STOHF - Equinor ASA (EQNR) Q2 2024 Earnings Call Transcript
2024-07-24 10:11:02 ET
Equinor ASA (EQNR)
Q2 2024 Earnings Conference Call
July 24, 2024 05:30 AM ET
Company Participants
Bard Glad Pedersen - Senior Vice President, Head of Investor Relations
Torgrim Reitan - Executive Vice President and Chief Financial Officer
Conference Call Participants
Martijn Rats - Morgan Stanley
Teodor Sveen Nilsen - SpareBank 1 Markets
Biraj Borkhataria - RBC Capital Markets
Lydia Rainforth - Barclays
Yoann Charenton - Bernstein SG
Peter Low - Redburn
Kim Fustier - HSBC
John Schj. Olaisen - ABG Sundal Collier
Henri Patricot - UBS
Michele della Vigna - Goldman Sachs
Paul Redman - BNP Paribas Exane
Christopher Kuplent - Bank of America Merrill Lynch
Jason Gabelman - TD Cowen
Presentation
Operator
Thank you for standing by. My name is Angela and I'll be your conference operator today. At this time, I would like to welcome everyone to the Equinor Second Quarter Analyst Conference Call. All lines have been placed on mute to prevent any background noise. [Operator Instructions].
I will now like to turn the call over to the presenters. You may begin.
Bard Glad Pedersen
Thank you, operator. My name is Bard Glad Pedersen. I'm heading up Investor Relations in Equinor. Welcome all to the analyst call for our second quarter results. As usual, I'm here together with our CFO, Torgrim Reitan, who will take us through the results before we open the Q&A. So with that, I hand it to you, Torgrim.
Torgrim Reitan
Thank you, Bard. Good morning, and thank you for joining us, and I hope that you are enjoying your summer. So let's dive into the results. So the second quarter demonstrates good progress and it confirms what we said at our Capital Markets Day. Today, we delivered solid financial results, driven by continued strong operational performance. In the quarter, we report adjusted operating income of $7.5 billion before tax and an IFRS net income of $1.9 billion. Year-to-date, we have delivered cash flow from operations after tax of $7.7 billion. The taxes in the second half of 2024 will be lower, and we expect cash flow from operations to be in line with what we said -- what we have said around $17.5 billion for the year.
I will revert to this. Adjusted earnings per share were $0.84. Across the portfolio, we are making strategic progress. On the NCS, we started production from the Kristin South area earlier this month, and the partner operated Hanz field came on stream in April. Together with our partners we made an investment decision for the field which will accelerate the production and maintain high gas export levels. This investment is highly valuable with the net present value to Equinor of more than $500 million. We continue to high grade our oil and gas portfolio. In Norway, we align our ownership interests across licenses through a swap with Petoro. Aligning ownerships will be important for accelerating production, reducing costs, and driving the full potential in key areas.
In the U.S, we closed the swap transaction in Onshore Gas with EQT, creating more longevity and robustness and reducing the breakeven for [Technical Difficulty] with more than 30% [indiscernible] million tons in injection capacity per year. Finally, for Empire Wind, we achieved a new higher strike price of $155 per megawatt hour earlier this year. We continue to move forward with the project and our next external milestone will be the financial close. The competitive capital distribution continues in line with what we have said at our Capital Markets Day....
Equinor ASA (EQNR) Q2 2024 Earnings Call Transcript