Equinor reduces 2023 production growth forecast to 1.5% from 3%

Oct. 27, 2023
Equinor has downgraded its 2023 production growth guidance to 1.5% from 3% on gas production impacts from planned maintenance and unplanned extended turnarounds, primarily on the Norwegian Continental Shelf.

Equinor ASA has downgraded its 2023 production growth guidance to 1.5% from 3% on gas production impacts from planned maintenance and unplanned extended turnarounds, primarily on the Norwegian Continental Shelf.

Scheduled maintenance activity is estimated to reduce equity production by around 45,000 boe/d for full year 2023, the company said in a third-quarter 2023 earnings report Oct. 27.

Total equity production for the quarter was 2.007 MMboe/d compared with 2.021 MMboe/d in the same quarter of 2022.

Liquids production grew 12% compared with third-quarter 2022, mainly driven by strong operational performance and production from Johan Sverdrup on the Norwegian Continental Shelf, Shell-operated Vito field in the US Gulf of Mexico, Peregrino field in Brazil, and the addition of Buzzard field in the UK to the portfolio through Equinor’s acquisition of Suncor Energy UK (OGJ Online, Oct. 13, 2022; OGJ Online, Feb. 16, 2023; March 3, 2023; May 23, 2023).

Turnarounds and unplanned losses continued to impact gas production, which was 16% lower for E&P Norway in the third quarter and 10% lower for the year-to-date than the same period in the prior year. Extended maintenance on Troll field and a postponed start-up from the second-quarter turnaround at the Gassco AS-operated Nyhamna gas processing plant notably reduced gas production, the company said (OGJ Online, June 13, 2023).

The year-to-date decrease in gas production relative to 2022 was exacerbated by shutdown of Hammerfest LNG during the second quarter, despite being partially mitigated by increased contributions from Snøhvit.

Financial results

Equinor had adjusted earnings of $8.02 billion and $2.73 billion after tax in third-quarter 2023. Net operating income was $7.45 billion, and net income was $2.50 billion. This is lower than for the same quarter last year, mainly due to lower gas prices.

Cash flow provided by operating activities, before taxes paid and working capital items, amounted to $11.3 billion for the quarter.

Organic capital expenditure was $2.64 billion for the quarter, and total capital expenditures were $3.21 billion. After taxes, capital distribution to shareholders and investments, net cash flow ended at $1.48 billion for the quarter.