Im­pair­ments of £2.1bn take toll on en­ergy gi­ant Equinor

The Press and Journal (Aberdeen and Aberdeenshire) - - BUSINESS - BY AL­LIS­TER THOMAS

Im­pair­ments of £2.1 bil­lion dragged Equinor into the red in the third quar­ter of the year while rev­enues and pro­duc­tion also fell.

The Nor­we­gian en­ergy gi­ant posted a net loss of £858.5 mil­lion, com­pared to a profit of £1.28bn in the same pe­riod last year. It recog­nised im­pair­ments of £2.16bn, of which £1.73bn re­lated to un­con­ven­tional on­shore as­sets in North Amer­ica, mainly as a re­sult of more cau­tious price as­sump­tions.

Lower prices for oil and gas im­pacted the earn­ings for the quar­ter, with ad­justed earn­ings of £2bn down from £3.7bn last year, while rev­enues dropped 18% from £14.8bn to £12.1bn. Pro­duc­tion was 1.9m bar­rels of oil per day, down 8% on Q3 2018.

How­ever that was partly off­set by the ramp-up of new projects like Jo­han Sver­drup in Nor­way and Mariner in the UK.

Chief ex­ec­u­tive El­dar Sae­tre said: “Since the be­gin­ning of the third quar­ter, we have started pro­duc­tion from Trestakk, Mariner, Sne­frid Nord, Ut­gard, and Jo­han Sver­drup.

“At Jo­han Sver­drup, the field has al­ready achieved a daily pro­duc­tion above 200,000 bar­rels.

“The five new fields are ex­pected to de­liver on av­er­age more than 200,000 high-value bar­rels per day net to Equinor in 2020.

“We are de­vel­op­ing a port­fo­lio of prof­itable projects with low CO2 emis­sions, and we are on track to de­liver strong pro­duc­tion growth in 2020 and a 3% av­er­age an­nual pro­duc­tion growth from 2019 to 2025.”

El­dar Sae­tre

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