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By Nerijus Adomaitis and Nora Buli
OSLO, May 4 (Reuters) - Norway's Equinor beat
first quarter profit expectations on Thursday, driven by strong
results in energy trading, although earnings were well below
last year's record amid a sharp fall in natural gas prices.
The oil and gas producer's adjusted profit before interest
and tax for January-March fell to $12 billion from $18 billion a
year earlier, but beat the $11.2 billion predicted in a poll of
26 analysts compiled by Equinor.
"Equinor delivered strong earnings and cash flow across the
business and remains a safe and reliable provider of energy to
Europe," Chief Executive Anders Opedal said in a statement.
The company maintained its guidance for production and
capital expenditure and kept its dividend unchanged.
Equinor's adjusted operating profit for the January-March
period was also down from $15.1 billion in the fourth quarter.
The majority state-owned company last year became Europe's
largest supplier of natural gas as Russia's Gazprom cut deliveries in response to the West's support for Ukraine,
sending European gas prices to all-time highs.
All major Equinor units outperformed expectations in the
first quarter, although the key driver was 'very strong' trading
profits in its so-called midstream division (MMP) across oil and
gas, RBC analyst Biraj Borkhataria said in a note to clients.
The MMP unit swung to a pretax profit of $1.28 billion from
a year-ago loss of $92 million, beating an average analyst
forecast for earnings of $986 million, Equinor's report showed.
Equinor said its average gas sales price to Europe had
declined by 37% year-on-year in the first quarter while the
price of oil was down by 24%.
The group's oil and gas production stood at 2.13 million
barrels of oil equivalent per day (boed) in the first quarter,
slightly up from 2.1 million a year earlier as a ramp-up at
fields such as Johan Sverdrup Phase 2 and Snoehvit in Norway, as
well as Peregrino in Brazil, compensated for depletion
elsewhere.
Gas volumes were up 1% year-on-year and represented more
than 55% of the total production, "contributing to European
energy security", the company said.
Equinor's full-year adjusted operating profit surged to a
record $74.9 billion in 2022, more than doubling from the
previous high in 2008.
Equinor's share price is down 16.6% year-to-date,
underperforming a 4.2% decline in European petroleum stocks .
(Reporting by Nerijus Adomaitis and Nora Buli, editing by Terje
Solsvik, Gwladys Fouche and Susan Fenton)
Messaging: nerijus.adomaitis.thomsonreuters@reuters.net))
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