Equinor Reports $11.95 Billion in Net Operating Income in Third Quarter
Key Facts
Equinor reported third-quarter results on October 28, posting net operating income of $11.95 billion and net income of $2.54 billion. Adjusted net income was $2.86 billion, while adjusted earnings per share reached $1.20. The company said the results were driven mainly by higher liquids and European gas prices. The figures also showed production growth and an improvement in the company's debt position, alongside a cash dividend and a new tranche of share buybacks. Equinor shares in New York closed at $47.06 on October 27, before the results were announced, so that price does not reflect the market's response to the reported results.
Equity production totaled 2.166 million barrels of oil equivalent per day in the third quarter, up 2% from the same period a year earlier. Overall growth came despite the impact of maintenance, estimated at about 45 thousand barrels of oil equivalent per day during the quarter, compared with about 75 thousand in the second quarter. The reduced maintenance impact from the previous quarter helped lift available production. International oil and gas production recorded a larger increase, rising 21% year over year. The company attributed this to output from the Adura field in the United Kingdom and the Bacalhau field in Brazil, as well as lower maintenance activity, while divestments and natural decline limited the increase.
Higher energy prices were reflected in the prices the company realized during the quarter: European gas reached $20 per million British thermal units, while liquids reached $92.3 per barrel. Equinor linked its results to higher liquids and European gas prices, both of which supported operating revenue. The Marketing, Midstream and Processing segment also delivered strong performance, driven by high refining margins and strong refinery performance and liquefied natural gas trading. Before the results were announced, the company had expected the segment's result to exceed its guidance of $400 million for the third quarter, citing strong European refining margins and liquefied natural gas trading. The segment's performance adds to the picture painted by realized prices, with refining and trading activities contributing to quarterly results.
On production, Equinor raised its 2026 oil and gas production growth guidance from 3% to about 4%. The revision follows 2% growth in overall production in the third quarter, while the international segment recorded year-over-year growth of 21%. The difference between the quarterly figures and the annual guidance indicates that the company expects a stronger full-year growth path than the rate recorded this quarter. Meanwhile, third-quarter results showed the adjusted net debt-to-capital employed ratio declining to 3.8% at quarter-end, compared with 10.4% at the end of the previous quarter. The company said the ratio fell to 3.8%, indicating an improvement in its debt position under the measure reported in its results.
The company approved a cash dividend of $0.39 per share for the third quarter, payable on February 26, 2027. The fourth and final tranche of the share buyback program begins on October 29, with a value of up to $1.125 billion, and is scheduled to end no later than February 1, 2027. In June, Equinor announced that it would double its 2026 buyback program to $3 billion and target annual purchases of between $2 billion and $4 billion from 2027, depending on oil and gas prices, balance-sheet strength and the economic outlook. The dividend and new tranche provide further details on how the company is returning part of its capital to shareholders. The company is scheduled to report fourth-quarter and full-year results on February 4, 2027.
Long-term production plans put international expansion at the forefront of the company's strategy: Equinor aims to increase international oil and gas production by 30% to about 950 thousand barrels of oil equivalent per day by 2030. That goal accompanies the increase in this year's production growth guidance to about 4%. The quarterly results show international production rising 21% year over year, supported by new fields and lower maintenance, with divestments and natural decline acting as offsets. The third-quarter financial results, meanwhile, combined higher liquids and European gas prices with strong refining and liquefied natural gas trading performance. Markets are looking to the announced date of February 4, 2027, for the fourth-quarter and full-year results.