Equinor Q3 core profits fall more than expected

Equinor announced a 9.9% decline in its third quarter profits, which was higher than expected. Oil and gas prices have fallen since a year earlier. The company has maintained its production forecast.

Equinor's poll of 21 analysts predicted that the Norwegian energy group would earn $6.31 billion in adjusted earnings for July-September, a slight drop from $6.89.

The company's forecast for 2025 capital expenditure of $13 billion was not changed.

In a press release, CEO Anders Opedal stated that "high performing fields and the new fields coming online on the Norwegian Continental Shelf drive production growth."

Equinor, like rivals Shell and BP, promised in February to increase oil and gas production while reducing investment in renewables. The company cited the challenging market conditions of the green energy transformation.

Equinor has lowered its guidance for its Midstream Marketing and Processing segment (which houses its energy trading operations) to an adjusted average operating income of $400 million from the previous range between $400 million and $800 million.

The company stated in its report that "this is due to the changing market conditions and an earlier divestment" of certain assets.

The MMP unit reported earnings of $299 millions, down from $545million a year earlier and below analyst expectations of $307million.

Equinor pumped 2,13 million barrels equivalent per day in the third quarter, in line with the expectations of the analyst poll. This is up from 1,98 million boed in the year before.

In 2022, the company overtook Russia’s Gazprom to become Europe’s largest natural gas supplier when Moscow's invasion in Ukraine upset decades-long energy relations.

Equinor shares have fallen by 9% this year, trailing the 18% increase in the European energy index. (Reporting and editing by Terje Solsvik, Nora Buli and Nerijus Adomiaitis)

(source: Reuters)