Equinor, the Norwegian energy major, has announced that it will maintain its quarterly and extraordinary dividends, despite a significant decline in second-quarter earnings. The drop in earnings was primarily attributed to a decrease in gas prices, which fell from the extraordinary levels observed last year.
According to the company, adjusted earnings for the quarter fell to $7.54 billion, a decrease from $17.57 billion in the previous year. This result was slightly below the company-compiled consensus of $7.64 billion. Equinor reported that the realized price for piped gas to Europe fell by 58% compared to the previous year, while realized liquids prices were down by 34%.
The net profit for the quarter stood at $1.82 billion, a decline from $6.76 billion in the same period last year. This figure also fell short of the $2.21 billion expected in a FactSet poll. Revenue for the quarter dropped by 37% to $22.87 billion.
Despite these challenges, Equinor has decided to maintain its quarterly dividend at $0.30 and declare an additional extraordinary dividend of $0.60. The company will also initiate the third tranche of share buybacks, amounting to $1.67 billion. Equinor still plans to distribute a total of $17 billion in capital this year.
Looking ahead, Equinor expects organic capital expenditure to remain between $10 billion and $11 billion in 2023. The company also anticipates an average annual expenditure of approximately $13 billion for the period between 2024 and 2026. Furthermore, Equinor projects that production in 2023 will be around 3% higher than the 2022 level.