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Record Output, High Prices Drive Equinor Profit Beat in First Quarter

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Equinor (EQNR.OL) reported better-than-expected first-quarter earnings on Monday, driven by record oil production and strong trading as tensions in the Middle East continue.

With high energy prices and total equity production climbing 9% to a record of 2.3 million barrels of oil equivalent per day, net income attributable to equity holders increased year over year in the three months ended March 31 to $3.11 billion from $2.63 billion. Adjusted operating income jumped 13% annually to $9.77 billion, beating the company-compiled consensus of $9 billion and the RBC Capital Markets estimate of $8.96 billion.

"The key drivers of the beat were stronger results in Norway, the US and [Marketing, Midstream & Processing] divisions than the market anticipated," RBC said. "We had expected a strong MMP result, and Equinor did come in ahead of consensus. On top of this, one of the big surprises was the strong US gas realizations in the quarter ($4.69/[metric million British thermal unit] vs $2.84/mmbtu last quarter), which sit on top of the strong result from US gas trading."

At the same time, total revenue and other income declined annually to $27.84 billion from $29.92 billion. Net operating income slipped 1% to $8.78 billion due to negative derivative effects, lower European gas prices, and reduced third-party volumes.

The board declared a cash dividend of $0.39 per share for the quarter, higher than $0.37 per share in the year-ago period.

Management also confirmed its 2026 guidance for a 3% yearly increase in oil and gas production and maximum share buybacks of $1.5 billion, with up to $375 million of shares to be repurchased in a second tranche, subject to approval at the annual general meeting on May 12.

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