Equinor (EQNR:NYSE) saw a 93% jump in its second-quarter profit from a year earlier as oil and gas prices soared during the Middle East crisis and delivered windfall earnings to the biggest energy firms.
The Norwegian major on Wednesday reported an adjusted operating income after tax of $3.225 billion for the second quarter, up by 93% from the $1.670 billion for the same period last year, and slightly lower than a company-provided analyst consensus estimate of $3.38 billion.
The adjusted operating income surged by 76% to $11.482 billion, up from $6.535 billion, and higher than the consensus projection of $11.37 billion.
Equinor attributed the surge in profits to higher liquid prices globally and a jump in European natural gas prices, which were only partially offset by lower U.S. natural gas prices.
For the second quarter, Equinor realized a European gas price of $15.8 per million British thermal units (MMBtu), up by 32% from a year earlier, and a liquids price of $97.9 per barrel, a 55% jump year over year.
Higher group oil and gas production additionally boosted Equinor’s earnings between April and June. Equinor’s total equity production rose by 3% on the year to 2.165 million barrels of oil equivalent per day (boepd), thanks to rising output offshore Norway and volumes from its Adura JV with Shell in the UK and from the Bacalhau field in Brazil.
Cash flow from operations soared to $9.47 billion from $2.477 billion, due to higher production and prices.
“Strong production in the second quarter enabled us to capture value from higher prices, contributing to strong cash flow and financial results,” Equinor’s president and CEO Anders Opedal said in a statement.
“Reliable energy is important in a volatile world marked by heightened geopolitical tension. Our role is to deliver energy safely and efficiently every day,” the executive added.
Equinor was the first of the European majors to report Q2 results, with all expecting strong profits on the back of the oil and gas price surge, higher refining margins, and increased earnings from trading.
By Tsvetana Paraskova for Oilprice.com
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