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 July 2024
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
This Report on Form 6-K contains a report of the second quarter 2024 results of Equinor ASA.
Equinor second quarter 2024 2
Q2
Key figures
Always safe
High value
Low carbon
0.3
7.66
7.48
6.3
SIF
USD billion
USD billion
kg/boe
Serious incident
frequency (per million
hours worked)
Net operating
income
Adjusted
operating
income*
CO
₂
Scope 1 CO
₂
Equinor operated, 100%
basis
for the first half of 2024
2.2
1.90
0.84
5.6
TRIF
USD billion
USD
million tonnes CO2e
Total recordable incident
frequency (per million
hours worked)
Cash flow from
operations after
taxes paid*
Adjusted
earnings per
share*
Absolute scope 1+2 GHG
emissions
for the first half of 2024
9
0.70
6
655
Oil and gas leakages
USD per share
USD billion
GWh
with rate above 0.1 kg/
second during the past
12 months
Announced
dividend per share
(ordinary +
extraordinary)
Share buy-
back
programme for
2024
Renewable power
generation Equinor share
Equinor second quarter 2024 3
Equinor second quarter 2024 results
Equinor delivered adjusted operating income* of USD 7.48 billion and USD 2.15 billion after tax in the
second quarter of 2024. Equinor reported net operating income of USD 7.66 billion and net income at
USD 1.87 billion. Adjusted net income* was USD 2.42 billion, leading to adjusted earnings per share* of
USD 0.84.
Financial and operational performance
-
-
-
Strategic progress
-
-
-
Capital distribution
-
tranche of share buy-back of up to USD 1.6 billion
-
Anders Opedal, President and CEO of Equinor ASA:
“Our operational performance continued to be strong through the quarter and we delivered 3% production growth. This secured solid
financial results. We maintain a competitive capital distribution, expecting to deliver a total of 14 billion dollars to our shareholders in
2024.”
“Field developments and high production contributes to energy security for Europe.
To
unlock further long-term value creation, we
continue to optimise our portfolio. We also progressed our renewables projects and accessed three new licences for CO2 storage, to
build a profitable business for a future low carbon energy system.”
Financial information
Quarters
Change
First half
(unaudited, in USD million)
Q2 2024
Q1 2024
Q2 2023
Q2 on Q2
2024
2023
Change
Net operating income/(loss)
7,656
7,631
7,051
9%
15,287
19,569
(22%)
Net income/(loss)
1,872
2,672
1,829
2%
4,545
6,795
(33%)
Basic earnings per share (USD)
0.65
0.91
0.60
9%
1.56
2.20
(29%)
Adjusted operating income*
7,482
7,533
7,799
1)
(4%)
15,015
1)
(24%)
Adjusted net income*
2,417
2,836
2,706
(11%)
5,253
6,570
(20%)
Adjusted earnings per share* (USD)
0.84
0.96
0.89
(5%)
1.81
2.13
(15%)
Cash flows provided by operating activities
1,611
9,021
1,857
(13%)
10,632
16,728
(36%)
Cash flow from operations after taxes paid*
1,898
5,840
(356)
>(100%)
7,737
9,360
(17%)
Net cash flow*
(4,222)
8
(10,758)
61%
(4,214)
(6,558)
36%
Operational information
Group average liquids price (USD/bbl) [1]
77.6
76.0
70.3
10%
76.8
71.9
7%
Total equity liquids and gas production (mboe per day) [4]
2,048
2,164
1,994
3%
2,106
2,062
2%
Total power generation (GWh) Equinor share
1,083
1,277
947
14%
2,360
2,110
12%
Renewable power generation (GWh) Equinor share
655
774
345
90%
1,429
869
64%
*
For items marked with an asterisk throughout this report, see Use and reconciliation of non-GAAP financial measures in the Supplementary disclosures
1) Restated due to amended principles for ‘over-/underlift'. For further information see Amended principles for Adjusted operating income in the section 'Use and
reconciliation of non-GAAP financial measures' in the Supplementary disclosures.
Equinor second quarter 2024 4
Key figures by segment
Adjusted operating
income*
E&P equity liquids
and
gas production
Total power
generation Equinor
share
(USD million)
(mboe/day)
(GWh)
E&P Norway
6,129
1,375
E&P International
699
336
E&P USA
264
337
MMP
521
REN
(90)
Other incl. eliminations
(40)
Equinor Group Q2 2024
7,482
2,048
1,083
Equinor Group Q2 2023
7,799
1)
1,994
947
Equinor Group first half 2024
15,015
2,106
2,360
Equinor Group first half 2023
19,715
1)
2,062
2,110
Equinor second quarter 2024 5
Health, safety and the environment
Twelve months average per
Full year
Q2 2024
2023
Serious incident frequency (SIF)
0.3
0.4
First half
Full year
2024
2023
Upstream CO
2
2
/boe)
6.3
6.7
First half
First half
2024
2023
Absolute scope 1+2 GHG emissions (million tonnes CO
2
e)
5.6
5.8
30 June
31 December
%-point
Net debt to capital employed adjusted*
2024
2023
change
Net debt to capital employed adjusted*
(3.4%)
(21.6%)
18.2
Dividend
(USD per share)
Q2 2024
Q1 2024
Q2 2023
Ordinary cash dividend per share
0.35
0.35
0.30
Extraordinary cash dividend per share
0.35
0.35
0.60
In the first six months of 2024 Equinor settled shares in the market under the 2023 and 2024 share buy-back programmes of USD 947
million.
Strong operational performance
Equinor delivered a total equity production of 2,048 mboe per day in the second quarter, up from 1,994 mboe per day in the same
quarter last year.
On the NCS, strong operational performance and lower impact from turnarounds, together with new production from the Breidablikk
field contributed to a production growth of 5% compared to the second quarter last year. High production particularly from the Troll
and Oseberg fields contributed to a 13% increase in gas production, compared to the same period last year.
Internationally, the Buzzard field in the UK and new wells contributed with new production but was more than offset by lower
production from the US due to turnarounds offshore and planned curtailments onshore to capture higher value when demand is
higher.
In the quarter, Equinor completed seven exploration wells offshore, including the Argerich well in Argentina, with no commercial
discoveries. Seven wells were ongoing at the quarter end.
In the second quarter, Equinor produced 655 GWh from renewables, up 90% from the same quarter last year. Production from
onshore power plants contributed with more than half of the production in the quarter, mainly from the Rio Energy assets and
Mendubim solar plants in Brazil, as well as new production in Poland. The offshore windfarms contributed to the growth with strong
production.
Strategic progress
Equinor’s NCS portfolio progressed in the quarter. Equinor and its partners made an investment decision for further development of
gas infrastructure in the Troll West gas province, contributing to energy security to Europe long-term. The Johan Castberg FPSO left
the dock for inshore testing and is on track for sail away to the Barents Sea later this summer. The production started from the
partner-operated Hanz field in April and from the Kristin South area in July.
Equinor continued to optimise the portfolio through strategic business development. This quarter an agreement with Petoro was
announced to harmonise equity interest in the Haltenbanken area to increase long-term value creation, and a divestment of interests
in the Gina Krog area. The swap transaction to increase profitability in the US onshore business, exiting the operated position in Ohio
and increasing its position in partner-operated assets in Northern Marcellus in Pennsylvania was closed.
Equinor accessed CO2 storage capacity opportunities of 17 million tonnes per year with the awarded three new licences Kinna and
Albondigas on the NCS, and the Kalundborg licence onshore Denmark.
In the UK, construction is progressing on Dogger Bank A offshore wind farm with 27 turbines either fully or partly installed. The project
targets full commercial operations during the first half of 2025. Based on this the expected growth in power production from
renewables assets in 2024 is now adjusted to be around 70% from the 2023-level.
Solid financial results
Equinor delivered adjusted operating income* of USD 7.48 billion, of which USD 6.13 billion from the E&P Norway, USD 699 million
from E&P international and USD 264 million from E&P USA.
Equinor second quarter 2024 6
The Marketing, Midstream & Processing (MMP) segment delivered adjusted operating income* of USD 521 million, mainly from the
Gas and Power business, including strong results from LNG trading.
Adjusted operating income* from Renewables was negative USD 90 million, as the costs of project development exceeds the
earnings from assets in operations which was USD 41 million in the quarter.
Cash flow from operating activities before taxes paid and working capital items amounted to USD 9.75 billion for the second quarter.
Cash flow from operations after taxes paid* was USD 1.90 billion for the quarter, and USD 7.74 billion year to date. Equinor paid two
NCS tax instalments, totalling USD 6.98 billion in the quarter. Organic capital expenditure* was USD 2.89 billion for the quarter, and
total capital expenditures were USD 4.78 billion. After taxes, capital distribution to shareholders and investments, net cash flow*
ended at negative USD 4.22 billion in the second quarter.
Adjusted net debt to capital employed ratio* was negative 3.4% at the end of the second quarter, compared to negative 19.8% at the
end of the first quarter of 2024. The calculation of net debt ratio includes the effect of the Norwegian state’s share of the share buy-
back, at USD 4.02 billion paid in July.
Capital distribution
The board of directors has decided an ordinary cash dividend of USD 0.35 per share, and to continue the extraordinary cash dividend
of USD 0.35 per share for the second quarter of 2024, in line with communication at the Capital Markets Update in February.
Expected total capital distribution for 2024 is around USD 14 billion, including a share buy-back programme of up to USD 6 billion.
The board has decided to initiate a third tranche of the share buy-back programme of up to USD 1.6 billion. The third tranche will
commence on 25 July and end no later than 22 October 2024.
The second tranche of the share buy-back programme for 2024 was completed on 19 July 2024 with a total value of USD 1.6 billion.
All share buy-back amounts include shares to be redeemed from the Norwegian State.
*For items marked with an asterisk throughout this report, see Use and reconciliation of non-GAAP financial measures in the
Supplementary disclosures.
Equinor second quarter 2024 7
GROUP REVIEW
Financial information
Quarters
Change
First half
(unaudited, in USD million)
Q2 2024
Q1 2024
Q2 2023
Q2 on Q2
2024
2023
Change
Total revenues and other income
25,538
25,135
22,872
12%
50,673
52,096
(3%)
Total operating expenses
(17,883)
(17,504)
(15,821)
13%
(35,386)
(32,527)
9%
Net operating income/(loss)
7,656
7,631
7,051
9%
15,287
19,569
(22%)
Net financial items
(126)
366
323
>(100%)
240
1,512
(84%)
Income tax
(5,658)
(5,325)
(5,545)
2%
(10,983)
(14,286)
(23%)
Net income/(loss)
1,872
2,672
1,829
2%
4,545
6,795
(33%)
Adjusted total revenues and other income*
25,538
24,789
1)
9%
50,326
1)
(3%)
Adjusted purchases* [5]
(12,325)
(11,813)
(10,676)
15%
(24,138)
(21,939)
10%
Adjusted operating and administrative expenses*
(3,070)
(2,832)
1)
11%
(5,901)
1)
6%
Adjusted depreciation, amortisation and net impairments*
(2,382)
(2,345)
(2,232)
7%
(4,726)
(4,430)
7%
Adjusted exploration expenses*
(279)
(266)
71
>(100%)
(545)
(167)
>100%
Adjusted operating income*
7,482
7,533
1)
(4%)
15,015
1)
(24%)
Adjusted net financial items*
98
373
486
(80%)
472
923
(49%)
Income tax less tax effect on adjusting items
(5,164)
(5,071)
(5,579)
(7%)
(10,234)
(14,068)
(27%)
Adjusted net income*
2,417
2,836
2,706
(11%)
5,253
6,570
(20%)
Basic earnings per share (in USD)
0.65
0.91
0.60
9%
1.56
2.20
(29%)
Adjusted earnings per share* (in USD)
0.84
0.96
0.89
(5%)
1.81
2.13
(15%)
Capital expenditures and Investments
2,950
2,483
2,842
4%
5,433
4,893
11%
Cash flows provided by operating activities
1,611
9,021
1,857
(13%)
10,632
16,728
(36%)
Cash flows from operations after taxes paid*
1,898
5,840
(356)
>100%
7,737
9,360
(17%)
Quarters
Change
First half
Operational information
Q2 2024
Q1 2024
Q2 2023
Q2 on Q2
2024
2023
Change
Total equity liquid and gas production (mboe/day)
2,048
2,164
1,994
3%
2,106
2,062
2%
Total entitlement liquid and gas production (mboe/day)
1,916
2,039
1,861
3%
1,977
1,936
2%
Total Power generation (GWh) Equinor share
1,083
1,277
947
14%
2,360
2,110
12%
Renewable power generation (GWh) Equinor share
655
774
345
90%
1,429
869
64%
Average Brent oil price (USD/bbl)
84.9
83.2
78.4
8%
84.1
79.8
5%
Group average liquids price (USD/bbl)
77.6
76.0
70.3
10%
76.8
71.9
7%
E&P Norway average internal gas price (USD/mmbtu)
8.47
7.76
10.23
(17%)
8.10
14.12
(43%)
E&P USA average internal gas price (USD/mmbtu)
1.32
1.74
1.41
(6%)
1.54
2.22
(30%)
income in the section 'Use and reconciliation of non-GAAP financial measures' in the Supplementary disclosures.
Operations and financial results
Equinor continued to deliver consistently high production levels in the second quarter, supported by a strong operational performance
amid seasonal turnaround activity, and reports a 3% growth in total equity liquid and gas production for the quarter from the second
quarter of 2023.
The NCS delivered continued production growth driven by the ramp up of Breidablikk and well executed turnaround activities for the
quarter and the first half of 2024 when compared to the prior year. Gas production from the NCS during the second quarter increased
by 13% compared to the same period in the prior year, delivered by strong operations, effective turnarounds and supported in part by
operational challenges which impacted key gas producing fields in the second quarter of 2023.
Equinor second quarter 2024 8
The international upstream business benefitted in the quarter from new wells on stream and volumes from the Buzzard field in the UK,
which has been contributing from the third quarter of 2023. However, production volumes in the USA were impacted by turnaround
activity in the Gulf of Mexico and curtailment of production in the Appalachian Basin, resulting in lower volumes for the second quarter
relative to the same period in 2023. Production from the international upstream business was consistent with 2023 for the first half of
the year.
The addition of onshore power plants in Brazil and Poland during 2023, and the start-up of Mendubim solar projects in 2024, drove an
increase of 90% and 64% in renewable power generation for the second quarter and first half of 2024 respectively compared to 2023.
Power generation from Triton Power reduced compared to 2023 due to low clean spark spreads.
Higher production volumes, together with increased third-party sales, an overlift position and the higher liquids prices resulted in an
increase in revenue in the second quarter of 2024 compared to 2023. The increase was partially offset by the reduction in gas prices
from the second quarter of 2023.
Gas prices were lower in 2024 driving a downward trend in revenues for the first half of 2024 relative to 2023 despite the increase in
production volumes.
In the second quarter of 2024 our Marketing, Midstream and Processing segment delivered good results from gas and power trading,
particularly equity and third-party LNG trading. However, lower refinery throughput due to maintenance and reduced margins from
physical sales negatively impacted this contribution.
Adjusted operating and administrative expenses* increased in the second quarter of 2024 due to higher production capacity across
the portfolio, increased operations and maintenance activity and a change to a net overlift position in the quarter, partially offset by
lower cost of purchases of CO
2
maintenance costs for the first half of 2024. Costs associated with the development and future capacity building of the renewables and
low carbon solutions portfolios are also increasing and impacting the results.
The ramp up of new fields, increased production and the inclusion of Buzzard contributed to an overall increase in adjusted
depreciation, amortisation and net impairments* in the second quarter and first half of 2024 compared to the same periods in 2023.
In the second quarter of 2024, exploration expenses include the impact of expensing a dry offshore well in Argentina. Exploration
costs associated with Bacalhau were expensed earlier in the year. The prior year includes the capitalisation of previously expensed
well costs resulting in an overall notable increase in exploration expenses for the second quarter and first half of 2024.
Net financial items in the quarter and in the first half of 2024 reduced from the same periods in the prior year due to less favourable
foreign currency exchange movements of the USD versus the NOK.
Taxes and net financial result
The effective reported tax rate of 70.7% for the first half of 2024 increased compared to 67.8% in 2023 due to currency effects in
entities that are taxable in other currencies than the functional currency. The effective reported tax rate of 75.1% for the second
quarter of 2024 decreased compared to 75.2% in 2023. The decrease in effective tax rate was mainly due to lower share of income
from jurisdictions with high tax rates partly offset by currency effects in entities that are taxable in other currencies than the functional
currency.
The effective tax rate on adjusted operating income* of 68.5% for the first half of 2024 decreased compared to 70.6% in 2023 due to
decreased prior period adjustments in 2024 compared with 2023. The effective tax rate on adjusted operating income* of 71.2% for
the second quarter of 2024 increased compared to 70.4% in 2023 due to higher share of adjusted operating income* from jurisdictions
with high tax rates in 2024 compared to 2023.
An adjusted net income* result of USD 2,417 million and a net income of USD 1,872 million were recorded in the second quarter of
2024.
Cash flow, net debt and capital distribution
The strong operational performance in the second quarter of 2024 translated into solid financial results and cash flow provided by
operating activities before taxes paid and working capital items of USD 9,748 million. The less favourable cash impact of financial
instruments in the second quarter of 2024 impacts this operating result when compared to the same quarter in the prior year.
Cash flow from operations after taxes paid* increased compared to the second quarter of 2023, from an outflow of USD 356 million to
an inflow of USD 1,898 million, primarily due to lower tax payments reflecting the lower price environment of 2023 relative to 2022. For
the first half of 2024 cash flow from operations after taxes paid* was USD 7,737 million, down from USD 9,360 million in the prior year.
Equinor second quarter 2024 9
Taxes paid of USD 7,850 million in the second quarter have increased relative to the prior quarter primarily due to payment of the last
two Norwegian corporation income tax instalments relating to 2023 results, totalling USD 6,982 million. One instalment was paid in the
first quarter.
Working capital was stable in the second quarter of 2024 whereas the cash flow in the second quarter of 2023 was positively impacted
by a working capital decrease of USD 2,214 million.
A negative net cash flow* of USD 4,222 million in the second quarter reflects the increased number of tax instalments from the prior
quarter and continued high capital distribution levels. The net cash flow* has increased when compared to the second quarter of 2023
which is primarily due to the timing of the payment to the Norwegian state for the share buy-back programme. During 2023 a payment
of USD 3,639 million was made in the second quarter whereas in 2024 the Norwegian state payment will be made in the third quarter.
During the quarter equity was impacted by capital distributions of USD 8.5 billion, including dividends from the previous two quarters
and share buy-back of USD 4,484 million which includes the state’s share for the second, third and fourth tranches of the 2023
programme and the first tranche of the 2024 programme. This reduction in equity combined with a decrease in liquid assets in the
quarter caused a movement in the net debt to capital employed adjusted ratio* at the end of June 2024 from negative 19.8% at the
end of March 2024 to negative 3.4%.
The board of directors has decided an ordinary cash dividend of USD 0.35 per share, and to continue the extraordinary cash dividend
of USD 0.35 per share for the second quarter of 2024, in line with communication at the Capital Markets Update in February.
Expected total capital distribution for 2024 is around USD 14 billion, including a share buy-back programme of up to USD 6 billion.
The board has decided to initiate a third tranche of the share buy-back programme of up to USD 1.6 billion. The third tranche will
commence on 25 July and end no later than 22 October 2024.
The second tranche of the share buy-back programme for 2024 was completed on 19 July 2024 with a total value of USD 1.6 billion.
All share buy-back amounts include shares to be redeemed from the Norwegian State.
Health, safety and the environment
The twelve-month average serious incident frequency (SIF) for the period ending 30 June 2024 was 0.3, a decrease from 2023 which
ended at 0.4.
Absolute scope 1+2 GHG emissions for Equinor’s operated production, on a 100% basis, were 5.6 million tonnes CO
2
e
for the first
half of 2024. This represents a decrease of 0.2 million tonnes CO
₂
e from the first half of the prior year. Turnaround at Mongstad,
partial electrification of Troll C and decommission of Heimdal impacted the result in the first half of 2024.
Equinor second quarter 2024 10
OUTLOOK
●
Organic capital expenditures*
●
Oil & gas production
●
Renewable power generation
for 2024 is estimated to increase by around seventy percent compared to the 2023 level.
●
unit of production cost
●
Scheduled maintenance activity
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.
RISKS AND UNCERTAINTIES
The description of key risks in chapter 5.2 (Risk Factors) of Equinor's Integrated Annual Report for the year ended December 31,
2023, provides an overview of the principal risks and uncertainties which may affect Equinor in the remaining six months of the
financial year. The Strategic and commercial risks, Security, safety and environmental risks, and Compliance and control risks
described therein and summarised in the section “Forward Looking Statements” in the Supplementary disclosures could, separately or
in combination, have an adverse effect on our operational and financial performance (including cash flows and liquidity), the
implementation of our strategy, our reputation and the market price of our securities.
For further information, see “Forward Looking Statements” in the Supplementary disclosures.
1
Equinor second quarter 2024 11
SUPPLEMENTARY OPERATIONAL DISCLOSURES
Operational information
Quarters
Change
First half
Operational information
Q2 2024
Q1 2024
Q2 2023
Q2 on Q2
2024
2023
Change
Prices
Average Brent oil price (USD/bbl)
84.9
83.2
78.4
8%
84.1
79.8
5%
E&P Norway average liquids price (USD/bbl)
80.6
79.3
73.6
9%
80.0
75.5
6%
E&P International average liquids price (USD/bbl)
75.4
73.8
66.6
13%
74.7
68.4
9%
E&P USA average liquids price (USD/bbl)
68.0
66.2
61.4
11%
67.1
61.4
9%
Group average liquids price (USD/bbl) [1]
77.6
76.0
70.3
10%
76.8
71.9
7%
Group average liquids price (NOK/bbl) [1]
833
799
753
11%
816
752
8%
E&P Norway average internal gas price (USD/mmbtu) [8]
8.47
7.76
10.23
(17%)
8.10
14.12
(43%)
E&P USA average internal gas price (USD/mmbtu) [8]
1.32
1.74
1.41
(6%)
1.54
2.22
(30%)
Realised piped gas price Europe (USD/mmbtu) [7]
9.94
9.41
11.46
(13%)
9.66
15.42
(37%)
Realised piped gas price US (USD/mmbtu) [7]
1.53
2.33
1.46
5%
1.96
2.36
(17%)
Refining reference margin (USD/bbl) [2]
7.9
7.4
8.2
(3%)
7.7
9.8
(22%)
Entitlement production (mboe per day)
E&P Norway entitlement liquids production
630
648
645
(2%)
639
643
(1%)
E&P International entitlement liquids production
227
250
221
3%
239
226
6%
E&P USA entitlement liquids production
132
138
140
(6%)
135
135
0%
Group entitlement liquids production
989
1,036
1,006
(2%)
1,012
1,004
1%
E&P Norway entitlement gas production
744
814
658
13%
779
732
7%
E&P International entitlement gas production
23
23
24
(5%)
23
28
(20%)
E&P USA entitlement gas production
160
165
173
(7%)
163
172
(5%)
Group entitlement gas production
927
1,002
855
8%
965
932
4%
Total entitlement liquids and gas production [3]
1,916
2,039
1,861
3%
1,977
1,936
2%
Equity production (mboe per day)
E&P Norway equity liquids production
630
648
645
(2%)
639
643
(1%)
E&P International equity liquids production
302
316
290
4%
309
288
7%
E&P USA equity liquids production
148
153
157
(6%)
151
151
0%
Group equity liquids production
1,080
1,118
1,092
(1%)
1,099
1,082
2%
E&P Norway equity gas production
744
814
658
13%
779
732
7%
E&P International equity gas production
34
35
38
(10%)
35
44
(21%)
E&P USA equity gas production
189
197
206
(8%)
193
204
(6%)
Group equity gas production
968
1,046
902
7%
1,007
980
3%
Total equity liquids and gas production [4]
2,048
2,164
1,994
3%
2,106
2,062
2%
Power generation
Power generation (GWh) Equinor share
1,083
1,277
947
14%
2,360
2,110
12%
Renewable power generation (GWh) Equinor share
1)
655
774
345
90%
1,429
869
64%
1) Includes Hywind Tampen renewable power generation.
Equinor second quarter 2024 12
Health, safety and the environment
Twelve months
average per
Full year
Q2 2024
2023
Total recordable injury frequency (TRIF)
2.2
2.4
Serious Incident Frequency (SIF)
0.3
0.4
Oil and gas leakages (number of)
1)
9
10
First half
Full year
2024
2023
Upstream CO
2
2
/boe)
2)
6.3
6.7
First half
First half
2024
2023
Absolute scope 1+2 GHG emissions (million tonnes CO
2
e)
3)
5.6
5.8
1)
2)
2
3)
2
4.
Equinor second quarter 2024 13
EXPLORATION & PRODUCTION NORWAY
Financial information
Quarters
Change
First half
(unaudited, in USD million)
Q2 2024
Q1 2024
Q2 2023
Q2 on Q2
2024
2023
Change
Total revenues and other income
8,426
7,879
8,282
2%
16,305
20,326
(20%)
Total operating expenses
(2,297)
(2,123)
(2,082)
10%
(4,420)
(4,310)
3%
Net operating income/(loss)
6,129
5,756
6,200
(1%)
11,885
16,016
(26%)
Adjusted total revenues and other income*
8,426
7,879
1)
2%
16,305
1)
(20%)
Adjusted operating and administrative expenses*
(982)
(866)
1)
5%
(1,848)
1)
(3%)
Adjusted depreciation, amortisation and net impairments*
(1,206)
(1,173)
(1,064)
13%
(2,379)
(2,179)
9%
Adjusted exploration expenses*
(109)
(84)
(80)
37%
(193)
(217)
(11%)
Adjusted operating income/(loss)*
6,129
5,756
1)
(1%)
11,885
1)
(26%)
Additions to PP&E, intangibles and equity accounted
investments
1,579
1,372
1,624
(3%)
2,951
2,941
0%
Operational information
Quarters
Change
First half
E&P Norway
Q2 2024
Q1 2024
Q2 2023
Q2 on Q2
2024
2023
Change
E&P entitlement liquid and gas production (mboe/day)
1,375
1,462
1,304
5%
1,419
1,375
3%
Average liquids price (USD/bbl)
80.6
79.3
73.6
9%
80.0
75.5
6%
Average internal gas price (USD/mmbtu)
8.47
7.76
10.23
(17%)
8.10
14.12
(43%)
1) Restated due to amended principles for ‘over-/underlift '. For further information see Amended principles for Adjusted operating income in
the section 'Use and reconciliation of non-GAAP financial measures' in the Supplementary disclosures.
Production & revenues
In the second quarter of 2024, E&P Norway exhibited strong production levels compared to the same quarter last year, which was
marked by operational challenges on gas-producing fields. The higher production levels were supported by well-executed
turnarounds, and ramp up of new fields, including Breidablikk and partner-operated Hanz. Gas production increased by 13%, whereas
liquids production was down by 2% compared to the second quarter of 2023
.
The decrease in liquids production was driven by natural
decline and planned turnarounds in various fields. These robust production levels in the second quarter contributed to the overall
higher production in the first half of 2024 compared to the same period last year.
Although gas prices were lower in the second quarter of 2024 compared to the second quarter of last year, the liquids prices were
higher. The development in liquids prices combined with robust gas production resulted in a relatively consistent level of revenues.
The sharp decline in gas prices during 2023 and into 2024 was the main driver of lower revenues for the first half of 2024.
Operating expenses and financial results
Higher operations and maintenance costs increased operating and administrative expenses in the second quarter of 2024 compared
to the same period last year. This increase was partially offset by the reduction in CO
2
contrast, operating and administrative expenses decreased in the first half of 2024 compared to the same period last year primarily
due to an underlift effect in the first quarter of 2024.
In the second quarter and first half of 2024, adjusted depreciation, amortisation and net impairments* increased compared to the
same periods last year due to the ramp up of new fields and field-specific investments. This increase was partially offset by the
impacts of prior period impairments.
Despite a lower exploration activity level (9 wells this quarter compared to 12 wells in the second quarter last year), a higher cost per
well and lower capitalisation rate led to an increase in exploration expenses in the second quarter of 2024 compared to the same
quarter last year. Lower activity level and drilling cost, partially offset by lower capitalisation rate contributed to reduced exploration
expenses in the first half of 2024 compared to the same period last year.
Equinor second quarter 2024 14
EXPLORATION & PRODUCTION INTERNATIONAL
Financial information
Quarters
Change
First half
(unaudited, in USD million)
Q2 2024
Q1 2024
Q2 2023
Q2 on Q2
2024
2023
Change
Total revenues and other income
1,909
1,655
1,605
19%
3,563
3,153
13%
Total operating expenses
(1,209)
(1,039)
(828)
46%
(2,248)
(1,995)
13%
Net operating income/(loss)
699
616
776
(10%)
1,316
1,158
14%
Adjusted total revenues and other income*
1,909
1,655
1)
19%
3,563
1)
16%
Adjusted purchases*
(23)
34
(100)
(77%)
10
(84)
>(100%)
Adjusted operating and administrative expenses*
(582)
(395)
1)
41%
(977)
1)
20%
Adjusted depreciation, amortisation and net impairments*
(453)
(529)
(465)
(3%)
(983)
(926)
6%
Adjusted exploration expenses*
(151)
(148)
173
>(100%)
(299)
118
>(100%)
Adjusted operating income/(loss)*
699
616
1)
(12%)
1,316
1)
(3%)
Additions to PP&E, intangibles and equity accounted
investments
779
756
2,114
(63%)
1,535
2,565
(40%)
Operational information
Quarters
Change
First half
E&P International
Q2 2024
Q1 2024
Q2 2023
Q2 on Q2
2024
2023
Change
E&P equity liquid and gas production (mboe/day)
336
352
328
2%
344
332
4%
E&P entitlement liquid and gas production (mboe/day)
249
273
245
2%
261
254
3%
Production sharing agreements (PSA) effects
86
78
83
4%
82
78
6%
Average liquids price (USD/bbl)
75.4
73.8
66.6
13%
74.7
68.4
9%
1) Restated due to amended principles for ‘over-/underlift '. For further information see Amended principles for Adjusted operating
income in the section 'Use and reconciliation of non-GAAP financial measures' in the Supplementary disclosures.
Production & Revenues
The growth in equity production in the second quarter and first half of 2024 compared to last year was mainly driven by new wells and
the addition of the Buzzard field in the UK. Reduced turnaround activities, also contributed to the overall rise in production levels. This
growth was partially offset by natural decline and operational issues in certain fields.
The increase in production sharing agreements (PSA) effects in the second quarter and first half of 2024 compared to the same
periods last year was driven by higher production from Angola PSA fields and higher liquids prices.
The increase in lifting in the second quarter and the first half of 2024 compared to same periods last year, along with higher realised
prices contributed to the increase in revenues.
Operating expenses and financial results
Adjusted operating and administrative expenses* for the second quarter and first half of 2024 were higher relative to the same periods
last year due to increased production, higher liftings, and a shift from a net underlift position to a net overlift position. Additionally, the
inclusion of Buzzard field in the UK raised the overall cost base.
Depreciation in the second quarter of this year remained mostly unchanged from 2023, as the addition of the Buzzard field was offset
by the ACG classification as held for sale. However, depreciation increased in the first half of 2024, due to the addition of the Buzzard
field and higher production from certain fields which was partially offset by the cessation of depreciation on ACG field in Azerbaijan
following the divestment agreement with SOCAR.
The increase in exploration expenses in the second quarter and first half of 2024 compared to the same period in 2023 was driven by
the capitalisation of previously expensed exploration wells in Brazil from last year. An expensed exploration well in Argentina, higher
seismic activities this quarter, and the expensing of Bacalhau appraisal well costs in Brazil in the first quarter of this year also
contributed to the increase.
Equinor second quarter 2024 15
In the first half of 2023, net operating income was negatively impacted by the divestment from Corrib in early 2023.
The reduction in additions to PP&E, intangibles, and equity accounted investments in the current quarter and first half year of 2024,
compared to the same periods in 2023, is primarily due to the acquisition of Suncor Energy UK Limited in the second quarter of 2023.
Equinor second quarter 2024 16
EXPLORATION & PRODUCTION USA
Financial information
Quarters
Change
First half
(unaudited, in USD million)
Q2 2024
Q1 2024
Q2 2023
Q2 on Q2
2024
2023
Change
Total revenues and other income
1,001
1,055
976
3%
2,056
1,991
3%
Total operating expenses
(737)
(678)
(772)
(5%)
(1,415)
(1,447)
(2%)
Net operating income/(loss)
264
377
204
29%
641
544
18%
Adjusted total revenues and other income*
1,001
1,055
976
3%
2,056
1,991
3%
Adjusted operating and administrative expenses*
(291)
(280)
(283)
3%
(571)
(556)
3%
Adjusted depreciation, amortisation and net impairments*
(427)
(364)
(445)
(4%)
(791)
(801)
(1%)
Adjusted exploration expenses*
(19)
(34)
(22)
(16%)
(53)
(68)
(23%)
Adjusted operating income/(loss)*
264
377
226
17%
641
566
13%
Additions to PP&E, intangibles and equity accounted
investments
1,522
359
274
>100%
1,881
536
>100%
Operational information
Quarters
Change
First half
E&P USA
Q2 2024
Q1 2024
Q2 2023
Q2 on Q2
2024
2023
Change
E&P equity liquid and gas production (mboe/day)
337
350
363
(7%)
344
355
(3%)
E&P entitlement liquid and gas production (mboe/day)
292
303
313
(7%)
297
306
(3%)
Royalties
46
47
50
(8%)
46
48
(4%)
Average liquids price (USD/bbl)
68.0
66.2
61.4
11%
67.1
61.4
9%
Average internal gas price (USD/mmbtu)
1.32
1.74
1.41
(6%)
1.54
2.22
(30%)
Production & Revenues
In the second quarter and first half of 2024, E&P USA reports lower production compared to the same periods in 2023 mainly due
turnaround activity in the Gulf of Mexico and curtailment of production affecting the Appalachia onshore assets. On 31 May 2024,
Equinor closed the transaction with EQT to divest an Appalachia operated asset and certain Appalachia non-operated properties in
exchange for additional interests in our Appalachia non-operated properties in the North. The transaction had a minimal impact on the
production for the quarter.
Revenues in the second quarter and first half of 2024 were impacted by lower production and lower gas prices following continued
oversupply in the Appalachia basin area. This was more than offset by higher liquids prices resulting in a 3% increase in revenue for
both the second quarter and the first half of the year relative to the same periods in 2023.
Operating expenses and financial results
Operating and administration expenses slightly increased in the second quarter and first half of 2024 compared to the same periods
last year. This increase was primarily due to higher well maintenance expenditures in multiple offshore assets, offset by lower offshore
production which reduced transportation expenses.
Lower offshore production also resulted in a decrease in depreciation in the second quarter and first half of 2024 when compared to
the same periods of 2023. This was partially offset by a depreciation expense related to an increase in abandonment cost estimate for
a late life asset in the Gulf of Mexico.
Exploration expenditures were slightly lower in the second quarter of 2024, following the sanctioning of the Sparta project late in 2023,
resulting in lower field development expenditures.
The increase in additions to PP&E, intangibles and equity accounted investments in the second quarter and first half year of 2024,
compared to the same periods in 2023, is primarily attributed to the swap with EQT closed in the second quarter. This resulted in an
increase in the Northern Marcellus formation offset by a decrease from the Appalachia operated assets impacting PPE disposals.
Equinor second quarter 2024 17
MARKETING, MIDSTREAM & PROCESSING
Financial information
Quarters
Change
First half
(unaudited, in USD million)
Q2 2024
Q1 2024
Q2 2023
Q2 on Q2
2024
2023
Change
Total revenues and other income
25,190
24,824
22,639
11%
50,014
51,528
(3%)
Total operating expenses
(24,693)
(23,522)
(22,489)
10%
(48,215)
(49,260)
(2%)
Net operating income/(loss)
497
1,303
150
>100%
1,799
2,268
(21%)
Adjusted total revenues and other income*
25,189
24,478
23,150
9%
49,667
51,232
(3%)
Adjusted purchases* [5]
(23,187)
(22,026)
(21,065)
10%
(45,214)
(46,409)
(3%)
Adjusted operating and administrative expenses*
(1,238)
(1,337)
(1,199)
3%
(2,576)
(2,429)
6%
Adjusted depreciation, amortisation and net
impairments*
(242)
(227)
(221)
10%
(469)
(452)
4%
Adjusted operating income/(loss)*
521
887
665
(22%)
1,408
1,942
(28%)
- Gas and Power
509
529
426
19%
1,038
1,195
(13%)
- Crude, Products and Liquids
195
458
299
(35%)
654
809
(19%)
- Other
(183)
(101)
(61)
>100%
(284)
(62)
>100%
Additions to PP&E, intangibles and equity
accounted investments
189
210
65
>100%
399
284
40%
Operational information
Quarters
Change
First half
Q2 2024
Q1 2024
Q2 2023
Q2 on Q2
2024
2023
Change
Liquids sales volumes (mmbl)
253.8
247.6
233.4
9%
501.4
450.6
11%
Natural gas sales Equinor (bcm)
1)
15.4
16.8
14.1
9%
32.2
29.8
8%
Natural gas entitlement sales Equinor (bcm)
12.9
14.3
12.3
5%
27.3
26.6
2%
Power generation (GWh) Equinor share
428
503
602
(29%)
931
1,241
(25%)
Realised piped gas price Europe (USD/mmbtu)
9.94
9.41
11.46
(13%)
9.66
15.42
(37%)
Realised piped gas price US (USD/mmbtu)
1.53
2.33
1.46
5%
1.96
2.36
(17%)
1) Equinor natural gas sales volumes reported for the first quarter of 2024 were restated from 16.3 bcm to 16.8 bcm.
Volumes, Pricing & Revenues
Liquids sales volumes remained stable with the first quarter of 2024 and increased compared to the first half of 2023 primarily due to
higher sales of third-party volumes.
Gas sales were lower compared to the first quarter of 2024 due to lower NCS gas production caused by maintenance activity. The
increase in gas sales relative to the second quarter and first half of the prior year was driven by higher NCS gas production and third-
party sales, partially offset by lower EPI production.
Gas to power generation decreased compared to both the previous quarter and the first half of last year due to a lower clean spark
spread.
Realised European piped gas price increased in the second quarter of 2024 compared to the previous quarter, due to an increase in
market prices driven by geopolitical risks and supply disruptions. Compared to the same quarter last year, the realised European
piped gas price decreased due to mild temperatures and lower market prices driven by high storage levels and reduced demand.
Realised piped gas price in the US decreased in the second quarter of 2024 compared to the previous quarter due to high storage
levels resulting from a mild winter in the first quarter. Compared to the second quarter of last year, prices increased slightly due to cuts
in gas production in the second quarter of this year.
Equinor second quarter 2024 18
Financial Results
Gas and Power contributed significantly to adjusted operating income* during the second quarter of 2024, supported by strong equity
and third-party LNG trading, along with the realisation of physical gas sales and geographical optimisation. Crude, Products, and
Liquids results were positively influenced by physical sales and shipping optimisation. The Other sub-segment was impacted by higher
activity levels associated with developing low-carbon projects and reduced refinery throughput due to planned maintenance.
Adjusted operating income* decreased compared to the previous quarter. The result from Crude, Products and Liquids decreased
from the significant contributions of the prior quarter, caused by lower margins from physical sales and less favourable results from
paper trading. Lower refinery throughput also contributed to the reduction in adjusted operating income*.
Adjusted operating income* year to date was lower than the same period last year, driven by lower Crude, Products and Liquid
margins, lower refinery throughput, reduced clean spark spread and higher costs associated with developing low carbon projects.
Net operating income includes the net effect of fair value change in commodity derivatives and storages, impairment reversal,
changes in onerous provisions and operational storage value change.
Equinor second quarter 2024 19
RENEWABLES
Financial information
Quarters
Change
First half
(unaudited, in USD million)
Q2 2024
Q1 2024
Q2 2023
Q2 on Q2
2024
2023
Change
Revenues third party, other revenue and other income
12
29
8
42%
41
14
>100%
Net income/(loss) from equity accounted investments
37
30
(4)
>(100%)
68
(11)
>(100%)
Total revenues and other income
49
60
4
>100%
109
2
>100%
Total operating expenses
(140)
(280)
(95)
48%
(420)
(182)
>100%
Net operating income/(loss)
(90)
(220)
(91)
0%
(311)
(180)
(73%)
Adjusted total revenues and other income*
49
60
7
>100%
109
3
>100%
Adjusted operating and administrative expenses*
(122)
(121)
(89)
37%
(243)
(167)
46%
Adjusted depreciation, amortisation and net
impairments*
(18)
(8)
(2)
>100%
(26)
(3)
>100%
Adjusted operating income/(loss)*
(90)
(70)
(84)
(8%)
(160)
(167)
4%
Additions to PP&E, intangibles and equity accounted
investments
608
624
267
>100%
1,232
1,119
10%
Operational information
Quarters
Change
First half
Q2 2024
Q1 2024
Q2 2023
Q2 on Q2
2024
2023
Change
Renewables power generation (GWh) Equinor share
634
739
335
89%
1,373
846
62%
Power generation
The substantial increase in power generation in the second quarter and first half of 2024 compared to the same periods of 2023 was
driven by the addition of onshore power plants in Brazil and Poland, and the successful start of production at the partner operated
Mendubim solar plants in Brazil. Total onshore renewables generated 347 GWh in the second quarter of 2024. Despite the delays in
completion of the Dogger Bank A wind farm until 2025, offshore wind farms generated 287 GWh, with the majority coming from
Dudgeon, Sheringham Shoal and Arkona.
Total revenues and other income
The addition of onshore wind farms in operation in Brazil and Poland increased the contribution to revenues third party, other revenue
and other income in the second quarter and first half of 2024 compared to the same periods last year. Net income/(loss) from equity-
accounted investments increased significantly in the second quarter and first half of 2024 compared to the same periods in 2023.
The positive result from joint venture assets in operation remained stable compared to the second quarter of last year, as the increase
in power generation was offset by lower prices. In the second quarter and first half of 2024, the increase in net results was driven by
reduced project development costs compared to the same periods last year, following the capitalistion of Bałtyk, the offshore wind
project in Poland, in the third quarter of 2023, and the divestment of the Beacon Wind project through an asset swap transaction
between Equinor and bp in the first quarter of 2024.
Operating expenses and financial results
Higher operating activity levels from ongoing development projects combined with increased business development expenditures
contributed to an upward trend in operating and administrative expenses in the second quarter and first half of 2024 compared to the
same periods last year. This increase was partially offset by favourable adjustments.
Net operating loss for the first half of 2024 increased compared to the same period of 2023, mainly due to a USD 147 million net loss
following the asset swap transaction between Equinor and bp, under which Equinor took full ownership of the Empire Wind lease and
projects and bp took full ownership of the Beacon Wind lease and projects in the first quarter of 2024.
Additions to PP&E, intangibles, and equity accounted investments for the second quarter of 2024 increased compared to the same
quarter last year. In the second quarter of 2024, USD 24 million for onshore renewables and USD 576 million was allocated for
offshore wind projects, primarily related to the South Brooklyn Marine Terminal (SBMT) in the US and investments related to projects
in Europe.
Equinor second quarter 2024 20
CONDENSED INTERIM FINANCIAL STATEMENTS
Second quarter 2024
CONSOLIDATED STATEMENT OF INCOME
Quarters
First half
(unaudited, in USD million)
Note
Q2 2024
Q1 2024
Q2 2023
2024
2023
Revenues
4
25,462
25,089
22,870
50,551
52,081
Net income/(loss) from equity accounted investments
12
33
11
44
54
Other income
65
14
(9)
78
(39)
Total revenues and other income
2
25,538
25,135
22,872
50,673
52,096
Purchases [net of inventory variation]
(12,145)
(11,922)
(10,867)
(24,068)
(22,102)
Operating expenses
3
(2,761)
(2,630)
(2,565)
(5,391)
(5,287)
Selling, general and administrative expenses
(348)
(341)
(216)
(690)
(520)
Depreciation, amortisation and net impairments
(2,348)
(2,345)
(2,243)
(4,693)
(4,443)
Exploration expenses
(279)
(266)
71
(545)
(176)
Total operating expenses
2
(17,883)
(17,504)
(15,821)
(35,386)
(32,527)
Net operating income/(loss)
2
7,656
7,631
7,051
15,287
19,569
Interest income and other financial income
495
560
618
1,055
1,208
Interest expenses and other financial expenses
(394)
(416)
(418)
(811)
(880)
Other financial items
(226)
222
123
(4)
1,184
Net financial items
5
(126)
366
323
240
1,512
Income/(loss) before tax
7,530
7,998
7,374
15,527
21,081
Income tax
6
(5,658)
(5,325)
(5,545)
(10,983)
(14,286)
Net income/(loss)
1,872
2,672
1,829
4,545
6,795
Attributable to equity holders of the company
1,861
2,668
1,824
4,528
6,785
Attributable to non-controlling interests
12
5
6
16
10
Basic earnings per share (in USD)
0.65
0.91
0.60
1.56
2.20
Diluted earnings per share (in USD)
0.65
0.91
0.60
1.56
2.20
Weighted average number of ordinary shares outstanding (in millions)
2,850
2,938
3,042
2,894
3,080
Weighted average number of ordinary shares outstanding diluted (in millions)
2,856
2,942
3,049
2,899
3,086
Equinor second quarter 2024 21
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Quarters
First half
(unaudited, in USD million)
Q2 2024
Q1 2024
Q2 2023
2024
2023
Net income/(loss)
1,872
2,672
1,829
4,545
6,795
Actuarial gains/(losses) on defined benefit pension plans
74
513
544
587
598
Income tax effect on income and expenses recognised in OCI
1)
(14)
(117)
(121)
(131)
(137)
Items that will not be reclassified to the Consolidated statement of income
60
396
423
456
461
Foreign currency translation effects
158
(1,094)
(45)
(937)
(1,471)
Share of OCI from equity accounted investments
(3)
8
92
5
27
Items that may be subsequently reclassified to the Consolidated statement of income
155
(1,087)
47
(932)
(1,444)
Other comprehensive income/(loss)
215
(691)
470
(476)
(984)
Total comprehensive income/(loss)
2,088
1,982
2,299
4,069
5,811
Attributable to the equity holders of the company
2,076
1,977
2,293
4,053
5,801
Attributable to non-controlling interests
12
5
6
16
10
1) Other comprehensive income (OCI).
Equinor second quarter 2024 22
CONSOLIDATED BALANCE SHEET
At 30 June
At 31 December
(in USD million)
Note
2024 (unaudited)
2023 (audited)
ASSETS
Property, plant and equipment
2
58,540
58,822
Intangible assets
3
6,245
5,709
Equity accounted investments
2,403
2,508
Deferred tax assets
7,274
7,936
Pension assets
1,603
1,260
Derivative financial instruments
570
559
Financial investments
3,588
3,441
Prepayments and financial receivables
7
1,336
1,291
Total non-current assets
81,560
81,525
Inventories
3,188
3,814
Trade and other receivables
1)
11,124
13,204
Prepayments and financial receivables
1)
3,972
3,729
Derivative financial instruments
816
1,378
Financial investments
23,360
29,224
Cash and cash equivalents
2)
8,641
9,641
Total current assets
51,101
60,990
Assets classified as held for sale
3
1,480
1,064
Total assets
134,142
143,580
EQUITY AND LIABILITIES
Shareholders' equity
43,671
48,490
Non-controlling interests
29
10
Total equity
43,700
48,500
Finance debt
5
20,703
22,230
Lease liabilities
2,411
2,290
Deferred tax liabilities
13,260
13,345
Pension liabilities
3,724
3,925
Provisions and other liabilities
7
13,967
15,304
Derivative financial instruments
2,153
1,795
Total non-current liabilities
56,218
58,890
Trade and other payables
3)
9,173
9,556
Provisions and other liabilities
3)
2,278
2,314
Current tax payable
6
9,935
12,306
Finance debt
5, 7
8,178
5,996
Lease liabilities
1,305
1,279
Dividends payable
1,936
2,649
Derivative financial instruments
678
1,619
Total current liabilities
33,483
35,719
Liabilities directly associated with the assets classified as held for sale
3
740
471
Total liabilities
90,441
95,080
Total equity and liabilities
134,142
143,580
1) Disaggregated from the line-item Trade and other receivables starting from the first quarter of 2024.
Equinor second quarter 2024 23
2) Includes collateral deposits of USD 1.3 billion for 30 June 2024 related to certain requirements set out by exchanges where Equinor is
participating. The corresponding figure for 31 December 2023 is USD 1.6 billion.
3) Disaggregated from the line-item Trade, other payables and provisions starting from the first quarter of 2024.
Equinor second quarter 2024 24
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 2023
1,142
3,041
58,236
(8,855)
424
53,988
1
53,989
Net income/(loss)
6,785
6,785
10
6,795
Other comprehensive
income/(loss)
461
(1,471)
27
(984)
(984)
Total comprehensive
income/(loss)
5,811
Dividends
(5,481)
(5,481)
(5,481)
Share buy-back
(42)
(4,543)
(4,585)
(4,585)
Other equity transactions
(4)
(4)
(4)
At 30 June 2023
1,101
(1,507)
60,001
(10,326)
451
49,719
11
49,730
At 1 January 2024
1,101
0
56,521
(9,442)
310
48,490
10
48,500
Net income/(loss)
4,528
4,528
16
4,545
Other comprehensive
income/(loss)
456
(937)
5
(476)
(476)
Total comprehensive
income/(loss)
4,069
Dividends
(3,983)
(3,983)
(3,983)
Share buy-back
1)
(4,880)
(4,880)
(4,880)
Other equity transactions
(9)
(9)
3
(6)
At 30 June 2024
1,101
0
52,634
(10,379)
315
43,671
29
43,700
1) For more information see note 8 Capital distribution.
Equinor second quarter 2024 25
CONSOLIDATED STATEMENT OF CASH FLOWS
Quarters
First half
First half
(unaudited, in USD million)
Note
Q2 2024
Q1 2024
Q2 2023
2024
2023
Income/(loss) before tax
7,530
7,998
7,374
15,527
21,081
Depreciation, amortisation and net impairments, including exploration write-
offs
2,346
2,426
2,020
4,772
4,310
(Gains)/losses on foreign currency transactions and balances
5
193
(303)
(197)
(110)
(1,152)
(Gains)/losses on sale of assets and businesses
3
(11)
130
27
118
260
(Increase)/decrease in other items related to operating activities
1), 2)
(737)
(882)
(276)
(1,619)
(601)
(Increase)/decrease in net derivative financial instruments
138
127
1,213
264
1,540
Interest received
555
406
627
961
904
Interest paid
(266)
(212)
(303)
(478)
(553)
Cash flows provided by operating activities before taxes paid and working
capital items
9,748
9,689
10,485
19,437
25,789
Taxes paid
(7,850)
(3,849)
(10,841)
(11,700)
(16,430)
(Increase)/decrease in working capital
(286)
3,181
2,214
2,894
7,369
Cash flows provided by operating activities
1,611
9,021
1,857
10,632
16,728
Cash (used)/received in business combinations
3
(467)
(0)
(803)
(467)
(1,055)
Capital expenditures and investments
3
(2,950)
(2,483)
(2,842)
(5,433)
(4,893)
(Increase)/decrease in financial investments
4,185
507
11,241
4,692
6,132
(Increase)/decrease in derivative financial instruments
99
(46)
(738)
53
(1,540)
(Increase)/decrease in other interest-bearing items
(283)
(210)
(24)
(493)
39
Proceeds from sale of assets and businesses
3)
3
50
60
71
110
118
Cash flows provided by/(used in) investing activities
633
(2,172)
6,905
(1,538)
(1,199)
Repayment of finance debt
0
(1,900)
(300)
(1,900)
(2,476)
Repayment of lease liabilities
(375)
(373)
(336)
(748)
(668)
Dividends paid
(2,072)
(2,649)
(2,725)
(4,721)
(5,586)
Share buy-back
(398)
(550)
(4,079)
(947)
(4,540)
Net current finance debt and other financing activities
2)
(471)
(1,156)
1,101
(1,626)
1,974
Cash flows provided by/(used in) financing activities
(3,315)
(6,627)
(6,338)
(9,942)
(11,296)
Net increase/(decrease) in cash and cash equivalents
(1,070)
222
2,424
(849)
4,233
Effect of exchange rate changes on cash and cash equivalents
29
(181)
(154)
(152)
(162)
Cash and cash equivalents at the beginning of the period (net of overdraft)
9,682
9,641
17,380
9,641
15,579
Cash and cash equivalents at the end of the period (net of overdraft)
4)
8,641
9,682
19,650
8,641
19,650
1)
in first half of 2024. The corresponding amount in second quarter 2023 was a fair value loss of USD 214 million and a loss of USD 234
million in the first half of 2023.
2)
revenue-making activities. From 1 January 2024, these cash flows are therefore presented within the line-item (Increase)/decrease in
other items related to operating activities. In previous periods these cash flows have been presented within the line-item Net current
finance debt and other financing activities. Comparative figures have not been restated due to immateriality.
3)
Limited at closing date 31 March 2023.
4)
Equinor second quarter 2024 26
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 registered office address 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 businesses. 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 a co-obligor or guarantor of certain debt obligations of Equinor ASA.
Equinor's condensed interim financial statements for the second quarter of 2024 were authorised for issue by the board of directors on
23 July 2024.
Basis of preparation
These condensed interim financial statements are prepared in accordance with IAS 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 IFRS® Accounting Standards for a complete set of financial
statements and should be read in conjunction with the Consolidated annual financial statements for 2023. IFRS Accounting Standards
as adopted by the EU differs in certain respects from IFRS Accounting Standards as issued by the IASB, however the differences do
not impact Equinor's financial statements for the periods presented.
Certain amounts in the comparable years have been reclassified to conform to current year presentation. As a result of rounding
differences, numbers or percentages may not add up to the total.
The condensed interim financial statements are unaudited.
Accounting policies
The accounting policies applied in the preparation of the condensed interim financial statements are consistent with those used in the
preparation of Equinor’s consolidated annual financial statements for 2023. A description of the material accounting policies is
included in Equinor’s consolidated annual financial statements for 2023. 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 2023.
For information about IFRS Accounting Standards, amendments to IFRS Accounting Standards and IFRIC® Interpretations effective
from 1 January 2024, that could affect the consolidated financial statements, please refer to note 2 in Equinor’s consolidated financial
statements for 2023. None of the amendments to IFRS Accounting Standards effective from 1 January 2024 has had a significant
impact on the condensed interim financial statements. Equinor has not early adopted any IFRS Accounting Standards, amendments
to IFRS Accounting Standards or IFRIC Interpretations issued, but not yet effective.
Use of judgements and estimates
The preparation of financial statements in conformity with IFRS Accounting Standards requires management to make judgments,
estimates and assumptions that affect the application of accounting policies and the 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. These estimates and assumptions 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. Please refer to note 2 in Equinor’s consolidated financial statements for 2023 for more
information about accounting judgement and key sources of estimation uncertainty. See note 2 Segments in this report for further
information about management’s future commodity price assumptions and long-term NOK currency exchange rate assumptions.
Equinor second quarter 2024 27
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 Officer (CEO). 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 applied in these condensed interim 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.
Second quarter 2024
E&P
Norway
E&P
International
E&P
USA
MMP
REN
Other
Eliminations
Total Group
(in USD million)
Revenues third party
60
162
72
25,135
6
27
0
25,462
Revenues and other income inter-segment
8,304
1,742
919
86
6
8
(11,065)
0
Net income/(loss) from equity accounted
investments
0
5
0
(30)
37
0
0
12
Other income
62
0
9
(0)
0
(6)
0
65
Total revenues and other income
8,426
1,909
1,001
25,190
49
28
(11,065)
25,538
Purchases [net of inventory variation]
0
(23)
0
(23,206)
0
0
11,084
(12,145)
Operating, selling, general and
administrative expenses
(982)
(582)
(291)
(1,279)
(122)
(33)
179
(3,110)
Depreciation and amortisation
(1,206)
(453)
(427)
(242)
(15)
(35)
0
(2,379)
Net impairment (losses)/reversals
0
0
0
33
(3)
0
0
31
Exploration expenses
(109)
(151)
(19)
0
0
0
0
(279)
Total operating expenses
(2,297)
(1,209)
(737)
(24,693)
(140)
(69)
11,263
(17,883)
Net operating income/(loss)
6,129
699
264
497
(90)
(40)
198
7,656
Additions to PP&E, intangibles and equity
accounted investments
1,579
779
1,522
189
608
101
(0)
4,779
Balance sheet information
Equity accounted investments
4
0
0
759
1,490
148
2
2,403
Non-current segment assets
27,812
18,151
11,345
3,811
2,700
966
0
64,785
Non-current assets not allocated to
segments
14,372
Total non-current assets
81,560
Assets held for sale
364
1,116
0
0
0
0
0
1,480
Equinor second quarter 2024 28
First quarter 2024
E&P
Norway
E&P
International
E&P
USA
MMP
REN
Other
Eliminations
Total Group
(in USD million)
Revenues third party
55
183
67
24,733
26
25
0
25,089
Revenues and other income inter-segment
7,852
1,470
968
92
3
8
(10,393)
0
Net income/(loss) from equity accounted
investments
0
3
0
(1)
30
0
0
33
Other income
(28)
(1)
20
0
0
23
0
14
Total revenues and other income
7,879
1,655
1,055
24,824
60
55
(10,393)
25,135
Purchases [net of inventory variation]
0
34
0
(21,968)
0
0
10,012
(11,922)
Operating, selling, general and
administrative expenses
(866)
(395)
(280)
(1,326)
(272)
(46)
213
(2,971)
Depreciation and amortisation
(1,173)
(529)
(364)
(227)
(8)
(36)
0
(2,337)
Net impairment (losses)/reversals
0
0
0
0
0
(7)
0
(7)
Exploration expenses
(84)
(148)
(34)
0
0
0
0
(266)
Total operating expenses
(2,123)
(1,039)
(678)
(23,522)
(280)
(89)
10,226
(17,504)
Net operating income/(loss)
5,756
616
377
1,303
(220)
(34)
(167)
7,631
Additions to PP&E, intangibles and equity
accounted investments
1,372
756
359
210
624
40
0
3,361
Equinor second quarter 2024 29
Second quarter 2023
E&P
Norway
E&P
International
E&P
USA
MMP
REN
Other
Eliminations
Total Group
(in USD million)
Revenues third party
67
185
75
22,514
11
19
0
22,870
Revenues and other income inter-segment
8,223
1,394
902
135
0
8
(10,661)
0
Net income/(loss) from equity accounted
investments
0
24
0
(9)
(4)
0
0
11
Other income
(8)
1
0
0
(2)
(0)
0
(9)
Total revenues and other income
8,282
1,605
976
22,639
4
27
(10,661)
22,872
Purchases [net of inventory variation]
0
(100)
0
(21,094)
0
0
10,327
(10,867)
Operating, selling, general and
administrative expenses
(937)
(436)
(305)
(1,172)
(93)
(9)
172
(2,781)
Depreciation and amortisation
(1,064)
(465)
(445)
(221)
(2)
(35)
0
(2,231)
Net impairment (losses)/reversals
0
0
0
(2)
0
(10)
0
(12)
Exploration expenses
(80)
173
(22)
0
0
0
0
71
Total operating expenses
(2,082)
(828)
(772)
(22,489)
(95)
(54)
10,499
(15,821)
Net operating income/(loss)
6,200
776
204
150
(91)
(26)
(162)
7,051
Additions to PP&E, intangibles and equity
accounted investments
1,624
2,114
274
65
267
0
0
4,345
Equinor second quarter 2024 30
First half 2024
E&P
Norway
E&P
Internationa
l
E&P
USA
MMP
REN
Other
Eliminations
Total Group
(in USD million)
Revenues third party
116
345
139
49,868
32
51
0
50,551
Revenues inter-segment
16,156
3,212
1,887
178
9
16
(21,457)
0
Net income/(loss) from equity accounted
investments
0
8
0
(31)
68
0
0
44
Other income
33
(1)
30
0
0
16
0
78
Total revenues and other income
16,305
3,563
2,056
50,014
109
84
(21,457)
50,673
Purchases [net of inventory variation]
0
10
0
(45,174)
0
(0)
21,096
(24,068)
Operating, selling, general and
administrative expenses
(1,848)
(977)
(571)
(2,605)
(394)
(79)
392
(6,081)
Depreciation and amortisation
(2,379)
(983)
(791)
(469)
(23)
(71)
0
(4,716)
Net impairment (losses)/reversals
0
0
0
33
(3)
(7)
0
23
Exploration expenses
(193)
(299)
(53)
0
0
0
0
(545)
Total operating expenses
(4,420)
(2,248)
(1,415)
(48,215)
(420)
(157)
21,488
(35,386)
Net operating income/(loss)
11,885
1,316
641
1,799
(311)
(74)
31
15,287
Additions to PP&E, intangibles and equity
accounted investments
2,951
1,535
1,881
399
1,232
142
(0)
8,140
Equinor second quarter 2024 31
First half 2023
E&P
Norway
E&P
International
E&P
USA
MMP
REN
Other
Eliminations
Total Group
(in USD million)
Revenues third party
116
513
136
51,258
14
44
0
52,081
Revenues inter-segment
20,315
2,603
1,855
217
0
17
(25,007)
0
Net income/(loss) from equity accounted
investments
0
35
0
31
(11)
0
0
54
Other income
(105)
1
0
23
0
41
0
(39)
Total revenues and other income
20,326
3,153
1,991
51,528
2
102
(25,007)
52,096
Purchases [net of inventory variation]
(0)
(84)
0
(46,453)
0
(0)
24,434
(22,102)
Operating, selling, general and
administrative expenses
(1,914)
(1,095)
(577)
(2,351)
(179)
(142)
453
(5,806)
Depreciation and amortisation
(2,179)
(926)
(801)
(452)
(3)
(68)
0
(4,429)
Net impairment (losses)/reversals
0
0
0
(4)
0
(10)
0
(14)
Exploration expenses
(217)
110
(68)
0
0
0
0
(176)
Total operating expenses
(4,310)
(1,995)
(1,447)
(49,260)
(182)
(220)
24,887
(32,527)
Net operating income/(loss)
16,016
1,158
544
2,268
(180)
(118)
(120)
19,569
Additions to PP&E, intangibles and equity
accounted investments
2,941
2,565
536
284
1,119
79
0
7,524
Equinor second quarter 2024 32
Changes to accounting assumptions
Management’s future commodity price assumptions and currency assumptions are used for value in use impairment testing. While
there are inherent uncertainties in the assumptions, the commodity price assumptions as well as currency assumptions reflect
management’s best estimate of the price and currency development over the life of the Group’s assets based on its view of relevant
current circumstances and the likely future development of such circumstances, including energy demand development, energy and
climate change policies as well as the speed of the energy transition, population and economic growth, geopolitical risks, technology
and cost development and other factors. Management’s best estimate also takes into consideration a range of external forecasts.
Equinor has performed a thorough and broad analysis of the expected development in drivers for the different commodity markets and
exchange rates. Significant uncertainty exists regarding future commodity price development due to the transition to a lower carbon
economy, future supply actions by OPEC+ and other factors. Such analysis resulted in changes in the long-term price assumptions
with effect from the second quarter of 2024. The main price assumptions applied in impairment and impairment reversal assessments
are disclosed in the table below as price-points on price curves. Previous price-points applied from the second quarter of 2023 up to
and including the first quarter of 2024 are provided in brackets.
Further, with effect from the second quarter of 2024, Equinor implemented new long-term exchange rates. The USD/NOK rate has
been revised to 10.0 (previously 8.5), the EUR/NOK rate has been revised to 11.5 (previously 10.0) and the USD/GBP rate has been
revised to 1.30 (previously 1.35). This conclusion is supported by the historical 5-year average and forward spot prices in the
currency market.
Year
Prices in real terms
1)
2030
2040
2050
Brent Blend (USD/bbl)
80
(80)
75
(75)
70
(70)
European gas (USD/mmBtu) - TTF
8.3
(9.4)
9.5
(9.8)
9.5
(9.8)
Henry Hub (USD/mmBtu)
4.3
(4.5)
4.5
(4.4)
4.5
(4.4)
Electricity Germany (EUR/MWh)
71
(80)
74
(73)
74
(73)
EU ETS (EUR/tonne)
101
(107)
136
(131)
165
(153)
1) Basis year 2024, i.e prices have been adjusted for inflation and are presented in real 2024 terms.
Non-current assets by country
At 30 June
At 31 December
(in USD million)
2024
2023
Norway
31,666
32,977
USA
13,830
12,587
Brazil
11,033
10,871
UK
5,600
5,535
Canada
1,099
1,157
Angola
1,093
1,103
Denmark
954
973
Argentina
693
648
Poland
568
447
Algeria
413
474
Other
239
265
Total non-current assets
1)
67,188
67,038
1) Excluding deferred tax assets, pension assets and non-current financial assets. Non-current assets are attributed to country of operations.
3 Acquisitions and disposals
Acquisition and disposals
Swap of onshore oil & gas assets in the US
Equinor second quarter 2024 33
On 31 May 2024, Equinor and EQT Corporation closed the swap transaction in which Equinor sold its 100% interest in the Marcellus
and Utica shale formations in the Appalachian Basin, located in southeastern Ohio, and transferred the operatorship to EQT. In
exchange, Equinor acquired 40% of EQT’s non-operated working interest in the Northern Marcellus shale formation in Pennsylvania.
Following the transaction, Equinor has increased its average working interest from 15.7% to 25.7% in certain Chesapeake-operated
Northern Marcellus gas units. Equinor paid a cash consideration of USD 467 million (net of interim period settlement) to EQT to
balance the overall transaction. With this transaction, Equinor continues to high-grade the US portfolio and work to strengthen the
profitability of the onshore gas position in the Appalachian Basin. The assets acquired and liabilities assumed have been recognised
in accordance with the principles in IFRS 3 Business Combinations within the E&P USA segment, mainly as property, plant, and
equipment (USD 750 million) and intangible assets (USD 505 million).
Swap of US Offshore Wind assets
On 24 January 2024, Equinor entered into a swap agreement with bp to acquire bp’s 50% share and take full ownership of Empire
Offshore Wind Holdings LLC, including the Empire Wind lease and projects (Empire Wind), in exchange for its 50% share in Beacon
Wind Holdings LLC, including the Beacon Wind lease and projects (Beacon Wind). Equinor also agreed to acquire bp's 50% interest
in the South Brooklyn Marine Terminal (SBMT) lease. Based on the agreement, Equinor controls and has consolidated Empire Wind
and SBMT from the first quarter of 2024 and has divested its 50% share of Beacon Wind. The swap of Empire Wind and Beacon Wind
was formally closed on 4 April. The acquisitions have been accounted for as asset acquisitions, and previous holdings have not been
revalued. The swap resulted in a combined loss of USD 147 million in the first quarter 2024, recognised in the REN segment and
presented in the line item Operating expenses in the Consolidated statement of income.
Held for sale
Divestment of interest in Azerbaijan
On 22 December 2023, Equinor entered into an agreement with the State Oil Company of the Republic of Azerbaijan (SOCAR) to sell
its interest in its Azerbaijan assets. The assets comprise a 7.27% non-operated interest in the Azeri Chirag Gunashli (ACG) oil fields in
the Azerbaijan sector of the Caspian Sea, 8.71% interest in the Baku-Tbilisi-Ceyhan (BTC) pipeline and 50% in the Karabagh oil
field. Closing is expected during 2024 subject to regulatory and contractual approvals. The assets have been classified as held for
sale since the fourth quarter 2023.
4 Revenues
Revenues from contracts with customers by geographical areas
When attributing the line item Revenues from contracts with customers for the second quarter of 2024 to the country of the legal entity
executing the sale, Norway constitutes 80% and the USA constitutes 18% of such revenues (79% and 18%, respectively, for the first
quarter of 2024 and 76% and 20%, respectively, for the second quarter of 2023). For the first half of 2024, Norway and the USA
constituted 79% and 18% of such revenues, respectively (81% and 16% respectively for the first half of 2023). Revenues from
contracts with customers are mainly reflecting such revenues from the reporting segment MMP.
Revenues from contracts with customers and other revenues
Quarters
First half
(in USD million)
Q2 2024
Q1 2024
Q2 2023
2024
2023
Crude oil
15,633
14,266
13,055
29,899
25,166
Natural gas
4,888
5,060
5,041
9,948
15,498
3,967
4,177
4,422
8,143
13,650
199
305
199
504
596
723
578
419
1,301
1,251
Refined products
2,045
2,224
2,368
4,269
4,845
Natural gas liquids
1,806
2,097
1,780
3,903
4,163
Power
1)
405
563
448
968
1,301
Transportation
387
369
395
756
848
Other sales
1)
92
85
209
176
316
Revenues from contracts with customers
25,255
24,663
23,295
49,918
52,136
Total other revenues
2)
207
426
(425)
632
(56)
Revenues
25,462
25,089
22,870
50,551
52,081
Equinor second quarter 2024 34
1) As from 1 January 2024, the line item Power has been disaggregated from the line item Other sales. 2023 figures have been disaggregated
accordingly.
2) This item mainly relates to commodity derivatives and change in fair value, less cost to sell, of commodity inventories held for trading purposes.
Equinor second quarter 2024 35
5 Financial items
Quarters
First half
(in USD million)
Q2 2024
Q1 2024
Q2 2023
2024
2023
Net foreign currency exchange gains/(losses)
(193)
303
197
110
1,152
Interest income and other financial income
495
560
618
1,055
1,208
Gains/(losses) on financial investments
21
(7)
5
15
37
Gains/(losses) other derivative financial instruments
(54)
(74)
(79)
(128)
(5)
Interest and other finance expenses
(394)
(416)
(418)
(811)
(880)
Net financial items
(126)
366
323
240
1,512
Equinor reports a decrease in Net foreign currency exchange gains in the first half of 2024 compared to first half prior year. The gains
mainly related to strengthening of USD versus NOK in both periods, with a lesser strengthening in the first half of 2024 than prior year.
Equinor has a US Commercial paper programme available with a limit of USD 5 billion. As of 30 June 2024, USD 0.2 billion were
utilised compared to USD 1.9 billion utilised as of 31 December 2023.
6 Income taxes
Quarters
First half
(in USD million)
Q2 2024
Q1 2024
Q2 2023
2024
2023
Income/(loss) before tax
7,530
7,998
7,374
15,527
21,081
Income tax
(5,658)
(5,325)
(5,545)
(10,983)
(14,286)
Effective tax rate
70.7 %
67.8 %
The effective tax rate for the second quarter and the first half of 2024 was significantly influenced by currency effects in entities that
are taxable in other currencies than the functional currency. The effective tax rate for the second quarter of 2024 was also influenced
by higher share of income from jurisdictions with relatively high tax rates.
The effective tax rate for the second quarter of 2023 was significantly influenced by higher share of income from the Norwegian
continental shelf. The effective rate for the first half of 2023 was significantly influenced by the lower share of income before tax from
the Norwegian continental shelf and currency effects in entities that are taxable in other currencies than the functional currency.
Equinor second quarter 2024 36
7 Provisions, commitments and contingent items
Asset retirement obligation
Equinor's estimated asset retirement obligations (ARO) have decreased by approximately USD 0.6 billion to USD 11.8 billion at 30
June 2024 compared to year-end 2023, mainly due to increased discount rates and strengthening of USD versus NOK. Changes in
ARO are reflected within Property, plant and equipment and Provisions and other liabilities in the Consolidated balance sheet.
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.
8 Capital distribution
Dividend for the second quarter 2024
On 23 July 2024, the Board of Directors resolved to declare an ordinary cash dividend for the second quarter of 2024 of USD 0.35 per
share and an extraordinary cash dividend of USD 0.35 per share. The Equinor shares will be traded ex-dividend 18 November 2024
on the Oslo Børs and 19 November for ADR holders on the New York Stock Exchange. Record date will be 19 November 2024 and
payment date will be 29 November 2024.
Share buy- back programme 2024
Based on the authorisation from the annual general meeting on 14 May 2024, the Board of directors will on a quarterly basis decide
on share buy-back tranches. The 2024-2025 buy-back programme is up to USD 10,000-12,000 million in total, with up to USD 6,000
million for 2024, including shares to be redeemed from the Norwegian State.
In February 2024, Equinor launched the first tranche of USD 1,200 million, of which USD 389 million was acquired in the market in first
quarter and USD 7 million was acquired in second quarter. In May 2024, Equinor launched the second tranche of USD 1,600 million
including shares to be redeemed from the Norwegian State, and entered into an irrevocable agreement with a third party to purchase
shares for USD 528 million in the market. Of this second tranche, shares for USD 390 million have been purchased in the market and
settled at 30 June 2024, whereas USD 528 million have been recognised as reduction in equity. The market execution of the second
tranche was completed in July 2024.
On 23 July 2024, the Board of Directors decided to initiate a third share buy-back tranche of up to USD 1,600 million for 2024,
including shares to be redeemed from the Norwegian State. The third tranche will start 25 July 2024 and will end no later than 22
October 2024.
In order to maintain the Norwegian States ownership share in Equinor, a proportionate share of the second, third and fourth tranche of
the 2023 programme as well as the first tranche of the 2024 programme was redeemed and cancelled through a capital reduction by
the annual general meeting on 14 May 2024. The liability to the Norwegian State of USD 3,956 million (NOK 42,801 million) following
the capital reduction has been recognised as reduction in equity and was settled in July 2024. A proportionate share of the second
and third tranche of the 2024 programme will be redeemed and cancelled at the annual general meeting in May 2025.
First half
Equity impact of share buy-back programmes (in USD million)
2024
2023
First tranche
396
330
Second tranche
528
550
Norwegian state share
1)
3,956
3,705
Total
4,880
4,585
1) Relates to second to fourth tranche of previous year programme and first tranche of
current year programme
Equinor second quarter 2024 37
Responsibility statement
Today, the board of directors and the chief executive officer have reviewed and approved the Equinor ASA Condensed interim
financial statements as of 30 June 2024.
Pursuant to the Norwegian Securities Trading Act section 5-6 with pertaining regulation we confirm to the best of our knowledge that:
●
Accounting Standards as adopted by the European Union (EU), IFRS Accounting Standards as issued by the International
Accounting Standards Board (IASB) and additional Norwegian disclosure requirements in the Norwegian Accounting Act, and that
●
company and the group taken as a whole, and that
●
impact on the Condensed interim financial statements, major related party transactions and the principal risks and uncertainties for
the remaining six months of the financial year.
Oslo, 23 July 2024
THE BOARD OF DIRECTORS OF EQUINOR ASA
/s/ JON ERIK REINHARDSEN
CHAIR
/s/ ANNE DRINKWATER
DEPUTY CHAIR
/s/ HAAKON BRUUN-HANSSEN
/s/ FERNANDA LOPES LARSEN
/s/ HILDE MØLLERSTAD
/s/ JONATHAN LEWIS
/s/ FINN BJØRN RUYTER
/s/ TONE HEGLAND BACHKE
/s/ STIG LÆGREID
/s/ PER MARTIN LABRÅTEN
/s/ MIKAEL KARLSSON
/s/ ANDERS OPEDAL
PRESIDENT AND CEO
Equinor second quarter 2024 38
SUPPLEMENTARY DISCLOSURES
Exchange rates
Quarters
Change
First half
Exchange rates
Q2 2024
Q1 2024
Q2 2023
Q2 on Q2
2024
2023
Change
USD/NOK average daily exchange rate
10.7440
10.5094
10.7100
0%
10.6248
10.4637
2%
USD/NOK period-end exchange rate
10.6460
10.8011
10.7712
(1%)
10.6460
10.7712
(1%)
EUR/USD average daily exchange rate
1.0764
1.0858
1.0890
(1%)
1.0811
1.0806
0%
EUR/USD period-end exchange rate
1.0705
1.0816
1.0866
(1%)
1.0705
1.0866
(1%)
USE AND RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Non-GAAP financial measures are defined as numerical measures that either exclude or include amounts that are not excluded or
included in the comparable measures calculated and presented in accordance with GAAP (i.e., IFRS Accounting Standards in the
case of Equinor). The following financial measures included in this report may be considered non-GAAP financial measures:
Adjusted operating income (previously named Adjusted earnings)
is based on net operating income/(loss) and adjusts for certain
items affecting the income for the period to separate out effects that management considers may not be well correlated to Equinor’s
underlying operational performance in the individual reporting period. Management believes adjusted operating income provides an
indication of Equinor’s underlying operational performance and facilitates comparison of operational trends between periods. The
name of this measure was changed in 2024 to eliminate confusion regarding the basis of the calculation; additionally, one adjusting
item was removed from the calculation of the measure, as detailed below in the Amended principles section.
Adjusted operating income after tax
(previously named Adjusted earnings after tax)
– equals the sum of net operating
income/(loss) less income tax in reporting segments and includes adjustments to net operating income/(loss) to take the applicable
marginal tax into consideration. The name of this measure was changed in 2024 in line with the change of the name of the pre-tax
measure above
.
Adjusted operating income after tax excludes net financial items and the associated tax effects on net financial items.
It is based on adjusted operating income less the tax effects on all elements included in adjusted operating income (or calculated tax
on net operating income and on each of the adjusting items using an estimated marginal tax rate). In addition, tax effects related to tax
exposure items not related to the individual reporting period are excluded from adjusted operating income after tax. Management
believes adjusted operating income after tax provides an indication of Equinor’s underlying operational performance after tax and
facilitates comparisons of operational trends after tax between periods as it reflects the tax charge associated with operational
performance excluding the impact of financing. 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 Accounting Standards 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 operating income after tax should not be considered
indicative of the amount of current or total tax expense (or taxes payable) for the period.
Adjusted net income
is based on net income/(loss) and provides additional transparency to Equinor’s underlying financial
performance by also including net financial items and the associated tax effects. This measure includes adjustments made to arrive at
adjusted operating income after tax, in addition to specific adjustments related to net financial items. Management believes this
measure provides an indication of Equinor’s underlying financial performance including the impact from financing and facilitates
comparison of trends between periods.
Adjusted Earnings Per Share (Adjusted EPS)
shares outstanding during the period. Earnings per share is a metric that is frequently used by investors, analysts and other parties to
assess a company's profitability per share. Management believes this measure provides an indication of Equinor’s underlying financial
performance including the impact from financing and facilitates comparison of trends between periods.
Management believes the above measures provides an indication of Equinor’s underlying operational and financial performance and
facilitates the comparison of trends between periods.
Equinor second quarter 2024 39
The above measures are supplementary measures and should not be viewed in isolation or as substitutes for net operating
income/(loss), net income/(loss) and earnings per share, which are the most directly comparable IFRS Accounting Standards
measures. The reconciliation tables later in this report reconcile the above non-GAAP measures to the most directly comparable IFRS
Accounting Standards measure or measures. There are material limitations associated with the above measures compared with the
IFRS Accounting Standards measures, as these non-GAAP measures do not include all the items of revenues/gains or
expenses/losses of Equinor that are required to evaluate its profitability on an overall basis. The non-GAAP measures are only
intended to be indicative of the underlying developments in trends of our on-going operations.
Amended principles for Adjusted operating income with effect from the first quarter of 2024:
Equinor has made the following changes to the items adjusted for within Adjusted operating income:
With effect from the first quarter of 2024, Equinor no longer adjusts for over-/underlift to arrive at adjusted operating income. Over-
/underlift is presented using the sales method. The sales revenues and associated costs are reflected in adjusted operating income
when the physical volumes are lifted and sold rather than when they are produced, in line with IFRS Accounting Standards. Removing
this adjustment is the result of a comprehensive materiality assessment and an effort to streamline our reporting. This change is part
of our ongoing commitment to improve the alternative performance measures we present, ensuring that the adjustments are
meaningful to users of the financial statements and supplementary information.
These changes have been applied retrospectively to the comparative figures. This change only affects the E&P Norway and E&P
International reporting segments and does not impact the comparative figures of other segments.
Impact of change
Q2 2023
First half 2023
E&P Norway
As reported
Impact
Restated
As reported
Impact
Restated
Adjusted total revenues and other income
8,034
260
8,294
20,178
258
20,435
Over-/underlift
(260)
260
-
(258)
258
-
Adjusted operating and administrative expenses
(888)
(50)
(937)
(1,863)
(51)
(1,914)
Over-/underlift
50
(50)
-
51
(51)
-
Adjusted operating income/(loss)
6,003
210
6,213
15,919
207
16,125
Adjusted operating income/(loss) after tax
1,366
46
1,413
3,580
46
3,626
Impact of change
Q2 2023
First half 2023
E&P International
As reported
Impact
Restated
As reported
Impact
Restated
Adjusted total revenues and other income
1,599
2
1,601
3,153
(94)
3,061
Over-/underlift
(2)
2
-
94
(94)
-
Adjusted operating and administrative expenses
(456)
44
(412)
(897)
86
(811)
Over-/underlift
(44)
44
-
(86)
86
-
Adjusted operating income/(loss)
751
46
797
1,365
(8)
1,357
Adjusted operating income/(loss) after tax
419
17
436
749
(18)
731
Impact of change
Q2 2023
First half 2023
Equinor group
As reported
Adjusted total revenues and other income
23,133
262
23,394
51,653
164
51,817
Over-/underlift
(262)
262
-
(164)
164
-
Adjusted operating and administrative expenses
(2,752)
(6)
(2,758)
(5,602)
35
(5,567)
Over-/underlift
6
(6)
-
(35)
35
-
Adjusted operating income/(loss)
7,543
256
7,799
19,516
199
19,715
Adjusted operating income/(loss) after tax
2,246
63
2,309
5,760
28
5,788
Effective tax rates on adjusted operating income
70.2 %
0.2 %
70.4 %
70.5 %
0.1 %
70.6 %
No other line items or segments were affected by the change.
Adjusted operating income adjust for the following items:
Equinor second quarter 2024 40
●
Changes in fair value of derivatives:
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 related 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 operating income 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
carried at fair value. Any accounting impacts resulting from such changes in fair value are also excluded from adjusted operating
income, as these fluctuations are not indicative of the underlying performance of the business.
●
Periodisation of inventory hedging effect:
commercial storage. These derivative contracts are carried at fair value while the inventories are accounted for at the lower of
cost or market price. An adjustment is made to align the valuation principles of inventories with related derivative contracts. 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.
●
The
operational storage
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
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 net impairment line
items.
●
Gain or loss from sales of assets
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.
●
Eliminations (Internal unrealised profit on inventories):
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 Accounting Standards (write down to production cost). The proportion of realised versus unrealised gain
fluctuates 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 operating income.
●
Other items of income and expense
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. However, other
items adjusted do not constitute normal, recurring income and operating expenses for the company. Other items are carefully
assessed and can include transactions such as provisions related to reorganisation, early retirement, etc.
●
Change in accounting policy
of Equinor’s underlying operational performance in the reporting period.
Adjusted net income incorporates the adjustments above, as well as the following items impacting net financial items:
●
Changes in fair value of financial derivatives used to hedge interest bearing instruments.
derivative contracts to manage interest rate risk on long term interest-bearing liabilities including bonds and financial loans. The
financial derivative contracts (hedging instruments) are measured at fair value at each reporting date, with movements in fair
value recognised in the income statement. The long term interest-bearing labilities are measured at amortised cost and not
remeasured at fair value at each reporting date. This creates measurement differences and therefore the movements in the fair
value of these financial derivative contracts and associated tax effects are excluded from the calculation of adjusted net income
and deferred until the time the underlying instrument is matured, exercised, or settled. Management believes that this
appropriately reflects the economic effect of these risk management activities in each period and provides an indication of
Equinor’s underlying financial performance.
●
Foreign currency gains/losses on certain intercompany bank and cash balances
These currency 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 other comprehensive income arising on translation from functional currency to presentation currency
USD. These currency effects increase volatility in financial performance, which does not reflect Equinor’s underlying financial
performance. Management believes that this adjustment removes periodic fluctuations in Equinor’s adjusted net income.
Net debt to capital employed ratio
– In Equinor’s view, net debt ratios provide a more informative picture of Equinor’s financial
strength than gross interest-bearing financial debt. Three different net debt to capital ratios are presented in this report: 1) net debt to
capital employed, 2) net debt to capital employed adjusted, including lease liabilities, and 3) net debt to capital employed adjusted.
These calculations are all based on Equinor’s gross interest-bearing financial liabilities as recorded in the Consolidated balance sheet
and exclude cash, cash equivalents and current financial investments.
The following adjustments are made in calculating the net debt to capital employed adjusted, including lease liabilities ratio and the
net debt to capital employed adjusted ratio: collateral deposits (classified as Cash and cash equivalents in the Consolidated balance
Equinor second quarter 2024 41
sheet), and financial investments held in Equinor Insurance AS (classified as Current financial investments in the Consolidated
balance sheet) are treated as non-cash and excluded from the calculation of these non-GAAP measures. Collateral deposits are
excluded since they relate to certain requirements of exchanges where Equinor is trading and presented as restricted cash. Financial
investments in Equinor Insurance are excluded as these investments are not readily available for the group to meet short term
commitments. These adjustments result in a higher net debt figure and in Equinor’s view provides a more prudent measure of the net
debt to capital employed ratio than would be the case without such exclusions. Additionally, lease liabilities are further excluded in
calculating the net debt to capital employed adjusted ratio. The table Calculation of capital employed and net debt to capital employed
ratio later in this report details the calculations for these non-GAAP measures and reconciles them with the most directly comparable
IFRS Accounting Standards financial measure or measures.
Organic capital expenditures
equity accounted investments as presented in note 2 Segments to the Condensed interim financial statements. Organic capital
expenditures are capital expenditures excluding expenditures related to acquisitions, leased assets and other investments with
significantly different cash flow patterns. Equinor believes this measure gives stakeholders relevant information to understand the
company’s investments in maintaining and developing its assets. Forward-looking organic capital expenditures included in this report
are not reconcilable to its most directly comparable IFRS Accounting Standards measure without unreasonable efforts, because the
amounts excluded from such IFRS Accounting Standards measure to determine organic capital expenditures cannot be predicted with
reasonable certainty.
Gross capital expenditures (gross capex)
– Gross capital expenditures represent capital expenditures, defined as Additions to
PP&E, intangibles and equity accounted investments as presented in the financial statements, excluding additions to right of use
assets related to leases and capital expenditures financed through government grants. Equinor adds the proportionate share of capital
expenditures in equity accounted investments not included in Additions to PP&E, intangibles and equity accounted investments.
Equinor believes that by excluding additions to right of use assets related to leases, this measure better reflects the company's
investments in the business to drive growth. 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 included or excluded from such IFRS
measure to determine gross capital expenditures cannot be predicted with reasonable certainty.
Cash flows 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, which is available for investing activities, debt servicing and distribution to
shareholders. Cash flows from operations after taxes paid is not a measure of our liquidity under IFRS Accounting Standards 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 Cash
flows from operations after taxes paid is limited and does not represent residual cash flows available for discretionary expenditures.
The table Calculation of CFFO after taxes paid and net cash flow later in this report provides a reconciliation of Cash flows from
operations after taxes paid to its most directly comparable IFRS Accounting Standards measure, Cash flows provided by operating
activities before taxes paid and working capital items, as of the specified dates. Forward-looking cash flows from operations after
taxes paid included in this report are not reconcilable to its most directly comparable IFRS measure without unreasonable efforts,
because the amounts included or excluded from such IFRS measure to determine cash flows from operations after taxes paid cannot
be predicted with reasonable certainty.
Net cash flow
- 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. Net cash flow is not a measure of our liquidity under IFRS
Accounting Standards 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 Net cash flow is limited and does not represent residual cash flows available for discretionary expenditures.
The table Calculation of CFFO after taxes paid and net cash flow later in this report provides a reconciliation of Net cash flow to its
most directly comparable IFRS Accounting Standards measure, Cash flows provided by operating activities before taxes paid and
working capital items, as of the specified dates.
For more information on our definitions and use of non-GAAP financial measures, see section 5.6 Use and reconciliation of non-
GAAP financial measures in Equinor's 2023 Integrated Annual Report.
Equinor second quarter 2024 42
Reconciliation of adjusted operating income
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
second quarter of 2024
Equinor
group
E&P Norway
E&P
Internationa
l
E&P USA
MMP
REN
Other
(in USD million)
Net operating income/(loss)
7,656
6,129
699
264
497
(90)
158
Total revenues and other income
25,538
8,426
1,909
1,001
25,190
49
(11,036)
Adjusting items
(1)
-
-
-
(1)
-
-
Changes in fair value of derivatives
(10)
-
-
-
(10)
-
-
Periodisation of inventory hedging effect
9
-
-
-
9
-
-
Adjusted total revenues and other income
25,538
8,426
1,909
1,001
25,189
49
(11,036)
Purchases [net of inventory variation]
(12,145)
0
(23)
-
(23,206)
-
11,084
Adjusting items
(179)
-
-
-
19
-
(198)
Operational storage effects
19
-
-
-
19
-
-
Eliminations
(198)
-
-
-
-
-
(198)
Adjusted purchases [net of inventory variation]
(12,325)
0
(23)
-
(23,187)
-
10,886
Operating and administrative expenses
(3,110)
(982)
(582)
(291)
(1,279)
(122)
145
Adjusting items
40
-
-
(0)
40
0
-
Provisions
40
-
-
-
40
-
-
Adjusted operating and administrative expenses
(3,070)
(982)
(582)
(291)
(1,238)
(122)
145
Depreciation, amortisation and net impairments
(2,348)
(1,206)
(453)
(427)
(209)
(18)
(35)
Adjusting items
(33)
-
-
-
(33)
-
-
Reversal of Impairment
(33)
-
-
-
(33)
-
-
Adjusted depreciation, amortisation and net
impairments
(2,382)
(1,206)
(453)
(427)
(242)
(18)
(35)
Exploration expenses
(279)
(109)
(151)
(19)
-
-
-
Adjusting items
-
-
-
-
-
-
-
Adjusted exploration expenses
(279)
(109)
(151)
(19)
-
-
-
Sum of adjusting items
(173)
-
-
(0)
25
0
(198)
Adjusted operating income/(loss)
7,482
6,129
699
264
521
(90)
(40)
Tax on adjusted operating income
(5,329)
(4,764)
(225)
(72)
(285)
6
11
Adjusted operating income/(loss) after tax
2,153
1,364
474
192
237
(85)
(29)
Equinor second quarter 2024 43
Items impacting net operating income/(loss) in the
second quarter of 2023
Equinor
group
E&P Norway
E&P
Internationa
l
E&P USA
MMP
REN
Other
(in USD million)
Net operating income/(loss)
7,051
6,200
776
204
150
(91)
(189)
Total revenues and other income
22,872
8,282
1,605
976
22,639
4
(10,634)
Adjusting items
523
13
(4)
-
511
2
-
Changes in fair value of derivatives
362
13
(4)
-
353
-
-
Periodisation of inventory hedging effect
158
-
-
-
158
-
-
Gain/loss on sale of assets
2
-
-
-
-
2
-
Adjusted total revenues and other income
1)
23,394
8,294
1,601
976
23,150
7
(10,634)
Purchases [net of inventory variation]
(10,867)
(0)
(100)
-
(21,094)
-
10,327
Adjusting items
191
-
-
-
29
-
162
Operational storage effects
29
-
-
-
29
-
-
Eliminations
162
-
-
-
-
-
162
Adjusted purchases [net of inventory variation]
(10,676)
(0)
(100)
-
(21,065)
-
10,489
Operating and administrative expenses
(2,781)
(937)
(436)
(305)
(1,172)
(93)
163
Adjusting items
23
-
24
22
(27)
4
-
Other adjustments
26
-
-
22
-
4
-
Gain/loss on sale of assets
24
-
24
-
-
-
-
Provisions
(27)
-
-
-
(27)
-
-
Adjusted operating and administrative expenses
1)
(2,758)
(937)
(412)
(283)
(1,199)
(89)
163
Depreciation, amortisation and net impairments
(2,243)
(1,064)
(465)
(445)
(223)
(2)
(44)
Adjusting items
11
-
-
-
2
-
9
Impairment
11
-
-
-
2
-
9
Adjusted depreciation, amortisation and net
impairments
(2,232)
(1,064)
(465)
(445)
(221)
(2)
(36)
Exploration expenses
71
(80)
173
(22)
-
-
-
Adjusted exploration expenses
71
(80)
173
(22)
-
-
-
Sum of adjusting items
1)
748
13
21
22
515
6
171
Adjusted operating income/(loss)
1)
7,799
6,213
797
226
665
(84)
(18)
Tax on adjusted operating income
1)
(5,490)
(4,800)
(361)
(52)
(328)
7
44
Adjusted operating income/(loss) after tax
1)
2,309
1,413
436
173
337
(77)
26
1) Restated for Equinor group, E&P Norway and E&P International due to amended principles for ‘over-/underlift'. For further information see Amended
principles for Adjusted operating income in the section 'Use and reconciliation of non-GAAP financial measures' in the Supplementary disclosures.
Equinor second quarter 2024 44
Items impacting net operating income/(loss) in the
first quarter of 2024
Equinor
group
E&P Norway
E&P
Internationa
l
E&P USA
MMP
REN
Other
(in USD million)
Net operating income/(loss)
7,631
5,756
616
377
1,303
(220)
(200)
Total revenues and other income
25,135
7,879
1,655
1,055
24,824
60
(10,337)
Adjusting Items
(346)
-
-
-
(346)
-
-
Changes in fair value of derivatives
(444)
-
-
-
(444)
-
-
Periodisation of inventory hedging effect
98
-
-
-
98
-
-
Adjusted total revenues and other income
24,789
7,879
1,655
1,055
24,478
60
(10,337)
Purchases [net of inventory variation]
(11,922)
0
34
-
(21,968)
-
10,012
Adjusting Items
109
-
-
-
(58)
-
167
Operational storage effects
(58)
-
-
-
(58)
-
-
Eliminations
167
-
-
-
-
-
167
Adjusted purchases [net of inventory variation]
(11,813)
0
34
-
(22,026)
-
10,179
Operating and administrative expenses
(2,971)
(866)
(395)
(280)
(1,326)
(272)
168
Adjusting Items
139
-
-
-
(12)
151
-
Other adjustments
3
-
-
-
-
3
-
Gain/loss on sale of assets
147
-
-
-
-
147
-
Provisions
(12)
-
-
-
(12)
-
-
Adjusted operating and administrative expenses
(2,832)
(866)
(395)
(280)
(1,337)
(121)
168
Depreciation, amortisation and net impairments
(2,345)
(1,173)
(529)
(364)
(227)
(8)
(43)
Adjusting Items
-
-
-
-
-
-
-
Adjusted depreciation, amortisation and net
impairments
(2,345)
(1,173)
(529)
(364)
(227)
(8)
(43)
Exploration expenses
(266)
(84)
(148)
(34)
-
-
-
Adjusting Items
-
-
-
-
-
-
-
Adjusted exploration expenses
(266)
(84)
(148)
(34)
-
-
-
Sum of adjusting items
(98)
-
-
-
(416)
151
167
Adjusted operating income/(loss)
7,533
5,756
616
377
887
(70)
(34)
Tax on adjusted operating income
(4,959)
(4,435)
(92)
(94)
(387)
14
35
Adjusted operating income/(loss) after tax
2,574
1,322
524
283
499
(55)
1
Equinor second quarter 2024 45
Items impacting net operating income/(loss) in the
first half of 2024
Equinor
group
E&P Norway
E&P
Internationa
l
E&P USA
MMP
REN
Other
(in USD million)
Net operating income/(loss)
15,287
11,885
1,316
641
1,799
(311)
(43)
Total revenues and other income
50,673
16,305
3,563
2,056
50,014
109
(21,374)
Adjusting items
(347)
-
-
-
(347)
-
-
Changes in fair value of derivatives
(454)
-
-
-
(454)
-
-
Periodisation of inventory hedging effect
107
-
-
-
107
-
-
Adjusted total revenues and other income
50,326
16,305
3,563
2,056
49,667
109
(21,374)
Purchases [net of inventory variation]
(24,068)
0
10
-
(45,174)
-
21,096
Adjusting items
(71)
-
-
-
(40)
-
(31)
Operational storage effects
(40)
-
-
-
(40)
-
-
Eliminations
(31)
-
-
-
-
-
(31)
Adjusted purchases [net of inventory variation]
(24,138)
0
10
-
(45,214)
-
21,065
Operating and administrative expenses
(6,081)
(1,848)
(977)
(571)
(2,605)
(394)
313
Adjusting items
179
-
-
(0)
29
151
-
Other adjustments
3
-
-
-
-
3
-
Gain/loss on sale of assets
147
-
-
(0)
-
147
-
Provisions
29
-
-
-
29
-
-
Adjusted operating and administrative expenses
(5,901)
(1,848)
(977)
(571)
(2,576)
(243)
313
Depreciation, amortisation and net impairments
(4,693)
(2,379)
(983)
(791)
(436)
(26)
(78)
Adjusting items
(33)
-
-
-
(33)
-
-
Reversal of impairment
(33)
-
-
-
(33)
-
-
Adjusted depreciation, amortisation and net
impairments
(4,726)
(2,379)
(983)
(791)
(469)
(26)
(78)
Exploration expenses
(545)
(193)
(299)
(53)
-
-
-
Adjusted exploration expenses
(545)
(193)
(299)
(53)
-
-
-
Sum of adjusting items
(272)
-
-
(0)
(391)
151
(31)
Adjusted operating income/(loss)*
15,015
11,885
1,316
641
1,408
(160)
(74)
Tax on adjusted operating income
(10,288)
(9,199)
(317)
(166)
(672)
20
46
Adjusted operating income/(loss) after tax*
4,727
2,686
998
475
736
(140)
(28)
Equinor second quarter 2024 46
Items impacting net operating income/(loss) in the
first half of 2023
Equinor
group
E&P Norway
E&P
Internationa
l
E&P USA
MMP
REN
Other
(in USD million)
Net operating income/(loss)
19,569
16,016
1,158
544
2,268
(180)
(238)
Total revenues and other income
52,096
20,326
3,153
1,991
51,528
2
(24,905)
Adjusting Items
(279)
109
(92)
-
(296)
0
(0)
Changes in fair value of derivatives
(441)
109
(92)
-
(457)
-
-
Periodisation of inventory hedging effect
184
-
-
-
184
-
-
Impairment from associated companies
1
-
-
-
-
1
-
Gain/loss on sale of assets
(23)
1
-
-
(23)
(0)
(0)
Adjusted total revenues and other income
1)
51,817
20,435
3,061
1,991
51,232
3
(24,905)
Purchases [net of inventory variation]
(22,102)
(0)
(84)
-
(46,453)
-
24,434
Adjusting Items
164
-
-
-
44
-
120
Operational storage effects
44
-
-
-
44
-
-
Eliminations
120
-
-
-
-
-
120
Adjusted purchases [net of inventory variation]
(21,939)
(0)
(84)
-
(46,409)
-
24,554
Operating and administrative expenses
(5,806)
(1,914)
(1,095)
(577)
(2,351)
(179)
310
Adjusting Items
239
-
283
22
(78)
12
-
Change in accounting policy
28
-
-
22
-
6
-
Gain/loss on sale of assets
289
-
283
-
-
6
-
Provisions
(78)
-
-
-
(78)
-
-
Adjusted operating and administrative expenses
1)
(5,567)
(1,914)
(811)
(556)
(2,429)
(167)
310
Depreciation, amortisation and net impairments
(4,443)
(2,179)
(926)
(801)
(457)
(3)
(77)
Adjusting Items
13
-
-
-
4
-
9
Impairment
13
-
-
-
4
-
9
Adjusted depreciation, amortisation and net
impairments
(4,430)
(2,179)
(926)
(801)
(452)
(3)
(68)
Exploration expenses
(176)
(217)
110
(68)
-
-
(0)
Adjusting Items
8
-
8
-
-
-
-
Impairment
8
-
8
-
-
-
-
Adjusted exploration expenses
(167)
(217)
118
(68)
-
-
(0)
Sum of adjusting items
1)
146
109
199
22
(326)
13
129
Adjusted operating income/(loss)*
1)
19,715
16,125
1,357
566
1,942
(167)
(109)
Tax on adjusted operating income
1)
(13,927)
(12,500)
(626)
(132)
(751)
19
64
Adjusted operating income/(loss) after tax*
1)
5,788
3,626
731
434
1,191
(148)
(45)
1) Restated for Equinor group, E&P Norway and E&P International due to amended principles for ‘over-/underlift'. For further information see
Amended principles for Adjusted operating income in the section 'Use and reconciliation of non-GAAP financial measures' in the Supplementary
disclosures.
Equinor second quarter 2024 47
Adjusted operating income after tax by reporting segment
Quarters
Q2 2024
Q1 2024
Q2 2023
(in USD million)
Adjusted
operating
income
Tax on
adjusted
operating
income
Adjusted
operating
income
after tax
Adjusted
operating
income
Tax on
adjusted
operating
income
Adjusted
operating
income
after tax
Adjusted
operating
income
Tax on
adjusted
operating
income
Adjusted
operating
income
after tax
E&P Norway
1)
6,129
(4,764)
1,364
5,756
(4,435)
1,322
6,213
(4,800)
1,413
E&P International
1)
699
(225)
474
616
(92)
524
797
(361)
436
E&P USA
264
(72)
192
377
(94)
283
226
(52)
173
MMP
521
(285)
237
887
(387)
499
665
(328)
337
REN
(90)
6
(85)
(70)
14
(55)
(84)
7
(77)
Other
(40)
11
(29)
(34)
35
1
(18)
44
26
Equinor group
1)
7,482
(5,329)
2,153
7,533
(4,959)
2,574
7,799
(5,490)
2,309
Effective tax rates on adjusted
operating income
71.2%
65.8%
70.4%
1) Restated for Q2 2023 due to amended principles for ‘over-/underlift'. For more information, see Amended principles for Adjusted operating
income in the section 'Use and reconciliation of non-GAAP financial measures' in the Supplementary disclosures
First half
2024
2023
(in USD million)
Adjusted
operating
income
Tax on
adjusted
operating
income
Adjusted
operating
income
after tax
Adjusted
operating
income
Tax on
adjusted
operating
income
Adjusted
operating
income
after tax
E&P Norway
1)
11,885
(9,199)
2,686
16,125
(12,500)
3,626
E&P International
1)
1,316
(317)
998
1,357
(626)
731
E&P USA
641
(166)
475
566
(132)
434
MMP
1,408
(672)
736
1,942
(751)
1,191
REN
(160)
20
(140)
(167)
19
(148)
Other
(74)
46
(28)
(109)
64
(45)
Equinor group
1)
15,015
(10,288)
4,727
19,715
(13,927)
5,788
Effective tax rates on adjusted operating income
68.5%
70.6%
1) Restated for the first half of 2023 due to amended principles for ‘over-/underlift'. For more information, see Amended principles for Adjusted
operating income in the section 'Use and reconciliation of non-GAAP financial measures' in the Supplementary disclosures
Equinor second quarter 2024 48
Reconciliation of adjusted operating income after tax to net income
Reconciliation of adjusted operating income after tax to net income
Quarters
First half
(in USD million)
Q2 2024
Q1 2024
Q2 2023
2024
2023
Net operating income/(loss)
A
7,656
7,631
7,051
15,287
19,569
Income tax
B1
5,658
5,325
5,545
10,983
14,286
Tax on net financial items
B2
(178)
96
72
(82)
140
Income tax less tax on net financial items
B = B1 - B2
5,835
5,230
5,474
11,065
14,147
Net operating income after tax
C = A-B
1,821
2,402
1,578
4,222
5,422
Items impacting net operating income/(loss)
1)
D
(173)
(98)
2)
(272)
2)
Tax on items impacting net operating income/(loss)
E
506
271
2)
777
2)
Adjusted operating income after tax*
F = C+D+E
2,153
2,574
2)
4,727
2)
Net financial items
G
(126)
366
323
240
1,512
Tax on net financial items
H
178
(96)
(72)
82
(140)
Net income/(loss)
I = C+G+H
1,872
2,672
1,829
4,545
6,795
1) For items impacting net operating income/(loss), see Reconciliation of adjusted operating income in the Supplementary disclosures.
2) Restated due to amended principles for 'over-/underlift'. For more information, see Amended principles for Adjusted operating income in
the section ‘Use and reconciliation of non-GAAP financial measures’ in the Supplementary disclosures.
Equinor second quarter 2024 49
Reconciliation of adjusted net income to net income
Reconciliation of adjusted net income to net income
Quarters
First half
(in USD million)
Q2 2024
Q1 2024
Q2 2023
2024
2023
Net operating income/(loss)
7,656
7,631
7,051
15,287
19,569
Items impacting net operating income/(loss)
1)
A
(173)
(98)
2)
(272)
2)
Adjusted operating income
B
7,482
7,533
2)
15,015
2)
Net financial items
(126)
366
323
240
1,512
Adjusting items
C
224
7
163
231
(589)
Changes in fair value of financial derivatives used to hedge interest
bearing instruments
54
74
79
128
5
Foreign currency (gains)/losses on certain intercompany bank and
cash balances
170
(67)
84
103
(595)
Adjusted net financial items
D
98
373
486
472
923
Income tax
E
(5,658)
(5,325)
(5,545)
(10,983)
(14,286)
Tax effect on adjusting items
F
494
255
(34)
749
218
Adjusted net income
G =
B+D+E+F
2,417
2,836
2,706
5,253
6,570
Less:
Adjusting items
H = A+C
51
(91)
911
(40)
(443)
Tax effect on adjusting items
494
255
(34)
749
218
Net income/(loss)
1,872
2,672
1,829
4,545
6,795
Attributable to equity holders of the company
1,861
2,668
1,824
4,528
6,785
Attributable to non-controlling interests
12
5
6
16
10
Attributable to Equity holders in %
I
99.4 %
99.8 %
99.7 %
99.6 %
99.9 %
Adjusted net income attributable to equity holders of the company
J = G x I
2,402
2,831
2,697
5,234
6,560
Weighted average number of ordinary shares outstanding (in millions)
K
2,850
2,938
3,042
2,894
3,080
Basic earnings per share (in USD)
0.65
0.91
0.60
1.56
2.20
Adjusted earnings per share (in USD)
L = J/K
0.84
0.96
0.89
1.81
2.13
1) For items impacting net operating income/(loss), see Reconciliation of adjusted operating income in the Supplementary disclosures.
2) Restated due to amended principles for 'over-/underlift'. For more information, see Amended principles for Adjusted operating income in the
section ‘Use and reconciliation of non-GAAP financial measures’ in the Supplementary disclosures.
Equinor second quarter 2024 50
Adjusted exploration expenses
Quarters
Change
First half
(in USD million)
Q2 2024
Q1 2024
Q2 2023
Q2 on Q2
2024
2023
Change
E&P Norway exploration expenditures
184
91
122
50%
276
270
2%
E&P International exploration expenditures
170
100
63
>100%
270
124
>100%
E&P USA exploration expenditures
17
44
48
(63%)
61
117
(48%)
Group exploration expenditures
372
236
233
59%
607
511
19%
Expensed, previously capitalised exploration expenditures
(4)
81
(223)
98%
77
(141)
>(100%)
Capitalised share of current period's exploration activity
(90)
(51)
(81)
12%
(142)
(203)
(30%)
Impairment (reversal of impairment)
2
0
0
>100%
2
8
(76%)
Exploration expenses according to IFRS Accounting Standards
279
266
(71)
>(100%)
545
176
>100%
Items impacting net operating income/(loss)
1)
-
-
-
N/A
-
(8)
(100%)
Adjusted exploration expenses*
279
266
(71)
>(100%)
545
167
>100%
1) For items impacting net operating income/(loss), see Reconciliation of adjusted operating income in the Supplementary disclosures.
Equinor second quarter 2024 51
Calculation of CFFO after taxes paid and net cash flow
CFFO information
Quarters
Change
First half
(in USD million)
Q2 2024
Q1 2024
Q2 2023
Q2 on Q2
2024
2023
Change
Cash flows provided by operating activities before taxes paid and
working capital items
9,748
9,689
10,485
(7%)
19,437
25,789
(25%)
Taxes Paid
(7,850)
(3,849)
(10,841)
(28%)
(11,700)
(16,430)
(29%)
Cash flow from operations after taxes paid (CFFO after taxes
paid)
1,898
5,840
(356)
>(100%)
7,737
9,360
(17%)
Net Cash Flow Information
Quarters
Change
First half
(in USD million)
Q2 2024
Q1 2024
Q2 2023
Q2 on Q2
2024
2023
Change
Cash flow from operations after taxes paid (CFFO after taxes paid)
1,898
5,840
(356)
>(100%)
7,737
9,360
(17%)
(Cash used)/received in business combinations
(467)
(0)
(803)
>(100%)
(467)
(1,055)
>(100%)
Capital expenditures and investments
(2,950)
(2,483)
(2,842)
4%
(5,433)
(4,893)
11%
(Increase)/decrease in other interest-bearing items
(283)
(210)
(24)
>100%
(493)
39
>(100%)
Proceeds from sale of assets and businesses
50
60
71
(30%)
110
118
(7%)
Dividend paid
(2,072)
(2,649)
(2,725)
(24%)
(4,721)
(5,586)
(15%)
Share buy-back
(398)
(550)
(4,079)
(90%)
(947)
(4,540)
(79%)
Net Cash Flow
(4,222)
8
(10,758)
61%
(4,214)
(6,558)
36%
Organic capital expenditures
Quarters
First half
(in USD billion)
Q2 2024
Q1 2024
Q2 2023
2024
2023
Additions to PP&E, intangibles and equity accounted
investments
4.8
3.4
4.3
8.1
7.5
Acquisition-related additions
1.5
0.3
2.0
1.8
2.5
Right of use asset additions
0.4
0.3
0.0
0.7
0.4
Other additions (with unique cash flow patterns)
0.0
0.0
0.0
0.0
0.0
Organic capital expenditures
2.9
2.8
2.3
5.7
4.6
Equinor second quarter 2024 52
Calculation of capital employed and net debt to capital employed ratio
Calculation of capital employed and net debt to capital employed ratio
At 30 June
At 31 December
(in USD million)
2024
2023
Shareholders' equity
43,671
48,490
Non-controlling interests
29
10
Total equity
A
43,700
48,500
Current finance debt and lease liabilities
9,483
7,275
Non-current finance debt and lease liabilities
23,114
24,521
Gross interest-bearing debt
B
32,597
31,796
Cash and cash equivalents
8,641
9,641
Current financial investments
23,360
29,224
Cash and cash equivalents and financial investment
C
32,001
38,865
Net interest-bearing debt [9]
B1 = B-C
596
(7,069)
Other interest-bearing elements
1,682
2,030
Net interest-bearing debt adjusted normalised for tax payment, including lease liabilities*
B2
2,279
(5,040)
Lease liabilities
3,715
3,570
Net interest-bearing debt adjusted*
B3
(1,437)
(8,610)
Calculation of capital employed*
Capital employed
A+B1
44,297
41,431
Capital employed adjusted, including lease liabilities
A+B2
45,979
43,460
Capital employed adjusted
A+B3
42,264
39,890
Calculated net debt to capital employed*
Net debt to capital employed
(B1)/(A+B1)
1.3%
(17.1%)
Net debt to capital employed adjusted, including lease liabilities
(B2)/(A+B2)
5.0%
(11.6%)
Net debt to capital employed adjusted
(B3)/(A+B3)
(3.4%)
(21.6%)
1)
Other interest-bearing elements are 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 second quarter 2024 53
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 and diversify its energy mix; the ambition to be a leading
company in the energy transition and reduce net group-wide greenhouse gas emissions; our ambitions and expectations regarding
decarbonisation and building a profitable business for a future fit low carbon energy system; future financial performance, including
earnings, 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, CCS projects and
renewables and low carbon solutions portfolio; our expectations and ambitions regarding operated emissions, annual Co2 storage and
carbon intensity; plans and expectations regarding development of fields and projects; expectations, plans and ambitions for
renewables production capacity, power generation and Co2 transport and storage and investments in renewables and low carbon
solutions, and the balance between oil and gas and renewables production; expectations and plans regarding development of
renewables projects, CCUS and hydrogen businesses and production of low carbon energy and CCS; our intention to optimise our
portfolio; break-even considerations, targets and other metrics for investment decisions; future worldwide economic trends, market
outlook and future economic projections and assumptions, including commodity price, currency and refinery assumptions; estimates of
proved reserves; organic capital expenditures through [2024]; expectations and estimates regarding production and development and
execution of projects; estimates regarding oil and gas production and renewable power generation; 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, disposals, divestments and other contractual arrangements and delivery commitments;
expectations regarding capital distributions, including expected amount and timing of dividend payments and the implementation of
our share buy-back programme; provisions and contingent liabilities, obligations or expenses; and expected impact of currency and
interest rate fluctuations. 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; 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 and the conflict in the Middle East; failure to prevent or manage digital and cyber
disruptions to our information and operational technology systems and those of third parties on which we rely; operational problems,
including cost inflation in capital and operational expenditures; unsuccessful drilling; availability of adequate infrastructure at
commercially viable prices; 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; risk of losses 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 to personnel, assets, infrastructure and operations from hostile or malicious acts; 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, 2023 (including section 5.2 - Risk factors thereof). Equinor's 2023
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, 2023, 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 second quarter 2024 54
END NOTES
1.
The group's
average liquids price
liquids (NGL).
2.
The
refining reference margin
and other feedstock, throughput, product yields, freight cost, inventory, etc
3.
Liquids volumes
4.
Equity volumes
production sharing agreement (PSA)
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 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
Commission (SEC) guidelines and additional production from other reserves not included in proved reserves estimates.
7.
The group's
average realised piped gas prices
paper positions.
8.
The internal
transfer price
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.
Equinor second quarter 2024 55
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: 24 July, 2024
By: ___/s/ Torgrim Reitan
Name: Torgrim Reitan
Title: Chief Financial Officer