Equinor (OSLO: EQNR) has beaten forecasts to deliver higher than expected first-quarter results, boosted in part by higher production thanks to its stake in the UK’s Buzzard field.
The company reported adjusted operating income of $7.53 billion and $2.57bn after tax in the first quarter of 2024.
This was down from the $11.92bn seen in the first quarter of 2023, but higher than the $7.2bn analysts had predicted.
It also said it made a net operating income of $7.63bn and net income at $2.67bn. Adjusted net income was $2.84bn.
Equinor blamed the drop in its financial performance on lower gas prices, but added that it was partially offset by production growth and increased liquids prices.
Equinor delivered a total equity production of 2.164 million boe per day in the first quarter, up from 2.13 million boe per day in the same quarter last year.
The growth was driven by strong operational performance along with increased capacity at Johan Sverdrup and the ramp up of Breidablikk, in addition to new wells on stream. In addition, the Vito field in the US Gulf of Mexico and the Buzzard field in the UK, along with new wells in Angola, contributed to 3% production growth internationally.
The company entered Buzzard last year through its $850-million purchase of Suncor, handing Equinor a 29.89% stake in the field.
In the first quarter, Equinor produced 774 GWh from renewables, up 48% from the same quarter last year. The growth came primarily from onshore power plants in Brazil, in which Rio Energy was the key contributor. Higher production from the offshore windfarms also supported the increased power production.
Equinor president and chief executive officer Anders Opedal stated: “Equinor delivered solid financial results driven by strong operational performance across the business. Production on the Norwegian continental shelf was high, and the international portfolio contributed with solid production growth.
“We continue with significant capital distribution and expect to deliver a total distribution of $14bn in 2024.
“We remain a safe and reliable provider of energy to Europe. On the NCS we got approval for the Eirin project and the Sleipner and Gudrun fields are now partially operating with power from shore, all contributing to lower cost and emissions from production.
“We maintain a value-driven approach to renewables growth. In the quarter, we achieved significantly better terms for our Empire Wind 1 project in the US and started the commercial production from the Mendubim solar plants in Brazil.”
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