Berenberg sees potential for production upgrades in Equinor's (EQNR.OL) third quarter, after the Norwegian energy company published second-quarter results consistent with market expectations.
"We update our model for Equinor's Q2 2026 results, which were released on 22 July. Performance in the quarter was broadly in line with consensus, although a working capital release supported stronger-than-expected cash flow and helped to reduce net debt in the period. Operational performance has been solid and the company hinted at the potential to revisit production guidance at its Q3 results. It also believes that the European gas market is likely to remain tight and volatile due to disruption in the Middle East and low European gas storage levels. Overall, we make limited changes to our forecasts; we remain Hold-rated, with a slightly increased price target of NOK335 (from NOK320)," the research firm said Thursday.
Analysts also noted the company's "encouraging" operational results, with more than 2.1 million barrels of oil equivalent per day. The figure brings first-half output growth to 6%, compared with the full-year 2026 target of a 3% increase.
"Although the company expected growth to be H1-weighted, it did indicate the potential to revisit production guidance in the Q3 results - Bloomberg consensus expectations are for 4% production growth in 2026, to just over 2.2mboe/d," the note said.
Against this backdrop, Berenberg marginally lifted its adjusted EPS forecasts for 2026 through 2028 by 0.7%, 1.2% and 0.6%, respectively.