Equinor Reports Q4 Results and Announces $5 Billion Buyback Plan

Equinor ASA (NYSE: EQNR) shares have dipped following the company's report on fourth-quarter financial results for the fiscal year 2024.

During the quarter, revenue and other income for Equinor decreased by 5% year-over-year to reach $27.654 billion. Adjusted revenue also saw a decline of 7% year-over-year, amounting to $26.418 billion, which slightly surpassed the consensus estimate of $25.973 billion.

In terms of production, total liquids and gas output fell by 6% year-over-year to 2,072 mboe per day. Specifically, equity liquids production dropped by 6% to 1,081 mboe per day, and equity gas production decreased by 5% to 991 mboe per day.

On the Norwegian continental shelf (NCS), the company reported stable production levels attributed to the increased output from the Breidablikk project and the introduction of new gas wells. However, overall production was lower compared to the previous year, influenced by natural decline rates, an outage at Sleipner B, and planned maintenance activities.

The average price for liquids dropped by 10% year-over-year to $68.5 per barrel, while the realized price for piped gas in the U.S. stood at $2.36 per MMBtu.

In the renewable energy sector, Equinor produced 829 GWh, marking a 19% increase year-over-year.

Equinor's adjusted operating income for the quarter was reported at $7.90 billion, with $6.81 billion coming from E&P Norway, $303 million from E&P International, and $184 million from E&P USA.

Adjusted earnings per share (EPS) stood at $0.63, surpassing analysts' expectations of $0.62.

Operating cash flow decreased by 12% year-over-year to $2.42 billion during the quarter.

Dividend Announcement: The board of directors declared a fourth-quarter ordinary cash dividend of $0.37 per share, along with an extraordinary cash dividend of $0.35. These dividends are payable on May 28 to shareholders who are on record as of May 16.

Share Buyback Plan: The board has initiated the first tranche of its share buyback program, which allows for up to $1.2 billion. This program will run until April 2, 2025. Additionally, Equinor has announced an extensive share buyback plan worth $5 billion for 2025, which includes shares to be repurchased from the Norwegian State, completing its two-year plan that was initially outlined in February 2024.

Future Outlook: Equinor anticipates total capital distributions of up to $9 billion in 2025. The company is aiming for shareholder returns exceeding 15% return on capital employed by 2030.

To strengthen its free cash flow, Equinor plans to target $23 billion from 2025 to 2027, achieved by reducing capital expenditures and improving cost efficiency.

Equinor forecasts a growth in oil and gas production of over 10% from 2024 to 2027 and will limit investments in renewables and low-carbon technologies to $5 billion after accounting for project financing.

The company aims to increase its renewable capacity to between 10 and 12 GW by 2030.

For 2025, Equinor projects an organic capital expenditure of $13 billion, anticipating a 4% growth in oil and gas production compared to 2024 levels.

CEO Remarks: Anders Opedal, President and CEO, stated, "Equinor is well positioned for further growth and competitive shareholder returns. We expect to deliver industry-leading return on average capital employed, exceeding 15% all the way to 2030." He further added, "Our oil and gas production outlook has been increased to reflect more than 10% growth from 2024 to 2027. We are bolstering our anticipated free cash flow compared to last year's outlook. This improvement involves streamlining our portfolio, reducing our investment in renewables and low carbon solutions, and enhancing cost management across our operations." Opedal also highlighted that expected production from the Johan Sverdrup project in 2025 would be in line with levels experienced in the previous two years, showcasing Equinor's systematic approach to optimizing its assets for consistent energy delivery.

Investor Options: Investors interested in gaining exposure to Equinor might consider the Keating Active ETF (KEAT) and the Pacer Developed Markets International Cash Cows 100 ETF (ICOW).

Price Movement: As of the latest check, EQNR shares have decreased by 3.5% to $23.90 in premarket trading.

Equinor, Buyback, Dividends