Why Is Equinor Stock Trading Lower On Wednesday?
Equinor ASA (NYSE:EQNR) shares are trading lower after the company reported first-quarter FY25 results on Wednesday.
Revenue and other income rose 19% year-over-year (Y/Y) to $29.920 billion, and adjusted revenue upped 19% Y/Y to $29.60 billion. The consensus estimate stood at $25.92 billion.
Adjusted EPS of $0.66 missed the consensus of $0.85.
Total equity liquids and gas production decreased 2% Y/Y to 2,123 mboe per day, with equity liquids production falling 7% Y/Y to 1,045 mboe per day and equity gas production rising 3% Y/Y to 1,078 mboe per day.
Also Read: Equinor Unveils Norwegian Sea Discovery, Projects 44M Barrels Of Recoverable Oil Equivalent
Group average liquids price fell 7% Y/Y to $70.6/bbl, and realized piped gas price U.S. was $4.06/MMBtu (+74% Y/Y).
The company says that strong operational performance from most Norwegian Continental Shelf fields, notably Johan Sverdrup and Troll, largely compensated for reduced production from the Sleipner B shut-in and planned/unplanned maintenance at Hammerfest LNG.
Dividend: The board of directors declared a first-quarter ordinary cash dividend per share of $0.37, payable on August 29, to shareholders of record as of August 19.
Repurchase: The board has launched the second tranche of its share buyback program of up to $1.265 billion, running until July 21 2025.
Equinor had earlier launched a share buyback program of up to $5 billion for 2025, including shares to be redeemed from the Norwegian State, completing its two-year plan for 2024 – 2025 announced in February 2024.
Equinor clocked a total power generation of 0.76 TWh from the renewable portfolio in the quarter.
Equinor reported an adjusted operating income of $8.65 billion in the quarter, with $7.45 billion from E&P Norway, $531 million from E&P International, and $511 million from E&P USA.
Operating cash flow (after taxes paid) stood at $7.39 billion in the quarter.
Outlook: Equinor expects organic capital distributions of around $13 billion in 2025, including $9 billion in cash return (buybacks/dividends).
The company projects oil and gas production growth of about 4% in 2025, while scheduled maintenance activity is estimated to decrease equity production by around 30 mboe per day.
Anders Opedal, President and CEO, said, “The production start-up of the Johan Castberg field strengthens Norway’s role as a reliable energy exporter to Europe. The field opens a new region in the Barents Sea and is expected to contribute to energy supply, value creation and ripple effects for at least 30 years to come.”
“We have invested in Empire Wind after obtaining all necessary approvals, and the order to halt work now is unprecedented and in our view unlawful. This is a question of the rights and obligations granted under legally issued permits, and security of investments based on valid approvals. We seek to engage directly with the U.S. Administration to clarify the matter and are considering our legal options.”
Investors can gain exposure to the stock via Keating Active ETF (NASDAQ:KEAT) and The 2023 ETF Series Trust II GMO International Value ETF (NYSE:GMOI).
Price Action: EQNR shares are down 3.48% at $22.28 at the last check on Wednesday.
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