported an increase in production, thanks to new fields on the Norwegian Continental Shelf (NCS) and strong contributions from its U.S. upstream portfolio.
Group average liquids price fell 12% Y/Y to $64.9/bbl, and realized piped gas price U.S. was $2.42/MMBtu (+46% Y/Y).
Equinor clocked a total power generation of 0.91 TWh from the renewable portfolio in the quarter.
Dividend
The board of directors declared a first-quarter ordinary cash dividend per share of 37 cents, payable on February 27, to shareholders of record as of February 17.
Repurchase
Equinor will begin the fourth and final tranche of its 2025 share buyback program on October 30, 2025.
The company plans to repurchase up to $417.8 million worth of shares from the market, bringing the total tranche to $1.266 billion, including shares to be redeemed from the Norwegian State.
The program will conclude by February 2, 2026.
Outlook
Equinor continues to expect organic capital distributions of around $13 billion in 2025.
The company projects oil and gas production growth of about 4% in 2025.
Scheduled maintenance activity is estimated to decrease equity production by around 30 mboe per day for the full year of 2025.
Management Commentary
Anders Opedal, president and CEO, said, "We deliver strong operations this quarter. High performing fields and new fields coming on stream on the Norwegian continental shelf, drive production growth."
"In October, we started production from our largest offshore field internationally, Bacalhau. The field will contribute substantially to grow earnings from our international portfolio towards 2030."
"We have systematically addressed cost over time. In a period with both production growth and inflation, we maintain stable costs year to date."
Price Action: EQNR shares were trading higher by 1.27% to $24.40 at last check Wednesday.
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