EQNR 6-K
Equinor ASA (EQNR)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE
ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
For the month of October 2024
Commission File Number 1-15200
Equinor ASA
(Translation of registrant’s name into English)
FORUSBEEN 50, N-4035, STAVANGER,
NORWAY
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F
X
Form 40-F
This Report on Form 6-K contains a report of the third quarter 2024 results of Equinor ASA.
Equinor third quarter 2024
2
Q3
Key figures
Always safe
High value
Low carbon
0.3
6.91
6.89
6.3
SIF
USD billion
USD billion
kg/boe
Serious incident
frequency (per million
hours worked)
Net operating
income
Adjusted
operating
income*
CO
₂
upstream intensity.
Scope 1 CO
₂
emissions,
Equinor operated, 100%
basis
for the first nine months of
2024
2.4
6.25
0.79
8.2
TRIF
USD billion
USD
million tonnes CO2e
Total recordable incident
frequency (per million
hours worked)
Cash flow from
operations after
taxes paid*
Adjusted
earnings per
share*
Absolute scope 1+2 GHG
emissions
for the first nine months of
2024
7
0.70
6
677
Oil and gas leakages
USD per share
USD billion
GWh
with rate above 0.1 kg/
second during the past
12 months
Announced
dividend per share
(ordinary +
extraordinary)
Share buy-
back
programme for
2024
Renewable power
generation Equinor share
Equinor third quarter 2024
3
Equinor third quarter 2024 results
Equinor delivered adjusted operating income* of USD 6.89 billion and USD 2.04 billion after tax in the
third quarter of 2024. Equinor reported net operating income of USD 6.91 billion and net income at USD
2.29 billion. Adjusted net income* was USD 2.19 billion, leading to adjusted earnings per share* of USD
0.79.
Financial and operational performance
-
Solid financial results
-
Effective execution of extensive turnaround programme
-
Strong cash flow from operations
Strategic progress
-
All-time high production from the Troll field in the gas year
-
Northern Lights facility completed and ready to receive CO
2
-
Acquired a 9.8 percent stake in Ørsted in October
Capital distribution
-
Third quarter ordinary cash dividend of USD 0.35 per share, extraordinary cash dividend of USD 0.35 per share and fourth
tranche of share buy-back of up to USD 1.6 billion
-
Total capital distribution for 2024 in line with announced level of around USD 14 billion
Anders Opedal, President and CEO of Equinor ASA:
“With solid operational performance and results, we are well on track to deliver strong cashflow from operations in line with what we
said at the capital markets update in February.”
“Over time, we have upgraded the capacity in the gas value chain. This has contributed to an all-time high production from the Troll
field in the gas year. In the quarter, the Johan Sverdrup field delivered a production record of more than 756 000 barrels of oil in one
day and reached the milestone of one billion barrels produced since the start-up five years ago. This strengthens our position to
deliver safe and reliable energy to Europe.”
“We continue to invest in renewables and develop low carbon value chains. In the quarter, the world’s first commercial storage facility,
Northern Lights, was completed and is now ready to receive CO
2
from customers.”
Financial information
Quarters
Change
First nine months
(unaudited, in USD million)
Q3 2024
Q2 2024
Q3 2023
Q3 on Q3
2024
2023
Change
Net operating income/(loss)
6,905
7,656
7,453
(7%)
22,192
27,022
(18%)
Net income/(loss)
2,285
1,872
2,501
(9%)
6,830
9,296
(27%)
Basic earnings per share (USD)
0.83
0.65
0.84
(2%)
2.39
3.05
(22%)
Adjusted operating income*
6,887
7,482
7,930
1)
(13%)
21,902
27,645
1)
(21%)
Adjusted net income*
2,191
2,417
2,907
(25%)
7,444
9,476
(21%)
Adjusted earnings per share* (USD)
0.79
0.84
0.98
(19%)
2.61
3.11
(16%)
Cash flows provided by operating activities
7,057
1,611
5,236
35%
17,689
21,965
(19%)
Cash flow from operations after taxes paid*
6,247
1,898
7,594
(18%)
13,985
16,953
(18%)
Net cash flow*
(3,422)
(4,222)
1,479
N/A
(7,636)
(5,079)
(50%)
Operational information
Group average liquids price (USD/bbl) [1]
74.0
77.6
80.3
(8%)
75.9
74.8
2%
Total equity liquids
and gas production (mboe per day) [4]
1,984
2,048
2,007
(1%)
2,065
2,043
1%
Total power generation (GWh) Equinor share
1,127
1,083
883
28%
3,487
2,993
17%
Renewable power generation (GWh) Equinor share
677
655
373
82%
2,106
1,242
70%
*
For items marked with an asterisk throughout this report, see Use and reconciliation of non-GAAP
financial measures in the Supplementary disclosures
Equinor third quarter 2024
4
1) Restated due to amended principles for ‘over-/underlift'. For further information see Amended principles for Adjusted
operating income in the section 'Use and
reconciliation of non-GAAP financial measures' in the Supplementary disclosures.
Equinor third quarter 2024
5
Key figures by segment
Adjusted operating
income*
E&P equity liquids
and
gas production
Total power
generation Equinor
share
(USD million)
(mboe/day)
(GWh)
E&P Norway
5,875
1,308
31
E&P International
407
334
E&P USA
207
342
MMP
545
450
REN
(115)
646
Other incl. eliminations
(31)
Equinor Group Q3 2024
6,887
1,984
1,127
Equinor Group Q3 2023
7,930
1)
2,007
883
Equinor Group first nine months
2024
21,902
2,065
3,487
Equinor Group first nine months
2023
27,645
1)
2,043
2,993
Equinor third quarter 2024
6
Health, safety and the environment
Twelve months average per
Full year
Q3 2024
2023
Serious incident frequency (SIF)
0.3
0.4
First nine months
Full year
2024
2023
Upstream CO
2
intensity (kg CO
2
/boe)
6.3
6.7
First nine months
First nine
months
2024
2023
Absolute scope 1+2 GHG emissions (million tonnes CO
2
e)
8.2
8.6
30 September
31 December
%-point
Net debt to capital employed adjusted*
2024
2023
change
Net debt to capital employed adjusted*
(2.0%)
(21.6%)
19.6
Dividend
(USD per share)
Q3 2024
Q2 2024
Q3 2023
Ordinary cash dividend per share
0.35
0.35
0.30
Extraordinary cash dividend per share
0.35
0.35
0.60
In the first nine months of 2024 Equinor settled shares in the market under the 2023 and 2024 share buy-back programmes of USD
5,511 million which includes USD 4,023 million for the state share of the second, third and fourth tranche of the 2023 programme and
the first tranche of the 2024 programme.
Operational performance
Equinor delivered a total equity production of 1,984 mboe per day in the third quarter, down from 2,007 mboe in the same quarter last
year.
On the Norwegian continental shelf (NCS), production increased by 2 percent compared to the third quarter 2023. This was due to
high gas production from the Troll field and positive contributions from Aasta Hansteen and Oseberg. The increase was partially offset
by extensive turnarounds, natural decline and reduced ownership in the Statfjord area.
Internationally, new wells contributed positively to the production. However, the international production was negatively impacted by
offshore turnarounds and hurricanes in the United States.
In the quarter, Equinor completed nine offshore exploration wells with one commercial discovery. Four wells were ongoing at the
quarter end. Two wells were expensed.
Equinor produced 677 GWh from renewable assets in the third quarter, up 82 percent from the same quarter last year. The increase
was driven by the addition of onshore power plants in 2024. The offshore wind parks Dudgeon, Sheringham Shoal and Arkona also
contributed positively to the production.
The progress at Dogger Bank A is slower than expected. Based on this, the expected growth in power production from renewable
assets in 2024 is adjusted to around 50 percent.
Strategic progress
Equinor continued to optimise the portfolio through projects and strategic business development in the quarter.
On the NCS, the Johan Castberg production vessel was securely anchored at the field in the Barents Sea and hook-up is on track for
production start before year-end. In the quarter, Troll B and C became partly powered from shore, contributing to the company’s
efforts to strengthen competitiveness and halve operated emissions by 2030.
The recent acquisition of a 9.8 percent stake in Ørsted, gives Equinor exposure to premium offshore wind assets in operation and a
solid project pipeline. In the quarter, Equinor also won an offshore wind lease in the U.S. Atlantic Ocean at an attractive price, adding
optionality of around 2 gigawatt capacity to its existing portfolio. Furthermore, the company started recalibrating its portfolio of early
phase renewable projects to reduce cost and focus business development toward core markets.
Equinor continues to progress its low carbon solutions portfolio. The Northern Lights facility was completed on estimated time and
budget. In the UK, two key partner-operated low-carbon solution projects secured funding from the government.
Solid financial results
Equinor third quarter 2024
7
Equinor delivered adjusted operating income* of USD 6.89 billion. USD 5.88 billion come from Exploration and Production Norway,
USD 407 million from E&P International and USD 207 million from E&P USA. Marketing, Midstream & Processing delivered adjusted
operating income* of USD 545 million, driven by LNG, power trading and geographical arbitrage for LPG. Adjusted operating income*
from Renewables was negative USD 115 million, as the costs of project development exceeded the earnings from assets in operation.
Cash flow from operating activities before taxes paid and working capital items amounted to USD 9.23 billion for the third quarter.
Cash flow from operations after taxes paid* was USD 6.25 billion for the quarter, and USD 14.0 billion year to date.
Equinor paid one NCS tax instalment of USD 2.87 billion in the quarter and total capital expenditures were USD 3.14 billion. Organic
capital expenditure* was USD 3.08 billion for the quarter and USD 8.73 billion year to date. The organic capital expenditure* guiding
for the year is adjusted to USD 12-13 billion. After taxes, capital distribution to shareholders and investments, net cash flow* ended at
negative USD 3.42 billion in the third quarter. The Norwegian state’s share of the share buy-back programme of USD 4.02 billion in
July impacted the net cash flow*.
Adjusted net debt to capital employed ratio* was negative 2.0 percent at the end of the third quarter, compared to negative 3.4 percent
at the end of the second quarter of 2024.
Capital distribution
The board of directors has decided an ordinary cash dividend of USD 0.35 per share and an extraordinary cash dividend of USD 0.35
per share for the third quarter of 2024. This is in line with communication at the capital markets update in February.
The board has decided to initiate a fourth and final tranche of share buy-back for 2024 of up to USD 1.6 billion. The fourth tranche will
commence on 25 October and end no later than 31 January 2025. This fourth tranche will complete the announced share buy-back
programme of up to USD 6 billion for 2024. It will also conclude total capital distribution for 2024 of around USD 14 billion.
The third tranche of the share buy-back programme was completed on 16 October 2024 with a total value of USD 1.6 billion.
All share buy-back amounts include shares to be redeemed by the Norwegian state.
Equinor third quarter 2024
8
GROUP REVIEW
Financial information
Quarters
Change
First nine months
(unaudited, in USD million)
Q3 2024
Q2 2024
Q3 2023
Q3 on Q3
2024
2023
Change
Total revenues and other income
25,446
25,538
26,024
(2%)
76,120
78,120
(3%)
Total operating expenses
(18,541)
(17,883)
(18,571)
(0%)
(53,927)
(51,098)
6%
Net operating income/(loss)
6,905
7,656
7,453
(7%)
22,192
27,022
(18%)
Net financial items
365
(126)
13
>100%
606
1,525
(60%)
Income tax
(4,986)
(5,658)
(4,965)
0%
(15,969)
(19,251)
(17%)
Net income/(loss)
2,285
1,872
2,501
(9%)
6,830
9,296
(27%)
Adjusted total revenues and other income*
25,518
25,538
25,663
1)
(1%)
75,845
77,480
1)
(2%)
Adjusted purchases* [5]
(13,103)
(12,325)
(12,392)
6%
(37,242)
(34,331)
8%
Adjusted operating and administrative expenses*
(2,805)
(3,070)
(2,724)
1)
3%
(8,707)
(8,291)
1)
5%
Adjusted depreciation, amortisation and net impairments*
(2,426)
(2,382)
(2,426)
0%
(7,153)
(6,856)
4%
Adjusted exploration expenses*
(296)
(279)
(190)
56%
(841)
(357)
>100%
Adjusted operating income*
6,887
7,482
7,930
1)
(13%)
21,902
27,645
1)
(21%)
Adjusted net financial items*
162
98
160
1%
633
1,083
(42%)
Income tax less tax effect on adjusting items
(4,857)
(5,164)
(5,184)
(6%)
(15,091)
(19,252)
(22%)
Adjusted net income*
2,191
2,417
2,907
(25%)
7,444
9,476
(21%)
Basic earnings per share (in USD)
0.83
0.65
0.84
(2%)
2.39
3.05
(22%)
Adjusted earnings per share* (in USD)
0.79
0.84
0.98
(19%)
2.61
3.11
(16%)
Capital expenditures and Investments
3,098
2,950
2,652
17%
8,531
7,545
13%
Cash flows provided by operating activities
7,057
1,611
5,236
35%
17,689
21,965
(19%)
Cash flows from operations after taxes paid*
6,247
1,898
7,594
(18%)
13,985
16,953
(18%)
Quarters
Change
First nine months
Operational information
Q3 2024
Q2 2024
Q3 2023
Q3 on Q3
2024
2023
Change
Total equity liquid and
gas production (mboe/day)
1,984
2,048
2,007
(1%)
2,065
2,043
1%
Total entitlement
liquid and gas production (mboe/day)
1,860
1,916
1,879
(1%)
1,938
1,917
1%
Total Power generation (GWh) Equinor share
1,127
1,083
883
28%
3,487
2,993
17%
Renewable power generation (GWh) Equinor share
677
655
373
82%
2,106
1,242
70%
Average Brent oil price (USD/bbl)
80.2
84.9
86.8
(8%)
82.8
82.1
1%
Group average liquids price (USD/bbl)
74.0
77.6
80.3
(8%)
75.9
74.8
2%
E&P Norway average internal gas price (USD/mmbtu)
9.69
8.47
8.83
10%
8.60
12.48
(31%)
E&P USA average internal gas price (USD/mmbtu)
1.46
1.32
1.08
35%
1.52
1.78
(15%)
1) Restated due to amended principles for
‘over-/underlift '. For further information see Amended principles for Adjusted operating
income in the section 'Use and reconciliation of non-GAAP financial measures' in the Supplementary disclosures.
Operations and financial results
Well executed high turnaround activity contributed to stable production levels and solid financial results in the quarter.
E&P Norway delivered strong production levels amid high turnaround activity during the third quarter. The 2% increase in production,
when compared to the same period in the prior year, was driven by the continued ramp up of Breidablikk, effective turnaround
activities and good operational performance. Operational challenges impacted key gas producing fields in the third quarter of 2023,
which also contributed to the relative increase for the quarter. The ramp-up of new fields and the lower level of unplanned losses
contributed to the overall higher production in the first nine months of 2024 compared to the same period last year.
Equinor third quarter 2024
9
An increase in turnaround scope when compared to the third quarter 2023, combined with temporary shutdowns in certain fields and
the impact of hurricane related interruptions in September, resulted in a production decrease from the International upstream
businesses for the third quarter. In the USA, liquid producing assets were particularly affected, impacting the production mix for the
quarter from E&P USA. In E&P International, the benefits of new wells onstream and volumes from the Buzzard field in the UK offset
the impact of turnaround activity in Brazil for the first nine months of 2024. In E&P USA, turnaround activity in the Gulf of Mexico and
curtailment of production in the Appalachian Basin resulted in a production decrease, more than offsetting the increase from the ramp
up of Vito during this period.
Total power generation increased by 28% and 17% for third quarter and first nine months of 2024 compared to the prior year, driven
by the developments in the renewable portfolio. The addition of onshore power plants in Brazil and Poland during 2023, and the start-
up of Mendubim solar projects in 2024, drove the 82% and 70% increase in renewable power generation for the third quarter and first
nine months of 2024 respectively compared to the same periods in 2023. Gas to power generation reduced compared to 2023 due to
low clean spark spreads.
Higher realised gas prices, complimented by an increased share of gas in the production mix, drove strong revenue and results for the
third quarter of 2024 despite the impact of reduced sales volumes and lower liquids prices. The decrease in revenue for the third
quarter compared to the prior year was partially offset by an increase in gas prices and volumes in the quarter. For the first nine
months of 2024 however, gas prices were lower than in 2023 impacting revenues despite the increase in production volumes.
Strong equity and third-party LNG trading in the third quarter of 2024 drove solid results from gas and power trading in the Marketing,
Midstream and Processing segment. This result was supported by physical and financial trading of LPG.
An increase in operation and maintenance costs for the third quarter and first nine months of 2024 together with increased operating
activity and ongoing development projects in the renewables and low carbon solutions businesses have resulted in higher adjusted
operating and administrative expenses* compared to the same periods last year.
Adjusted depreciation, amortisation and net impairments* was consistent with the third quarter of 2023. The ramp up of new fields,
increased production and the inclusion of Buzzard contributed to the overall increase in adjusted depreciation, amortisation and net
impairments* in first nine months of 2024 compared to the same periods in 2023.
Canadian wells were expensed in the third quarter of 2024. Exploration costs associated with a dry offshore well in Argentina and
Bacalhau were expensed earlier in the year. In the first nine months of 2023 previously expensed exploration wells were capitalised
resulting in an overall notable increase in exploration expenses for the first nine months of 2024.
The impact of decreased long-term interest rates together with a positive development on financial investments resulted in an
increase in financial items for the third quarter of 2024 when compared to the same period in the prior year. This positive movement
was partially offset by net foreign exchange losses in the quarter. The currency movements in the first nine months of 2024 have
driven a decrease in financial items when compared to the same period of 2023.
Taxes and net financial result
The effective reported tax rate of 70.0% for the first nine months of 2024 increased compared to 67.4% in 2023 due to a higher share
of income from jurisdictions with high tax rates, and currency effects in entities that are taxable in currencies other than the functional
currency.
The effective reported tax rate of 68.6% for the third quarter of 2024 increased compared to 66.5% in 2023. The increase was mainly
due to a higher share of income from jurisdictions with high tax rates.
The effective tax rate on adjusted operating income* of 69.1% for the first nine months of 2024 decreased compared to 69.2% in 2023
due to decreased prior period adjustments in 2024 compared with 2023.
The effective tax rate on adjusted operating income* of
70.3% for the third quarter of 2024 increased compared to 65.6% in 2023 due to a higher share of adjusted operating income* from
jurisdictions with high tax rates in 2024 compared to 2023.
A strong adjusted net income* result of USD 2,191 million and a net income of USD 2,285 million was recorded in the third quarter.
The result was supported by an increase in gas prices, however this was more than offset by the impact of lower production levels,
liquids prices and increased costs when compared to the same quarter in the prior year.
Cash flow, net debt and capital distribution
Solid financial results from the business during the third quarter of 2024, driven by stable group production amid turnaround activity
generated cash flows provided by operating activities before taxes paid and working capital items of USD 9,233 million. The decrease
from USD 11,336 million in the prior year reflects lower liquids prices and increased purchases.
Cash flow from operations after taxes paid* decreased compared to the third quarter of 2023, from an inflow of USD 7,594 million to
Equinor third quarter 2024
10
USD 6,247 million despite lower tax payments in the quarter. For the first nine months of 2024 cash flow from operations after taxes
paid* was USD 13,985 million, down from USD 16,953 million in the prior year.
The first tax instalment of Norwegian corporate income tax relating to the 2024 results was paid in the quarter, amounting to USD
2,874 million. The reduction in payment compared to the same period in the prior year primarily reflects the lower pricing environment
of 2024, primarily for liquids.
Working capital in the third quarter decreased by USD 810 million compared to the large increase of USD 2,357 million in the same
period of the prior year which arose due to an increase in receivables caused by higher volumes and pricing.
Net cash flow* decreased by USD 4,901 million from the same quarter in the prior year to an outflow of USD 3,422 million primarily
reflecting substantial cash distribution of USD 4,564 million in the quarter as part of the share buy-back programme. A USD 4,023
million payment to the Norwegian state for the second, third, fourth tranche of the 2023, and first tranche of the 2024 share buy-back
programme was made in the third quarter whereas the payment to the Norwegian state in the prior year was made in the second
quarter.
A decrease in liquid assets in the quarter, with stable equity caused an increase in the net debt to capital employed adjusted* ratio at
the end of September 2024 from negative 3.4% at the end of June 2024 to negative 2.0%.
The board of directors has decided an ordinary cash dividend of USD 0.35 per share and an extraordinary cash dividend of USD 0.35
per share for the third quarter of 2024. This is in line with communication at the capital markets update in February.
The board has decided to initiate a fourth and final tranche of share buy-back for 2024 of up to USD 1.6 billion. The fourth tranche will
commence on 25 October and end no later than 31 January 2025. This fourth tranche will complete the announced share buy-back
programme of up to USD 6 billion for 2024. It will also conclude total capital distribution for 2024 of around USD 14 billion.
The third tranche of the share buy-back programme was completed on 16 October 2024 with a total value of USD 1.6 billion.
All share buy-back amounts include shares to be redeemed by the Norwegian state.
Health, safety and the environment
The twelve-month average serious incident frequency (SIF) for the period ending 30 September 2024 was 0.3, a decrease from 2023
which ended at 0.4.
Absolute scope 1+2 GHG emissions for Equinor’s operated production, on a 100% basis, were 8.2 million tonnes CO
₂
e for the first
nine month of 2024. This represents a decrease of 0.4 million tonnes CO
₂
e compared to the same period last year. The decrease in
GHG emissions is primarily due to a turnaround at Åsgard B, the decommissioning of Heimdal, and partial electrification of Troll B and
C in 2024.
Equinor third quarter 2024
11
1
OUTLOOK
●
Organic capital expenditures*
are estimated at USD 12-13 billion for 2024
.
●
Oil & gas production
for 2024 is estimated to be stable compared to the 2023 level [6].
●
Renewable power generation
for 2024 is estimated to increase by around fifty percent compared to the 2023 level.
●
Equinor’s ambition is to keep the
unit of production cost
in the top quartile of its peer group.
●
Scheduled maintenance activity
is estimated to reduce equity production by around 50 mboe per day for the full year of 2024.
These forward-looking statements reflect current views about future events and are, by their nature, subject to significant risks and
uncertainties because they relate to events and depend on circumstances that will occur in the future. Deferral of production to create
future value, gas off-take, timing of new capacity coming on stream and operational regularity and levels of industry product supply,
demand and pricing represent the most significant risks related to the foregoing production guidance.
For further information, see “Forward Looking Statements” in the Supplementary disclosures.
1
USD/NOK exchange rate assumption of 10.
Equinor third quarter 2024
12
SUPPLEMENTARY
OPERATIONAL
DISCLOSURES
Operational information
Quarters
Change
First nine months
Operational information
Q3 2024
Q2 2024
Q3 2023
Q3 on Q3
2024
2023
Change
Prices
Average Brent oil price (USD/bbl)
80.2
84.9
86.8
(8%)
82.8
82.1
1%
E&P Norway average liquids price (USD/bbl)
77.1
80.6
84.3
(9%)
79.0
78.3
1%
E&P International average liquids price (USD/bbl)
71.4
75.4
79.1
(10%)
73.6
72.4
2%
E&P USA average liquids price (USD/bbl)
65.1
68.0
68.1
(4%)
66.4
63.9
4%
Group average liquids price (USD/bbl) [1]
74.0
77.6
80.3
(8%)
75.9
74.8
2%
Group average liquids price (NOK/bbl) [1]
793
833
842
(6%)
809
783
3%
E&P Norway average internal gas price (USD/mmbtu) [8]
9.69
8.47
8.83
10%
8.60
12.48
(31%)
E&P USA average internal gas price (USD/mmbtu) [8]
1.46
1.32
1.08
35%
1.52
1.78
(15%)
Realised piped gas price Europe (USD/mmbtu) [7]
11.24
9.94
10.93
3%
10.15
14.15
(28%)
Realised piped gas price US (USD/mmbtu) [7]
1.66
1.53
1.57
6%
1.86
2.10
(11%)
Refining reference margin (USD/bbl) [2]
2.8
7.9
15.2
(82%)
6.0
11.6
(48%)
Entitlement production (mboe per day)
E&P Norway entitlement liquids production
608
630
636
(4%)
629
641
(2%)
E&P International entitlement liquids production
233
227
252
(7%)
237
235
1%
E&P USA entitlement liquids production
127
132
155
(18%)
132
142
(7%)
Group entitlement liquids production
968
989
1,044
(7%)
998
1,017
(2%)
E&P Norway entitlement gas production
701
744
647
8%
753
703
7%
E&P International entitlement gas production
23
23
25
(8%)
23
27
(17%)
E&P USA entitlement gas production
169
160
164
3%
165
169
(3%)
Group entitlement gas production
892
927
836
7%
940
900
5%
Total entitlement
liquids and gas production [3]
1,860
1,916
1,879
(1%)
1,938
1,917
1%
Equity production (mboe per day)
E&P Norway equity liquids production
608
630
636
(4%)
629
641
(2%)
E&P International equity liquids production
300
302
318
(6%)
306
298
3%
E&P USA equity liquids production
142
148
174
(19%)
148
158
(7%)
Group equity liquids production
1,050
1,080
1,128
(7%)
1,082
1,097
(1%)
E&P Norway equity gas production
701
744
647
8%
753
703
7%
E&P International equity gas production
34
34
37
(8%)
34
42
(17%)
E&P USA equity gas production
200
189
195
3%
195
201
(3%)
Group equity gas production
934
968
879
6%
983
946
4%
Total equity liquids
and gas production [4]
1,984
2,048
2,007
(1%)
2,065
2,043
1%
Power generation
Power generation (GWh) Equinor share
1,127
1,083
883
28%
3,487
2,993
17%
Renewable power generation (GWh) Equinor share
1)
677
655
373
82%
2,106
1,242
70%
1) Includes Hywind Tampen
renewable power generation.
Equinor third quarter 2024
13
Health, safety and the environment
Twelve months
average per
Full year
Q3 2024
2023
Total recordable injury
frequency (TRIF)
2.4
2.4
Serious Incident Frequency (SIF)
0.3
0.4
Oil and gas leakages (number of)
1)
7
10
First nine
months
Full year
2024
2023
Upstream CO
2
intensity (kg CO
2
/boe)
2)
6.3
6.7
First nine
months
First nine months
2024
2023
Absolute scope 1+2 GHG emissions (million tonnes CO
2
e)
3)
8.2
8.6
1)
Number of leakages with rate above 0.1 kg/second during the past 12 months.
2)
Operational control, total scope 1 emissions of CO
2
from exploration and production, divided by total production (boe).
3)
Operational control, total scope 1 and 2 emissions of CO
2
and CH
4.
Equinor third quarter 2024
14
EXPLORATION
& PRODUCTION NORWAY
Financial information
Quarters
Change
First nine months
(unaudited, in USD million)
Q3 2024
Q2 2024
Q3 2023
Q3 on Q3
2024
2023
Change
Total revenues and other income
8,081
8,426
7,938
2%
24,386
28,264
(14%)
Total operating expenses
(2,207)
(2,297)
(2,604)
(15%)
(6,626)
(6,914)
(4%)
Net operating income/(loss)
5,875
6,129
5,335
10%
17,760
21,350
(17%)
Adjusted total revenues and other income*
8,081
8,426
7,958
1)
2%
24,386
28,393
1)
(14%)
Adjusted operating and administrative expenses*
(871)
(982)
(788)
1)
11%
(2,718)
(2,702)
1)
1%
Adjusted depreciation, amortisation and net impairments*
(1,193)
(1,206)
(1,107)
8%
(3,572)
(3,285)
9%
Adjusted exploration expenses*
(143)
(109)
(120)
19%
(336)
(337)
(0%)
Adjusted operating income/(loss)*
5,875
6,129
5,942
1)
(1%)
17,760
22,068
1)
(20%)
Additions to PP&E, intangibles and equity accounted
investments
1,462
1,579
1,421
3%
4,413
4,362
1%
Operational information
Quarters
Change
First nine months
E&P Norway
Q3 2024
Q2 2024
Q3 2023
Q3 on Q3
2024
2023
Change
E&P entitlement liquid and gas production (mboe/day)
1,308
1,375
1,283
2%
1,382
1,344
3%
Average liquids price (USD/bbl)
77.1
80.6
84.3
(9%)
79.0
78.3
1%
Average internal gas price (USD/mmbtu)
9.69
8.47
8.83
10%
8.60
12.48
(31%)
1) Restated due to amended principles for ‘over-/underlift '. For further information see Amended Principles
for Adjusted operating income in
the section 'Use and reconciliation of non-GAAP financial measures' in the Supplementary disclosures.
Production & revenues
E&P Norway delivered production at a strong level in the third quarter of 2024 due to efficient turnaround activity and the ramp-up of
Breidablikk. Gas production increased by 8% compared to the same quarter last year, which was marked by planned turnarounds and
unplanned turnaround extensions on specific gas-producing fields. Compared to the third quarter of 2023, liquids production was
down by 4%, driven by a larger scope of turnaround activity, natural decline and planned maintenance on various fields.
The ramp-up of new fields and the lower level of unplanned losses contributed to the overall higher production in the first nine months
of 2024 compared to the same period last year.
Liquids prices were lower in the third quarter of 2024 compared to the third quarter of last year, while gas prices were higher relative to
the same period. The development in prices combined with robust gas production resulted in relatively stable revenue levels.
The significant decline in gas prices during 2023 which continued into the first half of 2024 was the main driver of lower revenues for
the first nine months of 2024 compared to the same period in 2023.
Operating expenses and financial results
Higher
operation
and
maintenance
costs
increased
operating
and
administrative
expenses
in
the
third
quarter
and
the
first
nine
months of 2024
compared to the
same periods last
year. This
increase was partially
offset by
the reduction in
CO
₂
quota prices and
the
Statfjord
area
divestment.
Operating
and
administrative
expenses
in
the
third
quarter
of
2023
were
impacted
by
a
significant
underlift effect.
In the third quarter and first nine months of 2024, adjusted depreciation, amortisation and net impairments* increased compared to the
same
periods
last
year
due
to
the
ramp
up
of
new
fields
and
field-specific
investments.
This
increase
was
partially
offset
by
the
impacts of prior period impairments.
Exploration activity was
at the
same level
in the
third quarter
of 2024
compared to the
same quarter
last year
(9 wells),
but a
higher
cost
per
well
and
lower
capitalisation
rate
led
to
an
increase
in
exploration
expenses.
The
increase
was
partially
offset
by
lower
seismic activities.
Equinor third quarter 2024
15
In the
third quarter
and
the first
nine
months of
2023, net
operating income
was
adversely affected
by an
impairment of
USD
588
million related to an asset in the North Sea.
Equinor third quarter 2024
16
EXPLORATION
& PRODUCTION INTERNATIONAL
Financial information
Quarters
Change
First nine months
(unaudited, in USD million)
Q3 2024
Q2 2024
Q3 2023
Q3 on Q3
2024
2023
Change
Total revenues and other income
1,597
1,909
1,990
(20%)
5,160
5,143
0%
Total operating expenses
(1,190)
(1,209)
(1,152)
3%
(3,438)
(3,146)
9%
Net operating income/(loss)
407
699
838
(51%)
1,722
1,996
(14%)
Adjusted total revenues and other income*
1,597
1,909
1,983
1)
(19%)
5,160
5,044
1)
2%
Adjusted purchases*
11
(23)
58
(81%)
21
(25)
>(100%)
Adjusted operating and administrative expenses*
(519)
(582)
(541)
1)
(4%)
(1,496)
(1,353)
1)
11%
Adjusted depreciation, amortisation and net impairments*
(544)
(453)
(594)
(8%)
(1,526)
(1,520)
0%
Adjusted exploration expenses*
(138)
(151)
(47)
>100%
(437)
71
>(100%)
Adjusted operating income/(loss)*
407
699
860
1)
(53%)
1,722
2,217
1)
(22%)
Additions to PP&E, intangibles and equity accounted
investments
760
779
888
(14%)
2,295
3,453
(34%)
Operational information
Quarters
Change
First nine months
E&P International
Q3 2024
Q2 2024
Q3 2023
Q3 on Q3
2024
2023
Change
E&P equity liquid and gas production (mboe/day)
334
336
355
(6%)
340
340
0%
E&P entitlement liquid and gas production (mboe/day)
256
249
277
(8%)
259
262
(1%)
Production sharing agreements (PSA) effects
79
86
78
0%
81
78
4%
Average liquids price (USD/bbl)
71.4
75.4
79.1
(10%)
73.6
72.4
2%
1) Restated due to amended principles for ‘over-/underlift '. For further information see Amended principles for Adjusted operating
income in the section 'Use and reconciliation of non-GAAP financial measures' in the Supplementary disclosures.
Production & revenues
Equity production decreased this quarter compared to the same quarter last year, primarily due to natural decline in certain fields and
temporary shutdowns in Brazil and Libya. The reduction was partially offset by the ramp-up of new wells, which supported overall
production levels. Increased turnaround activities in the quarter further contributed to the decrease in production.
The production for
the first nine months of 2024 is at the same level as last year. The contribution from new wells along with decreased turnaround
activities and the contribution from the Buzzard field in the UK was offset by the impact from temporary shutdowns in Brazil and Libya
and natural decline in 2024.
Production sharing agreements (PSA) effects in the third quarter of 2024 are at the same level compared to third quarter last year.
The increase in production sharing agreements (PSA) effects in the first nine months of 2024 compared to the same period last year
were driven by higher production from Angola PSA fields and higher liquids prices.
The decrease in liquids prices and lower lifted volumes in the third quarter of 2024 led to lower revenues compared to the same
quarter last year. The first nine months cumulative revenues are on the same level as last year.
Operating expenses and financial results
A reduction in volumes sold contributed to lower operating and administrative expenses in the third quarter of 2024 compared to the
same period last year. This decrease was offset by higher expenses related to scheduled maintenance activities. For the first nine
months of 2024, operating and administrative expenses increased compared to the same period in 2023, driven by additional
operating and maintenance activities in Brazil and the UK.
Depreciation decreased in the third quarter of 2024 compared to the same period last year, due to higher turnaround activities in
Brazil and the cessation of depreciation on the ACG field in Azerbaijan, following the divestment agreement with SOCAR.
Depreciation expenses in the first nine months of 2024 were on par with the same period last year.
Equinor third quarter 2024
17
Exploration expenses increased in the third quarter of 2024 compared to the same period last year, due to expensed wells in Canada.
The first nine months increase in 2024 compared to 2023 is mainly due to the capitalisation of previously expensed exploration wells
in Brazil in 2023.
Lower production in the third quarter reduced net operating income compared to the same period last year, while higher exploration
expenses drove the decrease for the first nine months despite stable production levels.
The reduction in additions to PP&E, intangibles, and equity accounted investments in the current quarter of 2024 is mainly related to
new vessel contracts in Brazil in the same quarter last year. The first nine months numbers are lower in 2024 due to the acquisition of
Suncor Energy UK Limited in 2023.
Equinor third quarter 2024
18
EXPLORATION
& PRODUCTION USA
Financial information
Quarters
Change
First nine months
(unaudited, in USD million)
Q3 2024
Q2 2024
Q3 2023
Q3 on Q3
2024
2023
Change
Total revenues and other income
943
1,001
1,162
(19%)
2,999
3,153
(5%)
Total operating expenses
(737)
(737)
(496)
48%
(2,152)
(1,944)
11%
Net operating income/(loss)
207
264
666
(69%)
847
1,210
(30%)
Adjusted total revenues and other income*
943
1,001
1,130
(16%)
2,999
3,121
(4%)
Adjusted operating and administrative expenses*
(314)
(291)
(293)
7%
(885)
(849)
4%
Adjusted depreciation, amortisation and net impairments*
(408)
(427)
(472)
(14%)
(1,199)
(1,273)
(6%)
Adjusted exploration expenses*
(15)
(19)
(23)
(33%)
(68)
(91)
(25%)
Adjusted operating income/(loss)*
207
264
343
(40%)
847
908
(7%)
Additions to PP&E, intangibles and equity accounted
investments
330
1,522
338
(2%)
2,211
874
>100%
Operational information
Quarters
Change
First nine months
E&P USA
Q3 2024
Q2 2024
Q3 2023
Q3 on Q3
2024
2023
Change
E&P equity liquid and gas production (mboe/day)
342
337
369
(7%)
343
360
(5%)
E&P entitlement liquid and gas production (mboe/day)
296
292
319
(7%)
297
311
(4%)
Royalties
46
46
50
(8%)
46
49
(5%)
Average liquids price (USD/bbl)
65.1
68.0
68.1
(4%)
66.4
63.9
4%
Average internal gas price (USD/mmbtu)
1.46
1.32
1.08
35%
1.52
1.78
(15%)
Production & revenues
In the third quarter and first nine months of 2024, E&P USA reports lower production compared to the same periods in 2023 mainly
due turnaround activity, impacts from hurricanes in the Gulf of Mexico and curtailment of production affecting the Appalachia onshore
assets.
Lower liquids prices negatively impacted revenue in the third quarter, partially offset by higher gas prices.
For the first nine months of
2024, the impact of lower production was offset by higher liquids realised prices when compared to the prior year.
Operating expenses and financial results
Operating and administration expenses increased in the third quarter and the first nine months of 2024 compared to the same periods
last year. This increase was primarily due to higher well maintenance expenditures in multiple offshore assets, offset by lower offshore
production which reduced transportation expenses.
Lower offshore production also resulted in a decrease in depreciation in the third quarter and the first nine months of 2024 when
compared to the same periods of 2023.
This was partially offset by a depreciation expense related to an increase in abandonment
cost estimate for a late life asset in the Gulf of Mexico during the second quarter of 2024 impacting the first nine months of 2024.
Exploration expenditures were slightly lower in the third quarter of 2024 partly due to the sanctioning of the Sparta project late in 2023,
resulting in the project meeting the criteria for capitalisation.
The increase in additions to PP&E, intangibles and equity accounted investments in 2024, compared to 2023, is primarily attributed to
the swap with EQT closed in the second quarter. This resulted in an increase in the Northern Marcellus formation offset by a decrease
from the Appalachia operated assets impacting PPE disposals.
Equinor third quarter 2024
19
MARKETING, MIDSTREAM & PROCESSING
Financial information
Quarters
Change
First nine months
(unaudited, in USD million)
Q3 2024
Q2 2024
Q3 2023
Q3 on Q3
2024
2023
Change
Total revenues and other income
25,204
25,190
25,712
(2%)
75,218
77,240
(3%)
Total operating expenses
(24,660)
(24,693)
(24,730)
(0%)
(72,875)
(73,990)
(2%)
Net operating income/(loss)
544
497
982
(45%)
2,343
3,250
(28%)
Adjusted total revenues and other income*
25,276
25,189
25,371
(0%)
74,943
76,603
(2%)
Adjusted purchases* [5]
(23,369)
(23,187)
(23,083)
1%
(68,583)
(69,492)
(1%)
Adjusted operating and administrative expenses*
(1,119)
(1,238)
(1,195)
(6%)
(3,695)
(3,623)
2%
Adjusted depreciation, amortisation and net
impairments*
(243)
(242)
(217)
12%
(712)
(669)
6%
Adjusted operating income/(loss)*
545
521
876
(38%)
1,953
2,818
(31%)
- Gas and Power
454
509
371
22%
1,492
1,567
(5%)
- Crude, Products and Liquids
252
195
466
(46%)
906
1,275
(29%)
- Other
(161)
(183)
38
>(100%)
(444)
(24)
>100%
Additions to PP&E, intangibles and equity
accounted investments
185
189
342
(46%)
585
626
(7%)
Operational information
Quarters
Change
First nine months
Q3 2024
Q2 2024
Q3 2023
Q3 on Q3
2024
2023
Change
Liquids sales volumes (mmbl)
258.5
253.8
260.0
(1%)
760.0
710.7
7%
Natural gas sales Equinor (bcm)
14.7
15.4
13.0
13%
46.9
1)
42.8
10%
Natural gas entitlement sales Equinor (bcm)
12.3
12.9
12.0
2%
39.5
38.7
2%
Power generation (GWh) Equinor share
450
428
510
(12%)
1,381
1,751
(21%)
Realised piped gas price Europe (USD/mmbtu)
11.24
9.94
10.93
3%
10.15
14.15
(28%)
Realised piped gas price US (USD/mmbtu)
1.66
1.53
1.57
6%
1.86
2.10
(11%)
1) Equinor natural gas sales volumes reported for the first quarter of 2024 were restated from 16.3 bcm to 16.8 bcm.
Volumes, pricing & revenues
Liquids sales volumes increased compared to both the second quarter of 2024 and the first nine months of 2023 primarily due to
higher sales of third-party volumes partially offset by lower equity production.
Gas sales declined compared to the second quarter of 2024 due to lower NCS gas production caused by maintenance activity. The
increase in gas sales relative to the first nine months of 2023 was driven by higher NCS gas production and third-party sales, partially
offset by lower EPI production.
Gas to power generation was consistent with the previous quarter but decreased compared to the first nine months of 2023 due to
lower clean spark spread.
Realised European piped gas price increased in the third quarter of 2024 compared to the previous quarter, due to an increase in
market prices driven by continued geopolitical risks and supply disruptions despite low seasonal demand. Compared to the same
quarter last year, the realised European piped gas price increased explained by higher market prices.
Realised piped gas price in the US increased in the third quarter of 2024 compared to the previous quarter due to lower natural gas
supply and higher demand. Compared to the third quarter of last year, reduced production in the third quarter of 2024 increased the
realised US piped gas price.
Equinor third quarter 2024
20
Financial results
Gas and Power contributed significantly to adjusted operating income* during the third quarter due to strong equity and third-party
LNG trading, along with the realisation of physical gas sales and power trading. Crude, Products, and Liquids achieved a good result
driven by physical and financial trading of crude and LPG supported by shipping optimisation. The Other sub-segment was impacted
by low refining margins and high activity associated with developing low carbon projects.
Adjusted operating income* increased slightly compared to the previous quarter. A higher contribution from Crude, Products and
Liquids was partially offset by lower realisation from natural gas sales.
Adjusted operating income* for the first nine month of 2024 was lower than the same period last year across the subsegments, due to
lower crude, products and refining margins, reduced clean spark spread and refinery throughput as well as increased cost driven by
higher activity related to developing low carbon projects.
Net operating income includes the net effect of fair value change in commodity derivatives and storages, impairment reversal,
changes in onerous provisions and operational storage value change.
Equinor third quarter 2024
21
RENEWABLES
Financial information
Quarters
Change
First nine months
(unaudited, in USD million)
Q3 2024
Q2 2024
Q3 2023
Q3 on Q3
2024
2023
Change
Revenues third party, other revenue and other income
26
12
10
>100%
67
24
>100%
Net income/(loss) from equity accounted investments
7
37
(16)
>100%
75
(27)
>100%
Total revenues and other income
33
49
(5)
>100%
142
(3)
>100%
Total operating expenses
(199)
(140)
(406)
(51%)
(618)
(589)
5%
Net operating income/(loss)
(166)
(90)
(412)
60%
(476)
(591)
19%
Adjusted total revenues and other income*
33
49
(5)
>100%
142
(3)
>100%
Adjusted operating and administrative expenses*
(144)
(122)
(100)
45%
(387)
(266)
45%
Adjusted depreciation, amortisation and net
impairments*
(5)
(18)
(3)
65%
(31)
(6)
>100%
Adjusted operating income/(loss)*
(115)
(90)
(108)
(7%)
(275)
(275)
(0%)
Additions to PP&E, intangibles and equity accounted
investments
361
608
193
88%
1,593
1,311
21%
Operational information
Quarters
Change
First nine months
Q3 2024
Q2 2024
Q3 2023
Q3 on Q3
2024
2023
Change
Renewables power generation (GWh) Equinor share
646
634
352
83%
2,019
1,198
69%
Power generation
The substantial increase in power generation in the
third quarter and first nine months of
2024 compared to the same periods of
2023
was driven by the addition of onshore power plants in Brazil and Poland, and the start of production at the partner operated Mendubim
solar plants in Brazil.
Total
onshore renewables generated 383
GWh in the third
quarter of 2024. Offshore
wind farms generated 263
GWh, with
the majority
coming from
Dudgeon, Sheringham
Shoal and
Arkona. The
Dogger Bank
A wind
farm is
expected to
start
commercial production in the second half of 2025.
Total revenues and other income
The addition of onshore wind farms in operation in
Brazil and Poland increased the contribution to revenues third party,
other revenue
and other income in the
third quarter and first nine
months of 2024 compared to
the same periods in the
prior year. Net
income/(loss)
from equity-accounted investments increased significantly in the third quarter and the first
nine months of 2024 compared to the same
periods in 2023.
Results
from
joint
venture
assets
in
operation
increased
compared
to
the
third
quarter
last
year,
positively
impacted
by
price
adjustments from previous periods and insurance income. Lower project development costs compared to the prior year,
resulting from
divestment
and
changed
consolidation
method
for
the
US
offshore
wind
projects,
contributed
to
increased
net
result
from
equity
accounted investments for
the quarter and
first nine
months. The capitlisation
of expenditures for
Bałtyk, the offshore
wind project in
Poland, from the third quarter of 2023 also supported the increase for the first nine months of 2024.
Operating expenses and financial results
Higher
operating
activity
levels
from
ongoing
development
projects
combined
with
increased
business
development
expenditures
contributed to an
upward trend in
operating and administrative expenses
in the third
quarter and first
nine months of
2024 compared
to the same periods of 2023.
The adjusted
operating loss*
for the
third quarter
and first
nine months
of 2024
was comparable
to the
same periods
of 2023.
The
increase in operating expenses from ongoing projects offset higher revenues from assets in operation during 2024.
Net operating loss includes the effect of a USD 50 million impairment of an offshore
wind lease project in California in the third quarter
of 2024, with a USD 300 million impairment
on Equinor’s offshore wind projects on the US Northeast
coast impacting the third quarter
of the prior year.
The
net
operating
loss
for
the
first
nine
months
of
2024
also
included
a
USD
147
million
net
loss
resulting
from
the
asset
swap
transaction
between
Equinor
and
bp
in
the
first
quarter,
under
which
Equinor
took
full
ownership
of
the
Empire
Wind
lease
and
projects and bp took full ownership of the Beacon Wind lease and projects.
Equinor third quarter 2024
22
Additions
to
PP&E,
intangibles,
and
equity
accounted
investments
for
the
third
quarter
of
2024
increased
compared
to
the
same
quarter last year.
In the third quarter
of 2024, USD 60
million for onshore renewables
and USD 301 million
was allocated for offshore
wind projects, primarily
related to the
South Brooklyn Marine
Terminal
(SBMT) and Empire
Wind projects in
the US and
investments
related to projects in the UK.
.
Equinor third quarter 2024
23
CONDENSED INTERIM FINANCIAL STATEMENTS
Third quarter 2024
CONSOLIDATED STATEMENT
OF INCOME
Quarters
First nine months
(unaudited, in USD million)
Note
Q3 2024
Q2 2024
Q3 2023
2024
2023
Revenues
4
25,416
25,462
25,924
75,967
78,005
Net income/(loss) from equity accounted investments
(1)
12
(25)
43
30
Other income
31
65
124
110
85
Total revenues and
other income
2
25,446
25,538
26,024
76,120
78,120
Purchases [net of inventory variation]
(13,104)
(12,145)
(12,269)
(37,171)
(34,371)
Operating expenses
3
(2,518)
(2,761)
(2,420)
(7,909)
(7,707)
Selling, general and administrative expenses
(304)
(348)
(295)
(994)
(814)
Depreciation, amortisation and net impairments
(2,318)
(2,348)
(3,369)
(7,011)
(7,812)
Exploration expenses
(296)
(279)
(218)
(841)
(394)
Total operating expenses
2
(18,541)
(17,883)
(18,571)
(53,927)
(51,098)
Net operating income/(loss)
2
6,905
7,656
7,453
22,192
27,022
Interest income and other financial income
460
495
580
1,515
1,788
Interest expenses and other financial expenses
(370)
(394)
(412)
(1,181)
(1,292)
Other financial items
275
(226)
(155)
272
1,029
Net financial items
5
365
(126)
13
606
1,525
Income/(loss) before tax
7,271
7,530
7,466
22,798
28,547
Income tax
6
(4,986)
(5,658)
(4,965)
(15,969)
(19,251)
Net income/(loss)
2,285
1,872
2,501
6,830
9,296
Attributable to equity holders of the company
2,282
1,861
2,497
6,810
9,282
Attributable to non-controlling interests
3
12
4
19
14
Basic earnings per share (in USD)
0.83
0.65
0.84
2.39
3.05
Diluted earnings per share (in USD)
0.82
0.65
0.84
2.39
3.04
Weighted average number of ordinary shares outstanding (in millions)
2,760
2,850
2,971
2,849
3,043
Weighted average number of ordinary shares outstanding diluted (in millions)
2,767
2,856
2,978
2,855
3,050
Equinor third quarter 2024
24
CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME
Quarters
First nine months
(unaudited, in USD million)
Q3 2024
Q2 2024
Q3 2023
2024
2023
Net income/(loss)
2,285
1,872
2,501
6,830
9,296
Actuarial gains/(losses) on defined benefit pension plans
(98)
74
20
489
618
Income tax effect on income and expenses recognised in OCI
1)
24
(14)
(8)
(107)
(145)
Items that will not be reclassified to the Consolidated statement of income
(74)
60
12
382
472
Foreign currency translation effects
972
158
(284)
36
(1,756)
Share of OCI from equity accounted investments
(48)
(3)
(17)
(43)
11
Items that may be subsequently reclassified to the Consolidated statement of income
925
155
(301)
(7)
(1,745)
Other comprehensive income/(loss)
850
215
(289)
375
(1,273)
Total comprehensive
income/(loss)
3,135
2,088
2,212
7,204
8,023
Attributable to the equity holders of the company
3,132
2,076
2,207
7,185
8,009
Attributable to non-controlling interests
3
12
4
19
14
1) Other comprehensive income (OCI).
Equinor third quarter 2024
25
CONSOLIDATED BALANCE SHEET
At 30 September
At 31 December
(in USD million)
Note
2024 (unaudited)
2023 (audited)
ASSETS
Property, plant and equipment
2
60,728
58,822
Intangible assets
3
6,330
5,709
Equity accounted investments
2,509
2,508
Deferred tax assets
7,412
7,936
Pension assets
1,676
1,260
Derivative financial instruments
572
559
Financial investments
3,743
3,441
Prepayments and financial receivables
1,610
1,291
Total non-current
assets
84,579
81,525
Inventories
3,258
3,814
Trade and other receivables
1)
10,583
13,204
Prepayments and financial receivables
1)
3,628
3,729
Derivative financial instruments
796
1,378
Financial investments
22,712
29,224
Cash and cash equivalents
2)
8,002
9,641
Total current assets
48,978
60,990
Assets classified as held for sale
3
1,559
1,064
Total assets
135,117
143,580
EQUITY AND LIABILITIES
Shareholders' equity
44,352
48,490
Non-controlling interests
33
10
Total equity
44,385
48,500
Finance debt
5
20,200
22,230
Lease liabilities
2,227
2,290
Deferred tax liabilities
13,776
13,345
Pension liabilities
3,914
3,925
Provisions and other liabilities
7
15,316
15,304
Derivative financial instruments
1,424
1,795
Total non-current
liabilities
56,856
58,890
Trade and other payables
3)
9,162
9,556
Provisions and other liabilities
3)
2,198
2,314
Current tax payable
6
11,569
12,306
Finance debt
5, 8
5,903
5,996
Lease liabilities
1,266
1,279
Dividends payable
1,922
2,649
Derivative financial instruments
1,066
1,619
Total current liabilities
33,085
35,719
Liabilities directly associated with the assets classified as held for sale
3
791
471
Total liabilities
90,732
95,080
Total equity and liabilities
135,117
143,580
1) Disaggregated from the line-item Trade and other receivables starting from the first
quarter of 2024.
Equinor third quarter 2024
26
2) Includes collateral deposits of USD 1.8 billion for 30 September 2024 related to certain requirements set out by exchanges
where Equinor
is participating. The corresponding figure for 31 December 2023 is USD 1.6 billion.
3) Disaggregated from the line-item Trade, other payables and provisions
starting from the first quarter of 2024.
Equinor third quarter 2024
27
CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
(unaudited, in USD million)
Share
capital
Additional
paid-in
capital
Retained
earnings
Foreign
currency
translation
reserve
OCI from
equity
accounted
investments
Share-
holders'
equity
Non-
controlling
interests
Total equity
At 1 January 2023
1,142
3,041
58,236
(8,855)
424
53,988
1
53,989
Net income/(loss)
9,282
9,282
14
9,296
Other comprehensive
income/(loss)
472
(1,756)
11
(1,273)
(1,273)
Total comprehensive
income/(loss)
8,023
Dividends
(8,140)
(8,140)
(8,140)
Share buy-back
(42)
(5,093)
(5,135)
(5,135)
Other equity transactions
(3)
(3)
(3)
At 30 September 2023
1,101
(2,056)
59,849
(10,611)
434
48,718
15
48,733
At 1 January 2024
1,101
0
56,521
(9,442)
310
48,490
10
48,500
Net income/(loss)
6,810
6,810
19
6,830
Other comprehensive
income/(loss)
382
36
(43)
375
375
Total comprehensive
income/(loss)
7,204
Dividends
(5,900)
(5,900)
(5,900)
Share buy-back
1)
(49)
11
(5,370)
(5,408)
(5,408)
Other equity transactions
(11)
(4)
(15)
3
(12)
At 30 September 2024
1,052
0
52,439
(9,406)
267
44,352
33
44,385
1) For more information see note 8 Capital distribution.
Equinor third quarter 2024
28
CONSOLIDATED STATEMENT
OF CASH FLOWS
Quarters
First nine
months
First nine
months
(unaudited, in USD million)
Note
Q3 2024
Q2 2024
Q3 2023
2024
2023
Income/(loss) before tax
7,271
7,530
7,466
22,798
28,547
Depreciation, amortisation and net impairments, including exploration write-
offs
2,327
2,346
3,421
7,099
7,732
(Gains)/losses on foreign currency transactions and balances
5
243
193
12
133
(1,140)
(Gains)/losses on sale of assets and businesses
3
0
(11)
0
118
260
(Increase)/decrease in other items related to operating activities
1), 2)
(615)
(737)
21
(2,234)
(579)
(Increase)/decrease in net derivative financial instruments
(272)
138
195
(8)
1,735
Interest received
419
555
407
1,380
1,311
Interest paid
(139)
(266)
(186)
(617)
(740)
Cash flows provided by operating activities before taxes paid and working
capital items
9,233
9,748
11,336
28,670
37,126
Taxes paid
(2,986)
(7,850)
(3,743)
(14,685)
(20,173)
(Increase)/decrease in working capital
810
(286)
(2,357)
3,704
5,011
Cash flows provided by operating activities
7,057
1,611
5,236
17,689
21,965
Cash (used)/received in business combinations
3
0
(467)
(100)
(467)
(1,155)
Capital expenditures and investments
3
(3,098)
(2,950)
(2,652)
(8,531)
(7,545)
(Increase)/decrease in financial investments
1,376
4,185
(2,679)
6,069
3,454
(Increase)/decrease in derivative financial instruments
(13)
99
14
40
(1,527)
(Increase)/decrease in other interest-bearing items
(69)
(283)
(219)
(562)
(180)
Proceeds from sale of assets and businesses
3)
3
6
50
0
115
118
Cash flows provided by/(used in) investing activities
(1,798)
633
(5,636)
(3,337)
(6,835)
Repayment of finance debt
(190)
0
0
(2,090)
(2,476)
Repayment of lease liabilities
(367)
(375)
(336)
(1,115)
(1,004)
Dividends paid
(1,944)
(2,072)
(2,613)
(6,665)
(8,199)
Share buy-back
(4,564)
(398)
(531)
(5,511)
(5,071)
Net current finance debt and other financing activities
2)
1,069
(471)
(1,195)
(558)
779
Cash flows provided by/(used in) financing activities
(5,996)
(3,315)
(4,675)
(15,938)
(15,971)
Net increase/(decrease) in cash and cash equivalents
(737)
(1,070)
(5,074)
(1,586)
(841)
Effect of exchange rate changes on cash and cash equivalents
98
29
(156)
(54)
(318)
Cash and cash equivalents at the beginning of the period (net of overdraft)
8,641
9,682
19,650
9,641
15,579
Cash and cash equivalents at the end of the period (net of overdraft)
4)
8,002
8,641
14,420
8,002
14,420
1)
The line item includes a fair value gain related to inventory of USD 66 million in the third quarter 2024 and a gain of USD 673 million
in
first nine months of 2024. The corresponding amount in third quarter 2023 was a fair value loss of USD 13 million and a loss
of USD 247
million in the first nine months in 2023.
2)
Cash flows related to variation margin collaterals on over-the-counter (OTC) commodity derivatives
form part of Equinor's principal
revenue-making activities. From 1 January 2024, these cash flows are therefore presented within the line-item
(Increase)/decrease in
other items related to operating activities. In previous periods these cash flows have been presented within the line-item
Net current
finance debt and other financing activities. Comparative figures have not been restated due to immateriality.
3)
In the first nine months of 2023 this line item includes cash consideration net of cash disposed, related to the disposal of
Equinor Energy
Ireland Limited at closing date 31 March 2023.
4)
At 30 September 2024 and at 31 December 2023 cash and cash equivalents net overdraft were zero. At 30 September
2023 cash and
cash equivalents included a net overdrafts of USD 524 million.
Equinor third quarter 2024
29
Notes to the Condensed interim financial statements
1 Organisation and basis of preparation
Organisation and principal activities
Equinor Group (Equinor) consists of Equinor ASA and its subsidiaries. Equinor ASA is incorporated and domiciled in Norway and
listed on the Oslo Børs (Norway) and the New York Stock Exchange (USA). The registered office address is Forusbeen 50, N-4035,
Stavanger, Norway.
The objective of Equinor is to develop, produce and market various forms of energy and derived products and services, as well as
other businesses. The activities may also be carried out through participation in or cooperation with other companies. Equinor Energy
AS, a 100% owned operating subsidiary of Equinor ASA and owner of all of Equinor's oil and gas activities and net assets on the
Norwegian continental shelf, is a co-obligor or guarantor of certain debt obligations of Equinor ASA.
Equinor's condensed interim financial statements for the third quarter of 2024 were authorised for issue by the board of directors on
23 October 2024.
Basis of preparation
These condensed interim financial statements are prepared in accordance with IAS 34 Interim Financial Reporting as issued by the
International Accounting Standards Board (IASB) and as adopted by the European Union (EU). The condensed interim financial
statements do not include all the information and disclosures required by IFRS® Accounting Standards for a complete set of financial
statements and should be read in conjunction with the Consolidated annual financial statements for 2023. IFRS Accounting Standards
as adopted by the EU differs in certain respects from IFRS Accounting Standards as issued by the IASB, however the differences do
not impact Equinor's financial statements for the periods presented.
Certain amounts in the comparable years have been reclassified to conform to current year presentation. As a result of rounding
differences, numbers or percentages may not add up to the total.
The condensed interim financial statements are unaudited.
Accounting policies
The accounting policies applied in the preparation of the condensed interim financial statements are consistent with those used in the
preparation of Equinor’s consolidated annual financial statements for 2023. A description of the material accounting policies is
included in Equinor’s consolidated annual financial statements for 2023. When determining fair value, there have been no changes to
the valuation techniques or models and Equinor applies the same sources of input and the same criteria for categorisation in the fair
value hierarchy as disclosed in the consolidated annual financial statements for 2023.
For information about IFRS Accounting Standards, amendments to IFRS Accounting Standards and IFRIC® Interpretations effective
from 1 January 2024, that could affect the consolidated financial statements, please refer to note 2 in Equinor’s consolidated financial
statements for 2023. None of the amendments to IFRS Accounting Standards effective from 1 January 2024 has had a significant
impact on the condensed interim financial statements. Equinor has not early adopted any IFRS Accounting Standards, amendments
to IFRS Accounting Standards or IFRIC Interpretations issued, but not yet effective.
Use of judgements and estimates
The preparation of financial statements in conformity with IFRS Accounting Standards requires management to make judgments,
estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income
and expenses. The estimates and associated assumptions are reviewed on an on-going basis and are based on historical experience
and various other factors that are believed to be reasonable under the circumstances. These estimates and assumptions form the
basis for making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual
results may differ from these estimates. Please refer to note 2 in Equinor’s consolidated financial statements for 2023 for more
information about accounting judgement and key sources of estimation uncertainty. See note 2 Segments in this report for further
information about management’s future commodity price assumptions and long-term NOK currency exchange rate assumptions.
Equinor third quarter 2024
30
2 Segments
Equinor’s operations are managed through operating segments identified on the basis of those components of Equinor that are
regularly reviewed by the chief operating decision maker, Equinor's Corporate Executive Officer (CEO). The reportable segments
Exploration & Production Norway (E&P Norway), Exploration & Production International (E&P International), Exploration & Production
USA (E&P USA), Marketing, Midstream & Processing (MMP) and Renewables (REN) correspond to the operating segments. The
operating segments Projects, Drilling & Procurement (PDP), Technology,
Digital & Innovation (TDI) and Corporate staff and functions
are aggregated into the reportable segment Other based on materiality. The majority of the costs in PDP and TDI is allocated to the
three Exploration & Production segments, MMP and REN.
The accounting policies of the reporting segments equal those applied in these condensed interim financial statements,
except for the
line-item Additions to PP&E, intangibles and equity accounted investments in which movements related to changes in asset retirement
obligations are excluded as well as provisions for onerous contracts which reflect only obligations towards group external parties. The
measurement basis of segment profit is net operating income/(loss). Deferred tax assets, pension assets, non-current financial assets,
total current assets and total liabilities are not allocated to the segments. Transactions between the segments, mainly from the sale of
crude oil, gas, and related products, are performed at defined internal prices which have been derived from market prices. The
transactions are eliminated upon consolidation.
Third quarter 2024
E&P
Norway
E&P
International
E&P
USA
MMP
REN
Other
Eliminations
Total Group
(in USD million)
Revenues third party
63
126
62
25,133
21
13
0
25,416
Revenues and other income inter-segment
7,988
1,467
881
83
6
8
(10,433)
0
Net income/(loss) from equity accounted
investments
0
3
0
(11)
7
(0)
0
(1)
Other income
31
0
0
0
0
(0)
0
31
Total revenues and
other income
8,081
1,597
943
25,204
33
20
(10,433)
25,446
Purchases [net of inventory variation]
0
11
0
(23,440)
0
0
10,325
(13,104)
Operating, selling, general and
administrative expenses
(871)
(519)
(314)
(1,136)
(144)
(17)
179
(2,822)
Depreciation and amortisation
(1,193)
(544)
(408)
(243)
(2)
(34)
0
(2,424)
Net impairment (losses)/reversals
0
0
0
158
(53)
0
0
106
Exploration expenses
(143)
(138)
(15)
0
0
0
0
(296)
Total operating expenses
(2,207)
(1,190)
(737)
(24,660)
(199)
(52)
10,504
(18,541)
Net operating income/(loss)
5,875
407
207
544
(166)
(31)
70
6,905
Additions to PP&E, intangibles and equity
accounted investments
1,462
760
330
185
361
41
0
3,141
Balance sheet information
Equity accounted investments
4
0
0
800
1,525
177
2
2,509
Non-current segment assets
29,075
18,707
11,340
3,954
3,038
944
0
67,059
Non-current assets not allocated to
segments
15,012
Total non-current
assets
84,579
Assets held for sale
403
1,156
0
0
0
0
0
1,559
Equinor third quarter 2024
31
Second quarter 2024
E&P
Norway
E&P
International
E&P
USA
MMP
REN
Other
Eliminations
Total Group
(in USD million)
Revenues third party
60
162
72
25,135
6
27
0
25,462
Revenues and other income inter-segment
8,304
1,742
919
86
6
8
(11,065)
0
Net income/(loss) from equity accounted
investments
0
5
0
(30)
37
0
0
12
Other income
62
0
9
0
0
(6)
0
65
Total revenues and
other income
8,426
1,909
1,001
25,190
49
28
(11,065)
25,538
Purchases [net of inventory variation]
0
(23)
0
(23,206)
0
0
11,084
(12,145)
Operating, selling, general and
administrative expenses
(982)
(582)
(291)
(1,279)
(122)
(33)
179
(3,110)
Depreciation and amortisation
(1,206)
(453)
(427)
(242)
(15)
(35)
0
(2,379)
Net impairment (losses)/reversals
0
0
0
33
(3)
0
0
31
Exploration expenses
(109)
(151)
(19)
0
0
0
0
(279)
Total operating expenses
(2,297)
(1,209)
(737)
(24,693)
(140)
(69)
11,263
(17,883)
Net operating income/(loss)
6,129
699
264
497
(90)
(40)
198
7,656
Additions to PP&E, intangibles and equity
accounted investments
1,579
779
1,522
189
608
101
0
4,779
Equinor third quarter 2024
32
Third quarter 2023
E&P
Norway
E&P
International
E&P
USA
MMP
REN
Other
Eliminations
Total Group
(in USD million)
Revenues third party
42
183
65
25,611
2
20
0
25,924
Revenues and other income inter-segment
7,904
1,809
1,064
107
8
8
(10,902)
0
Net income/(loss) from equity accounted
investments
0
(2)
0
(6)
(16)
0
0
(25)
Other income
(9)
0
32
(0)
0
101
0
124
Total revenues and
other income
7,938
1,990
1,162
25,712
(5)
129
(10,902)
26,024
Purchases [net of inventory variation]
(1)
58
0
(22,987)
0
0
10,661
(12,269)
Operating, selling, general and
administrative expenses
(788)
(541)
(293)
(1,181)
(103)
(76)
267
(2,715)
Depreciation and amortisation
(1,107)
(594)
(472)
(217)
(3)
(34)
0
(2,426)
Net impairment (losses)/reversals
(588)
0
290
(346)
(300)
0
0
(943)
Exploration expenses
(120)
(75)
(23)
0
0
0
0
(218)
Total operating expenses
(2,604)
(1,152)
(496)
(24,730)
(406)
(110)
10,928
(18,571)
Net operating income/(loss)
5,335
838
666
982
(412)
18
27
7,453
Additions to PP&E, intangibles and equity
accounted investments
1,421
888
338
342
193
24
0
3,206
Equinor third quarter 2024
33
First nine months 2024
E&P
Norway
E&P
Internationa
l
E&P
USA
MMP
REN
Other
Eliminations
Total Group
(in USD million)
Revenues third party
178
471
202
75,000
53
64
0
75,967
Revenues inter-segment
24,143
4,680
2,768
261
15
24
(31,890)
0
Net income/(loss) from equity accounted
investments
0
11
0
(42)
75
(0)
0
43
Other income
65
(1)
30
0
0
16
0
110
Total revenues and
other income
24,386
5,160
2,999
75,218
142
104
(31,890)
76,120
Purchases [net of inventory variation]
0
21
0
(68,614)
0
(0)
31,421
(37,171)
Operating, selling, general and
administrative expenses
(2,718)
(1,496)
(885)
(3,741)
(538)
(96)
571
(8,903)
Depreciation and amortisation
(3,572)
(1,526)
(1,199)
(712)
(26)
(105)
0
(7,140)
Net impairment (losses)/reversals
0
0
0
191
(55)
(7)
0
129
Exploration expenses
(336)
(437)
(68)
0
0
0
0
(841)
Total operating expenses
(6,626)
(3,438)
(2,152)
(72,875)
(618)
(209)
31,992
(53,927)
Net operating income/(loss)
17,760
1,722
847
2,343
(476)
(105)
101
22,192
Additions to PP&E, intangibles and equity
accounted investments
4,413
2,295
2,211
585
1,593
183
0
11,281
Equinor third quarter 2024
34
First nine months 2023
E&P
Norway
E&P
International
E&P
USA
MMP
REN
Other
Eliminations
Total Group
(in USD million)
Revenues third party
159
696
201
76,869
16
64
0
78,005
Revenues inter-segment
28,219
4,412
2,920
324
8
25
(35,909)
0
Net income/(loss) from equity accounted
investments
0
33
0
24
(27)
0
0
30
Other income
(113)
1
32
23
0
142
0
85
Total revenues and
other income
28,264
5,143
3,153
77,240
(3)
231
(35,909)
78,120
Purchases [net of inventory variation]
(1)
(25)
0
(69,439)
0
(1)
35,095
(34,371)
Operating, selling, general and
administrative expenses
(2,702)
(1,636)
(870)
(3,532)
(283)
(218)
720
(8,521)
Depreciation and amortisation
(3,285)
(1,520)
(1,273)
(669)
(6)
(102)
0
(6,855)
Net impairment (losses)/reversals
(588)
0
290
(350)
(300)
(10)
0
(957)
Exploration expenses
(337)
35
(91)
0
0
0
0
(394)
Total operating expenses
(6,914)
(3,146)
(1,944)
(73,990)
(589)
(330)
35,815
(51,098)
Net operating income/(loss)
21,350
1,996
1,210
3,250
(591)
(99)
(94)
27,022
Additions to PP&E, intangibles and equity
accounted investments
4,362
3,453
874
626
1,311
102
0
10,730
Equinor third quarter 2024
35
Changes to accounting assumptions
Management’s future commodity price assumptions and currency assumptions are used for value in use impairment testing. While
there are inherent uncertainties in the assumptions, the commodity price assumptions as well as currency assumptions reflect
management’s best estimate of the price and currency development over the life of the Group’s assets based on its view of relevant
current circumstances and the likely future development of such circumstances, including energy demand development, energy and
climate change policies as well as the speed of the energy transition, population and economic growth, geopolitical risks, technology
and cost development and other factors. Management’s best estimate also takes into consideration a range of external forecasts.
Equinor has performed a thorough and broad analysis of the expected development in drivers for the different commodity markets and
exchange rates. Significant uncertainty exists regarding future commodity price development due to the transition to a lower carbon
economy, future supply actions by OPEC+ and other factors. Such analysis resulted in changes in the long-term price assumptions
with effect from the second quarter of 2024. The main price assumptions applied in impairment and impairment reversal assessments
are disclosed in the table below as price-points on price curves. Previous price-points applied from the second quarter of 2023 up to
and including the first quarter of 2024 are provided in brackets.
Further, with effect from the second quarter of 2024, Equinor implemented new long-term exchange rates. The USD/NOK rate was
revised to 10.0 (previously 8.5), the EUR/NOK rate was revised to 11.5 (previously 10.0) and the USD/GBP rate was revised to 1.30
(previously 1.35).
This conclusion was supported by the historical 5-year average and forward spot prices in the currency market.
Year
Prices in real terms
1)
2030
2040
2050
Brent Blend (USD/bbl)
80
(80)
75
(75)
70
(70)
European gas (USD/mmBtu) - TTF
8.3
(9.4)
9.5
(9.8)
9.5
(9.8)
Henry Hub (USD/mmBtu)
4.3
(4.5)
4.5
(4.4)
4.5
(4.4)
Electricity Germany (EUR/MWh)
71
(80)
74
(73)
74
(73)
EU ETS (EUR/tonne)
101
(107)
136
(131)
165
(153)
1) Basis year 2024, i.e prices have been adjusted for inflation and are presented in real 2024 terms.
Non-current assets by country
At 30 September
At 31 December
(in USD million)
2024
2023
Norway
33,035
32,977
USA
14,115
12,587
Brazil
11,307
10,871
UK
5,956
5,535
Canada
1,106
1,157
Angola
1,075
1,103
Denmark
1,012
973
Argentina
733
648
Poland
603
447
Algeria
370
474
Other
254
265
Total non-current
assets
1)
69,567
67,038
1) Excluding deferred tax assets, pension assets and non-current financial assets. Non-current assets are attributed to
country of operations.
3 Acquisitions and disposals
Acquisition and disposals
Swap of onshore oil & gas assets in the US
Equinor third quarter 2024
36
On 31 May 2024, Equinor and EQT Corporation closed the swap transaction in which Equinor sold its 100% interest in the Marcellus
and Utica shale formations in the Appalachian Basin, located in southeastern Ohio, and transferred the operatorship to EQT. In
exchange, Equinor acquired 40% of EQT’s non-operated working interest in the Northern Marcellus shale formation in Pennsylvania.
Following the transaction, Equinor increased its average working interest from 15.7% to 25.7% in certain Chesapeake-operated
Northern Marcellus gas units. Equinor paid a cash consideration of USD 467 million (net of interim period settlement) to EQT to
balance the overall transaction. With this transaction, Equinor continues to high-grade the US portfolio and work to strengthen the
profitability of the onshore gas position in the Appalachian Basin. The assets acquired and liabilities assumed were recognised in
accordance with the principles in IFRS 3 Business Combinations within the E&P USA segment, mainly as property, plant, and
equipment (USD 750 million) and intangible assets (USD 505 million).
Swap of US Offshore Wind assets
On 24 January 2024, Equinor entered into a swap agreement with bp to acquire bp’s 50% share and take full ownership of Empire
Offshore Wind Holdings LLC, including the Empire Wind lease and projects (Empire Wind), in exchange for its 50% share in Beacon
Wind Holdings LLC, including the Beacon Wind lease and projects (Beacon Wind). Equinor also agreed to acquire bp's 50% interest
in the South Brooklyn Marine Terminal (SBMT) lease. Based on the agreement, Equinor controls and has consolidated Empire Wind
and SBMT from the first quarter of 2024 and has divested its 50% share of Beacon Wind. The swap of Empire Wind and Beacon Wind
was formally closed on 4 April. The acquisitions were accounted for as asset acquisitions, and previous holdings were not revalued.
The swap resulted in a combined loss of USD 147 million in the first quarter 2024, recognised in the REN segment and presented in
the line item Operating expenses in the Consolidated statement of income.
Held for sale
Divestment of interest in Azerbaijan
On 22 December 2023, Equinor entered into an agreement with
the State Oil Company of the Republic of Azerbaijan
(SOCAR) to sell
its interest in its Azerbaijan assets. The assets comprise a 7.27% non-operated interest in the Azeri Chirag Gunashli (ACG) oil fields in
the
Azerbaijan
sector
of
the
Caspian
Sea,
8.71%
interest
in
the
Baku-Tbilisi-Ceyhan
(BTC)
pipeline
and
50%
in
the
Karabagh
oil
field. Closing is
expected during
2024 subject
to regulatory
and contractual
approvals. The
assets have
been classified
as held
for
sale since the fourth quarter 2023.
4 Revenues
Revenues from contracts with customers by geographical areas
When attributing the line item Revenues from contracts with customers for the third quarter of 2024 to the country of the legal entity
executing the sale, Norway and the USA accounted for 77% and 20%, respectively, of such revenues (80% and 18%, respectively, for
the second quarter of 2024 and 78% and 20%, respectively, for the third quarter of 2023). For the first nine months of 2024, Norway
and the USA accounted for 79% and 19% of such revenues, respectively, compared to 80% and 17%, respectively, for the first nine
months of 2023. Revenues from contracts with customers are mainly reflecting such revenues from the reporting segment MMP.
Revenues from contracts with customers and other revenues
Quarters
First nine months
(in USD million)
Q3 2024
Q2 2024
Q3 2023
2024
2023
Crude oil
15,017
15,633
15,999
44,916
41,165
Natural gas
5,134
4,888
4,292
15,082
19,789
- European gas
4,247
3,967
3,728
12,390
17,378
- North American gas
225
199
217
729
813
- Other incl. Liquefied natural gas
662
723
347
1,962
1,598
Refined products
2,418
2,045
2,528
6,686
7,373
Natural gas liquids
1,804
1,806
2,095
5,707
6,258
Power
1)
378
405
419
1,346
1,720
Transportation
300
387
272
1,056
1,120
Other sales
1)
128
92
46
304
362
Revenues from contracts with customers
25,178
25,255
25,650
75,096
77,786
Total other revenues
2)
238
207
274
871
219
Revenues
25,416
25,462
25,924
75,967
78,005
Equinor third quarter 2024
37
1) As from 1 January 2024, the line item Power has been disaggregated from the line item Other sales. 2023 figures have been
disaggregated
accordingly.
2) This item mainly relates to commodity derivatives and change in fair value, less cost to sell, of commodity inventories
held for trading purposes.
Equinor third quarter 2024
38
5 Financial items
Quarters
First nine months
(in USD million)
Q3 2024
Q2 2024
Q3 2023
2024
2023
Net foreign currency exchange gains/(losses)
(243)
(193)
(12)
(133)
1,140
Interest income and other financial income
460
495
580
1,515
1,788
Gains/(losses) on financial investments
348
21
(54)
363
(16)
Gains/(losses) other derivative financial instruments
170
(54)
(89)
42
(94)
Interest and other finance expenses
(370)
(394)
(412)
(1,181)
(1,292)
Net financial items
365
(126)
13
606
1,525
Equinor reported Net foreign currency exchange losses in the first nine months of 2024 compared to a Net foreign currency exchange
gain in the first nine months of 2023. The change is due to a combination of both a lesser strengthening of USD versus NOK and
changes in underlying NOK positions.
Equinor has a US Commercial paper programme available with a limit of USD 5 billion. As of 30 September 2024, USD 1,06 billion
were utilised compared to USD 1.9 billion utilised as of 31 December 2023.
6 Income taxes
Quarters
First nine months
(in USD million)
Q3 2024
Q2 2024
Q3 2023
2024
2023
Income/(loss) before tax
7,271
7,530
7,466
22,798
28,547
Income tax
(4,986)
(5,658)
(4,965)
(15,969)
(19,251)
Effective tax rate
68.6%
75.1%
66.5%
70.0 %
67.4 %
The effective reported tax rate of 70.0% for the first nine months of 2024 increased compared to 67.4% in 2023 due to higher share of
income from jurisdictions with high tax rates and currency effects in entities that are taxable in other currencies than the functional
currency.
The effective reported tax rate of 68.6% for the third quarter of 2024 increased compared to 66.5% in 2023. The increase was mainly
due to higher share of income from jurisdictions with high tax rates.
Equinor third quarter 2024
39
7 Provisions and contingent items
Asset retirement obligation
Equinor's estimated asset retirement obligations (ARO) have increased by approximately USD 0.5 billion to USD 12.8 billion at 30
September 2024 compared to year-end 2023, mainly due to change in estimates. Changes in ARO are reflected within Property, plant
and equipment and Provisions and other liabilities in the Consolidated balance sheet.
Litigation and claims
During the normal course of its business, Equinor is involved in legal and other proceedings, and several unresolved claims are
currently outstanding. The ultimate liability or asset in respect of such litigation and claims cannot be determined at this time. Equinor
has provided in its Condensed interim financial statements for probable liabilities related to litigation and claims based on the
company’s best judgement. Equinor does not expect that its financial position, results of operations or cash flows will be materially
affected by the resolution of these legal proceedings.
8 Capital distribution
Dividend for the third quarter 2024
On 23 October 2024, the board of directors resolved to declare an ordinary cash dividend for the third quarter of 2024 of USD 0.35 per
share and an extraordinary cash dividend of USD 0.35 per share. The Equinor shares will be traded ex-dividend 13 February 2025 on
the Oslo Børs and 14 February for ADR holders on the New York Stock Exchange. Record date will be 14 February 2025 and
payment date will be 28 February 2025.
Share buy- back programme 2024
Based on the authorisation from the annual general meeting on 14 May 2024, the board of directors will on a quarterly basis decide on
share buy-back tranches. The 2024-2025 buy-back programme is up to USD 10,000-12,000 million in total, with up to USD 6,000
million for 2024, including shares to be redeemed from the Norwegian State.
During the first six months, Equinor launched the first two tranches of USD 2,800 million in total, of which USD 786 million was
acquired in the market in first six months and USD 138 million was acquired in third quarter. In July 2024, Equinor launched the third
tranche of USD 1,600 million including shares to be redeemed from the Norwegian state, and entered into an irrevocable agreement
with a third party to purchase shares for USD 528 million in the market. Of this third tranche, shares for USD 403 million have been
purchased in the market and settled at 30 September 2024, whereas USD 528 million have been recognised as reduction in equity.
The market execution of the third tranche was completed in October 2024.
On 23 October 2024, the board of directors decided to initiate a fourth and final share buy-back tranche of up to USD 1,600
million for
2024, including shares to be redeemed from the Norwegian state. The fourth tranche will start 25 October 2024 and will end no later
than 31 January 2025.
In order to maintain the Norwegian states ownership share in Equinor, a proportionate share of the second, third and fourth tranche of
the 2023 programme as well as the first tranche of the 2024 programme was redeemed and cancelled through a capital reduction by
the annual general meeting on 14 May 2024. The Norwegian state share of USD 3,956 million (NOK 42,801 million) following the
capital reduction was settled in July 2024. A proportionate share of the second, third and fourth tranche of the 2024 programme will be
redeemed and cancelled at the annual general meeting in May 2025.
First nine months
Equity impact of share buy-back programmes (in USD million)
2024
2023
First tranche
396
330
Second tranche
528
550
Third tranche
528
550
Norwegian state share
1)
3,956
3,705
Total
5,408
5,135
1) Relates to second to fourth tranche of previous year programme and first tranche of
current year programme
Equinor third quarter 2024
40
9 Subsequent events
Acquisition of shares in Ørsted A/S
Equinor has acquired 41,197,344 shares in Ørsted A/S, corresponding to 9.8% of the shares and votes in the company. Ørsted A/S, a
leading developer and operator in renewables, is a Danish listed company.
Equinor’s ownership position has been built over time,
through a combination of market purchases and a block trade. The shares will be recognised as Non-current financial investment at
fair value. Fair value at the date when these condensed interim financial statements were authorised for issue was USD 2.6 billion.
Equinor’s international portfolio
In the fourth quarter 2023, Equinor announced that it had entered into an agreement with Chappal Energies for the sale of Equinor
Nigeria Energy Company (ENEC). ENEC holds a 53.85% ownership stake in oil and gas lease OML 128, including the unitised
20.21% stake in the Agbami oil field, operated by Chevron. The closing of the transaction is subject to the satisfaction of certain
conditions, including all regulatory and contractual approvals, and will lead to Equinor effectively exiting the country. During the period
from the end of September 2024 and up to the date when these condensed interim financial statements were authorised for issue, the
uncertainty related to closing of the transaction has been reduced. Equinor’s assets in Nigeria have therefore met the requirements for
classification as held for sale after the reporting period. ENEC is reported within the E&P International segment.
Equinor third quarter 2024
41
SUPPLEMENTARY
DISCLOSURES
Exchange rates
Quarters
Change
First nine months
Exchange rates
Q3 2024
Q2 2024
Q3 2023
Q3 on Q3
2024
2023
Change
USD/NOK average daily exchange rate
10.7107
10.7440
10.4818
2%
10.6549
10.4699
2%
USD/NOK period-end exchange rate
10.5078
10.6460
10.6225
(1%)
10.5078
10.6225
(1%)
EUR/USD average daily exchange rate
1.0982
1.0764
1.0880
1%
1.0872
1.0832
0%
EUR/USD period-end exchange rate
1.1196
1.0705
1.0594
6%
1.1196
1.0594
6%
USE AND RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Non-GAAP financial measures are defined as numerical measures that either exclude or include amounts that are not excluded or
included in the comparable measures calculated and presented in accordance with GAAP (i.e., IFRS Accounting Standards in the
case of Equinor). The following financial measures included in this report may be considered non-GAAP financial measures:
Adjusted operating income (previously named Adjusted earnings)
is based on net operating income/(loss) and adjusts for certain
items affecting the income for the period to separate out effects that management considers may not be well correlated to Equinor’s
underlying operational performance in the individual reporting period. Management believes adjusted operating income provides an
indication of Equinor’s underlying operational performance and facilitates comparison of operational trends between periods. The
name of this measure was changed in 2024 to eliminate confusion regarding the basis of the calculation; additionally, one adjusting
item was removed from the calculation of the measure, as detailed below in the Amended principles section.
Adjusted operating income after tax
(previously named Adjusted earnings after tax)
– equals the sum of net operating
income/(loss) less income tax within reporting segments and includes adjustments to net operating income/(loss) along with related
tax effects on these adjustments. The name of this measure was changed in 2024 in line with the change of the name of the pre-tax
measure above
.
Adjusted operating income after tax excludes net financial items and the associated tax effects on net financial items.
It is based on adjusted operating income less the tax effects on all elements included in adjusted operating income (tax effects of
adjusting items are computed using estimated tax rates applicable to each item and tax regime to derive after-tax adjusted operating
income). In addition, tax effects related to tax exposure items not related to the individual reporting period are excluded from adjusted
operating income after tax. Management believes adjusted operating income after tax provides an indication of Equinor’s underlying
operational performance after tax and facilitates comparisons of operational trends after tax between periods as it reflects the tax
charge associated with operational performance excluding the impact of financing. Certain net USD denominated financial positions
are held by group companies that have a USD functional currency that is different from the currency in which the taxable income is
measured. As currency exchange rates change between periods, the basis for measuring net financial items for IFRS Accounting
Standards will change disproportionally with taxable income which includes exchange gains and losses from translating the net USD
denominated financial positions into the currency of the applicable tax return. Therefore, the effective tax rate may be significantly
higher or lower than the statutory tax rate for any given period. Adjusted taxes included in adjusted operating income after tax should
not be considered indicative of the amount of current or total tax expense (or taxes payable) for the period.
Adjusted net income
is based on net income/(loss) and provides additional transparency to Equinor’s underlying financial
performance by also including net financial items and the associated tax effects. This measure includes adjustments made to arrive at
adjusted operating income after tax, in addition to specific adjustments related to net financial items. Management believes this
measure provides an indication of Equinor’s underlying financial performance including the impact from financing and facilitates
comparison of trends between periods.
Adjusted Earnings Per Share (Adjusted EPS)
is computed by dividing Adjusted net income by the weighted average number of
shares outstanding during the period. Earnings per share is a metric that is frequently used by investors, analysts and other parties to
assess a company's profitability per share. Management believes this measure provides an indication of Equinor’s underlying financial
performance including the impact from financing and facilitates comparison of trends between periods.
Management believes the above measures provides an indication of Equinor’s underlying operational and financial performance and
facilitates the comparison of trends between periods.
Equinor third quarter 2024
42
The above measures are supplementary measures and should not be viewed in isolation or as substitutes for net operating
income/(loss), net income/(loss) and earnings per share, which are the most directly comparable IFRS Accounting Standards
measures. The reconciliation tables later in this report reconcile the above non-GAAP measures to the most directly comparable IFRS
Accounting Standards measure or measures. There are material limitations associated with the above measures compared with the
IFRS Accounting Standards measures, as these non-GAAP measures do not include all the items of revenues/gains or
expenses/losses of Equinor that are required to evaluate its profitability on an overall basis. The non-GAAP measures are only
intended to be indicative of the underlying developments in trends of our on-going operations.
Amended principles for Adjusted operating income with effect from the first quarter of 2024:
Equinor has made the following changes to the items adjusted for within Adjusted operating income:
With effect from the first quarter of 2024, Equinor no longer adjusts for over-/underlift to arrive at adjusted operating income. Over-
/underlift is presented using the sales method. The sales revenues and associated costs are reflected in adjusted operating income
when the physical volumes are lifted and sold rather than when they are produced, in line with IFRS Accounting Standards. Removing
this adjustment is the result of a comprehensive materiality assessment and an effort to streamline our reporting. This change is part
of our ongoing commitment to improve the alternative performance measures we present, ensuring that the adjustments are
meaningful to users of the financial statements and supplementary information.
These changes have been applied retrospectively to the comparative figures. This change only affects the E&P Norway and E&P
International reporting segments and does not impact the comparative figures of other segments.
Impact of change
Q3 2023
First nine months 2023
E&P Norway
As reported
Impact
Restated
As reported
Impact
Restated
Adjusted total revenues and other income
8,164
(206)
7,958
28,342
52
28,393
Over-/underlift
206
(206)
-
(52)
52
-
Adjusted operating and administrative expenses
(849)
61
(788)
(2,713)
10
(2,702)
Over-/underlift
(61)
61
-
(10)
10
-
Adjusted operating income/(loss)
6,087
(145)
5,942
22,005
62
22,068
Adjusted operating income/(loss) after tax
1,343
(31)
1,312
4,924
12
4,937
Impact of change
Q3 2023
First nine months 2023
E&P International
As reported
Impact
Restated
As reported
Impact
Restated
Adjusted total revenues and other income
1,849
134
1,983
5,003
40
5,044
Over-/underlift
(134)
134
-
(40)
40
-
Adjusted operating and administrative expenses
(458)
(83)
(541)
(1,356)
3
(1,353)
Over-/underlift
83
(83)
-
(3)
3
-
Adjusted operating income/(loss)
809
51
860
2,174
43
2,217
Adjusted operating income/(loss) after tax
646
27
673
1,395
10
1,404
Impact of change
Q3 2023
First nine months 2023
Equinor group
As reported
Impact
Restated
As reported
Impact
Restated
Adjusted total revenues and other income
25,735
(72)
25,663
77,388
92
77,480
Over-/underlift
72
(72)
-
(92)
92
-
Adjusted operating and administrative expenses
(2,703)
(21)
(2,724)
(8,305)
14
(8,291)
Over-/underlift
21
(21)
-
(14)
14
-
Adjusted operating income/(loss)
8,024
(93)
7,930
27,539
106
27,645
Adjusted operating income/(loss) after tax
2,731
(5)
2,727
8,492
24
8,515
Effective tax rates on adjusted operating income
66.0%
-0.3%
65.6%
69.2%
0.0%
69.2%
No other line items or segments were affected by the change.
Adjusted operating income adjust for the following items:
Equinor third quarter 2024
43
●
Changes in fair value
of derivatives:
In the ordinary
course of business, Equinor
enters into commodity derivative
contracts to
manage the price risk exposure relating to future sale and purchase contracts.
These commodity derivatives are measured at fair
value at each
reporting date, with
the movements in
fair value recognised
in the income
statement. By contrast, the
related sale
and purchase contracts are
not recognised until the
transaction occurs resulting in
timing differences. Therefore, with
effect from
the first
quarter of
2023, the
unrealised movements
in the
fair value
of these
commodity derivative
contracts are
excluded from
adjusted operating
income and
deferred until
the time
of the
physical delivery
to minimise
the effect
of these
timing differences.
Further,
embedded
derivatives
within
certain
gas
contracts
and
contingent
consideration
related
to
historical
divestments
are
carried at fair value. Any
accounting impacts resulting from such changes
in fair value are also
excluded from adjusted operating
income, as these fluctuations are not indicative of the underlying performance of the business.
●
Periodisation of inventory hedging effect:
Equinor enters into derivative contracts to manage price risk exposure relating to
its
commercial storage.
These derivative
contracts are
carried at
fair value
while the
inventories are
accounted for
at the
lower of
cost or market price.
An adjustment is made
to align the valuation
principles of inventories with
related derivative contracts. The
adjusted
valuation
of
inventories
is
based
on
the
forward
price
at
the
expected
realisation
date.
This
is
so
that
the
valuation
principles between commercial storages and derivative contracts are better aligned.
●
The
operational storage
is not
hedged and
is not
part of
the trading
portfolio. Cost
of goods
sold is
measured based
on the
FIFO (first-in, first-out) method,
and includes realised gains
or losses that arise
due to changes
in market prices.
These gains or
losses will fluctuate from one period to another and are not considered part of the underlying operations for the period.
●
Impairment and
reversal of
impairment
are excluded
from adjusted
operating income
since they
affect the
economics of
an
asset
for
the
lifetime
of
that
asset,
not
only
the
period
in
which
it
is
impaired,
or
the
impairment
is
reversed.
Impairment
and
reversal
of
impairment
can
impact
both
the
exploration
expenses
and
the
depreciation,
amortisation
and
net
impairment
line
items.
●
Gain or
loss from
sales of
assets
is eliminated
from the
measure since
the gain
or loss
does not
give an
indication of
future
performance or
periodic performance;
such a
gain or
loss is
related to
the cumulative
value creation
from the
time the
asset is
acquired until it is sold.
●
Eliminations (Internal unrealised profit
on inventories):
Volumes derived
from equity oil inventory
vary depending on several
factors and
inventory strategies,
i.e., level
of crude
oil in
inventory,
equity oil
used in
the refining
process and
level of
in-transit
cargoes. Internal profit related to volumes sold between entities within the group, and
still in inventory at period end, is eliminated
according
to
IFRS
Accounting
Standards
(write
down
to
production
cost).
The
proportion
of
realised
versus
unrealised
gain
fluctuates
from one
period
to
another
due
to
inventory strategies
and consequently
impact net
operating income/(loss).
Write-
down to production
cost is not
assessed to be
a part of
the underlying operational
performance, and elimination of
internal profit
related to equity volumes is excluded in adjusted operating income.
●
Other
items
of
income
and
expense
are
adjusted
when
the
impacts
on
income
in
the
period
are
not
reflective
of
Equinor’s
underlying operational performance in
the reporting period.
Such items may
be unusual or
infrequent transactions, but they
may
also include transactions
that are significant
which would not
necessarily qualify as
either unusual or
infrequent. However,
other
items adjusted
do not
constitute normal,
recurring income
and operating
expenses for
the company.
Other items
are carefully
assessed and can include transactions such as provisions related to reorganisation, early retirement, etc.
●
Change in accounting policy
is adjusted when the impacts on income in the period are unusual or
infrequent, and not reflective
of Equinor’s underlying operational performance in the reporting period.
Adjusted net income incorporates the adjustments above, as well as the following items impacting net financial items:
●
Changes
in
fair
value
of
financial
derivatives
used
to
hedge
interest
bearing
instruments.
Equinor
enters
into
financial
derivative contracts to
manage interest rate
risk on long
term interest-bearing liabilities
including bonds and
financial loans. The
financial
derivative
contracts
(hedging
instruments)
are
measured
at
fair
value
at
each
reporting
date,
with
movements
in
fair
value
recognised
in
the
income
statement.
The
long
term
interest-bearing
labilities
are
measured
at
amortised
cost
and
not
remeasured at fair
value at
each reporting date.
This creates
measurement differences
and therefore the
movements in the
fair
value of these
financial derivative contracts
and associated tax
effects are
excluded from the
calculation of adjusted
net income
and
deferred
until
the
time
the
underlying
instrument
is
matured,
exercised,
or
settled.
Management
believes
that
this
appropriately
reflects
the
economic
effect
of
these
risk
management
activities
in
each
period
and
provides
an
indication
of
Equinor’s underlying financial performance.
●
Foreign currency gains/losses
on positions used
to manage currency
risk exposure related
to future payments
in NOK
and foreign currency gains/losses on certain intercompany bank balances.
Foreign currency gains/losses on positions used
to manage currency risk exposure (cash
equivalents/financial investments and related currency derivatives where applicable),
as
well
as
currency
gains/losses
on
certain
intercompany
bank
balances
are
eliminated
from
adjusted
net
income.
The
currency
effects on intercompany bank balances are mainly due to a large part of Equinor’s operations having NOK as functional currency,
and
the
effects
are
offset
within
equity
as
other
comprehensive
income
arising
on
translation
from
functional
currency
to
presentation currency
USD. These
currency effects
increase volatility
in financial
performance, which
does not
reflect Equinor’s
underlying
financial
performance.
Management
believes
that
these
adjustments
remove
periodic
fluctuations
in
Equinor’s
adjusted net income.
Net
debt
to
capital
employed
ratio
–
In
Equinor’s
view,
net
debt
ratios
provide
a
more
informative
picture
of
Equinor’s
financial
strength than gross interest-bearing financial
debt. Three different net
debt to capital ratios
are presented in this
report: 1) net debt
to
capital employed,
2) net
debt to
capital employed
adjusted, including
lease liabilities,
and 3)
net debt
to capital
employed adjusted.
Equinor third quarter 2024
44
These calculations are all based on Equinor’s gross interest-bearing
financial liabilities as recorded in the Consolidated balance sheet
and exclude cash, cash equivalents and current financial investments.
The following
adjustments are
made in
calculating the
net debt
to capital
employed adjusted,
including lease
liabilities ratio
and the
net debt to
capital employed adjusted
ratio: collateral deposits
(classified as Cash
and cash equivalents
in the Consolidated
balance
sheet),
and
financial
investments
held
in
Equinor
Insurance
AS
(classified
as
Current
financial
investments
in
the
Consolidated
balance
sheet)
are
treated
as
non-cash
and
excluded
from
the
calculation
of
these
non-GAAP
measures.
Collateral
deposits
are
excluded since they relate
to certain requirements of exchanges
where Equinor is trading
and presented as restricted
cash. Financial
investments
in
Equinor
Insurance
are
excluded
as
these
investments
are
not
readily
available
for
the
group
to
meet
short
term
commitments. These adjustments result in a
higher net debt figure and
in Equinor’s view provides a more prudent
measure of the net
debt to
capital employed
ratio than
would be
the case
without such
exclusions. Additionally,
lease liabilities
are further
excluded in
calculating the net debt to capital employed adjusted ratio. The table Calculation
of capital employed and net debt to capital employed
ratio later in this
report details the
calculations for these non-GAAP
measures and reconciles them
with the most directly
comparable
IFRS Accounting Standards financial measure or measures.
Organic capital
expenditures
(organic investments/capex)
– Capital
expenditures, defined
as Additions
to
PP&E, intangibles
and
equity
accounted
investments
as
presented
in
note
2
Segments
to
the
Condensed
interim
financial
statements.
Organic
capital
expenditures
are
capital
expenditures
excluding
expenditures
related
to
acquisitions,
leased
assets
and
other
investments
with
significantly
different
cash
flow
patterns.
Equinor
believes
this
measure
gives
stakeholders
relevant
information
to
understand
the
company’s investments in
maintaining and developing
its assets. Forward-looking
organic capital expenditures included
in this report
are not
reconcilable to
its most
directly comparable
IFRS Accounting
Standards measure
without unreasonable
efforts, because
the
amounts excluded from such IFRS Accounting Standards measure to determine organic capital expenditures cannot be predicted with
reasonable certainty.
Gross
capital
expenditures
(gross
capex)
–
Gross
capital
expenditures
represent
capital
expenditures,
defined
as
Additions
to
PP&E,
intangibles
and
equity
accounted
investments
as
presented
in
the
financial
statements,
excluding
additions
to
right
of
use
assets related to leases and capital expenditures financed through government grants. Equinor adds the proportionate share of capital
expenditures
in
equity
accounted
investments
not
included
in
Additions
to
PP&E,
intangibles
and
equity
accounted
investments.
Equinor
believes
that
by
excluding
additions
to
right
of
use
assets
related
to
leases,
this
measure
better
reflects
the
company's
investments in the business
to drive growth. Forward-looking
gross capital expenditures included
in this report are
not reconcilable to
its most directly comparable
IFRS measure without unreasonable efforts,
because the amounts included
or excluded from such IFRS
measure to determine gross capital expenditures cannot be predicted with reasonable certainty.
Cash flows
from operations
after taxes
paid (CFFO
after taxes
paid)
represents, and
is used
by management,
to evaluate
cash
generated
from
operating
activities
after
taxes
paid,
which
is
available
for
investing
activities,
debt
servicing
and
distribution
to
shareholders. Cash
flows from
operations after
taxes paid
is
not a
measure of
our liquidity
under IFRS
Accounting Standards
and
should not be
considered in isolation
or as a
substitute for an
analysis of our
results as reported
in this report.
Our definition of
Cash
flows from
operations after
taxes paid
is limited
and does
not represent
residual cash
flows available
for discretionary
expenditures.
The
table
Calculation
of
CFFO
after
taxes
paid
and
net
cash
flow
later
in
this
report
provides
a
reconciliation
of
Cash
flows
from
operations after
taxes paid
to its
most directly
comparable IFRS
Accounting Standards
measure, Cash
flows provided
by operating
activities
before
taxes
paid
and
working
capital
items,
as
of
the
specified
dates.
Forward-looking
cash
flows
from
operations
after
taxes
paid
included
in
this
report are
not
reconcilable
to
its
most
directly
comparable
IFRS measure
without unreasonable
efforts,
because the amounts included or excluded
from such IFRS measure to determine
cash flows from operations after taxes
paid cannot
be predicted with reasonable certainty.
Net cash
flow
- Net
cash flow
represents, and
is used
by management
to evaluate,
cash generated
from operational
and investing
activities
available
for
debt
servicing
and
distribution
to
shareholders.
Net
cash
flow
is
not
a
measure
of
our
liquidity
under
IFRS
Accounting Standards
and should
not be
considered in
isolation or
as a
substitute for
an analysis
of our
results as
reported in
this
report. Our
definition of
Net cash
flow is
limited and
does not
represent residual
cash flows
available for
discretionary expenditures.
The table
Calculation of
CFFO after
taxes paid
and net
cash flow
later in
this report
provides a
reconciliation of
Net cash
flow to
its
most
directly
comparable IFRS
Accounting
Standards
measure, Cash
flows
provided
by
operating
activities
before
taxes
paid
and
working capital items, as of the specified dates.
For more information on our definitions and use of non-GAAP financial measures, see section 5.6 Use and reconciliation of non-
GAAP financial measures in Equinor's 2023 Integrated Annual Report.
Equinor third quarter 2024
45
Reconciliation of adjusted operating income
The table specifies the adjustments made to each of the profit and loss line item included in the net operating income/(loss) subtotal.
Items impacting net operating income/(loss) in the
third quarter of 2024
Equinor
group
E&P Norway
E&P
Internationa
l
E&P USA
MMP
REN
Other
(in USD million)
Net operating income/(loss)
6,905
5,875
407
207
544
(166)
39
Total revenues and
other income
25,446
8,081
1,597
943
25,204
33
(10,413)
Adjusting items
72
-
-
-
72
-
-
Changes in fair value of derivatives
135
-
-
-
135
-
-
Periodisation of inventory hedging effect
(64)
-
-
-
(64)
-
-
Adjusted total revenues and other income
25,518
8,081
1,597
943
25,276
33
(10,413)
Purchases [net of inventory variation]
(13,104)
0
11
-
(23,440)
-
10,325
Adjusting items
1
-
-
-
71
-
(70)
Operational storage effects
71
-
-
-
71
-
-
Eliminations
(70)
-
-
-
-
-
(70)
Adjusted purchases [net of inventory variation]
(13,103)
0
11
-
(23,369)
-
10,255
Operating and administrative expenses
(2,822)
(871)
(519)
(314)
(1,136)
(144)
162
Adjusting items
17
-
-
0
17
0
-
Provisions
17
-
-
-
17
-
-
Adjusted operating and administrative expenses
(2,805)
(871)
(519)
(314)
(1,119)
(144)
162
Depreciation, amortisation and net impairments
(2,318)
(1,193)
(544)
(408)
(85)
(55)
(34)
Adjusting items
(108)
-
-
-
(158)
50
-
Impairment
50
-
-
-
-
50
-
Reversal of Impairment
(158)
-
-
-
(158)
-
-
Adjusted depreciation, amortisation and net
impairments
(2,426)
(1,193)
(544)
(408)
(243)
(5)
(34)
Exploration expenses
(296)
(143)
(138)
(15)
-
-
-
Adjusting items
-
-
-
-
-
-
-
Adjusted exploration expenses
(296)
(143)
(138)
(15)
-
-
-
Sum of adjusting items
(19)
-
-
0
2
50
(70)
Adjusted operating income/(loss)
6,887
5,875
407
207
545
(115)
(31)
Tax on adjusted
operating income
(4,844)
(4,538)
(81)
(46)
(199)
17
4
Adjusted operating income/(loss) after tax
2,042
1,337
326
160
346
(99)
(28)
Equinor third quarter 2024
46
Items impacting net operating income/(loss) in the
third quarter of 2023
Equinor
group
E&P Norway
E&P
Internationa
l
E&P USA
MMP
REN
Other
(in USD million)
Net operating income/(loss)
7,453
5,335
838
666
982
(412)
45
Total revenues and
other income
26,024
7,938
1,990
1,162
25,712
(5)
(10,773)
Adjusting items
(361)
20
(6)
(32)
(341)
-
(1)
Changes in fair value of derivatives
(206)
20
(6)
-
(219)
-
-
Periodisation of inventory hedging effect
(22)
-
-
-
(22)
-
-
Other adjustments
(100)
-
-
-
(100)
-
-
Gain/loss on sale of assets
(33)
-
-
(32)
-
-
(1)
Adjusted total revenues and other income
1)
25,663
7,958
1,983
1,130
25,371
(5)
(10,773)
Purchases [net of inventory variation]
(12,269)
(1)
58
-
(22,987)
-
10,661
Adjusting items
(123)
-
-
-
(97)
-
(27)
Operational storage effects
(92)
-
-
-
(92)
-
-
Provisions
(5)
-
-
-
(5)
-
-
Eliminations
(27)
-
-
-
-
-
(27)
Adjusted purchases [net of inventory variation]
(12,392)
(1)
58
-
(23,083)
-
10,634
Operating and administrative expenses
(2,715)
(788)
(541)
(293)
(1,181)
(103)
191
Adjusting items
(10)
-
(0)
-
(13)
4
-
Other adjustments
4
-
-
-
-
4
-
Provisions
(13)
-
-
-
(13)
-
-
Adjusted operating and administrative expenses
1)
(2,724)
(788)
(541)
(293)
(1,195)
(100)
191
Depreciation, amortisation and net impairments
(3,369)
(1,695)
(594)
(181)
(562)
(303)
(34)
Adjusting items
943
588
-
(290)
346
300
-
Impairment
1,234
588
-
-
346
300
-
Reversal of impairment
(290)
-
-
(290)
-
-
-
Adjusted depreciation, amortisation and net
impairments
(2,426)
(1,107)
(594)
(472)
(217)
(3)
(34)
Exploration expenses
(218)
(120)
(75)
(23)
-
-
-
Adjusting items
28
-
28
-
-
-
-
Impairment
28
-
28
-
-
-
-
Adjusted exploration expenses
(190)
(120)
(47)
(23)
-
-
-
Sum of adjusting items
1)
477
608
22
(323)
(106)
304
(27)
Adjusted operating income/(loss)
1)
7,930
5,942
860
343
876
(108)
18
Tax on adjusted
operating income
1)
(5,203)
(4,631)
(187)
(82)
(333)
11
17
Adjusted operating income/(loss) after tax
1)
2,727
1,312
673
261
543
(97)
35
1) Restated for Equinor group, E&P Norway and E&P International due to amended principles for ‘over-/underlift'. For
further information see Amended
principles for Adjusted operating income in the section 'Use and reconciliation of non-GAAP financial measures' in the
Supplementary disclosures.
Equinor third quarter 2024
47
Items impacting net operating income/(loss) in the
second quarter of 2024
Equinor
group
E&P Norway
E&P
Internationa
l
E&P USA
MMP
REN
Other
(in USD million)
Net operating income/(loss)
7,656
6,129
699
264
497
(90)
158
Total revenues and
other income
25,538
8,426
1,909
1,001
25,190
49
(11,036)
Adjusting Items
(1)
-
-
-
(1)
-
-
Changes in fair value of derivatives
(10)
-
-
-
(10)
-
-
Periodisation of inventory hedging effect
9
-
-
-
9
-
-
Adjusted total revenues and other income
25,538
8,426
1,909
1,001
25,189
49
(11,036)
Purchases [net of inventory variation]
(12,145)
0
(23)
-
(23,206)
-
11,084
Adjusting Items
(179)
-
-
-
19
-
(198)
Operational storage effects
19
-
-
-
19
-
-
Eliminations
(198)
-
-
-
-
-
(198)
Adjusted purchases [net of inventory variation]
(12,325)
0
(23)
-
(23,187)
-
10,886
Operating and administrative expenses
(3,110)
(982)
(582)
(291)
(1,279)
(122)
145
Adjusting Items
40
-
-
(0)
40
0
-
Provisions
40
-
-
-
40
-
-
Adjusted operating and administrative expenses
(3,070)
(982)
(582)
(291)
(1,238)
(122)
145
Depreciation, amortisation and net impairments
(2,348)
(1,206)
(453)
(427)
(209)
(18)
(35)
Adjusting Items
(33)
-
-
-
(33)
-
-
Reversal of Impairment
(33)
-
-
-
(33)
-
-
Adjusted depreciation, amortisation and net
impairments
(2,382)
(1,206)
(453)
(427)
(242)
(18)
(35)
Exploration expenses
(279)
(109)
(151)
(19)
-
-
-
Adjusting Items
-
-
-
-
-
-
-
Adjusted exploration expenses
(279)
(109)
(151)
(19)
-
-
-
Sum of adjusting items
(173)
-
-
(0)
25
0
(198)
Adjusted operating income/(loss)
7,482
6,129
699
264
521
(90)
(40)
Tax on adjusted
operating income
(5,329)
(4,764)
(225)
(72)
(285)
6
11
Adjusted operating income/(loss) after tax
2,153
1,364
474
192
237
(85)
(29)
Equinor third quarter 2024
48
Items impacting net operating income/(loss) in the
first nine months of 2024
Equinor
group
E&P Norway
E&P
Internationa
l
E&P USA
MMP
REN
Other
(in USD million)
Net operating income/(loss)
22,192
17,760
1,722
847
2,343
(476)
(4)
Total revenues and
other income
76,120
24,386
5,160
2,999
75,218
142
(31,787)
Adjusting items
(275)
-
-
-
(275)
-
-
Changes in fair value of derivatives
(318)
-
-
-
(318)
-
-
Periodisation of inventory hedging effect
43
-
-
-
43
-
-
Adjusted total revenues and other income
75,845
24,386
5,160
2,999
74,943
142
(31,787)
Purchases [net of inventory variation]
(37,171)
0
21
-
(68,614)
-
31,421
Adjusting items
(70)
-
-
-
31
-
(101)
Operational storage effects
31
-
-
-
31
-
-
Eliminations
(101)
-
-
-
-
-
(101)
Adjusted purchases [net of inventory variation]
(37,242)
0
21
-
(68,583)
-
31,319
Operating and administrative expenses
(8,903)
(2,718)
(1,496)
(885)
(3,741)
(538)
475
Adjusting items
196
-
-
0
46
151
-
Other adjustments
3
-
-
-
-
3
-
Gain/loss on sale of assets
147
-
-
0
-
147
-
Provisions
46
-
-
-
46
-
-
Adjusted operating and administrative expenses
(8,707)
(2,718)
(1,496)
(885)
(3,695)
(387)
475
Depreciation, amortisation and net impairments
(7,011)
(3,572)
(1,526)
(1,199)
(521)
(81)
(112)
Adjusting items
(141)
-
-
-
(191)
50
-
Impairment
50
-
-
-
-
50
-
Reversal of impairment
(191)
-
-
-
(191)
-
-
Adjusted depreciation, amortisation and net
impairments
(7,153)
(3,572)
(1,526)
(1,199)
(712)
(31)
(112)
Exploration expenses
(841)
(336)
(437)
(68)
-
-
(0)
Adjusted exploration expenses
(841)
(336)
(437)
(68)
-
-
(0)
Sum of adjusting items
(290)
-
-
0
(390)
201
(101)
Adjusted operating income/(loss)*
21,902
17,760
1,722
847
1,953
(275)
(105)
Tax on adjusted
operating income
(15,132)
(13,737)
(399)
(212)
(871)
37
50
Adjusted operating income/(loss) after tax*
6,770
4,022
1,324
635
1,082
(238)
(55)
Equinor third quarter 2024
49
Items impacting net operating income/(loss) in the
first nine months of 2023
Equinor
group
E&P Norway
E&P
Internationa
l
E&P USA
MMP
REN
Other
(in USD million)
Net operating income/(loss)
27,022
21,350
1,996
1,210
3,250
(591)
(193)
Total revenues and
other income
78,120
28,264
5,143
3,153
77,240
(3)
(35,677)
Adjusting Items
(640)
129
(99)
(32)
(637)
0
(1)
Changes in fair value of derivatives
(646)
128
(99)
-
(676)
-
-
Periodisation of inventory hedging effect
161
-
-
-
161
-
-
Impairment from associated companies
1
-
-
-
-
1
-
Other adjustments
(100)
-
-
-
(100)
-
-
Gain/loss on sale of assets
(56)
1
-
(32)
(23)
(0)
(1)
Adjusted total revenues and other income
1)
77,480
28,393
5,044
3,121
76,603
(3)
(35,678)
Purchases [net of inventory variation]
(34,371)
(1)
(25)
-
(69,439)
-
35,095
Adjusting Items
40
-
-
-
(53)
-
94
Operational storage effects
(48)
-
-
-
(48)
-
-
Provisions
(5)
-
-
-
(5)
-
-
Eliminations
94
-
-
-
-
-
94
Adjusted purchases [net of inventory variation]
(34,331)
(1)
(25)
-
(69,492)
-
35,188
Operating and administrative expenses
(8,521)
(2,702)
(1,636)
(870)
(3,532)
(283)
502
Adjusting Items
230
-
283
22
(91)
16
-
Change in accounting policy
32
-
-
22
-
10
-
Gain/loss on sale of assets
289
-
283
-
-
6
-
Provisions
(91)
-
-
-
(91)
-
-
Adjusted operating and administrative expenses
1)
(8,291)
(2,702)
(1,353)
(849)
(3,623)
(266)
502
Depreciation, amortisation and net impairments
(7,812)
(3,873)
(1,520)
(983)
(1,019)
(306)
(111)
Adjusting Items
957
588
-
(290)
350
300
9
Impairment
1,247
588
-
-
350
300
9
Reversal of impairment
(290)
-
-
(290)
-
-
-
Adjusted depreciation, amortisation and net
impairments
(6,856)
(3,285)
(1,520)
(1,273)
(669)
(6)
(103)
Exploration expenses
(394)
(337)
35
(91)
-
-
(0)
Adjusting Items
36
-
36
-
-
-
-
Impairment
36
-
36
-
-
-
-
Adjusted exploration expenses
(357)
(337)
71
(91)
-
-
(0)
Sum of adjusting items
1)
623
717
221
(301)
(432)
317
102
Adjusted operating income/(loss)*
1)
27,645
22,068
2,217
908
2,818
(275)
(91)
Tax on adjusted
operating income
1)
(19,130)
(17,130)
(813)
(214)
(1,084)
30
80
Adjusted operating income/(loss) after tax*
1)
8,515
4,937
1,404
695
1,734
(245)
(11)
1) Restated for Equinor group, E&P Norway and E&P International due to amended principles for ‘over-/underlift'. For
further information see
Amended principles for Adjusted operating income in the section 'Use and reconciliation of non-GAAP financial
measures' in the Supplementary
disclosures.
Equinor third quarter 2024
50
Adjusted operating income after tax by reporting segment
Quarters
Q3 2024
Q2 2024
Q3 2023
(in USD million)
Adjusted
operating
income
Tax on
adjusted
operating
income
Adjusted
operating
income
after tax
Adjusted
operating
income
Tax on
adjusted
operating
income
Adjusted
operating
income
after tax
Adjusted
operating
income
Tax on
adjusted
operating
income
Adjusted
operating
income
after tax
E&P Norway
1)
5,875
(4,538)
1,337
6,129
(4,764)
1,364
5,942
(4,631)
1,312
E&P International
1)
407
(81)
326
699
(225)
474
860
(187)
673
E&P USA
207
(46)
160
264
(72)
192
343
(82)
261
MMP
545
(199)
346
521
(285)
237
876
(333)
543
REN
(115)
17
(99)
(90)
6
(85)
(108)
11
(97)
Other
(31)
4
(28)
(40)
11
(29)
18
17
35
Equinor group
1)
6,887
(4,844)
2,042
7,482
(5,329)
2,153
7,930
(5,203)
2,727
Effective tax rates on adjusted
operating income
70.3%
71.2%
65.6%
1) Restated for Q3 2023 due to amended principles for ‘over-/underlift'. For more information, see Amended principles
for Adjusted operating
income in the section 'Use and reconciliation of non-GAAP financial measures' in the Supplementary disclosures
First nine months
2024
2023
(in USD million)
Adjusted
operating
income
Tax on
adjusted
operating
income
Adjusted
operating
income
after tax
Adjusted
operating
income
Tax on
adjusted
operating
income
Adjusted
operating
income
after tax
E&P Norway
1)
17,760
(13,737)
4,022
22,068
(17,130)
4,937
E&P International
1)
1,722
(399)
1,324
2,217
(813)
1,404
E&P USA
847
(212)
635
908
(214)
695
MMP
1,953
(871)
1,082
2,818
(1,084)
1,734
REN
(275)
37
(238)
(275)
30
(245)
Other
(105)
50
(55)
(91)
80
(11)
Equinor group
1)
21,902
(15,132)
6,770
27,645
(19,130)
8,515
Effective tax rates on adjusted operating income
69.1%
69.2%
1) Restated for the first nine months of 2023 due to amended principles for ‘over-/underlift'. For more information, see
Amended principles for
Adjusted operating income in the section 'Use and reconciliation of non-GAAP financial measures' in the Supplementary
disclosures.
Equinor third quarter 2024
51
Reconciliation of adjusted operating income after tax to net income
Reconciliation of adjusted operating income after tax to net income
Quarters
First nine
months
(in USD million)
Q3 2024
Q2 2024
Q3 2023
2024
2023
Net operating income/(loss)
A
6,905
7,656
7,453
22,192
27,022
Income tax
B1
4,986
5,658
4,965
15,969
19,251
Tax on net financial
items
B2
50
(178)
(39)
(32)
101
Income tax less tax on net financial items
B = B1 - B2
4,935
5,835
5,003
16,000
19,150
Net operating income after tax
C = A-B
1,970
1,821
2,450
6,192
7,872
Items impacting net operating income/(loss)
1)
D
(19)
(173)
477
2)
(290)
623
2)
Tax on items impacting
net operating income/(loss)
E
91
506
(200)
2)
868
20
2)
Adjusted operating income after tax*
F = C+D+E
2,042
2,153
2,727
2)
6,770
8,515
2)
Net financial items
G
365
(126)
13
606
1,525
Tax on net financial
items
H
(50)
178
39
32
(101)
Net income/(loss)
I = C+G+H
2,285
1,872
2,501
6,830
9,296
1) For items impacting net operating income/(loss), see Reconciliation of adjusted operating income in the Supplementary disclosures.
2) Restated due to amended principles for 'over-/underlift'.
For more information, see Amended principles for Adjusted operating income in
the section ‘Use and reconciliation of non-GAAP financial measures’ in the Supplementary disclosures.
Equinor third quarter 2024
52
Reconciliation of adjusted net income to net income
Reconciliation of adjusted net income to net income
Quarters
First nine
months
(in USD million)
Q3 2024
Q2 2024
Q3 2023
2024
2023
Net operating income/(loss)
6,905
7,656
7,453
22,192
27,022
Items impacting net operating income/(loss)
1)
A
(19)
(173)
477
2)
(290)
623
2)
Adjusted operating income
B
6,887
7,482
7,930
2)
21,902
27,645
2)
Net financial items
365
(126)
13
606
1,525
Adjusting items
C
(204)
224
148
28
(442)
Changes in fair value of financial derivatives used to hedge interest
bearing instruments
(170)
54
89
(42)
94
Foreign currency (gains)/losses on certain intercompany bank and
cash balances
(34)
170
59
69
(536)
Adjusted net financial items
D
162
98
160
633
1,083
Income tax
E
(4,986)
(5,658)
(4,965)
(15,969)
(19,251)
Tax effect
on adjusting items
F
128
494
(220)
877
(1)
Adjusted net income
G =
B+D+E+F
2,191
2,417
2,907
7,444
9,476
Less:
Adjusting items
H = A+C
(222)
51
625
(263)
182
Tax effect
on adjusting items
128
494
(220)
877
(1)
Net income/(loss)
2,285
1,872
2,501
6,830
9,296
Attributable to equity holders of the company
2,282
1,861
2,497
6,810
9,282
Attributable to non-controlling interests
3
12
4
19
14
Attributable to Equity holders in %
I
99.9 %
99.4 %
99.8 %
99.7 %
99.8 %
Adjusted net income attributable to equity holders of the company
J = G x I
2,188
2,402
2,902
7,423
9,462
Weighted average number of ordinary shares outstanding (in millions)
K
2,760
2,850
2,971
2,849
3,043
Basic earnings per share (in USD)
0.83
0.65
0.84
2.39
3.05
Adjusted earnings per share (in USD)
L = J/K
0.79
0.84
0.98
2.61
3.11
1) For items impacting net operating income/(loss), see Reconciliation of adjusted operating income in the Supplementary disclosures.
2) Restated due to amended principles for 'over-/underlift'.
For more information, see Amended principles for Adjusted operating income in the
section ‘Use and reconciliation of non-GAAP financial measures’ in the Supplementary disclosures.
Equinor third quarter 2024
53
Adjusted exploration expenses
Quarters
Change
First nine months
(in USD million)
Q3 2024
Q2 2024
Q3 2023
Q3 on Q3
2024
2023
Change
E&P Norway exploration expenditures
188
184
179
5%
464
449
3%
E&P International exploration expenditures
153
170
52
>100%
423
176
>100%
E&P USA exploration expenditures
53
17
110
(51%)
115
227
(49%)
Group exploration expenditures
395
372
341
16%
1,002
852
18%
Expensed, previously capitalised exploration expenditures
6
(4)
24
(77%)
83
(117)
>(100%)
Capitalised share of current period's exploration activity
(107)
(90)
(175)
(39%)
(248)
(378)
(34%)
Impairment (reversal of impairment)
3
2
28
(90%)
5
37
(87%)
Exploration expenses according to IFRS Accounting Standards
296
279
218
36%
841
394
>100%
Items impacting net operating income/(loss)
1)
-
-
(28)
(100%)
-
(36)
(100%)
Adjusted exploration expenses*
296
279
190
56%
841
357
>100%
1) For items impacting net operating income/(loss), see Reconciliation of adjusted operating income in the Supplementary disclosures.
Equinor third quarter 2024
54
Calculation of CFFO after taxes paid and net cash flow
CFFO information
Quarters
Change
First nine months
(in USD million)
Q3 2024
Q2 2024
Q3 2023
Q3 on Q3
2024
2023
Change
Cash flows provided by operating activities before taxes paid and
working capital items
9,233
9,748
11,336
(19%)
28,670
37,126
(23%)
Taxes Paid
(2,986)
(7,850)
(3,743)
(20%)
(14,685)
(20,173)
(27%)
Cash flow from operations after taxes paid (CFFO after taxes
paid)
6,247
1,898
7,594
(18%)
13,985
16,953
(18%)
Net Cash Flow Information
Quarters
Change
First nine months
(in USD million)
Q3 2024
Q2 2024
Q3 2023
Q3 on Q3
2024
2023
Change
Cash flow from operations after taxes paid (CFFO after taxes paid)
6,247
1,898
7,594
(18%)
13,985
16,953
(18%)
(Cash used)/received in business combinations
0
(467)
(100)
N/A
(467)
(1,155)
(60%)
Capital expenditures and investments
(3,098)
(2,950)
(2,652)
17%
(8,531)
(7,545)
13%
(Increase)/decrease in other interest-bearing items
(69)
(283)
(219)
>(100%)
(562)
(180)
>100%
Proceeds from sale of assets and businesses
6
50
0
>100%
115
118
(2%)
Dividend paid
(1,944)
(2,072)
(2,613)
(26%)
(6,665)
(8,199)
(19%)
Share buy-back
(4,564)
(398)
(531)
>100%
(5,511)
(5,071)
9%
Net Cash Flow
(3,422)
(4,222)
1,479
>(100%)
(7,636)
(5,079)
(50%)
Organic capital expenditures
Quarters
First nine months
(in USD billion)
Q3 2024
Q2 2024
Q3 2023
2024
2023
Additions to PP&E, intangibles and equity accounted
investments
3.1
4.8
3.2
11.3
10.7
Acquisition-related additions
0.0
1.5
0.2
1.8
2.7
Right of use asset additions
0.1
0.4
0.4
0.8
0.8
Other additions (with unique cash flow patterns)
0.0
0.0
0.0
0.0
0.0
Organic capital expenditures
3.1
2.9
2.6
8.7
7.2
Equinor third quarter 2024
55
Calculation of capital employed and net debt to capital employed ratio
Calculation of capital employed and net debt to capital employed ratio
At 30 September
At 31 December
(in USD million)
2024
2023
Shareholders' equity
44,352
48,490
Non-controlling interests
33
10
Total equity
A
44,385
48,500
Current finance debt and lease liabilities
7,169
7,275
Non-current finance debt and lease liabilities
22,427
24,521
Gross interest-bearing debt
B
29,596
31,796
Cash and cash equivalents
8,002
9,641
Current financial investments
22,712
29,224
Cash and cash equivalents and financial investment
C
30,714
38,865
Net interest-bearing debt [9]
B1 = B-C
(1,118)
(7,069)
Other interest-bearing elements
1)
2,243
2,030
Normalisation for cash-build up before tax payment (50% of Tax
Payment)
2)
1,489
-
Net interest-bearing debt adjusted normalised for tax payment, including lease liabilities*
B2
2,615
(5,040)
Lease liabilities
3,493
3,570
Net interest-bearing debt adjusted*
B3
(878)
(8,610)
Calculation of capital employed*
Capital employed
A+B1
43,267
41,431
Capital employed adjusted, including lease liabilities
A+B2
46,999
43,460
Capital employed adjusted
A+B3
43,507
39,890
Calculated net debt to capital employed*
Net debt to capital employed
(B1)/(A+B1)
(2.6%)
(17.1%)
Net debt to capital employed adjusted, including lease liabilities
(B2)/(A+B2)
5.6%
(11.6%)
Net debt to capital employed adjusted
(B3)/(A+B3)
(2.0%)
(21.6%)
1)
Other interest-bearing elements are cash and cash equivalents adjustments regarding collateral deposits classified as cash and
cash
equivalents in the Consolidated balance sheet but considered as non-cash in the non-GAAP calculations as
well as financial investments
in Equinor Insurance AS classified as current financial investments.
2)
Adjustment to net interest-bearing debt for cash build-up in the first quarter and the third quarter before tax payment on
1 April and 1
October. This is to exclude 50% of the cash build-up to have a more
even allocation of tax payments between the four quarters and
hence a more representative net interest-bearing debt.
Equinor third quarter 2024
56
FORWARD
-LOOKING STATEMENTS
This report
contains certain
forward-looking statements
that involve
risks and
uncertainties. In
some cases,
we use
words such
as
"ambition", "continue",
"could", "estimate",
"intend", "expect",
"believe", "likely",
"may", "outlook",
"plan", "strategy",
"will", "guidance",
"targets", and similar expressions to identify forward-looking statements. Forward-looking statements include all statements other than
statements
of
historical
fact,
including,
among
others,
statements
regarding
Equinor's
plans,
intentions,
aims,
ambitions
and
expectations;
the
commitment
to
develop
as
a
broad
energy
company
and
diversify
its
energy
mix;
the
ambition
to
be
a
leading
company in
the energy
transition and
reduce net
group-wide greenhouse
gas emissions;
our ambitions
and expectations
regarding
decarbonisation
and
delivering
safe
and
reliable
energy;
future
financial
performance,
including
earnings,
cash
flow
and
liquidity;
accounting
policies;
the
ambition
to
grow
cash
flow
and
returns;
expectations
regarding
progress
on
the
energy
transition
plan;
expectations regarding performance
of and cash
flow and returns
from Equinor’s oil
and gas portfolio,
CCS projects and
renewables
and
low
carbon solutions
portfolio;
our
expectations
and
ambitions
regarding operated
emissions,
annual
Co2
storage
and carbon
intensity;
plans
and
expectations
regarding
development
of
fields
and
projects;
expectations,
plans
and
ambitions
for
renewables
production capacity,
power generation and
Co2 transport and
storage and investments
in renewables
and low
carbon solutions, and
the balance between
oil and gas
and renewables production;
expectations and plans
regarding development of
renewables projects,
CCUS and
hydrogen businesses
and production
of low
carbon energy
and CCS;
our intention
to optimise
our portfolio;
break-even
considerations,
targets
and
other
metrics
for
investment
decisions;
future
worldwide
economic
trends,
market
outlook
and
future
economic projections and assumptions,
including commodity price, currency
and refinery assumptions; estimates of
proved reserves;
organic
capital
expenditures
through
2024;
expectations
and
estimates
regarding
production
and
development
and
execution
of
projects; estimates regarding oil and
gas production and renewable power
generation;
the ambition to keep unit
of production cost in
the
top
quartile
of
our
peer
group;
scheduled
maintenance
activity
and
the
effects
thereof
on
equity
production;
completion
and
results of acquisitions, disposals, divestments
and other contractual arrangements and
delivery commitments; expectations regarding
capital
distributions,
including
expected
amount
and
timing
of
dividend
payments
and
the
implementation
of
our
share
buy-back
programme;
provisions
and
contingent
liabilities,
obligations
or
expenses;
and
expected
impact
of
currency
and
interest
rate
fluctuations. You
should not place
undue reliance on these
forward-looking statements. Our actual
results could differ
materially from
those anticipated in the forward-looking statements for many reasons.
These
forward-looking statements
reflect current
views
about future
events, are
based on
management’s
current expectations
and
assumptions
and
are,
by
their
nature,
subject
to
significant
risks
and
uncertainties
because
they
relate
to
events
and
depend
on
circumstances that
will occur
in the
future. There
are a
number of
factors that
could cause
actual results
and developments
to differ
materially from those
expressed or implied
by these
forward-looking statements, including
levels of industry
product supply,
demand
and pricing,
in particular
in light
of significant
oil price
volatility; unfavourable
macroeconomic conditions
and inflationary
pressures;
exchange
rate
and
interest
rate
fluctuations;
levels
and
calculations
of
reserves
and
material
differences
from
reserves
estimates;
regulatory stability and
access to resources,
including attractive low
carbon opportunities; the
effects of climate
change and changes
in
stakeholder
sentiment
and
regulatory
requirements
regarding
climate
change;
changes
in
market
demand
and
supply
for
renewables;
inability
to
meet
strategic
objectives;
the
development
and
use
of
new
technology;
social
and/or
political
instability,
including as a result of
Russia’s invasion of Ukraine and
the conflict in the Middle
East; failure to prevent or
manage digital and cyber
disruptions to our
information and operational
technology systems and
those of third
parties on which
we rely; operational
problems,
including
cost
inflation
in
capital
and
operational
expenditures;
unsuccessful
drilling;
availability
of
adequate
infrastructure
at
commercially viable
prices; the
actions of
field partners
and other
third-parties; reputational
damage; the
actions of
competitors; the
actions of the
Norwegian state as
majority shareholder and
exercise of ownership
by the Norwegian
state; changes or
uncertainty in
or non-compliance
with laws
and governmental
regulations; adverse
changes in
tax regimes;
the political
and economic
policies of
Norway
and
other
oil-producing
countries;
regulations
on
hydraulic
fracturing
and
low-carbon
value
chains;
liquidity,
interest
rate,
equity and
credit risks;
risk of
losses relating
to trading
and commercial
supply activities;
an inability
to attract
and retain
personnel;
ineffectiveness
of
crisis
management
systems;
inadequate
insurance
coverage;
health,
safety
and
environmental
risks;
physical
security risks
to personnel,
assets, infrastructure and
operations from
hostile or
malicious acts;
failure to
meet our
ethical and
social
standards; non-compliance
with international
trade sanctions;
and other
factors discussed
elsewhere in
this report
and in
Equinor's
Integrated
Annual
Report
for
the
year
ended
December
31,
2023
(including
section
5.2
-
Risk
factors
thereof).
Equinor's
2023
Integrated Annual Report is available at Equinor's website www.equinor.com.
Although we believe
that the expectations
reflected in the
forward-looking statements are
reasonable, we cannot
assure you that
our
future results, level of activity,
performance or achievements will meet these expectations.
Moreover, neither we nor
any other person
assumes responsibility for
the accuracy
and completeness of
the forward-looking
statements. Any forward-looking
statement speaks
only as of the date on which such statement is made, and, except as required by applicable law,
we undertake no obligation to update
any of these statements after the date of this report, either to make them conform to actual results or changes in our expectations.
We use certain terms in this document, such as "resource" and "resources", that the SEC's rules prohibit us from including in our
filings with the SEC. U.S. investors are urged to closely consider the disclosures in our Annual Report on Form 20-F for the year
ended December 31, 2023, SEC File No. 1-15200. This form is available on our website or by calling 1-800-SEC-0330 or logging on
to www.sec.gov.
Equinor third quarter 2024
57
Equinor third quarter 2024
58
END NOTES
1.
The group's
average liquids price
is a volume-weighted average of the segment prices of crude oil, condensate and natural gas
liquids (NGL).
2.
The
refining reference margin
is a typical gross margin and will differ from the actual margin, due to variations in type of crude
and other feedstock, throughput, product yields, freight cost, inventory, etc
3.
Liquids volumes
include oil, condensate and NGL, exclusive of royalty oil.
4.
Equity volumes
represent produced volumes under a
production sharing agreement (PSA)
that correspond to Equinor’s
ownership share in a field.
Entitlement volumes
, on the other hand, represent Equinor’s share of the volumes distributed to the
partners in the field, which are subject to deductions for, among other things, royalty and the host government's share of profit oil.
Under the terms of a PSA, the amount of profit oil deducted from equity volumes will normally increase with the cumulative return
on investment to the partners and/or production from the licence. Consequently, the gap between entitlement and equity volumes
will likely increase in times of high liquids prices. The distinction between equity and entitlement is relevant to most PSA regimes,
whereas it is not applicable in most concessionary regimes such as those in Norway, the UK, the US, Canada and Brazil.
5.
Transactions with the
Norwegian state.
The Norwegian state, represented by the Ministry of Trade, Industry and Fisheries, is the
majority shareholder of Equinor and it also holds major investments in other entities. This ownership structure means that
Equinor participates in transactions with many parties that are under a common ownership structure and therefore meet the
definition of a related party. Equinor purchases liquids and natural gas from the Norwegian state, represented by SDFI (the
State's Direct Financial Interest). In addition, Equinor sells the State's natural gas production in its own name, but for the
Norwegian state's account and risk, and related expenditures are refunded by the State.
6.
The production guidance reflects our estimates of
proved reserves
calculated in accordance with US Securities and Exchange
Commission (SEC) guidelines and additional production from other reserves not included in proved reserves estimates.
7.
The group's
average realised piped gas prices
include all realised piped gas sales, including both physical sales and related
paper positions.
8.
The internal
transfer price
paid from the MMP segment to the E&P Norway and E&P USA segments.
9.
Since different legal entities in the group lend to projects and others borrow from banks, project financing through external bank
or similar institutions is not netted in the balance sheet and results in over-reporting of the debt stated in the balance sheet
compared to the underlying exposure in the group. Similarly, certain net interest-bearing debt incurred from activities pursuant to
the Marketing Instruction of the Norwegian government are offset against receivables on the SDFI. Some interest-bearing
elements are classified together with non-interest bearing elements and are therefore included when calculating the net interest-
bearing debt.
Equinor third quarter 2024
59
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be
signed on its behalf by
the undersigned, thereunto duly authorised.
EQUINOR ASA
(Registrant)
Dated: 24 October, 2024
By: ___/s/ Torgrim
Reitan
Name: Torgrim Reitan
Title:
Chief Financial Officer