EQNR - Equinor posts sharp Q2 earnings drop but reiterates dividend plan

2023-07-26 10:24:53 ET

Equinor ( NYSE: EQNR ) -3.4% in early trading Wednesday after reporting a sharp decline in Q2 profit but maintaining its dividend and stock buyback levels.

Q2 net profit plunged to $1.82B from $6.76B in the year-earlier quarter and below the $2.21 analyst consensus estimate, and adjusted earnings slumped to $7.54B from $17.57B, nearly matching the $7.64B expected in a company-compiled consensus.

Q2 revenues fell 37% Y/Y to $22.87B, as Equinor's ( EQNR ) realized price for piped gas to Europe fell 58% and realized liquids prices slid 34%, while total production barely moved at 1.99M boe/day compared to 1.98M boe/day a year ago.

Equinor ( EQNR ) maintained its quarterly dividend at $0.30/share and declared another extraordinary dividend of $0.60, while reiterating its plan to distribute $17B to shareholders this year.

The company's Q2 volumes were slightly weaker than expected but earnings were in line across the board, RBC Capital analyst Biraj Borkhataria said, adding that underlying cash flow from operating activities was weak given falling spot gas prices and rising cash taxes, but it was still better than consensus .

Equinor ( EQNR ) "delivered solid earnings in a quarter affected by turnarounds and energy prices down from the extraordinary levels last year," CEO Anders Opedal said.

More on Equinor:

• Financial and valuation comparison to sector peers
• Analysis: Equinor Offers Potential And Diversification
• Stock price return: Up less than 1% YTD, down 5.5% in the past 12 months

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