Equinor fourth quarter 2020 and year end results
Equinor (OSE: EQNR, NYSE: EQNR) reports adjusted earnings of positive USD 0.76 billion and negative USD 0.55 billion after tax in the fourth quarter of 2020. IFRS net operating income was negative USD 0.99 billion and the IFRS net income was negative USD 2.41 billion, following net impairments of USD 1.30 billion and a write down of USD 0.98 billion related to the Tanzania LNG project.
2020 was characterised by:
- Results impacted by low oil and gas prices
- Solid operational performance during extraordinary circumstances
- Positive cash flow in a low-price environment
- Delivering USD 3.7 billion in capex and cost reductions, well above ambition for the action plan to strengthen financial resilience
- Progressing and capturing value within renewables
- Setting ambition to be a net-zero energy company by 2050 to create value as a leader in the energy transition
“Our results are impacted by the market turmoil during the year, but with strong cost improvements and capital discipline we delivered positive net cash flow for the quarter and the full year. During 2020 we have delivered more than 3.7 billion dollars in savings, well above our ambition for the action plan we launched in March to strengthen financial resilience. We are well positioned for value creation and strong cash flow in 2021 and the coming years,” says Anders Opedal, President and CEO of Equinor ASA.
“I am impressed by how the organisation has responded, delivering strong operational performance and production growth in a long-lasting challenging situation during the pandemic. We are increasing production volumes from Johan Sverdrup even further, and we used our flexibility to have high gas production as gas prices increased in the quarter. In addition, we have started production from Snorre Expansion ahead of time and well below cost estimates,” says Opedal.
“Equinor is committed to ensuring long-term competitiveness and creating value as a leader in the energy transition, setting an ambition to be a net-zero energy company by 2050. During 2020 we delivered significant progress in our renewables portfolio, taking the investment decision for Dogger Bank A and B, winning the largest ever offshore wind award in the US, starting construction at Hywind Tampen and capturing value from transactions. We are also taking actions to optimise within oil and gas, building a more robust portfolio for the future, but resulting in a write down in Tanzania and an impairment related to an operated US onshore asset in the quarter,” says Opedal.
Adjusted earnings  were USD 0.76 billion in the fourth quarter, down from USD 3.55 billion in the same period in 2019. Adjusted earnings after tax  were negative USD 0.55 billion, down from USD 1.19 billion in the same period last year. Low prices for liquids impacted the earnings for the quarter.
Equinor launched an action plan of USD 3 billion in March 2020 to strengthen financial resilience, including a reduction in operating costs of USD 0.70 billion. Delivery on the plan resulted in savings of more than USD 3.7 billion, including a reduction in fixed operating costs of around USD 1 billion. Unit production costs are reduced by 5% since 2019, realising the 2021 ambition already in 2020.
In the E&P Norway segment, Equinor realised weaker liquids prices and the production was reduced mainly as a result of turnarounds moved to fourth quarter due to the ongoing pandemic.
Results in the E&P International segment were impacted by low prices and the impairment of the Tanzania LNG project of USD 0.98 billion. The E&P USA segment was also impacted by weak prices, partially offset by significant reductions in operating costs.
The Marketing, midstream and processing segment captured value from strong trading results from gas to Europe, partially offset by low refinery margins and shutdown of production at Hammerfest LNG plant.
New energy solutions delivered high availability on offshore wind assets. A capital gain of around USD 1 billion is expected to be booked from the divestment of a 50% non-operated interest of the offshore wind projects Empire Wind and Beacon Wind in the US. A capital gain from the farm down of 10% equity interest in Dogger Bank A and B in the UK is expected to be booked in the first quarter of 2021.
IFRS net operating income was negative USD 0.99 billion in the fourth quarter, down from positive USD 1.52 billion in the same period in 2019. IFRS net income was negative USD 2.42 billion in the fourth quarter, compared to negative USD 0.23 billion in the fourth quarter of 2019. Net operating income was negatively impacted by net impairments of USD 1.30 billion, mainly relating to a refinery as a result of reduced margin assumptions and some increase in cost estimates, and to an operated unconventional onshore asset in North America due to reclassification as held for sale.
Equinor delivered total equity production of 2,043 mboe per day in the fourth quarter, down from 2,198 mboe per day in the same period in 2019, with a minor increase in gas share due to high flexible production in gas fields. Adjusting for portfolio transactions the production growth for 2020 was 2.4%.
In 2020, Equinor completed 34 exploration wells with 16 commercial discoveries and 1 well under evaluation. At year end, 12 wells were ongoing. Adjusted exploration expenses in the fourth quarter were USD 1.25 billion, compared to USD 0.44 billion in the same quarter in 2019.
The proved reserves replacement ratio (RRR) was negative 5% in 2020, following capital discipline and the prioritisation of financial flexibility during market uncertainty, with a three-year average of 95%. With 5.26 billion barrels in proved reserves, Equinor’s reserves to production ratio (R/P) was 7.4 years.
Cash flows provided by operating activities before taxes paid and changes in working capital amounted to USD 14.0 billion in 2020, compared to USD 21.8 billion in 2019. Organic capital expenditure  was USD 7.8 billion for 2020. At year end, net debt to capital employed(1) was 31.7%, stable from 31.6% at the end of the third quarter of 2020. Following the implementation of IFRS 16, net debt to capital employed(1) was 37.3%.
The board of directors proposes to the annual general meeting a cash dividend of USD 0.12 per share for the fourth quarter 2020.
Average CO2-emissions from Equinor’s operated upstream production, on a 100% basis, was 8.0 kg per barrel in 2020.
The twelve-month average Serious Incident Frequency (SIF) for 2020 was 0.5, down from 0.6 in 2019. The twelve-month average Recordable Injury Frequency (TRIF) was 2.3 for 2020, compared to 2.5 in 2019.
* * *
(1) This is a non-GAAP figure. Comparison numbers and reconciliation to IFRS are presented in the table Calculation of capital employed and net debt to capital employed ratio as shown under the Supplementary section in the report.
 These are non-GAAP figures. See Use and reconciliation of non-GAAP financial measures in the report for more details. For ROACE, see table Calculated ROACE in the Supplementary disclosures for more details.
* * *
Further information from:
Peter Hutton, senior vice president Investor relations,
+44 7881 918 792 (mobile)
Helge Hove Haldorsen, vice president Investor Relations North America,
+1 281 224 0140 (mobile)
Bård Glad Pedersen, vice president Media relations,
+47 918 01 791 (mobile)
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act
- Equinor fourth quarter 2020 Financial statements and review
- Equinor fourth quarter 2020 and year end results press release
- Equinor 4th quarter and full year 2020 results CEO and CFO presentation
One Liberty Plaza - 165 Broadway
NY 10006 New York
GlobeNewswire is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.
Subscribe to releases from GlobeNewswire
Subscribe to all the latest releases from GlobeNewswire by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from GlobeNewswire
RESULT OF RIKSBANK REVERSED AUCTIONS SEK MUNICIPAL BONDS9.3.2021 11:30:00 CET | Press release
AuctionAuction resultsAuction date2021-03-09Maturity2024Tendered volume, SEK mln1000 +/- 1000Offered volume, SEK mln700Volume bought, SEK mln200Number of bids3Number of accepted bids2 QuarterQuarter 1Quarter 2Quarter 3Quarter 4Offered volume, SEK mln05000100Volume bought, SEK mln000100Number of bids0101Number of accepted bids0001Average yield, %---0.18Lowest accepted yield, %---0.18Highest yield, %---0.18Accepted at lowest yield, %---100 QuarterQuarter 1Quarter 2Quarter 3Quarter 4Offered volume, SEK mln010000Volume bought, SEK mln010000Number of bids0100Number of accepted bids0100Average yield, %-0.137--Lowest accepted yield, %-0.137--Highest yield, %-0.137--Accepted at lowest yield, %-100--
RESULT OF RIKSBANK CERTIFICATE SALE9.3.2021 10:15:00 CET | Press release
AuctionAuction resultsAuction date2021-03-09Start date2021-03-10Maturity date2021-03-17Interest rate, %0.00 %Offered volume, SEK bn380.0Total bid amount, SEK bn1888.6Accepted volume, SEK bn380.0Number of bids16Percentage alloted, %20.121 %
Results Extraordinary General Meeting9.3.2021 08:30:00 CET | Press release
PRESS RELEASE: Amsterdam – 9 March 2021.Intertrust N.V. (“Intertrust”) [Euronext: INTER], a global leader in providing tech-enabled corporate and fund solutions to clients operating and investing in international business, announces that in the Extraordinary General Meeting (EGM) of 8 March 2021 the shareholders adopted all voting items on the agenda. Chief Executive Officer Shankar Iyer was appointed as member of the Management Board of Intertrust. Mr. Iyer’s appointment has been approved by Dutch regulators and is effective immediately, for a first term of four years. At the EGM a total of 74.32% of the total issued share capital was represented. The results of the votes for each item on the agenda, will be published on our website https://www.intertrustgroup.com/investors/shareholder-information/extraordinary-general-meeting-march-2021/. Draft minutes of the EGM will be published no later than three months after the end of the meeting, after which shareholders should have the opport
Van Lanschot Kempen: update on share buy-back programme 2 March 2021 – 8 March 20219.3.2021 08:30:00 CET | Press release
Amsterdam/’s-Hertogenbosch, the Netherlands, 9 March 2021 In the period from 2 March 2021 until 8 March 2021 Van Lanschot Kempen has repurchased 16,381 of its own shares (depositary receipts for Class A ordinary shares). The shares were repurchased at an average price of €21.80 per share for a total amount of €358,433. These repurchases are part of the share buy-back programme for at most 400,000 of own shares, which was announced on 25 February 2021. The total number of shares repurchased to date is 41,381. More information, including a detailed overview of the repurchase transactions under this programme, is available on www.vanlanschotkempen.com/sharebuyback. Media Relations: +31 20 354 45 85; email@example.com Investor Relations: +31 20 354 45 90; firstname.lastname@example.org About Van Lanschot Kempen Van Lanschot Kempen, a wealth manager operating under the Van Lanschot, Kempen and Evi brand names, is active in Private Banking, Asset Management and Me
GrandVision publishes Annual Report 2020 and convocation for virtual AGM9.3.2021 08:00:00 CET | Press release
GrandVision publishes Annual Report 2020 and convocation for virtual AGM Schiphol, the Netherlands - 9 March 2021. GrandVision N.V. (EURONEXT: GVNV) today announced that it has published its Annual Report 2020 including the Financial Statements 2020. The Annual Report is available for download and in digital form on GrandVision’s website: annualreport2020.grandvision.com. GrandVision has also published the convocation for the Annual General Meeting of Shareholders (AGM) on its website (www.grandvision.com). The AGM will be held on 23 April 2020. Due to the continued impact of the COVID-19 pandemic, the meeting will be held virtually, and shareholders will not be able to attend the AGM in person at a physical location. By using this format, GrandVision is following recommendations to forgo major events and to protect the health of shareholders, employees and all other stakeholders. Details of how shareholders can exercise their shareholder rights under these special circumstances are se
Kalmar receives repeat order of AutoStrads from Patrick Terminals9.3.2021 08:00:00 CET | Press release
CARGOTEC CORPORATION, PRESS RELEASE, 9 MARCH 2021 AT 9 AM (EET) Kalmar, part of Cargotec, is to supply a total of twelve new Kalmar AutoStrad™ units to Patrick Terminals. The order for the fully automated straddle carriers was booked in Cargotec's 2021 Q1 order intake, with delivery of the machines scheduled to be completed during Q2 of 2022. Patrick Terminals is Australia's leading container terminal operator, handling over three million TEUs annually. The company operates some of Australia's most technologically advanced terminals at four strategically located ports: Brisbane AutoStrad Terminal, Sydney AutoStrad Terminal, Melbourne Terminal and Fremantle Terminal in Western Australia. In November 2019 Patrick Terminals signed a comprehensive software maintenance and support agreement with Kalmar covering the equipment automation systems at Brisbane and Sydney. Of the twelve new 8th generation Kalmar AutoStrads, five will operate at Brisbane and seven at Sydney. The machines are part
Ahold Delhaize share buyback update9.3.2021 08:00:00 CET | Press release
Zaandam, the Netherlands, March 9, 2021 – Ahold Delhaize has repurchased 1,693,300 of Ahold Delhaize common shares in the period from March 1, 2021 up to and including March 5, 2021. The shares were repurchased at an average price of €21.93 per share for a total consideration of € 37.1 million. These repurchases were made as part of the €1 billion share buyback program announced on November 4, 2020. The total number of shares repurchased under this program to date is 11,368,600 common shares for a total consideration of € 262.9 million. Download the share buyback transactions excel sheet for detailed individual transaction information from www.aholddelhaize.com/en/investors/share-information/share-buy-back-programs/ This press release is issued in connection with the disclosure and reporting obligation set out in Article 2(2) of the EU Regulation that contains technical standards for buyback programs.