-- Norwegian energy major Equinor (EQNR) posted its strongest quarterly profit in three years on Wednesday, driven by record-breaking production levels and high commodity prices resulting from the ongoing conflict with Iran.
The company reported that Q1 production surged 9% year-over-year, reaching a record 2.31 million barrels of oil equivalent per day. That was significantly higher than the 2.12 mmboepd recorded a year earlier.
The production spike was led by the commissioning of new wells and increased output across the Norwegian Continental Shelf and the US, Equinor noted.
Higher realized liquids prices and a boost in US gas prices further bolstered the bottom line, despite a decline in European gas prices, the company said.
Equinor warned that the disruption to global energy flows caused by the US-Iran hostilities and the closure of the Strait of Hormuz is likely to persist long after active the conflict ends.
Despite these logistical hurdles, the company's downstream and trading division reported a profit of $787 million, nearly double its long-term quarterly guidance of $400 million.