Equinor reports record high adjusted earnings of $15 billion and $4.4 billion after tax in the fourth quarter of 2021. IFRS net operating income was $13.6 billion and the IFRS net income was $3.37 billion.
2021 was characterised by:
- Adjusted earnings after tax of $10.0 billion for the full year 2021.
- Increase in oil prices and unprecedented European gas price in second half.
- Strong operational performance and increased annual production of oil and gas by 3.2%.
- Continued cost focus and capital discipline.
- Very strong free cash flow of $25 billion and net debt reduction.
- The Board proposes increasing the fourth quarter quarterly cash dividend to 20 cents per share, increasing the share buy-back programme up to $5 billion for 2022, and announce an extraordinary quarterly cash dividend of 20 cents per share for four quarters.
“We are capturing value from high prices for gas and liquids with excellent performance and increased production. This resulted in very strong adjusted earnings after tax for the quarter and the full year. In addition, continued improvements and capital discipline contributes to the strong free cash flow of $25 billion and a significant strengthening of our balance sheet, “says Anders Opedal, President and CEO of Equinor ASA.
“In 2021, there was still operational impact from the pandemic, but the markets recovered with high prices, especially in the second half of the year. In Europe the energy prices reached record levels impacting industries and societies. Equinor focused on safe and stable operations as a reliable energy provider. Together with partners and regulators, we took steps to increase the production of piped gas to Europe significantly”, says Opedal.
Equinor delivered a total equity production of 2,158 mboe per day in the fourth quarter, up from 2,043 mboe per day in the same period in 2020. Production from Troll phase 3, Martin Linge and increased production from Johan Sverdrup, as well as solid production efficiency and optimised gas production contributed to the growth.
New market opportunities in low carbon solutions
The energy transition represents an opportunity for Equinor to leverage its leading position within carbon management and hydrogen, and to develop and grow new value chains and markets. In the first third party carbon transport and storage project Northern Lights, the capabilities, technology and relations with customers, governments and partners are leveraged. By 2035, Equinor’s ambition is to develop the capacity to store 15 – 30 million tonnes CO2 per year and to provide clean hydrogen in 3 – 5 industrial clusters.