Equinor first quarter 2020 results

Equinor (OSE: EQNR, NYSE: EQNR) reports adjusted earnings of USD 2.05 billion and USD 0.56 billion after tax in the first quarter of 2020. IFRS net operating income was USD 0.06 billion and the IFRS net income was negative USD 0.71 billion, following net impairments of USD 2.45 billion.

The first quarter was characterised by

• Rapid and forceful response to the Covid-19 pandemic, the fall in commodity prices and the market uncertainty
  - Launch of a USD 3 billion action plan for 2020 to strengthen financial resilience
  - Suspension of share buy-back under the share buy-back programme
  - Cash dividend for first quarter reduced to USD 0.09 per share
• Solid cash flow and net debt ratio(1) at 25.8%
• Financial results impacted by lower commodity prices
• Solid operational performance with record high production and successful ramp-up to a higher plateau production level at Johan Sverdrup at the end of April

“The Covid-19 pandemic is impacting people, societies and industries across the world. Joint efforts by individuals, governments and companies are necessary to respond to the current global emergency. We are all in this together and Equinor has launched a forceful and rapid response. Safety is our first priority and we have taken actions to keep our people safe and healthy, contribute positively in the societies in which we operate and mitigate spread of the virus. We have also taken forceful actions to strengthen our financial resilience, and we are prepared to take further measures as necessary to protect people, operations and value creation,” says Eldar Sætre, President and CEO of Equinor ASA.

“In times like this, with the current unprecedented market conditions and uncertainties, it is more important than ever to have a clear direction for the long-term development of the company. Our values and strategy remain firm, and we are committed to develop Equinor as a broad energy company. It is a sound business strategy to ensure competitiveness and drive change towards a low carbon future, based on a strong commitment to value creation for our shareholders,” says Sætre.

“Our financial results in the quarter were impacted by the lower commodity prices. However, we delivered strong operational performance with record high production and solid cash flow under these market conditions. Uncertainty remains high with very low commodity prices and increased differentials towards the end of first quarter and in the start of the second quarter. We will continue to prioritise value over volume and have already reduced activity, particularly in the US onshore. We will consider further activity reductions and use the flexibility we have in our portfolio as necessary,” says Sætre.