Equinor posts 89% drop in Q2 operating profit, beats forecast

Equinor's operating profit fell by 89% year-on-year in the April-June quarter, hit by lower oil and gas prices and government-imposed output restrictions amid the coronavirus pandemic, the Norwegian energy company said on Friday. Its adjusted earnings before interest and tax (EBIT) fell to $0.35 billion in the second quarter from $3.15 billion in the same period of 2019.

Equinor's operating profit fell by 89% year-on-year in the April-June quarter, hit by lower oil and gas prices and government-imposed output restrictions amid the coronavirus pandemic, the Norwegian energy company said on Friday.

Its adjusted earnings before interest and tax (EBIT) fell to $0.35 billion in the second quarter from $3.15 billion in the same period of 2019. A poll of 25 analysts compiled by Equinor had forecast an adjusted operating loss of $0.2 billion. "Our financial results for the second quarter were impacted by very low realised oil and gas prices due to the COVID-19 pandemic, but also by a strong trading performance in volatile markets," Chief Executive Eldar Saetre said in a statement.

"We have reduced costs, maintained solid operational performance and continued to prioritise value over volume by deferring significant flexible gas production to periods with higher expected prices," he added. Equinor maintained a quarterly dividend of $0.09 per share, identical to the first quarter but down from $0.27 in the final three months of 2019.

The company reiterated its goal of increasing its output by three percent per year from 2019 to 2026.