Equinor's 2024 Results: A Strong Performance Amidst Industry Challenges

Equinor ASA, the Norwegian energy giant, has released its fourth quarter and full year 2024 results, showcasing a robust performance amidst a challenging industry backdrop. The company delivered adjusted operating income of USD 7.90 billion and USD 2.29 billion after tax in the fourth quarter, leading to adjusted earnings per share of USD 0.63. Equinor's strong operational performance, stable oil and gas production, and consistent value-driven execution have positioned the company for further growth and competitive shareholder returns.

Equinor's 21% return on average capital employed (ROACE) in 2024 is a testament to the company's solid financial performance and strategic focus. The company expects to maintain above 15% ROACE towards 2030, indicating a consistent trend of strong performance. This impressive ROACE is driven by Equinor's ability to generate significant cash flow, which supports sustained competitive capital distribution. The company announced a total capital distribution of up to USD 9 billion for 2025, including a proposed fourth quarter cash dividend of USD 0.37 per share and an announced share buy-back of up to USD 5 billion for 2025.



Equinor's strong operational performance is reflected in its stable production levels, with total equity production of 2,072 mboe per day in the fourth quarter. The company sustained high production levels at the Norwegian continental shelf (NCS), with record high production from the Troll and Johan Sverdrup fields. Equinor expects the 2025 Johan Sverdrup production to be close to the level of the last two years, with a recovery rate ambition increased from 65% to 75%. This demonstrates the company's commitment to maximizing the value of its assets and optimizing production efficiency.

Equinor's strategy to deliver competitive shareholder returns is supported by its consistent value-driven execution and high-grading of its portfolio. The company is reducing investments in renewables and low carbon solutions to around USD 5 billion in total after project financing for 2025-2027, focusing on projects with the most competitive returns. This strategic shift allows Equinor to allocate more resources to its core oil and gas business, driving production growth and strengthening free cash flow.

Equinor's commitment to reducing emissions and investing in renewables is evident in its net-zero ambition by 2050. The company is working to reduce emissions from its production and operations, investing in carbon capture and storage projects, and developing low carbon solutions. Equinor expects its renewable energy capacity to be around 10-12 gigawatts by 2030, reflecting its focus on high-grading its portfolio and investing in projects with the most competitive returns.

In conclusion, Equinor's 2024 results demonstrate the company's strong performance and strategic focus amidst a challenging industry backdrop. With a robust financial performance, stable production levels, and a commitment to reducing emissions and investing in renewables, Equinor is well-positioned for further growth and competitive shareholder returns. As the company continues to adapt to market situations and opportunities, it is set to create shareholder value for decades to come.