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Equinor beat on production and earnings in Q2, with output up 3% year over year to 2.165 million barrels of oil equivalent per day and adjusted operating income of $11.5 billion before tax. The company said it is on track with its long-term plan to grow energy output, cash flow and returns through 2030.
Production growth was driven by Norway and new projects such as Johan Castberg, Halten East, Verdande, Adura and Bacalhau, though maintenance and a temporary outage at Johan Castberg weighed on results. Equinor kept full-year production guidance unchanged and said first-half growth makes its 3% annual target look more secure.
Cash flow remained strong and shareholder returns continued, supported by higher prices, trading and refining, with the company ending the quarter at about $24 billion in cash and a net debt ratio of 10.4%. Equinor also approved a $0.39 per share dividend and a new share buyback tranche, while keeping overall guidance unchanged.
Equinor ASA (NYSE:EQNR) reported higher second-quarter earnings and production, with Chief Financial Officer Torgrim Reitan saying the company is executing in line with plans presented at its recent Capital Markets Day to grow energy output, cash flow and returns through 2030.
Reitan said Equinor produced 2.165 million barrels of oil equivalent per day in the quarter, up 3% from the same period last year. Adjusted operating income totaled $11.5 billion before tax, while IFRS net income was $4.8 billion. Adjusted earnings per share were $1.33. Cash flow from operations after tax reached $13.7 billion year to date.
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"While energy markets remain impacted by geopolitical unrest, we continue to focus on what we control, our operations, how we remain robust through price cycles, and our commitment to cost and capital discipline," Reitan said.
Reitan said production on the Norwegian continental shelf rose 4%, driven by new fields including Johan Castberg, Halten East and Verdande, with Eirin and Symra also coming on stream during the quarter. He highlighted another strong quarter from Johan Sverdrup, where Equinor now expects the annual decline to be at the low end of its previously indicated 10% to 20% range.
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Production was affected by turnarounds, maintenance and a temporary outage at Johan Castberg. In response to an analyst question, Reitan said issues related to turbine waste heat took 18 days to resolve, and the field resumed production on July 13. He said the impact to Equinor in the third quarter would be about 14,000 barrels per day.
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