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      Financial Results Lifted Equinor (EQNR) Stock

      By Fahim Awan

      Published on

      October 30, 2023

      4:28 PM UTC

      Last Updated on

      November 1, 2023

      8:24 AM UTC

      Financial Results Lifted Equinor (EQNR) Stock

      Equinor ASA (NYSE: EQNR) shares displayed a notable upturn of 1.91% as they concluded the Friday trading session, settling at a price of $33.59. This modest gain in Equinor’s stock value followed the publication of its quarterly financial performance.

      On Friday, Equinor (EQNR) revealed its financial results for the third quarter of 2023. In the reported period, Equinor demonstrated robust adjusted earnings of USD 8.02 billion, with a post-tax figure of USD 2.73 billion. These figures, while substantial, marked a decrease compared to the same quarter in the previous year. The primary factor contributing to this decline was the reduction in gas prices from the remarkable levels experienced in 2022.

      Within Equinor’s corporate landscape, the Marketing, Midstream & Processing (MMP) division excelled, yielding impressive results with adjusted earnings amounting to USD 876 million. These earnings surpassed the anticipated range for adjusted earnings. The commendable performance in this sector was predominantly propelled by strong sales and trading activities related to oil and oil products, efficient optimization of the shipping portfolio, and the presence of favorable refining margins.

      During the third quarter, Equinor recognized net impairments totaling USD 971 million. These impairments mainly encompassed assets within the Norwegian Continental Shelf (NCS) and the MMP segment, amounting to USD 588 million and USD 346 million, respectively. Furthermore, an impairment of USD 300 million was acknowledged in the Renewables segment, though it was partially offset by a USD 290 million reversal of impairment for an asset situated in the US Gulf of Mexico.

      Regarding the company’s financial operations, cash flow derived from operational activities, excluding taxes and working capital items, reached USD 11.3 billion in the third quarter. Equinor made a tax installment payment of USD 3.67 billion to the NCS, based on anticipated 2023 earnings. In October, an additional installment of USD 930 million was disbursed, with two ordinary installments of USD 3.75 billion scheduled for the fourth quarter.

      The third quarter saw organic capital expenditure totaling USD 2.64 billion, with the overall capital expenditures amounting to USD 3.21 billion. Following taxes, capital distribution to shareholders, and various investments, the net cash flow for this quarter concluded at USD 1.48 billion.

      Importantly, Equinor maintains a robust financial position, as evidenced by its adjusted net debt-to-capital employed ratio, which stood at negative 22.9% by the close of the third quarter. This represents a notable improvement from the negative 35.1% ratio reported at the end of the second quarter in 2023.

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