Equinor Slips To Loss In Q2 On Weak Prices, Covid-19 Impacts - Quick Facts

(RTTNews) - Norwegian energy company Equinor ASA (EQNR) reported Friday that its second-quarter IFRS net loss was $251 million, compared to prior year's profit of 1.48 billion.

The financial results impacted by the Covid-19 pandemic and very low commodity prices. Further, after tax results positively impacted by temporary tax changes in Norway.

Adjusted earnings after tax were $646 million, compared to $1.13 billion in the same period last year. Very low realised prices for both liquids and gas impacted the earnings for the quarter.

IFRS net operating loss was $472 million, compared to net operating income of $3.52 billion in the same period of 2019. Net operating income was impacted by net impairment charges of $0.37 billion, mainly related to a gas processing plant in Norway and exploration.

Total revenues and other income declined 56 percent to $7.60 billion from last year's $17.10 billion.

Equinor delivered total equity production of 2,011 mboe per day in the second quarter, at the same level as last year.

Further, the board of directors has decided a cash dividend of $0.09 per share for the second quarter 2020.

Looking ahead, for the period 2019-2026, production growth is expected to come from new projects resulting in around 3% Compound Annual Growth Rate or CAGR based on current forecast.

Equinor said it is on track to deliver on the announced plan for reducing costs for 2020 by around $700 million compared to original estimates. Upstream operating costs and the unit production costs are significantly reduced from the second quarter of 2019.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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