UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF THE

SECURITIES EXCHANGE ACT OF 1934

For the month of May 2023

Commission File Number 1-15200

Equinor ASA

(Translation of registrant’s name into English)

FORUSBEEN 50, N-4035, STAVANGER, NORWAY

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F

X

 Form 40-F

This Report on Form 6-K contains a report of the first quarter 2023 results of Equinor ASA.

Equinor first quarter 2023 2

Equinor first quarter 2023

Equinor delivered adjusted earnings* of USD 12.0 billion and USD 3.51 billion after tax in the first

quarter of 2023. Net operating income was USD 12.5 billion, and net income was USD 4.97 billion.

The first quarter was characterised by:

●

Strong earnings and cash flow across the business

●

Solid operational performance and production growth

o

Continued high gas production from NCS to Europe

●

High value creation from marketing and trading

●

Maintaining cost and capital discipline

●

Ordinary cash dividend of USD 0.30 per share, extraordinary cash dividend of USD 0.60 per share and commencement of

second tranche of share buy-back of USD 1.67 billion. Expected total capital distribution in 2023 is USD 17 billion.

Anders Opedal, president and CEO of Equinor ASA: 

“Equinor delivered strong earnings and cash flow across the business and remains a safe and reliable provider of energy to Europe.

We continue to deliver competitive capital distribution to shareholders and invest in a profitable portfolio in oil and gas, renewables,

and low-carbon solutions.”

“We progressed on our strategy, optimising our oil and gas portfolio by acquiring Suncor Energy in the UK and continuing with

focused exploration. We developed our portfolio within renewables and low-carbon solutions by acquiring the solar project developer

BeGreen and collaborating with industry partners, aiming to build large-scale value chains for decarbonisation.”

Financial information

Quarter

Change

(unaudited, in USD million)

Q1 2023

Q4 2022

Q1 2022

Q1 on Q1

Net operating income/(loss)

12,517

16,584

18,392

(32%)

Adjusted earnings*

1)

11,973

17,014

17,869

(33%)

Net income/(loss)

4,966

7,897

4,714

5%

Adjusted earnings after tax*

1)

3,514

4,719

5,487

(36%)

Cash flows provided by operating activities

14,871

4,267

15,771

(6%)

Cash flow from operations after taxes paid*

9,716

6,800

15,748

(38%)

Net cash flow*

4,201

1,669

12,689

(67%)

Operational data

Q1 2023

Q4 2022

Q1 2022

Q1 on Q1

Group average liquids price (USD/bbl) [1]

73.8

80.4

97.1

(24%)

Total equity liquids and gas production (mboe per day) [4]

2,130

2,046

2,106

1%

Total power generation (Gwh) Equinor share

1,163

1,332

511

>100%

Renewable power generation (GWh) Equinor share

524

517

511

3%

Twelve months average per

Full year

Health, safety and the environment

Q1 2023

2022

Serious incident frequency (SIF)

0.4

0.4

Equinor first quarter 2023 3

First quarter

First quarter

Health, safety and the environment

2023

2022

Upstream CO

2

 intensity (kg CO

2

/boe)

6.6

6.7

Absolute scope 1+2 GHG emissions (million tonnes CO

2

e)

2.9

2.8

31 March

31 December

%-point

Net debt to capital employed adjusted*

2023

2022

change

Net debt to capital employed adjusted*

(52.3%)

(23.9%)

(28.4)

Dividend

(USD per share)

Q1 2023

Q4 2022

Q1 2022

Ordinary cash dividend per share

0.30

0.30

0.20

Extraordinary cash dividend per share

0.60

0.60

0.20

In the first three months of 2023 Equinor settled shares in the market under the 2022 and 2023 share buy-back programmes of 

USD 461 million.

*

For items marked with an asterisk throughout this report, see Use and reconciliation of non-GAAP financial measures in the Supplementary disclosures

1) Restated. For more information, see Amended principles for Adjusted earnings in the section ‘Use and reconciliat ion of non-GAAP financial measures’ in the

Supplementary disclosures.

Equinor first quarter 2023 4

Strong production and continued high deliveries of energy to Europe

Equinor delivered a total equity production of 2,130 mboe per day for the first quarter, up from 2,106 mboe per day in the same

quarter of 2022. The growth was driven by the ramp-up of new fields and wells, and fields back in production, such as Johan Sverdrup

phase 2 and Snøhvit in Norway and Peregrino in Brazil. Short-term operational issues at Johan Sverdrup early in the quarter impacted

the increase.

Gas production on the Norwegian continental shelf (NCS) remained high and stable, contributing to European energy security. 

Production from renewable energy sources was 524 GWh in the quarter, slightly up from the same quarter last year, driven by good

availability for the offshore wind farms and production from the floating wind farm Hywind Tampen on the NCS. Including gas-to-power

production in the UK, total power production for the quarter ended at 1,163 GWh.

Continued strategic and industrial progress

Since the start of the year, Equinor has brought the satellite field Bauge on stream in the Norwegian Sea. The partner-operated Vito

field was put on stream in the US Gulf of Mexico.

Equinor continued to optimise the oil and gas portfolio, deepening in core areas by entering into an agreement to acquire Suncor

Energy UK. An interest in the Statfjord area on the NCS was divested in the quarter.

Equinor completed nine exploration wells offshore with three commercial discoveries in the quarter, and three wells were ongoing at

the quarter end. Two of the discoveries were in the Troll area in the North Sea, where Equinor also agreed to acquire a further equity

interest in five discoveries. Equinor was awarded 26 new production licences on the NCS.

In the UK, the Dogger Bank offshore wind farm is progressing towards first power this summer. Together with SSE, Equinor is

exploring the option of developing a fourth phase, Dogger Bank D.

In the quarter, Equinor closed the acquisition of BeGreen, a leading solar project developer in Northwest Europe, with a project

pipeline of over 6 GW in the early to medium stages of maturity.

Equinor continued to develop low-carbon value chains in collaboration with industrial partners and entered into a partnership with the

German energy company RWE aiming to develop large-scale value chains for low-carbon hydrogen.

Strong financial results and cash flow

Equinor realised a price for piped gas to Europe of USD 18.8 per mmbtu and realised liquids prices were USD 73.8 per bbl, down by

37% and 24%, respectively, compared to the first quarter 2022.

Equinor delivers strong adjusted earnings at USD 12.0 billion and USD 3.51 billion after tax. This is down from the same quarter last

year due to lower prices for liquids and gas but partly offset by production growth. The Marketing, Midstream & Processing (MMP)

segment contributed with earnings, well above the new and increased guided range, mainly driven by crude, products, and liquids

trading.

Cash flow provided by operating activities before taxes paid and working capital items amounted to USD 15.3 billion for the first

quarter and, cash flow from operations after taxes paid* was USD 9.72 billion. Equinor paid the first of three equal NCS tax

instalments of USD 5.42 billion in the quarter and will pay the next two in the second quarter. Organic capital expenditure* was USD

2.31 billion for the quarter, and total capital expenditures were USD 3.18 billion. After taxes, capital distribution to shareholders and

investments, net cash flow* ended at USD 4.20 billion for the first quarter.

Strong cash flow, a reduction in working capital and a reduction in collateral deposits resulted in a further strengthening of the financial

position. Adjusted net debt to capital employed ratio* was negative 52.3% at the end of the first quarter, from negative 23.9% at the

end of the fourth quarter of 2022.

Competitive capital distribution

The board of directors has decided an ordinary cash dividend of USD 0.30 per share and an extraordinary cash dividend of USD 0.60

per share for the first quarter of 2023, in line with communication at the Capital Markets Update in February.

Expected total capital distribution for 2023 is USD 17 billion, including a share buy-back programme of USD 6 billion. The board has

decided to initiate a second tranche of the share buy-back programme of USD 1.67 billion. The second tranche will commence on 11

May, end no later than 25 July 2023 and is subject to authorisation from the annual general meeting on 10 May 2023.

The first tranche of the share buy-back programme for 2023 was completed on 20 March 2023 with a total value of USD 1 billion.

All share buy-back amounts include shares to be redeemed by the Norwegian State.

Equinor first quarter 2023 5

GROUP REVIEW

Financial information

Quarters

Change

(unaudited, in USD million)

Q1 2023

Q4 2022

Q1 2022

Q1 on Q1

Total revenues and other income

29,224

34,321

36,393

(20%)

Adjusted total revenues and other income*

1)

28,520

35,501

36,590

(22%)

Total operating expenses

(16,707)

(17,737)

(18,001)

(7%)

Adjusted purchases* [5]

(11,262)

(12,781)

(13,781)

(18%)

Adjusted operating and administrative expenses*

(2,849)

(3,032)

(2,450)

16%

Adjusted depreciation, amortisation and net impairments*

(2,198)

(2,279)

(2,333)

(6%)

Adjusted exploration expenses*

(238)

(396)

(157)

52%

Net operating income/(loss)

12,517

16,584

18,392

(32%)

Adjusted earnings*

1)

11,973

17,014

17,869

(33%)

Capital expenditures and Investments

2,303

2,376

2,616

(12%)

Cash flows provided by operating activities

14,871

4,267

15,771

(6%)

Cash flows from operations after taxes paid*

9,716

6,800

15,748

(38%)

Quarters

Change

Operational information

Q1 2023

Q4 2022

Q1 2022

Q1 on Q1

Total equity liquid and gas production (mboe/day)

2,130

2,046

2,106

1%

Total entitlement liquid and gas production (mboe/day)

2,011

1,919

1,958

3%

Total Power generation (GWh) Equinor share

1,163

1,332

511

>100%

Renewable power generation (GWh) Equinor share

524

517

511

3%

Average Brent oil price (USD/bbl)

81.3

88.7

101.4

(20%)

Group average liquids price (USD/bbl)

73.8

80.4

97.1

(24%)

E&P Norway average internal gas price (USD/mmbtu)

17.36

27.22

29.77

(42%)

E&P USA average internal gas price (USD/mmbtu)

2.80

4.73

4.18

(33%)

1) Restated. For more information, see Amended principles for Adjusted earnings in the section ‘Use and reconciliation of non-GAAP

financial measures’ in the Supplementary disclosures.

For the items impacting net operating income/(loss), see Use and reconciliation of non-GAAP financial measures in Supplementary

disclosures.

Operations

Solid operational performance and production growth in the first quarter of 2023 provides strong results despite a lower price

environment compared to 2022.

Snøhvit, which restarted in June 2022, and Johan Sverdrup phase two, which came on stream in December 2022, were the main

drivers for increased production on the NCS relative to the same quarter last year. Peregrino in Brazil contributed significantly towards

increased production from the international portfolio. Improved levels from Caesar Tonga in the USA following technical

improvements, and a reduction in downtime compared to the prior year also added to the improvement in production.

Secure gas production to Europe remains a continued focus in 2023, representing 55% of NCS production for the quarter.

The overall production growth was impacted by short term operational challenges in the quarter for Johan Sverdrup and turnaround

activity in Angola and Brazil. 2022 events relating to the exit from Russia, Ekofisk area divestment and Martin Linge ownership share

reduction also partly offset the increase in production relative to the first quarter of 2022.

Price realisation in the quarter was lower than the extraordinary highs witnessed in the prior year. This is evident through reduced

Equinor first quarter 2023 6

margins even with a stable production level. Additionally, there was a strong contribution to the overall business results from the

Midstream, Marketing and Processing segment for the first quarter of 2023. Strong physical crude and products margins and solid

results from LNG and piped gas trading positively contributed to the first quarter results.

Increased operational capacity and activity in the quarter have contributed to an increased cost base. In addition, rising environmental

costs together with inflationary pressures were evidenced by an increase in upstream operating expenditure compared to the prior

year. An increase in proved reserves during the year 2022 contributed towards a downward trend in depreciation, partially offsetting

the increase in operating expenditure. The strengthening of the USD against the NOK impacts the visibility of these increases in the

reported costs.

In the first quarter of 2022, total operating expenses were negatively impacted by impairments of USD 1,080 million related to

Equinor’s exit from Russia.

Taxes

The decrease in reported effective tax rate from 72.6% in the first quarter of 2022 to 63.8% in 2023 was mainly caused by a lower

relative share of income from the NCS. Net foreign currency exchange gains with a low tax rate also contributed to this decrease in

effective tax rate for the quarter.

The effective tax rate on adjusted earnings* of 70.6% for the first quarter of 2023 increased compared to 69.3% in 2022 due to the

recognition of the US deferred tax assets in the fourth quarter of 2022.

Cash flow, net debt and capital distribution

A strong cashflow provided by operating activities before taxes paid and working capital items of USD 15,305 million was achieved

despite lower income before tax which resulted from lower commodity prices in the first quarter of 2023.

Tax outflow of USD 5,589 million reduced by USD 8,599 million from the fourth quarter of 2022, resulting in a cash flow from

operations after taxes paid* of USD 9,716 million (2022: USD 6,800 million in the prior quarter). The first of three equal instalments of

Norwegian corporate income tax were paid in the first quarter of 2023, whereas two instalments were made in the prior quarter.

Due to reduced prices working capital decreased by USD 5,155 million in the first quarter (USD 23 million in the first quarter of 2022)

positively contributing to a strong cashflow.

Net cash flow* of USD 4,201 million increased by USD 2,532 million compared to the prior quarter despite the lower price environment

and continued increased dividend cash outflows (USD 2,861 million compared to USD 582 million).

Continued strong results have led to an increase in short term liquid assets in addition to a reduction in net collateral deposits, further

strengthening the adjusted net debt to capital employed ratio* from negative 23.9% at the end of December 2022 to negative 52.3% at

the end of March 2023.

Subject to approval at the AGM in May, the cash outflow to the Norwegian state in relation to the second, third, fourth tranche of the

2022, and first tranche of the 2023 share buy-back programme is expected to occur in the second quarter of 2023, in addition to two

instalments of Norwegian corporate income tax.

The board of directors has decided an ordinary cash dividend of USD 0.30 per share, and an extraordinary cash dividend of USD 0.60

per share for the first quarter of 2023, in line with communication at the Capital Markets Update in February.

Expected total capital distribution for 2023 is USD 17 billion, including a share buy-back programme of USD 6 billion. The board has

decided to initiate a second tranche of the share buy-back programme of USD 1.67 billion. The second tranche will commence on 11

May, end no later than 25 July 2023 and is subject to authorisation from the annual general meeting on 10 May 2023.

The first tranche of the share buy-back programme for 2023 was completed on 20 March 2023 with a total value of USD 1 billion.

All share buy-back amounts include shares to be redeemed by the Norwegian State.

Equinor first quarter 2023 7

OUTLOOK 

●

Organic capital expenditures*

 are estimated at USD 10-11 billion for 2023, and at an annual average of around USD 13 billion

for 2024-2026

1

.

●

Production

 for 2023 is estimated to be around 3% above 2022 level [6].

●

 Equinor’s ambition is to keep the

unit of production cost

 in the top quartile of its peer group.

●

Scheduled maintenance activity

 is estimated to reduce equity production by around 45 mboe per day for the full year of 2023.

These forward-looking statements reflect current views about future events and are, by their nature, subject to significant risks and

uncertainties because they relate to events and depend on circumstances that will occur in the future. Deferral of production to create

future value, gas off-take, timing of new capacity coming on stream and operational regularity and levels of industry product supply,

demand and pricing represent the most significant risks related to the foregoing production guidance. Our future financial

performance, including cash flow and liquidity, will be affected by the extent and duration of the current market conditions, the

development in realised prices, including price differentials and other factors discussed elsewhere in the report. For further

information, see section Forward-looking statements.

1

 USD/NOK exchange rate assumption of 10.

Equinor first quarter 2023 8

SUPPLEMENTARY OPERATIONAL DISCLOSURES 

Operational data

Quarters

Change

Operational data

Q1 2023

Q4 2022

Q1 2022

Q1 on Q1

Prices

Average Brent oil price (USD/bbl)

81.3

88.7

101.4

(20%)

E&P Norway average liquids price (USD/bbl)

77.5

83.8

100.3

(23%)

E&P International average liquids price (USD/bbl)

70.7

77.2

96.3

(27%)

E&P USA average liquids price (USD/bbl)

61.3

68.6

82.5

(26%)

Group average liquids price (USD/bbl) [1]

73.8

80.4

97.1

(24%)

Group average liquids price (NOK/bbl) [1]

756

819

859

(12%)

E&P Norway average internal gas price (USD/mmbtu) [8]

17.36

27.22

29.77

(42%)

E&P USA average internal gas price (USD/mmbtu) [8]

2.80

4.73

4.18

(33%)

Realised piped gas price Europe (USD/mmbtu) [7]

1)

18.79

29.80

29.60

(37%)

Realised piped gas price US (USD/mmbtu) [7]

3.24

5.40

4.62

(30%)

Refining reference margin (USD/bbl) [2]

11.3

15.5

5.8

97%

Entitlement production (mboe per day)

E&P Norway entitlement liquids production

641

610

638

1%

E&P International entitlement liquids production

231

228

201

15%

E&P USA entitlement liquids production

129

100

114

13%

Group entitlement liquids production

1,001

938

953

5%

E&P Norway entitlement gas production

806

791

798

1%

E&P International entitlement gas production

33

31

37

(10%)

E&P USA entitlement gas production

171

160

170

0%

Group entitlement gas production

1,010

981

1,005

0%

Total entitlement liquids and gas production [3]

2,011

1,919

1,958

3%

Equity production (mboe per day)

E&P Norway equity liquids production

641

610

638

1%

E&P International equity liquids production

286

293

287

(0%)

E&P USA equity liquids production

144

112

127

14%

Group equity liquids production

1,071

1,015

1,051

2%

E&P Norway equity gas production

806

791

798

1%

Equinor first quarter 2023 9

E&P International equity gas production

50

50

54

(6%)

E&P USA equity gas production

203

190

203

0%

Group equity gas production

1,059

1,031

1,055

0%

Total equity liquids and gas production [4]

2,130

2,046

2,106

1%

Power generation

Power generation (GWh) Equinor share

1,163

1,332

511

>100%

Renewable power generation (GWh) Equinor share

524

517

511

3%

1) Restated. Restatement due to change in the definition of the price marker. For more information see 'End notes'.

Equinor first quarter 2023 10

Health, safety and the environment

Twelve months

average per

Full year

Q1 2023

2022

Total recordable injury frequency (TRIF)

2.7

2.5

Serious Incident Frequency (SIF)

0.4

0.4

Oil and gas leakages (number of)

1)

8

8

First quarter

First quarter

2023

2022

Upstream CO

2

 intensity (kg CO

2

/boe)

2)

6.6

6.7

Absolute scope 1+2 GHG emissions (million tonnes CO

2

e)

3)

2.9

2.8

1) Number of leakages with rate above 0.1 kg/second during the past 12 months.

2) Operational control, total scope 1 emissions of CO

2

 from exploration and production, divided by total production (boe).

3) Operational control, total scope 1 and 2 emissions of CO

2

 and CH

4.

Equinor first quarter 2023 11

EXPLORATION & PRODUCTION NORWAY

Financial information

Quarter

Change

(unaudited, in USD million)

Q1 2023

Q4 2022

Q1 2022

Q1 on Q1

Total revenues and other income

12,044

16,729

18,454

(35%)

Adjusted total revenues and other income*

12,144

16,968

18,663

(35%)

Total operating expenses

(2,229)

(2,343)

(1,521)

47%

Adjusted operating and administrative expenses*

(976)

(1,053)

(884)

10%

Adjusted depreciation, amortisation and net impairments*

(1,115)

(1,219)

(1,421)

(22%)

Adjusted exploration expenses*

(137)

(101)

(101)

35%

Net operating income/(loss)

9,816

14,386

16,933

(42%)

Adjusted earnings/(loss)*

9,916

14,594

16,256

(39%)

Additions to PP&E, intangibles and equity accounted investments

1,317

1,422

1,072

23%

Operational information

Quarters

Change

E&P Norway

Q1 2023

Q4 2022

Q1 2022

Q1 on Q1

E&P entitlement liquid and gas production (mboe/day)

1,448

1,401

1,436

1%

Average liquids price (USD/bbl)

77.5

83.8

100.3

(23%)

Average internal gas price (USD/mmbtu)

17.36

27.22

29.77

(42%)

For items impacting net operating income/(loss), see Use and reconciliation of non-GAAP financial measures in the Supplementary

disclosures.

Production & Revenues

Increased production supported by the ramp-up of new fields and continued high gas deliveries to Europe were somewhat offset by

temporary operational issues at Johan Sverdrup. This delivered solid results for the years’ first quarter, even in a lower-price

environment. 

Continued high focus on gas production maintained reliable energy deliveries to Europe. Gas volumes represented over 55% of the

total production and contributed to a slight increase in volume from the first quarter of 2022. Johan Sverdrup Phase 2 and Snøhvit

contributed to a 1% increase in gas volume and a 0.6% increase in liquids compared to the first quarter of 2022. 

There was high exploration activity in the quarter with 3 commercial discoveries and activity in 10 wells. Discovered volumes amount

to an estimated 40 mmboe, all close to infrastructure on the NCS.

Operating expenses and financial results

Lower gas prices primarily drove the decrease in net operating income in the first quarter of 2023 compared to the same period last

year. Realised gas prices were 33% lower in the first quarter of 2023 compared to the same quarter in 2022.

In the first quarter of 2023, high environmental costs and higher operations and maintenance costs were the main drivers for the

increase in operating and administrative expenses compared to the same period last year. An increase in proved reserves during the

Equinor first quarter 2023 12

year 2022 contributed towards a downward trend in depreciation, partially offsetting the increase in operating expenditure. The

development of the USD/NOK exchange rate had a significant positive effect on the total operating expenses.

The divestment of a 19% ownership share in Martin Linge in the fourth quarter of last year and the USD/NOK exchange rate

developments led to a decrease in adjusted depreciation and amortisation* in the first quarter compared to the first quarter of 2022.

Equinor first quarter 2023 13

EXPLORATION & PRODUCTION INTERNATIONAL

Financial information

Quarters

Change

(unaudited, in USD million)

Q1 2023

Q4 2022

Q1 2022

Q1 on Q1

Total revenues and other income

1,548

2,373

1,453

7%

Adjusted total revenues and other income*

1,555

1,897

1,852

(16%)

Total operating expenses

(1,167)

(551)

(1,822)

(36%)

Adjusted purchases*

16

(85)

27

(39%)

Adjusted operating and administrative expenses*

(442)

(438)

(423)

4%

Adjusted depreciation, amortisation and net impairments*

(461)

(433)

(339)

36%

Adjusted exploration expenses*

(55)

(266)

(40)

38%

Net operating income/(loss)

382

1,822

(369)

>(100%)

Adjusted earnings/(loss)*

614

676

1,078

(43%)

Additions to PP&E, intangibles and equity accounted investments

451

584

626

(28%)

Operational information

Quarters

Change

E&P International

Q1 2023

Q4 2022

Q1 2022

Q1 on Q1

E&P equity liquid and gas production (mboe/day)

336

343

341

(1%)

E&P entitlement liquid and gas production (mboe/day)

264

258

239

11%

Production sharing agreements (PSA) effects

72

85

102

(29%)

Average liquids price (USD/bbl)

70.7

77.2

96.3

(27%)

For items impacting net operating income/(loss), see Use and reconciliation of non-GAAP financial measures in the Supplementary

disclosures.

Production & Revenues 

The restart of production at the Peregrino field in Brazil in July 2022 and the start-up of phase 2 in October 2022 positively impacted

the production in the first quarter of 2023. This was offset mainly by Equinor’s exit from Russia, natural decline in several mature fields

and the effect of turnarounds, resulting in slightly lower equity production than in the first quarter of 2022. The lower effects from

production sharing agreements (PSA) were driven by a decrease in production from several fields with PSAs in combination with

lower prices.

Lower liquids and gas prices negatively impacted revenues in the first quarter of 2023 compared to the same period last year. This

was partially offset by increased entitlement production. The fair value of derivatives positively impacted reported total revenues by

USD 89 million in the first quarter of 2023 (2022: negative USD 314 million) resulting in a 7% increase overall in total revenues. 

Operating expenses and financial results

Restart of production at the Peregrino field drove higher operations and maintenance expenses and increased royalties in the first

quarter of 2023 compared to the same quarter last year. This was also a major contributor to the increase in depreciation, together

with new investments in several fields and the effect of an impairment reversal in the first quarter of 2022. 

Equinor first quarter 2023 14

In the first quarter of 2023, total reported operating expenses were negatively impacted by a loss of USD 258 million from the sale of

the Corrib field in Ireland, compared to a negative impact of USD 1,080 million related to Equinor’s exit from Russia in the same period

last year. 

Equinor first quarter 2023 15

EXPLORATION & PRODUCTION USA

Financial information

Quarters

Change

(unaudited, in USD million)

Q1 2023

Q4 2022

Q1 2022

Q1 on Q1

Total revenues and other income

1,015

1,083

1,269

(20%)

Adjusted total revenues and other income*

1,015

1,083

1,269

(20%)

Total operating expenses

(675)

(262)

(24)

>100%

Adjusted operating and administrative expenses*

(273)

(217)

(221)

23%

Adjusted depreciation, amortisation and net impairments*

(357)

(363)

(320)

11%

Adjusted exploration expenses*

(46)

(29)

(15)

>100%

Net operating income/(loss)

340

821

1,245

(73%)

Adjusted earnings/(loss)*

340

474

713

(52%)

Additions to PP&E, intangibles and equity accounted investments

262

281

126

>100%

Operational information

Quarters

Change

E&P USA

Q1 2023

Q4 2022

Q1 2022

Q1 on Q1

E&P equity liquid and gas production (mboe/day)

347

302

329

5%

E&P entitlement liquid and gas production (mboe/day)

299

260

284

6%

Royalties

47

42

45

4%

Average liquids price (USD/bbl)

61.3

68.6

82.5

(26%)

Average internal gas price (USD/mmbtu)

2.80

4.73

4.18

(33%)

For items impacting net operating income/(loss), see Use and reconciliation of non-GAAP financial measures in the Supplementary

disclosures.

Production & Revenues 

The Caesar Tonga field in the US Gulf of Mexico back in production with new flow lines, combined with additional wells online in the

Appalachian basin, were the main drivers for increased production in the first quarter of 2023 compared to the prior year. The increase

was partially offset by a natural decline in the Appalachian basin and several mature fields in the Gulf of Mexico.

Increased entitlement production helped to mitigate some of the downward impacts on revenue caused by the lower price

environment.

Operating expenses and financial results

Reduced downtime in certain Gulf of Mexico assets, the start-up of the Vito platform combined with increased maintenance activity in

the Appalachian basin, contributed to higher operations and maintenance expenses. Depreciation and amortisation increased in the

first quarter of 2023 compared to the same period in 2022 due to increased production and added offshore and onshore capital

expenditures. The improved proved reserves partially offset the increase. 

Equinor first quarter 2023 16

In the first quarter of 2022, net operating income was positively impacted by impairment reversals of USD 532 million related to assets

in the Gulf of Mexico.

Equinor first quarter 2023 17

MARKETING, MIDSTREAM & PROCESSING

Financial information

Quarters

Change

(unaudited, in USD million)

Q1 2023

Q4 2022

Q1 2022

Q1 on Q1

Total revenues and other income

28,889

33,591

35,917

(20%)

Adjusted total revenues and other income*

1)

28,082

35,010

35,592

(21%)

Total operating expenses

(26,771)

(33,842)

(35,425)

(24%)

Adjusted purchases* [5]

(25,344)

(31,969)

(34,470)

(26%)

Adjusted operating and administrative expenses*

(1,229)

(1,389)

(1,002)

23%

Adjusted depreciation, amortisation and net impairments*

(232)

(236)

(212)

9%

Net operating income/(loss)

2,118

(251)

492

>100%

Adjusted earnings*

1)

1,278

1,416

(92)

N/A

- Gas and Power

2)

769

1,212

(212)

N/A

- Crude, Products and Liquids

2)

510

210

235

>100%

- Other

2)

(1)

(6)

(114)

(99%)

Additions to PP&E, intangibles and equity accounted investments

219

349

265

(17%)

Operational information

Quarters

Change

Q1 2023

Q4 2022

Q1 2022

Q1 on Q1

Liquids sales volumes (mmbl)

3)

217.3

212.1

211.6

3%

Natural gas sales Equinor (bcm)

15.7

15.8

16.5

(5%)

Natural gas entitlement sales Equinor (bcm)

14.3

14.2

14.1

1%

Power generation (GWh) Equinor share

639

815

0

N/A

Realised piped gas price Europe (USD/mmbtu)

3)

18.79

29.80

29.60

(37%)

Realised piped gas price US (USD/mmbtu)

3.24

5.40

4.62

(30%)

1) Restated. For more information, see Amended principles for Adjusted earnings in the section ‘Use and reconciliation of non-GAAP financial

measures’ in the Supplementary disclosures.

2) From Q1 2023, the presentation of MMP’s adjusted earnings has been changed to align with organisational structure and management’s

review of performance, with retrospective effect.

3) Restated. Restatement due to a change in definition of the price marker for realised gas price and improved methodology for calculating

liquids sales volumes. For more information, see 'End notes'.

Equinor first quarter 2023 18

For items impacting net operating income/(loss), see Use and reconciliation of non-GAAP financial measures in the Supplementary

disclosures.

Volumes, Pricing & Revenues

Liquids sales volumes increased compared to the first quarter of 2022. This was mainly due to an increase in sales of international

equity volumes and purchases from third parties, partially offset by a decrease in sales volume from NCS.

Compared to the first quarter of 2022, the restarted deliveries from Hammerfest LNG partially offset a reduction in gas sales volumes

and third-party volumes. 

The realised piped gas price Europe decreased compared to the first quarter last year due to a drop in market prices caused by

reduced demand amid mild winter temperatures, high LNG imports and healthy storage levels. 

The realised US piped gas price decreased compared to the first quarter last year as market prices fell steadily throughout the quarter,

driven by a mild winter season, driving down residential and commercial heating demand.

Financial Results

During the first quarter of 2023, Gas and Power adjusted earnings* contributed to solid results driven by LNG and piped gas

trading. Strong physical crude and gasoline margins contributed to the solid adjusted earnings* for Crude, Products and

Liquids. 

Adjusted earnings* increased compared to the first quarter in the prior year primarily due to higher results from LNG and piped

gas trading, and Crude, Products and Liquids trading.

Net operating income in the first quarter of 2023 includes positive effects from changes in the fair value of mark to market

derivatives on gas and LNG following the change in amended principles for adjusted earnings* with the effect from the first

quarter of 2023. 

Equinor first quarter 2023 19

RENEWABLES

Financial information

Quarters

Change

(unaudited, in USD million)

Q1 2023

Q4 2022

Q1 2022

Q1 on Q1

Revenues third party, other revenue and other income

5

31

90

(94%)

Net income/(loss) from equity accounted investments

(7)

8

29

N/A

Total revenues and other income

(2)

38

119

N/A

Adjusted total revenues and other income*

(4)

15

32

N/A

Total operating expenses

(87)

(102)

(41)

>100%

Adjusted operating and administrative expenses*

(78)

(101)

(40)

92%

Adjusted depreciation, amortisation and net impairments*

(1)

(1)

(1)

36%

Net operating income/(loss)

(89)

(63)

77

N/A

Adjusted earnings*

(83)

(87)

(10)

>(100%)

Additions to PP&E, intangibles and equity accounted investments

851

103

43

>100%

Operational information

Quarters

Change

(unaudited, in USD million)

Q1 2023

Q4 2022

Q1 2022

Q1 on Q1

Renewables power generation (GWh) Equinor share

511

509

511

0%

For items impacting net operating income/(loss), see Use and reconciliation of non-GAAP financial measures in the Supplementary

disclosures.

Renewables power generation

Power generation comes mainly from offshore wind assets, and remained stable in the first quarter of 2023 compared to the same

quarter last year.

Results from equity accounted investments

Net income from equity-accounted investments decreased compared to same quarter in the prior year. Producing assets contributed

positively to net income, however, the contribution was somewhat lower than in the first quarter of last year due to lower prices. Net

income from producing assets was more than offset by net losses from projects under development. Project expenses have increased

compared to the first quarter of 2022 due to higher activity levels as projects progress.

Operating expenses and financial results

In the first quarter of 2023, the decrease in net operating income and adjusted earnings* compared to the same period last year was

driven by increased business development costs due to higher activity levels in the US, the UK and Asia. In the first quarter of 2022,

net operating income included divestment gains of USD 87 million from the Dogger Bank C wind farm project.

The acquisition of BeGreen which closed in the first quarter of 2023 and investment related to projects in the US significantly

contributed to the additions to PP&E, intangibles and equity accounted investments for the first quarter of 2023 compared to last year.

Equinor first quarter 2023 20

CONDENSED INTERIM FINANCIAL STATEMENTS

First quarter 2023

CONSOLIDATED STATEMENT OF INCOME

Quarters

(unaudited, in USD million)

Note

Q1 2023

Q4 2022

Q1 2022

Revenues

4

29,210

33,841

36,050

Net income/(loss) from equity accounted investments

43

395

99

Other income

(30)

84

244

Total revenues and other income

2

29,224

34,321

36,393

Purchases [net of inventory variation]

(11,235)

(12,853)

(13,510)

Operating expenses

3

(2,722)

(3,026)

(1,989)

Selling, general and administrative expenses

(304)

(278)

(282)

Depreciation, amortisation and net impairments

(2,200)

(1,184)

(2,017)

Exploration expenses

(246)

(396)

(203)

Total operating expenses

2

(16,707)

(17,737)

(18,001)

Net operating income/(loss)

2

12,517

16,584

18,392

Interest expenses and other financial expenses

(463)

(450)

(266)

Other financial items

1,652

(1,664)

(903)

Net financial items

5

1,189

(2,115)

(1,169)

Income/(loss) before tax

13,707

14,469

17,223

Income tax

6

(8,741)

(6,572)

(12,509)

Net income/(loss)

4,966

7,897

4,714

Equinor first quarter 2023 21

Attributable to equity holders of the company

4,962

7,895

4,710

Attributable to non-controlling interests

4

2

4

Basic earnings per share (in USD)

1.59

2.52

1.46

Diluted earnings per share (in USD)

1.59

2.51

1.46

Weighted average number of ordinary shares outstanding (in millions)

3,118

3,131

3,228

Weighted average number of ordinary shares outstanding diluted (in millions)

3,124

3,141

3,237

Equinor first quarter 2023 22

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Quarters

(unaudited, in USD million)

Q1 2023

Q4 2022

Q1 2022

Net income/(loss)

4,966

7,897

4,714

Actuarial gains/(losses) on defined benefit pension plans

54

895

(419)

Income tax effect on income and expenses recognised in OCI

1)

(16)

(208)

93

Items that will not be reclassified to the Consolidated statement of income

38

687

(326)

Foreign currency translation effects

(1,426)

4,116

173

Share of OCI from equity accounted investments

(65)

424

0

Items that may be subsequently reclassified to the Consolidated statement of income

(1,491)

4,540

173

Other comprehensive income/(loss)

(1,453)

5,228

(153)

Total comprehensive income/(loss)

3,512

13,125

4,561

Attributable to the equity holders of the company

3,508

13,123

4,557

Attributable to non-controlling interests

4

2

4

1) Other comprehensive income (OCI).

Equinor first quarter 2023 23

CONSOLIDATED BALANCE SHEET

At 31 March

At 31 December

(unaudited, in USD million)

Note

2023

2022

1)

ASSETS

Property, plant and equipment

2

55,161

56,498

Intangible assets

5,535

5,158

Equity accounted investments

3,084

2,758

Deferred tax assets

8,417

8,732

Pension assets

1,182

1,219

Derivative financial instruments

526

691

Financial investments

2,857

2,733

Prepayments and financial receivables

7

868

2,063

Total non-current assets

77,632

79,851

Inventories

3,192

5,205

Trade and other receivables

2

16,229

22,452

Derivative financial instruments

2,836

4,039

Financial investments

34,576

29,876

Cash and cash equivalents

3

17,915

15,579

Total current assets

74,749

77,152

Assets classified as held for sale

3

109

1,018

Total assets

152,491

158,021

EQUITY AND LIABILITIES

Shareholders' equity

57,165

53,988

Non-controlling interests

5

1

Total equity

57,170

53,989

Finance debt

5

22,403

24,141

Equinor first quarter 2023 24

Lease liabilities

2,459

2,410

Deferred tax liabilities

11,925

11,996

Pension liabilities

3,617

3,671

Provisions and other liabilities

7

14,236

15,633

Derivative financial instruments

2,194

2,376

Total non-current liabilities

56,834

60,226

Trade, other payables and provisions

10,410

13,352

Current tax payable

6

18,926

17,655

Finance debt

5

4,995

4,359

Lease liabilities

1,275

1,258

Dividends payable

0

2,808

Derivative financial instruments

2,597

4,106

Total current liabilities

38,204

43,539

Liabilities directly associated with the assets classified as held for sale 

3

283

268

Total liabilities

95,321

104,032

Total equity and liabilities

152,491

158,021

1) Audited

2) Of which Trade receivables of USD 12.0 billion 31 March 2023 and USD 17.3 billion 31 December 2022

3) Includes collateral deposits of USD 2.450 billion for 31 March 2023 related to certain requirements set out by exchanges where Equinor is

participating. The corresponding figure for 31 December 2022 is USD 6.128 billion.

Equinor first quarter 2023 25

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(unaudited, in USD million)

Share

capital

Additional

paid-in

capital

Retained

earnings

Foreign

currency

translation

reserve

OCI from

equity

accounted

investments

Share-

holders'

equity

Non-

controlling

interests

Total equity

At 1 January 2022

1,164

6,408

36,683

(5,245)

0

39,010

14

39,024

Net income/(loss)

4,710

4,710

4

4,714

Other comprehensive

income/(loss)

(326)

173

(153)

(153)

Total comprehensive

income/(loss)

4,561

Dividends

0

0

Share buy-back

(330)

(330)

(330)

Other equity transactions

(4)

(3)

(3)

At 31 March 2022 

1,164

6,074

41,068

(5,073)

0

43,233

19

43,251

At 1 January 2023

1,142

3,041

58,236

(8,855)

424

53,988

1

53,989

Net income/(loss)

4,962

4,962

4

4,966

Other comprehensive

income/(loss)

38

(1,426)

(65)

(1,453)

(1,453)

Total comprehensive

income/(loss)

3,512

Dividends

0

0

Share buy-back

1)

(331)

(331)

(331)

Other equity transactions

0

0

At 31 March 2023

1,142

2,710

63,236

(10,281)

359

57,165

5

57,170

1) For more information see note 8 Capital distribution.

Equinor first quarter 2023 26

CONSOLIDATED STATEMENT OF CASH FLOWS

Quarters

(unaudited, in USD million)

Note

Q1 2023

Q4 2022

Q1 2022

Income/(loss) before tax

13,707

14,469

17,223

Depreciation, amortisation and net impairment

2,200

1,184

2,017

Exploration expenditures written off

91

183

73

(Gains)/losses on foreign currency transactions and balances

5

(955)

2,140

284

(Gains)/losses on sale of assets and businesses

3

233

(87)

(89)

(Increase)/decrease in other items related to operating activities

1)

(324)

2,923

(300)

(Increase)/decrease in net derivative financial instruments

327

217

953

Interest received

277

216

11

Interest paid

(251)

(258)

(118)

Cash flows provided by operating activities before taxes paid and working capital items

15,305

20,988

20,055

Taxes paid

(5,589)

(14,188)

(4,307)

(Increase)/decrease in working capital

5,155

(2,532)

23

Cash flows provided by operating activities 

14,871

4,267

15,771

Capital expenditures and investments

2)

3

(2,303)

(2,376)

(2,616)

(Increase)/decrease in financial investments

(5,108)

(6,990)

(2,850)

(Increase)/decrease in derivative financial instruments

(803)

(374)

424

(Increase)/decrease in other interest-bearing items

63

7

4

Proceeds from sale of assets and businesses

3)

3

47

47

574

Cash flows provided by/(used in) investing activities

(8,104)

(9,687)

(4,465)

Repayment of finance debt

(2,176)

(250)

0

Repayment of lease liabilities

(332)

(365)

(317)

Dividends paid

(2,861)

(2,231)

(582)

Share buy-back

(461)

(577)

(439)

Equinor first quarter 2023 27

Net current finance debt and other financing activities

873

230

(2,804)

Cash flows provided by/(used in) financing activities

(4,958)

(3,193)

(4,142)

Net increase/(decrease) in cash and cash equivalents

1,809

(8,612)

7,165

Effect of exchange rate changes on cash and cash equivalents

(8)

844

(270)

Cash and cash equivalents at the beginning of the period (net of overdraft)

15,579

23,348

13,987

Cash and cash equivalents at the end of the period (net of overdraft)

4)

17,380

15,579

20,882

1) The line item includes a fair value loss related to inventory of USD 2,408 million in the fourth quarter 2022. The corresponding amount in

the first quarter 2023 is immaterial.

2) Cash inflow of USD 433 million received in the first quarter 2022 related to the disposal of parts of the interests in the Bacalhau field in

2018 (contingent consideration) has been reclassified from Capital expenditures and investments to Proceeds from sale of assets and

businesses.

3) The line item includes cash consideration net of cash disposed of related to the disposal of

Equinor Energy Ireland Limited at closing date

31 March 2023. See note 3 Acquisitions and disposals for more information. 

4) At 31 March 2023 cash and cash equivalents net overdraft was USD 535 million. At 31 December 2022 and March 2022, cash and cash

equivalents net overdrafts were zero.

Equinor first quarter 2023 28

Notes to the Condensed interim financial statements

1 Organisation and basis of preparation

Organisation and principal activities

Equinor Group (Equinor) consists of Equinor ASA and its subsidiaries. Equinor ASA is incorporated and domiciled in Norway and

listed on the Oslo Børs (Norway) and the New York Stock Exchange (USA). The address of its registered office is Forusbeen 50, N-

4035 Stavanger, Norway.

The objective of Equinor is to develop, produce and market various forms of energy and derived products and services, as well as

other business. The activities may also be carried out through participation in or cooperation with other companies. Equinor Energy

AS, a 100% owned operating subsidiary of Equinor ASA and owner of all of Equinor's oil and gas activities and net assets on the

Norwegian continental shelf, is co-obligor or guarantor of certain debt obligations of Equinor ASA.

Equinor's condensed interim financial statements for the first quarter of 2023 were authorised for issue by the board of directors on 3

May 2023.

Basis of preparation

These condensed interim financial statements are prepared in accordance with International Accounting Standard 34 Interim Financial

Reporting as issued by the International Accounting Standards Board (IASB) and as adopted by the European Union (EU). The

condensed interim financial statements do not include all the information and disclosures required by International Financial Reporting

Standards (IFRS) for a complete set of financial statements, and these condensed interim financial statements should be read in

conjunction with the consolidated annual financial statements for 2022. IFRS as adopted by the EU differs in certain respects from

IFRS as issued by the IASB, however the differences do not impact Equinor's financial statements for the periods presented. A

description of the material accounting policies applied in preparing these condensed interim financial statements is included in

Equinor`s consolidated annual financial statements for 2022.

There have been no changes to the material accounting policies during 2023 compared to the consolidated annual financial

statements for 2022.

Certain amounts in the comparable periods in the note disclosures have been reclassified to conform to current period presentation.

The subtotals and totals in some of the tables may not equal the sum of the amounts shown due to rounding. When determining fair

value, there have been no changes to the valuation techniques or models and Equinor applies the same sources of input and the

same criteria for categorisation in the fair value hierarchy as disclosed in the Consolidated annual financial statements for 2022.

The Condensed interim financial statements are unaudited.

Use of estimates

The preparation of financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions

that affect the application of policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated

assumptions are reviewed on an on-going basis and are based on historical experience and various other factors that are believed to

be reasonable under the circumstances, the results of which form the basis for making the judgments about carrying values of assets

and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

Equinor first quarter 2023 29

2 Segments

Equinor’s operations are managed through operating segments identified on the basis of those components of Equinor that are

regularly reviewed by the chief operating decision maker, Equinor's Corporate Executive Committee (CEC). The reportable segments

Exploration & Production Norway (E&P Norway), Exploration & Production International (E&P International), Exploration & Production

USA E&P USA), Marketing, Midstream & Processing (MMP) and Renewables (REN) correspond to the operating segments. The

operating segments Projects, Drilling & Procurement (PDP), Technology, Digital & Innovation (TDI) and Corporate staff and functions

are aggregated into the reportable segment Other based on materiality. The majority of the costs in PDP and TDI is allocated to the

three Exploration & Production segments, MMP and REN.

The accounting policies of the reporting segments equal those described in these Consolidated financial statements, except for the

line-item Additions to PP&E, intangibles and equity accounted investments in which movements related to changes in asset retirement

obligations are excluded as well as provisions for onerous contracts which reflect only obligations towards group external parties. The

measurement basis of segment profit is net operating income/(loss). Deferred tax assets, pension assets, non-current financial assets,

total current assets and total liabilities are not allocated to the segments. Transactions between the segments, mainly from the sale of

crude oil, gas, and related products, are performed at defined internal prices which have been derived from market prices. The

transactions are eliminated upon consolidation.

First quarter 2023

E&P

Norway

E&P

International

E&P 

USA

MMP

REN

Other

Eliminations

Total

(in USD million)

Revenues third party, other revenue and

other income

(48)

329

61

28,767

5

66

0

29,181

Revenues inter-segment

12,092

1,209

954

82

0

9

(14,346)

0

Net income/(loss) from equity accounted

investments

0

11

0

40

(7)

0

0

43

Total revenues and other income 

12,044

1,548

1,015

28,889

(2)

75

(14,346)

29,224

Purchases [net of inventory variation]

(0)

16

0

(25,358)

0

(0)

14,107

(11,235)

Operating, selling, general and

administrative expenses

(977)

(659)

(273)

(1,178)

(86)

(133)

281

(3,025)

Depreciation and amortisation

(1,115)

(461)

(357)

(232)

(1)

(33)

0

(2,198)

Net impairment losses/(reversals) 

0

0

0

(2)

0

0

0

(2)

Exploration expenses

(137)

(64)

(46)

0

0

0

0

(246)

Total operating expenses

(2,229)

(1,167)

(675)

(26,771)

(87)

(166)

14,388

(16,707)

Net operating income/(loss)

9,816

382

340

2,118

(89)

(91)

42

12,517

Additions to PP&E, intangibles and equity

accounted investments

1,317

451

262

219

851

78

0

3,179

Balance sheet information

Equity accounted investments 

3

560

0

675

1,771

75

0

3,084

Non-current segment assets 

27,167

15,992

11,241

4,469

763

1,064

0

60,696

Equinor first quarter 2023 30

Non-current assets not allocated to

segments 

13,852

Total non-current assets 

77,632

Assets held for sale

109

0

0

0

0

0

0

109

Equinor first quarter 2023 31

Fourth quarter 2022

E&P

Norway

E&P

International

E&P 

USA

MMP

REN

Other

Eliminations

Total

(in USD million)

Revenues third party, other revenue and

other income

77

720

69

32,965

31

65

0

33,926

Revenues inter-segment

16,652

1,623

1,014

254

0

27

(19,570)

0

Net income/(loss) from equity accounted

investments

(0)

31

0

372

8

(16)

0

395

Total revenues and other income 

16,729

2,373

1,083

33,591

38

76

(19,570)

34,321

Purchases [net of inventory variation]

(0)

(85)

(0)

(31,996)

0

(0)

19,228

(12,853)

Operating, selling, general and

administrative expenses

(1,020)

(511)

(220)

(1,614)

(100)

(153)

314

(3,304)

Depreciation and amortisation

(1,219)

(436)

(363)

(236)

(1)

(26)

0

(2,281)

Net impairment losses/(reversals) 

(3)

747

350

3

0

(0)

0

1,097

Exploration expenses

(101)

(266)

(29)

0

0

0

0

(396)

Total operating expenses

(2,343)

(551)

(262)

(33,843)

(101)

(179)

19,542

(17,737)

Net operating income/(loss)

14,386

1,822

821

(252)

(63)

(103)

(29)

16,584

Additions to PP&E, intangibles and equity

accounted investments

1,422

584

281

349

103

88

0

2,828

Balance sheet information

Equity accounted investments 

3

550

0

688

1,452

65

0

2,758

Non-current segment assets 

28,510

15,868

11,311

4,619

316

1,031

0

61,656

Non-current assets not allocated to

segments 

15,437

Total non-current assets 

79,851

Assets held for sale

0

1,018

0

0

0

0

0

1,018

Equinor first quarter 2023 32

First quarter 2022

E&P

Norway

E&P

International

E&P 

USA

MMP

REN

Other

Eliminations

Total

(in USD million)

Revenues third party, other revenue and

other income

209

62

78

35,825

90

31

0

36,294

Revenues inter-segment

18,245

1,324

1,191

89

0

10

(20,859)

0

Net income/(loss) from equity accounted

investments

0

67

0

3

29

0

0

99

Total revenues and other income

18,454

1,453

1,269

35,917

119

41

(20,859)

36,393

Purchases [net of inventory variation]

0

27

0

(34,289)

0

0

20,752

(13,510)

Operating, selling, general and

administrative expenses

(816)

(390)

(220)

(923)

(41)

(78)

197

(2,271)

Depreciation and amortisation

(1,421)

(336)

(320)

(212)

(1)

(39)

0

(2,330)

Net impairment losses/(reversals) 

821

(1,042)

533

0

0

0

0

312

Exploration expenses

(106)

(81)

(16)

0

0

0

0

(203)

Total operating expenses

(1,521)

(1,822)

(24)

(35,425)

(41)

(116)

20,949

(18,001)

Net operating income/(loss)

16,933

(369)

1,245

492

77

(76)

90

18,392

Additions to PP&E, intangibles and equity

accounted investments

1,072

626

126

265

43

56

0

2,188

Non-current assets by country

At 31 March

At 31 December

(in USD million)

2023

2022

Norway

31,779

33,242

USA

12,624

12,343

Brazil

9,493

9,400

UK

3,739

3,688

Azerbaijan

1,396

1,401

Canada

1,160

1,171

Denmark

935

497

Angola

893

895

Argentina

625

615

Algeria

584

622

Other

553

541

Total non-current assets

1)

63,780

64,414

1) Excluding deferred tax assets, pension assets and non-current financial assets.

3 Acquisitions and disposals 

Acquisitions

Equinor first quarter 2023 33

Acquisition of BeGreen

On 26 January 2023, Equinor closed a transaction with the Bregentved Group and members of the executive board of BeGreen Solar

Aps to acquire 100% of the shares in the Danish solar developer BeGreen Solar Aps. The cash consideration amounted to USD 252

million (EUR 235 million), in addition to a consideration contingent on the successful delivery of future solar projects above an agreed

megawatt threshold. The transaction has been accounted for within the REN segment as a business combination, resulting in an

increase of Equinor’s intangible assets of USD 423 million. The purchase price and the purchase price allocation are preliminary.

Acquisition of Suncor Energy UK Limited

On 3 March 2023, Equinor entered into an agreement to acquire 100% of Suncor Energy UK Limited for a total consideration of USD

850 million before adjustments for working capital and net cash. USD 250 million is contingent on a final investment decision on the

Rosebank field. The transaction includes a non-operated interest in the producing Buzzard oil field (29.89%) and an additional interest

in the operated Rosebank development (40%). Closing of the transaction is expected to take place in the second quarter of 2023

subject to relevant regulatory approvals and will be recognised in the E&P International segment.

Disposals

Equinor Energy Ireland Limited

On 31 March 2023, Equinor closed the transaction with Vermilion Energy Inc (Vermillion) to sell Equinor’s non-operated equity

position in the Corrib gas project in Ireland, covering 100% of the shares in Equinor Energy Ireland Limited (EEIL). Prior to closing,

Equinor received an extraordinary dividend of USD 371 million from EEIL. Total consideration amounted to USD 362 million, including

cash settlement of contingent consideration. A loss of USD 258 million has been recognised and presented in the line item Operating

expenses in the Consolidated statement of income within the E&P International segment.

4 Revenues 

Revenues from contracts with customers by geographical areas

When attributing the line item Revenues from contracts with customers for the first quarter of 2023 to the country of the legal entity

executing the sale, Norway constitutes 84% and USA constitutes 12% of such revenues. For the first quarter of 2022, Norway and

USA constituted 86% and 10% of such revenues, respectively.

Revenues from contracts with customers and other revenues

Quarters

(in USD million)

Q1 2023

Q4 2022

Q1 2022

Crude oil

12,112

12,994

15,034

Natural gas

10,457

15,479

15,538

 - European gas

9,228

13,326

14,350

 - North American gas

397

651

621

 - Other incl. Liquefied natural gas

832

1,502

567

Refined products

2,477

2,892

2,904

Natural gas liquids

2,383

1,896

2,576

Transportation

453

480

282

Other sales

959

1,469

1,117

Revenues from contracts with customers

28,841

35,209

37,451

Total other revenues

1)

370

(1,368)

(1,401)

Revenues

29,210

33,841

36,050

1) Principally relates to commodity derivatives and change in fair value less cost to sell for commodity inventories held for trading purposes.

Equinor first quarter 2023 34

5 Financial items 

Quarters

(in USD million)

Q1 2023

Q4 2022

Q1 2022

Net foreign currency exchange gains/(losses)

955

(2,140)

(284)

Interest income and other financial items

590

482

114

Gains/(losses) on financial investments

32

8

(134)

Gains/(losses) other derivative financial instruments 

74

(15)

(599)

Interest and other finance expenses

(463)

(450)

(266)

Net financial items

1,189

(2,115)

(1,169)

Equinor reports significant unrealised foreign currency gains in the first quarter, mainly related to strengthening of USD versus NOK.

These effects are mainly due to a large part of Equinor’s operations having NOK as functional currency, and the effects are offset

within equity as OCI effects arising on translation from functional currency to presentation currency USD.

The increase in Interest income and other financial items in first quarter compared to the previous quarter and same quarter prior year

mainly relates to higher interest rates and increased Cash and cash equivalents and Current financial investments.

Equinor has a US Commercial paper programme available with a limit of USD 5 billion. As of 31 March 2023, USD 1.4 billion were

utilised compared to USD 0.2 billion utilised as of 31 December 2022.

6 Income taxes

Quarters

(in USD million)

Q1 2023

Q4 2022

Q1 2022

Income/(loss) before tax

13,707

14,469

17,223

Income tax

(8,741)

(6,572)

(12,509)

Effective tax rate

 63.8%

 45.4%

 72.6%

The effective tax rate for the first quarter of 2023 was significantly influenced by lower share of income from the Norwegian continental

shelf and currency effects in entities that are taxable in other currencies than the functional currency.

The effective tax rate for the first quarter of 2022 was primarily influenced by high share of operating income from the Norwegian

continental shelf and losses including impairments recognised in countries with lower effective tax rates, partially offset by positive

income in countries with unrecognised deferred tax assets. The tax rate is also influenced by currency effects in entities that are

taxable in other currencies than the functional currency.

Equinor first quarter 2023 35

7 Provisions, commitments, contingent items and related parties

Litigation and claims

During the normal course of its business, Equinor is involved in legal and other proceedings, and several unresolved claims are

currently outstanding. The ultimate liability or asset in respect of such litigation and claims cannot be determined at this time. Equinor

has provided in its Condensed interim financial statements for probable liabilities related to litigation and claims based on the

company’s best judgement. Equinor does not expect that its financial position, results of operations or cash flows will be materially

affected by the resolution of these legal proceedings.

Related parties

The line-item Prepayments and Financial Receivables includes USD 213 million which represent a gross receivable from the

Norwegian state under the Marketing Instruction in relation to the state’s (SDFI) expected participation in the gas sales activities of a

foreign subsidiary of Equinor. At year-end 2022, the corresponding amount was USD 1,461 million. The decrease is mainly related to

reduced gas storage volumes due to gas sales. A corresponding non-current liability of USD 213 million has been recognised,

representing SDFI's estimated interest in the gas sales activities in the foreign subsidiary. Total non-current liabilities to SDFI amounts

to USD 770 million at 31 March 2023 (USD 2,072 million at year end 2022).

8 Capital distribution

Dividend for the first quarter

On 3 May 2023, the Board of Directors resolved to declare an ordinary cash dividend for the first quarter of 2023 of USD 0.30 per

share and an extraordinary cash dividend of USD 0.60 per share. The Equinor shares will be traded ex-dividend 14 August 2023 on

the Oslo Børs and for ADR holders on the New York Stock Exchange. Record date will be 15 August 2023 and payment date will be

25 August 2022.

Share buy- back programme 2023

The purpose of the share buy-back programme is to reduce the issued share capital, and all shares repurchased will be cancelled.

According to agreement between Equinor and the Norwegian State, a proportionate share of the Norwegian State's shares will be

redeemed and annulled at the annual general meeting, ensuring that the State's ownership interest in Equinor remains unchanged at

67%. The Board of Directors has proposed an annual buy-back programme for 2023 with up to USD 6 billion, including shares to be

redeemed from the Norwegian State, subject to authorisation from the annual general meeting.

On 7 February 2023, Equinor launched the first tranche of USD 1 billion. USD 330 million order has been acquired in the open market

and the full amount has been settled, while USD 670 million of shares from the Norwegian State will be redeemed at the annual

general meeting in May 2023. On 3 May 2023, the Board of Directors resolved the commencement of the second tranche of the share

buy-back programme for 2023 of a total of around USD 1.67 billion, including shares to be redeemed from the Norwegian State. The

second tranche is subject to approval at the general meeting and will end no later than 25 July 2023.

Equity impact of share buy back programmes (in USD million)

Q1 2023

Q1 2022

First tranche

330

330

Total

330

330

Equinor first quarter 2023 36

SUPPLEMENTARY DISCLOSURES 

Exchange rates

Quarters

Change

Exchange rates

Q1 2023

Q4 2022

Q1 2022

Q1 on Q1

NOK/USD average daily exchange rate

0.0976

0.0981

0.1130

(14%)

NOK/USD period-end exchange rate

0.0954

0.1014

0.1143

(17%)

USD/NOK average daily exchange rate

10.2439

10.1925

8.8483

16%

USD/NOK period-end exchange rate

10.4772

9.8573

8.7479

20%

EUR/USD average daily exchange rate

1.0728

1.0195

1.1216

(4%)

EUR/USD period-end exchange rate

1.0875

1.0666

1.1101

(2%)

USE AND RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

Non-GAAP financial measures are defined as numerical measures that either exclude or include amounts or certain accounting items

that are not excluded or included in the comparable measures calculated and presented in accordance with GAAP (i.e., IFRS).

Management considers adjusted earnings and adjusted earnings after tax together with other non-GAAP financial measures as

defined below, to provide a better indication of the underlying operational and financial performance in the period (excluding

financing), and therefore better facilitate comparisons between periods.

The following financial measures may be considered non-GAAP financial measures:

●

Adjusted earnings

 are based on net operating income/(loss) and adjusts for certain items affecting the income for the period in

order to separate out effects that management considers may not be well correlated to Equinor’s underlying operational

performance in the individual reporting period. Management considers adjusted earnings to be a supplemental measure to

Equinor’s IFRS measures, which provides an indication of Equinor’s underlying operational performance in the period and

facilitates an alternative understanding of operational trends between the periods. Adjusted earnings include adjusted revenues

and other income, adjusted purchases, adjusted operating expenses and selling, general and administrative expenses, adjusted

depreciation expenses and adjusted exploration expenses.

●

Adjusted earnings after tax

 – equals the sum of net operating income/(loss) less income tax in business areas and adjustments

to operating income taking the applicable marginal tax into consideration. Adjusted earnings after tax excludes net financial items

and the associated tax effects on net financial items. It is based on adjusted earnings less the tax effects on all elements included

in adjusted earnings (or calculated tax on operating income and on each of the adjusting items using an estimated marginal tax

rate). In addition, tax effect related to tax exposure items not related to the individual reporting period is excluded from adjusted

earnings after tax. Management considers adjusted earnings after tax, which reflects a normalised tax charge associated with its

operational performance excluding the impact of financing, to be a supplemental measure to Equinor’s net income. Certain net

USD denominated financial positions are held by group companies that have a USD functional currency that is different from the

currency in which the taxable income is measured. As currency exchange rates change between periods, the basis for measuring

net financial items for IFRS will change disproportionally with taxable income which includes exchange gains and losses from

translating the net USD denominated financial positions into the currency of the applicable tax return. Therefore, the effective tax

rate may be significantly higher or lower than the statutory tax rate for any given period. Adjusted taxes included in adjusted

earnings after tax should not be considered indicative of the amount of current or total tax expense (or taxes payable) for the

period.

Adjusted earnings and adjusted earnings after tax should be considered additional measures rather than substitutes for net operating

income/(loss) and net income/(loss), which are the most directly comparable IFRS measures. There are material limitations

associated with the use of adjusted earnings and adjusted earnings after tax compared with the IFRS measures as such non-GAAP

measures do not include all the items of revenues/gains or expenses/losses of Equinor that are needed to evaluate its profitability on

an overall basis. Adjusted earnings and adjusted earnings after tax are only intended to be indicative of the underlying developments

in trends of our on-going operations for the production, manufacturing and marketing of our products and exclude pre-and post-tax

impacts of net financial items. Equinor reflects such underlying development in our operations by eliminating the effects of certain

items that may not be directly associated with the period's operations or financing. However, for that reason, adjusted earnings and

adjusted earnings after tax are not complete measures of profitability. These measures should therefore not be used in isolation.

Equinor first quarter 2023 37

Equinor first quarter 2023 38

Amended principles for Adjusted earnings with effect from the first quarter of 2023:

Equinor has made the following changes to the items adjusted for within Adjusted earnings:

●

 With effect from the first quarter of 2023, movements in the fair value of commodity derivatives used to manage price risk

exposure of future sale and purchase contracts are excluded from adjusted earnings and deferred until the time of the physical

delivery. This change minimises the effects of timing differences and presents a measure more indicative of underlying economic

performance.

●

 With effect from the first quarter of 2023, the principle used to adjust the valuation of commercial storages is based on the

forward price at the expected realisation date. Prior to this amendment, the valuation adjustment was based on short-term

forward prices which, for some storages, did not correspond to the forward price at the expected realisation date. This change

brings the valuation principle in line with how the corresponding derivative contract used to manage price exposure is valued.

These changes have been applied retrospectively to the comparative figures. The majority of the impact is due to the revised

treatment of commodity derivatives. These changes only affect the MMP reporting segment and currently do not have an impact on

other segments. Equinor deems that these changes lead to a better representation of performance in each period by appropriately

reflecting the economic impact of its risk management activities.

Impact of change

Q1 2022

Q4 2022

MMP segment

As reported

Impact

Restated

As reported

Impact

Restated

Changes in fair value of derivatives

45

(301)

(256)

(142)

2,207

2,065

Periodisation of inventory hedging effect

(247)

179

(68)

(395)

(251)

(646)

Adjusted total revenues and other income

35,715

(122)

35,592

33,055

1,955

35,010

Adjusted earnings/(loss)

31

(122)

(92)

(540)

1,955

1,416

Adjusted earnings/(loss) after tax

38

308

345

1,907

(1,077)

830

Impact of change

Q1 2022

Q4 2022

Equinor group

As reported

 Impact

 Restated

 As reported

 Impact

 Restated

Changes in fair value of derivatives

205

(301)

(96)

(462)

2,207

1,744

Periodisation of inventory hedging effect

(247)

179

(68)

(395)

(251)

(646)

Adjusted total revenues and other income

36,712

(122)

36,590

33,546

1,955

35,501

Adjusted earnings/(loss)

17,991

(122)

17,869

15,059

1,955

17,014

Adjusted earnings/(loss) after tax

5,179

308

5,487

5,796

(1,077)

4,719

Effective tax rates on adjusted earnings

71.2%

(1.9%)

69.3%

61.5%

10.8%

72.3%

No other line items or segments were affected by the change.

●

Capital employed adjusted –

this measure is defined as Equinor's total equity (including non-controlling interests) and net

interest-bearing debt adjusted.

●

Net interest-bearing debt adjusted

 – this measure is defined as Equinor's interest bearing financial liabilities less cash and cash

equivalents and current financial investments, adjusted for collateral deposits and balances held by Equinor's captive insurance

company and balances related to the SDFI.

●

Net debt to capital employed

,

Net debt to capital employed adjusted, including lease liabilities

and

 Net debt to capital

employed ratio adjusted

– Following implementation of IFRS 16 Equinor presents a “net debt to capital employed adjusted”

excluding lease liabilities from the gross interest-bearing debt. Comparable numbers are presented in the table Calculation of

capital employed and net debt to capital employed ratio in the report include Finance lease according to IAS17, adjusted for

marketing instruction agreement.

In Equinor’s view, net debt ratio provides useful information about Equinor’s capital structure and

financial strength.

●

Organic capital expenditures (organic investments/capex)

– Capital expenditures, defined as Additions to PP&E, intangibles

and equity accounted investments in note 2 Segments to the Condensed interim financial statements, amounted to USD 3.2 billion

in Q1 2023 (Q1 2022: USD 2.2 billion). Organic capital expenditures are capital expenditures excluding acquisitions, recognised

lease assets (RoU assets) and other investments with significant different cash flow pattern. In Q1 2023, a total of USD 0.9 billion

(Q1 2022: USD 0.4 billion) is excluded in the organic capital expenditures. Forward-looking organic capital expenditures included

in this report are not reconcilable to its most directly comparable IFRS measure without unreasonable efforts, because the

amounts excluded from such IFRS measure to determine organic capital expenditures cannot be predicted with reasonable

Equinor first quarter 2023 39

certainty. Organic capital expenditure is a measure which Equinor believes gives relevant information about Equinor’s investments

in maintenance and development of the company’s assets.

●

Gross investments/capex

 – Capital expenditures, defined as Additions to PP&E, intangibles and equity accounted investments

in the financial statements, including Equinor’s proportionate share of capital expenditures in equity accounted investments not

included in additions to equity accounted investments. Forward-looking gross capital expenditures included in this report are not

reconcilable to its most directly comparable IFRS measure without unreasonable efforts, because the amounts excluded from

such IFRS measure to determine gross capital expenditures cannot be predicted with reasonable certainty.

●

Cashflow from operations after taxes paid (CFFO after taxes paid)

represents, and is used by management, to evaluate cash

generated from operating activities after taxes paid, available for investing activities, for debt servicing and distribution to

shareholders. However, cashflow from operations after taxes paid is not a measure of our liquidity under IFRS and should not be

considered in isolation or as a substitute for an analysis of our results as reported in this report. Our definition of Cashflow from

operations after taxes paid is limited and does not represent residual cash flows available for discretionary expenditures. CFFO

after taxes paid for the first quarter of 2023 and the first and fourth quarter of 2022 includes the following line items in the

Consolidated statement of cash flows: Cash flows provided by operating activities before taxes paid and working capital items

(2023: USD 15.3 billion | Q1 2022: USD 20.1 billion | Q4 2022: USD 21.0 billion) and taxes paid (2023: negative USD 5.6 billion |

Q1 2022: negative USD 4.3 billion | Q4 2022: negative USD 14.2 billion), resulting in a cashflow from operations after taxes paid

of USD 9,716 million in the first quarter of 2023 (Q1 2022: USD 15,748 million | Q4 2022: USD 6,800 million). 

●

Net cash flow (previously named free cash flow) for the first quarter of 2023 and the first and fourth quarter 2022

 includes

the following line items in the Consolidated statement of cash flows: Cash flows provided by operating activities before taxes paid

and working capital items (2023: USD 15.3 billion | Q1 2022: USD 20.1 billion | Q4 2022: USD 21.0 billion), taxes paid (2023:

negative USD 5.6 billion | Q1 2022: negative USD 4.3 billion | Q4 2022: negative USD 14.2 billion), cash used/received in

business combinations (2023: USD 0.0 billion | Q1 2022: USD 0.0 billion | Q4 2022: USD 0.0 billion), capital expenditures and

investments (2023: negative USD 2.3 billion | Q1 2022: negative USD 2.6 billion | Q4 2022: negative USD 2.4 billion),

increase/decrease in other items interest-bearing (2023: USD 0.1 billion | Q1 2022: USD 0.0 billion | Q4 2022: USD 0.0 billion),

proceeds from sale of assets and businesses (2023: USD 0.0 billion | Q1 2022: USD 0.6 billion | Q4 2022: USD 0.0 billion),

dividend paid (2023: negative USD 2.9 billion | Q1 2022: negative USD 0.6 billion | Q4 2022: negative USD 2.2 billion) and share

buy-back (2023: negative USD 0.5 billion | Q1 2022: negative USD 0.4 billion | Q4 2022: negative USD 0.6 billion), resulting in a

net cash flow of 4.2 billion in the first quarter of 2023 (Q1 2022: 12.7 billion | Q4 2022: 1.7 billion). Net cash flow represents, and is

used by management to evaluate, cash generated from operational and investing activities available for debt servicing and

distribution to shareholders. The name of the measure was updated in the first quarter of 2023, but no changes have been made

to the definition. 

Adjusted earnings

adjust for the following items:

●

Changes in fair value of derivatives

: In the ordinary course of business, Equinor enters into commodity derivative contracts to

manage the price risk exposure relating to future sale and purchase contracts. These commodity derivatives are measured at fair

value at each reporting date, with the movements in fair value recognised in the income statement. By contrast, the sale and

purchase contracts are not recognised until the transaction occurs resulting in timing differences. Therefore, with effect from the

first quarter of 2023, the unrealised movements in the fair value of these commodity derivative contracts are excluded from

adjusted earnings and deferred until the time of the physical delivery to minimise the effect of these timing differences. Further,

embedded derivatives within certain gas contracts and contingent consideration related to historical divestments are required to

be carried at fair value. Any accounting impacts resulting from such changes in fair value are also excluded from adjusted

earnings, as these fluctuations are not indicative of the underlying performance of the business.

●

Periodisation of inventory hedging effect

: Equinor enters into derivative contracts to manage price risk exposure relating to its

commercial storage. These derivative contracts are carried at fair value while the inventories are accounted for at the lower of

cost or market price. Therefore, measurement differences occur in relation to the recognition of gains and losses. An adjustment

is made to align the valuation principles of inventories with related derivative contracts. With effect from the first quarter of 2023,

the adjusted valuation of inventories is based on the forward price at the expected realisation date. This is so that the valuation

principles between commercial storages and derivative contracts are better aligned.

●

Over/underlift

: Over/underlift is accounted for using the sales method and therefore revenues were reflected in the period the

product was sold rather than in the period it was produced. The over/underlift position depended on several factors related to our

lifting programme and the way it corresponded to our entitlement share of production. The effect on income for the period is

therefore adjusted, to show estimated revenues and associated costs based upon the production for the period to reflect

operational performance and comparability with peers. 

●

The

operational storage

is not hedged and is not part of the trading portfolio. Cost of goods sold is measured based on the

FIFO (first-in, first-out) method, and includes realised gains or losses that arise due to changes in market prices. These gains or

losses will fluctuate from one period to another and are not considered part of the underlying operations for the period.

●

Impairment and reversal of impairment

are excluded from adjusted earnings since they affect the economics of an asset for

the lifetime of that asset, not only the period in which it is impaired, or the impairment is reversed. Impairment and reversal of

impairment can impact both the exploration expenses and the depreciation, amortisation and impairment line items.

●

Gain or loss from sales of assets

is eliminated from the measure since the gain or loss does not give an indication of future

performance or periodic performance; such a gain or loss is related to the cumulative value creation from the time the asset is

acquired until it is sold.

Equinor first quarter 2023 40

●

Eliminations (Internal unrealised profit on inventories)

:

Volumes derived from equity oil inventory will vary depending on

several factors and inventory strategies, i.e., level of crude oil in inventory, equity oil used in the refining process and level of in-

transit cargoes. Internal profit related to volumes sold between entities within the group, and still in inventory at period end, is

eliminated according to IFRS (write down to production cost). The proportion of realised versus unrealised gain will fluctuate from

one period to another due to inventory strategies and consequently impact net operating income/(loss). Write-down to production

cost is not assessed to be a part of the underlying operational performance, and elimination of internal profit related to equity

volumes is excluded in adjusted earnings.

●

Other items of income and expense

are adjusted when the impacts on income in the period are not reflective of Equinor’s

underlying operational performance in the reporting period. Such items may be unusual or infrequent transactions, but they may

also include transactions that are significant which would not necessarily qualify as either unusual or infrequent. Other items are

carefully assessed and can include transactions such as provisions related to reorganisation, early retirement, etc.

●

Change in accounting policy

 are adjusted when the impacts on income in the period are unusual or infrequent, and not

reflective of Equinor’s underlying operational performance in the reporting period.

For more information on our definitions and use of non-GAAP financial measures, see section 5.8 Use and reconciliation of non-

GAAP financial measures in Equinor's 2022 Integrated Annual Report.

Equinor first quarter 2023 41

Reconciliation of adjusted earnings

The table specifies the adjustments made to each of the profit and loss line item included in the net operating income/(loss) subtotal.

Items impacting net operating income/(loss) in the

first quarter of 2023

Equinor

group

Exploration

&

Production

Norway

Exploration

&

Production

Internationa

l

Exploration

&

Production

USA

Marketing,

Midstream

&

Processing

Rene-

wables

Other

(in USD million)

Total revenues and other income

29,224

12,044

1,548

1,015

28,889

(2)

(14,271)

Adjusting items

(704)

99

6

-

(807)

(2)

(0)

Changes in fair value of derivatives

(803)

96

(89)

-

(809)

-

-

Periodisation of inventory hedging effect

25

-

-

-

25

-

-

Over-/underlift

98

3

95

-

-

-

-

Gain/loss on sale of assets

(25)

1

-

-

(23)

(3)

(0)

Adjusted total revenues and other income

28,520

12,144

1,555

1,015

28,082

(4)

(14,271)

Purchases [net of inventory variation]

(11,235)

(0)

16

-

(25,358)

-

14,107

Adjusting items

(27)

-

-

-

15

-

(42)

Operational storage effects

15

-

-

-

15

-

-

Eliminations

(42)

-

-

-

-

-

(42)

Adjusted purchases [net of inventory variation]

(11,262)

(0)

16

-

(25,344)

-

14,065

Operating and administrative expenses 

(3,025)

(977)

(659)

(273)

(1,178)

(86)

148

Adjusting items

176

1

217

-

(51)

8

-

Over-/underlift

(41)

1

(42)

-

-

-

-

Other adjustments

2

-

-

-

-

2

-

Gain/loss on sale of assets

265

-

259

-

-

6

-

Provisions

(51)

-

-

-

(51)

-

-

Adjusted operating and administrative expenses 

(2,849)

(976)

(442)

(273)

(1,229)

(78)

148

Depreciation, amortisation and net impairments

(2,200)

(1,115)

(461)

(357)

(234)

(1)

(33)

Adjusting items

2

-

-

-

2

-

-

Impairment

2

-

-

-

2

-

-

Adjusted depreciation, amortisation and net

impairments

(2,198)

(1,115)

(461)

(357)

(232)

(1)

(33)

Exploration expenses

(246)

(137)

(64)

(46)

-

-

-

Adjusting items

8

-

8

-

-

-

-

Impairment

8

-

8

-

-

-

-

Adjusted exploration expenses

(238)

(137)

(55)

(46)

-

-

-

Net operating income/(loss)

12,517

9,816

382

340

2,118

(89)

(49)

Sum of adjusting items

(545)

100

232

-

(841)

6

(42)

Adjusted earnings/(loss)

11,973

9,916

614

340

1,278

(83)

(91)

Tax on adjusted earnings

(8,459)

(7,702)

(284)

(80)

(424)

11

20

Adjusted earnings/(loss) after tax

3,514

2,214

330

260

854

(72)

(72)

Equinor first quarter 2023 42

Items impacting net operating income/(loss) in the

first quarter of 2022

Equinor

group

Exploration

&

Production

Norway

Exploration

&

Production

Internationa

l

Exploration

&

Production

USA

Marketing,

Midstream

&

Processing

Rene-

wables

Other

(in USD million)

Total revenues and other income

36,393

18,454

1,453

1,269

35,917

119

(20,818)

Adjusting items

196

209

400

-

(324)

(87)

(1)

Changes in fair value of derivatives

1)

(96)

(154)

314

-

(256)

-

-

Periodisation of inventory hedging effect

1)

(68)

-

-

-

(68)

-

-

Operating and administrative expenses

-

-

-

-

-

-

-

Over-/underlift

449

363

86

-

-

-

-

Gain/loss on sale of assets

(88)

-

-

-

-

(87)

(1)

Adjusted total revenues and other income

1)

36,590

18,663

1,852

1,269

35,592

32

(20,819)

Purchases [net of inventory variation]

(13,510)

0

27

0

(34,289)

-

20,752

Adjusting items

(272)

-

-

-

(181)

-

(90)

Operational storage effects

(181)

-

-

-

(181)

-

-

Eliminations

(90)

-

-

-

-

-

(90)

Adjusted purchases [net of inventory variation]

(13,781)

0

27

0

(34,470)

-

20,662

Operating and administrative expenses

(2,271)

(816)

(390)

(220)

(924)

(40)

119

Adjusting items

(179)

(68)

(33)

(0)

(78)

-

-

Over-/underlift

(101)

(68)

(33)

-

-

-

-

Provisions

(78)

-

-

-

(78)

-

-

Adjusted operating and administrative expenses

(2,450)

(884)

(423)

(221)

(1,002)

(40)

119

Depreciation, amortisation and net impairments

(2,017)

(600)

(1,378)

212

(212)

(1)

(39)

Adjusting items

(315)

(821)

1,039

(533)

-

-

-

Impairment

1,039

-

1,039

-

-

-

-

Reversal of impairment

(1,354)

(821)

-

(533)

-

-

-

Adjusted depreciation, amortisation and net

impairments

(2,333)

(1,421)

(339)

(320)

(212)

(1)

(39)

Exploration expenses

(203)

(106)

(81)

(16)

-

-

-

Adjusting items

46

4

41

1

-

-

-

Impairment

46

4

41

1

-

-

-

Adjusted exploration expenses

(157)

(101)

(40)

(15)

-

-

-

Net operating income/(loss)

18,392

16,933

(369)

1,245

492

77

15

Sum of adjusting items

1)

(524)

(676)

1,447

(532)

(583)

(87)

(91)

Adjusted earnings/(loss)

1)

17,869

16,256

1,078

713

(92)

(10)

(76)

Tax on adjusted earnings

1)

(12,382)

(12,602)

(234)

(13)

437

3

28

Adjusted earnings/(loss) after tax

1)

5,487

3,655

844

700

345

(7)

(49)

1) MMP segment and Equinor group are restated due to amended principles for adjusting items; 'changes in fair value of derivatives' and

'periodisation of inventory hedging effect'. For further information see Amended principles for Adjusted earnings in the section ‘Use and

reconciliation of non-GAAP financial measures’ in the Supplementary disclosures.

Equinor first quarter 2023 43

Items impacting net operating income/(loss) in the

fourth quarter of 2022

Equinor

group

Exploration

&

Production

Norway

Exploration

&

Production

Internationa

l

Exploration

&

Production

USA

Marketing,

Midstream

&

Processing

Rene-

wables

Other

(in USD million)

Total revenues and other income

34,321

16,729

2,373

1,083

33,591

38

(19,495)

Adjusting Items

1,181

239

(476)

-

1,419

(23)

23

Changes in fair value of derivatives

1)

1,744

58

(378)

-

2,065

-

-

Periodisation of inventory hedging effect

1)

(646)

-

-

-

(646)

-

-

Over-/underlift

181

257

(75)

-

-

-

-

Other adjustments

(0)

-

(22)

-

-

-

22

Gain/loss on sale of assets

(98)

(75)

-

-

-

(23)

0

Adjusted total revenues and other income

1)

35,501

16,968

1,897

1,083

35,010

15

(19,472)

Purchases [net of inventory variation]

(12,853)

(0)

(85)

(0)

(31,996)

-

19,228

Adjusting Items

72

-

-

-

27

-

46

Operational storage effects

27

-

-

-

27

-

-

Eliminations

46

-

-

-

-

-

46

Adjusted purchases [net of inventory variation]

(12,781)

(0)

(85)

(0)

(31,969)

-

19,273

Operating and administrative expenses

(3,304)

(1,020)

(511)

(220)

(1,614)

(101)

161

Adjusting Items

272

(34)

73

2

225

-

5

Over-/underlift

36

(34)

70

-

-

-

-

Other adjustments

1

-

(4)

-

-

-

5

Gain/loss on sale of assets

9

-

7

2

-

-

-

Provisions

225

-

-

-

225

-

-

Adjusted operating and administrative expenses

(3,032)

(1,053)

(438)

(217)

(1,389)

(101)

166

Depreciation, amortisation and net impairments

(1,184)

(1,222)

310

(13)

(233)

(1)

(26)

Adjusting Items

(1,094)

3

(744)

(350)

(3)

-

-

Impairment

2

3

3

-

(3)

-

-

Reversal of Impairment

(1,097)

-

(747)

(350)

-

-

-

Adjusted depreciation, amortisation and net

impairments

(2,279)

(1,219)

(433)

(363)

(236)

(1)

(26)

Exploration expenses

(396)

(101)

(266)

(29)

-

-

0

Adjusted exploration expenses

(396)

(101)

(266)

(29)

-

-

0

Net operating income/(loss)

16,584

14,386

1,822

821

(251)

(63)

(132)

Sum of adjusting items

1)

430

208

(1,147)

(348)

1,667

(23)

73

Adjusted earnings/(loss)

1)

17,014

14,594

676

474

1,416

(87)

(59)

Tax on adjusted earnings

1)

(12,295)

(11,294)

(308)

(24)

(585)

(10)

(73)

Adjusted earnings/(loss) after tax

1)

4,719

3,300

367

450

831

(97)

(132)

1) MMP segment and Equinor group are restated due to amended principles for adjusting items; 'changes in fair value of derivatives' and

'periodisation of inventory hedging effect'. For further information see Amended principles for Adjusted earnings in the section ‘Use and

reconciliation of non-GAAP financial measures’ in the Supplementary disclosures.

Equinor first quarter 2023 44

Adjusted earnings after tax* by reporting

Quarters

Q1 2023

Q4 2022

Q1 2022

(in USD million)

Adjusted

earnings

Tax on

adjusted

earnings

Adjusted

earnings

after tax

Adjusted

earnings

Tax on

adjusted

earnings

Adjusted

earnings

after tax

Adjusted

earnings

Tax on

adjusted

earnings

Adjusted

earnings

after tax

E&P Norway

9,916

(7,702)

2,214

14,594

(11,294)

3,300

16,256

(12,602)

3,655

E&P International

614

(284)

330

676

(308)

367

1,078

(234)

844

E&P USA

340

(80)

260

474

(24)

450

713

(13)

700

MMP

1)

1,278

(424)

854

1,416

(585)

831

(92)

437

345

REN

(83)

11

(72)

(87)

(10)

(97)

(10)

3

(7)

Other

(91)

20

(72)

(59)

(73)

(132)

(76)

28

(49)

Equinor group

1)

11,973

(8,459)

3,514

17,014

(12,295)

4,719

17,869

(12,382)

5,487

Effective tax rates on adjusted

earnings

1)

70.6%

72.3%

69.3%

1) MMP segment and Equinor group are restated due to amended principles for adjusting items; 'changes in fair value of derivatives' and

'periodisation of inventory hedging effect'. For further information see Amended principles for Adjusted earnings in the section ‘Use and

reconciliation of non-GAAP financial measures’ in the Supplementary disclosures.

Equinor first quarter 2023 45

Reconciliation of adjusted earnings after tax to net income 

Reconciliation of adjusted earnings after tax to net income 

Quarters

(in USD million)

Q1 2023

Q4 2022

Q1 2022

Net operating income/(loss)

A

12,517

16,584

18,392

Income tax less tax on net financial items

B

8,673

6,544

12,572

Net operating income after tax

C = A-B

3,844

10,039

5,820

Items impacting net operating income/(loss)

1) 2)

D

(545)

430

(524)

Tax on items impacting net operating income/(loss)

2)

E

(215)

5,750

(191)

Adjusted earnings after tax*

2)

F = C+D-E

3,514

4,719

5,487

Net financial items

G

1,189

(2,115)

(1,169)

Tax on net financial items

H

(68)

(28)

64

Net income/(loss)

I = C+G+H

4,966

7,897

4,714

1) For items impacting net operating income/(loss), see Reconciliation of adjusted earnings in the Supplementary disclosures.

2) Restated. For more information, see Amended principles for Adjusted earnings in the section ‘Use and reconciliation of non-GAAP financial

measures’ in the Supplementary disclosures.

Adjusted exploration expenses

Adjusted exploration expenses*

Quarters

Change

(in USD million)

Q1 2023

Q4 2022

Q1 2022

Q1 on Q1

E&P Norway exploration expenditures

148

144

127

16%

E&P International exploration expenditures

61

114

43

40%

E&P USA exploration expenditures

70

50

51

38%

Group exploration expenditures

278

307

221

26%

Expensed, previously capitalised exploration expenditures

82

183

26

>100%

Capitalised share of current period's exploration activity

(122)

(95)

(91)

34%

Impairment (reversal of impairment)

8

0

46

(82%)

Exploration expenses according to IFRS

246

396

203

21%

Equinor first quarter 2023 46

Items impacting net operating income/(loss)

1)

(8)

(0)

(46)

(82%)

Adjusted exploration expenses*

238

396

157

52%

1) For items impacting net operating income/(loss), see Reconciliation of adjusted earnings in the Supplementary disclosures.

Equinor first quarter 2023 47

Calculation of capital employed and net debt to capital employed ratio

The table below reconciles the net interest-bearing debt adjusted, the capital employed, the net debt to capital employed ratio

adjusted including lease liabilities and the net debt to capital employed adjusted ratio with the most directly comparable financial

measure or measures calculated in accordance with IFRS.

Calculation of capital employed and net debt to capital employed ratio

At 31 March

At 31 December

(in USD million)

2023

2022

Shareholders' equity

57,165

53,988

Non-controlling interests

5

1

Total equity 

A

57,170

53,989

Current finance debt and lease liabilities

6,271

5,617

Non-current finance debt and lease liabilities

24,862

26,551

Gross interest-bearing debt

B

31,132

32,168

Cash and cash equivalents

17,915

15,579

Current financial investments

34,576

29,876

Cash and cash equivalents and financial investment 

C

52,491

45,455

Net interest-bearing debt [9]

B1 = B-C

(21,359)

(13,288)

Other interest-bearing elements

 1)

2,845

6,538

Normalisation for cash-build up before tax payment (50% of Tax Payment)

 2)

2,625

-

Net interest-bearing debt adjusted normalised for tax payment, including lease liabilities*

B2

(15,889)

(6,750)

Lease liabilities

3,734

3,668

Net interest-bearing debt adjusted*

B3

(19,623)

(10,417)

Calculation of capital employed*

Capital employed

A+B1

35,811

40,701

Capital employed adjusted, including lease liabilities

A+B2

41,281

47,239

Equinor first quarter 2023 48

Capital employed adjusted

A+B3

37,547

43,571

Calculated net debt to capital employed*

Net debt to capital employed

(B1)/(A+B1)

(59.6%)

(32.6%)

Net debt to capital employed adjusted, including lease liabilities

(B2)/(A+B2)

(38.5%)

(14.3%)

Net debt to capital employed adjusted

(B3)/(A+B3)

(52.3%)

(23.9%)

1) Cash and cash equivalents adjustments regarding collateral deposits classified as cash and cash equivalents in the Consolidated

balance sheet but considered as non-cash in the non-GAAP calculations as well as financial investments in Equinor Insurance AS

classified as current financial investments.

Equinor first quarter 2023 49

FORWARD -LOOKING STATEMENTS 

This report contains certain forward-looking statements that involve risks and uncertainties. In some cases, we use words such as

"ambition", "continue", "could", "estimate", "intend", "expect", "believe", "likely", "may", "outlook", "plan", "strategy", "will", "guidance",

"targets", and similar expressions to identify forward-looking statements. Forward-looking statements include all statements other than

statements of historical fact, including, among others, statements regarding Equinor's plans, intentions, aims, ambitions and

expectations; the commitment to develop as a broad energy company; the ambition to be a leading company in the energy transition

and reduce net group-wide greenhouse gas emissions; our ambitions to decarbonise;

future financial performance, including cash flow

and liquidity; accounting policies; the ambition to grow cash flow and returns; expectations regarding progress on the energy transition

plan; expectations regarding cash flow and returns from Equinor’s oil and gas portfolio; plans to develop fields and increase gas

exports; intention to optimise our portfolio; expectations and plans for renewables production capacity and investments in renewables

and low carbon solutions; expectations and plans regarding development of renewables projects, CCUS and hydrogen businesses;

future worldwide economic trends, market outlook and future economic projections and assumptions, including commodity price and

refinery assumptions; organic capital expenditures through 2026; expectations and estimates regarding production and execution of

projects; expectations regarding growth in oil and gas and renewable power production; estimates regarding tax payments; the

ambition to keep unit of production cost in the top quartile of our peer group; scheduled maintenance activity and the effects thereof

on equity production; completion and results of acquisitions and disposals; expected amount and timing of dividend payments and the

implementation of our share buy-back programme; and provisions and contingent liabilities. You should not place undue reliance on

these forward-looking statements. Our actual results could differ materially from those anticipated in the forward-looking statements

for many reasons.

These forward-looking statements reflect current views about future events, are based on management’s current expectations and

assumptions and are, by their nature, subject to significant risks and uncertainties because they relate to events and depend on

circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ

materially from those expressed or implied by these forward-looking statements, including levels of industry product supply, demand

and pricing, in particular in light of significant oil price volatility and the uncertainty created by Russia’s invasion of Ukraine;

unfavourable macroeconomic conditions and inflationary pressures; exchange rate and interest rate fluctuations; levels and

calculations of reserves and material differences from reserves estimates; regulatory stability and access to resources, including

attractive low carbon opportunities; the effects of climate change and changes in stakeholder sentiment and regulatory requirements

regarding climate change; changes in market demand and supply for renewables; inability to meet strategic objectives; the

development and use of new technology; social and/or political instability, including as a result of Russia’s invasion of Ukraine; failure

to manage digital and cyber threats; operational problems; unsuccessful drilling; availability of adequate infrastructure; the actions of

field partners and other third-parties; reputational damage; the actions of competitors; the actions of the Norwegian state as majority

shareholder and exercise of ownership by the Norwegian state; changes or uncertainty in or non-compliance with laws and

governmental regulations; adverse changes in tax regimes; the political and economic policies of Norway and other oil-producing

countries; regulations on hydraulic fracturing and low-carbon value chains; liquidity, interest rate, equity and credit risks; risks relating

to trading and commercial supply activities; an inability to attract and retain personnel; ineffectiveness of crisis management systems;

inadequate insurance coverage; health, safety and environmental risks; physical security risks; failure to meet our ethical and social

standards; non-compliance with international trade sanctions; and other factors discussed elsewhere in this report and in Equinor's

Integrated Annual Report for the year ended December 31, 2022 (including section 5.2 - Risk factors thereof). Equinor's 2022

Integrated Annual Report is available at Equinor's website www.equinor.com.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot assure you that our

future results, level of activity, performance or achievements will meet these expectations. Moreover, neither we nor any other person

assumes responsibility for the accuracy and completeness of the forward-looking statements. Any forward-looking statement speaks

only as of the date on which such statement is made, and, except as required by applicable law, we undertake no obligation to update

any of these statements after the date of this report, either to make them conform to actual results or changes in our expectations.

We use certain terms in this document, such as "resource" and "resources", that the SEC's rules prohibit us from including in our

filings with the SEC. U.S. investors are urged to closely consider the disclosures in our Annual Report on Form 20-F for the year

ended December 31, 2022, SEC File No. 1-15200. This form is available on our website or by calling 1-800-SEC-0330 or logging on

to www.sec.gov.

Equinor first quarter 2023 50

END NOTES

1.

The group's

average liquids price

 is a volume-weighted average of the segment prices of crude oil, condensate and natural gas

liquids (NGL).

2.

The

refining reference margin

 is a typical gross margin and will differ from the actual margin, due to variations in type of crude

and other feedstock, throughput, product yields, freight cost, inventory, etc

3.

Liquids volumes

 include oil, condensate and NGL, exclusive of royalty oil. The 2022 liquid volumes have been restated due to a

change in the calculation methodology. See table below for further information.

4.

Equity volumes

 represent produced volumes under a

production sharing agreement (PSA)

 that correspond to Equinor’s

ownership share in a field.

Entitlement volumes

, on the other hand, represent Equinor’s share of the volumes distributed to the

partners in the field, which are subject to deductions for, among other things, royalty and the host government's share of profit oil.

Under the terms of a PSA, the amount of profit oil deducted from equity volumes will normally increase with the cumulative return

on investment to the partners and/or production from the licence. Consequently, the gap between entitlement and equity volumes

will likely increase in times of high liquids prices. The distinction between equity and entitlement is relevant to most PSA regimes,

whereas it is not applicable in most concessionary regimes such as those in Norway, the UK, the US, Canada and Brazil. 

5.

Transactions with the

Norwegian State.

 The Norwegian State, represented by the Ministry of Trade, Industry and Fisheries, is

the majority shareholder of Equinor and it also holds major investments in other entities. This ownership structure means that

Equinor participates in transactions with many parties that are under a common ownership structure and therefore meet the

definition of a related party. Equinor purchases liquids and natural gas from the Norwegian State, represented by SDFI (the

State's Direct Financial Interest). In addition, Equinor sells the State's natural gas production in its own name, but for the

Norwegian State's account and risk, and related expenditures are refunded by the State.

6.

The production guidance reflects our estimates of

proved reserves

 calculated in accordance with US Securities and Exchange

Commission (SEC) guidelines and additional production from other reserves not included in proved reserves estimates. 

7.

The group's

average realised piped gas prices

 include all realised piped gas sales, including both physical sales and related

paper positions. The realised piped gas price Europe for 2022 has been restated due to a change in the definition and exclusion

of LNG. This is done to report a realised European gas price that is comparable to relevant European piped gas

references/market prices. See table below for further information.

8.

The internal

transfer price

 paid from the MMP segment to the E&P Norway and E&P USA segments.

9.

Since different legal entities in the group lend to projects and others borrow from banks, project financing through external bank

or similar institutions is not netted in the balance sheet and results in over-reporting of the debt stated in the balance sheet

compared to the underlying exposure in the group. Similarly, certain net interest-bearing debt incurred from activities pursuant to

the Marketing Instruction of the Norwegian government are offset against receivables on the SDFI. Some interest-bearing

elements are classified together with non-interest bearing elements and are therefore included when calculating the net interest-

bearing debt.

Liquid sales volume restatement (mmbl)

Q1 2022

Q2 2022

Q3 2022

Q4 2022

Full year

2022

Liquid sales volume (old)

185.5

180.5

182.9

191.2

740.1

Liquid sales volume (new)

211.6

195.4

196.8

212.1

815.9

Achieved invoiced gas price restatement (mmbtu)

Q1 2022

Q2 2022

Q3 2022

Q4 2022

Full year

2022

Average invoice gas price - Europe (old)

29.60

27.18

43.65

29.80

32.46

Realised piped gas price Europe (new)

30.25

27.43

44.37

29.84

32.84

Equinor first quarter 2023 51

Equinor first quarter 2023 52

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by

the undersigned, thereunto duly authorised.

EQUINOR ASA

(Registrant)

Dated: 4 May, 2023

By: ___/s/ Torgrim Reitan

Name: Torgrim Reitan

Title: Chief Financial Officer