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Equinor Q2 Production And Earnings Ahead Of Consensus; On Track To Meet Guidance

ENERGY SECTOR

Rating: Aa2/AA- EUR Spreads Muted

  • Q2 Op income before tax -4.1% YoY (+7.5% vs. company consensus) driven by beats across all material segments. H1 E&P equity liquids and gas production of 2,106mboe/d (vs. consensus of 2026) compares to 2062mboe/d in H123 against a FY target of stable production vs. FY23. H1 renewable power generation +64% YoY vs. FY guidance of ~70%.
  • Organic CapEx was USD 2.9bn (vs. consensus of USD 3.3bn) vs. USD 2.8bn in Q124 and USD 2.3bn in Q223 against FY guidance of USD ~13bn. Cash flow was materially impacted by taxes; net cash flow was USD -4.2bn from USD 8mn in Q1 and USD -10.8bn in Q224 though CFFO after tax excl. WC was USD 1.9bn (vs. consensus of USD 2bn) from an outflow of USD 0.4bn in Q223.
  • NIBD of USD 0.6bn is up from net cash of USD 8.3bn at Q124 and net cash of USD 12bn at Q224. Chosen leverage metric, net debt to capital employed moved to -3.4% from -19.8% at Q1.

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