Norway’s Equinor posted a smaller-than-anticipated fall in Q4 core operating earnings Thursday as the startup of a significant new oilfield partially relieved the influence from the weak European gas industry.
The Oslo-listed company’s earnings before interest and tax (EBIT) dropped to $3.55 billion in Q4 from $4.39 billion in the same interval of 2018. A survey of 25 analysts compiled by Equinor had an estimated adjusted EBIT of $3.37 billion.
The company’s overall oil and gas production will grow by 7% this year, spurred by the start of production from the Johan Sverdrup hub in the North Sea, Equinor stated, while the average annual growth during 2019-2026 remains to be seen at 3%.
Norway’s total oil production is anticipated to grow by 43% from 2019 to 2024, a lot of it arriving from Sverdrup, projections from the Norwegian Petroleum Directorate (NPD) confirmed in January.
The money payout to owners was elevated to $0.27 a share for Q4 from $0.26 within the third, matching a $0.27 foretold by analysts in a Refinitiv poll.
Equinor stated in November it anticipated Norway’s petroleum production, based on current resources, to plunge by over half by 2050; however, and the corporate is busy exploring for oil in different parts of the globe.
In the upcoming year, Equinor’s global enterprises will benefit from field startups in Canada and Brazil, amongst others, Saetre added.
General exploration spending will likely drop this year to $1.4 billion from $1.6 billion in 2019, while total capital expenditure on oilfields and other investments will amount to $10 billion-$11 billion, compared to $10 billion in 2019.