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.