Equinor (OSE:EQNR) reported fourth quarter adjusted earnings of $8.68 billion, a fall from the highs of $17 billion a year earlier but still slightly higher than analyst estimates.
Payments to shareholders will drop from $17 billion in 2023 to $14 billion in 2024, and the company will commence a two-year share buy-back programme.
Equinor plans to spend around $6 billion on share buybacks in 2024, with buybacks between $4 billion and $6 billion in 2025.
The Norwegian state-owned firm reported 2.1% production growth for oil and gas in 2023, with the company forecasting above 5% growth until 2026.
Equinor expects to maintain production of around 2 million barrels per day in 2030, down from around 2.2 million barrels per day in the fourth quarter of 2023.
Equinor president and chief executive officer Anders Opedal said 2023 saw a “solid operational performance” from the company.
“We delivered competitive capital distribution, while investing in a profitable portfolio that will contribute to future growth,” Mr Opedal said.
“Equinor is well positioned to deliver profitable growth. We expect to grow our cash flow and sustain competitive returns.
“We are extending the outlook for stable contribution from oil and gas to 2035. By 2030 we expect material and rapidly growing cash flow from our renewables and low carbon business.”
Renewable energy production up 34%
Equinor said its power production from renewable energy sources reached 694 GWh in the fourth quarter, up 34$% from the same quarter last year.
Despite the production increase, Equinor posted an adjusted loss of $179 million in the fourth quarter, down further from a $108 million loss the previous quarter.
Equinor said it expects to double its renewable power generation in 2024 compared to 2023.
Onshore production wind in Brazil and Poland provided most of the increase in 2023, along with production from Hywind Tampen in Scotland.
Elsewhere in the UK, Dogger Bank, the world’s largest offshore wind farm, delivered first power in the fourth quarter and is currently ramping up production, Equinor said.
© Supplied by SSEThe company also recently started operations at its Blandford Road battery asset in the UK, Equinor’s first commercial power storage facility.
Equinor also announced a swap transaction with BP for two offshore wind farms in the US, with the company set to stake full ownership of the Empire Wind project.
Meanwhile, during the fourth quarter, Equinor said it completed 12 exploration wells offshore with 9 commercial discoveries in the quarter, with four wells ongoing at the end of 2023.
