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Investing.com -- Equinor (OL:EQNR) on Wednesday reported first-quarter adjusted operating income of $8.65 billion, narrowly beating expectations on strong gas prices and steady operations, though adjusted net income missed consensus amid higher tax charges and weaker trading results in its marketing division.
The Norwegian energy company posted net operating income of $8.87 billion and net income of $2.63 billion.
Adjusted net income came in at $1.79 billion, below consensus estimates of $2.2 billion, while adjusted earnings per share were $0.66.
Equity production for the quarter totaled 2.12 million barrels of oil equivalent per day, down from 2.16 million a year earlier.
The decrease was primarily attributed to a shutdown at Sleipner B following a fire in late 2024, as well as planned and unplanned maintenance at Hammerfest LNG.
In the United States, output rose year over year due to increased production and higher ownership stakes in onshore gas assets acquired in 2024.
The realized European gas price for the quarter was $14.80 per million British thermal units, while the average liquids price was $70.60 per barrel.
Cash flow from operating activities before tax payments and working capital adjustments was $10.6 billion.
After paying $3.09 billion in Norwegian petroleum taxes, cash flow from operations stood at $7.39 billion, in line with consensus.
Equinor’s net debt excluding leases fell to $3.4 billion, resulting in a net debt-to-capital employed ratio of 6.9%, down from 11.9% at the end of the previous quarter.
Organic capital expenditure was $3.02 billion in the quarter, with total capital spending reported at $4.5 billion. Capex guidance for the full year remains unchanged at $13 billion.
Equinor launched production at the Johan Castberg field in the Barents Sea on March 31, a project expected to generate long-term returns.
The Halten East development in the Norwegian Sea also began production, with estimated recoverable reserves of 100 million barrels of oil equivalent and a one-year payback period.
On the carbon front, Equinor and its partners Shell and TotalEnergies (EPA:TTEF) approved the second phase of the Northern Lights carbon transport and storage project in Norway, increasing injection capacity from 1.5 million to at least 5 million metric tons annually.
Following the end of the quarter, Equinor received a halt-work order from U.S. authorities for its Empire Wind project.
The company is reviewing legal options, with total exposure estimated between $1.5 billion and $2 billion.
The board declared a cash dividend of $0.37 per share for the quarter. The company maintained its 2025 capital distribution target of $9 billion, including up to $5 billion in share repurchases.
A second tranche of the buyback program, up to $1.265 billion, is planned to begin following the annual general meeting on May 14. The first tranche, totaling $1.2 billion, was completed in March.
Production guidance and capital expenditure targets for the year remain unchanged. Equinor continues to forecast 4% production growth in 2025 compared to last year, with maintenance expected to temporarily reduce volumes by around 30,000 barrels per day.