Equinor

Earnings Release • Apr 29, 2021

Equinor first quarter 2021 results

Equinor first quarter 2021 results

Equinor (OSE: EQNR, NYSE: EQNR) reports adjusted earnings of USD 5.47 billion

and USD 2.66 billion after tax in the first quarter of 2021. IFRS net operating

income was USD 5.22 billion and the IFRS net income was USD 1.85 billion.

The first quarter of 2021 was characterised by:

* Strong results due to price recovery, sustained cost improvements and strict

capital discipline.

* Very strong cash flow and a 7.1 percentage points reduction of adjusted net

debt ratio to 24.6%.

* Solid operational performance and high production efficiency. Some impact

from Covid-19 and restrictions on projects in execution.

* Significant gain of USD 1.38 billion from farm downs in offshore wind

assets.

* Cash dividend of USD 0.15 per share.

"With sustained improvements and capital discipline, we are able to capture

value from recovering oil and gas prices and achieve our best quarterly results

since 2014. We deliver a net cash flow above 5 billion dollars and reduce our

adjusted net debt ratio to below 25 percent. The forceful response and solid

operational performance delivered by our organisation during the pandemic is

providing for a strong position for safe operations, value creation and cash

flow generation in 2021 and going forward," says Anders Opedal, President and

CEO of Equinor ASA.

"Equinor aims to be a leader in the energy transition and during the quarter we

strengthened our position within offshore wind with the awarded offtake

contracts from New York State for Empire Wind 2 and Beacon Wind 1. We also

booked capital gains of around 1.4 billion dollars from farm downs,

demonstrating our ability to create value from accessing and maturing renewable

projects. Within low carbon solutions we have started construction of the

Northern Lights terminal and secured funding for three low carbon projects in

the UK," says Opedal.

Adjusted earnings [5] were USD 5.47 billion in the first quarter, up from USD

2.05 billion in the same period in 2020. Adjusted earnings after tax [5] were

USD 2.66 billion, up from USD 0.56 billion in the same period last year.

Higher realised prices for gas and liquids positively impacted the results from

all upstream segments, further supported by sustained costs improvements and

strict capital discipline.

Results from the Marketing, midstream and processing segment were impacted by

losses on derivatives for gas forward sales, shut down of the Hammerfest LNG

plant and weak refinery margins.

The Renewables segment delivers strong financial results with a capital gain

from farm downs of around USD 1.4 billion, included in both IFRS and adjusted

results, from the divestments of a 50% non-operated interest in the offshore

wind projects Empire Wind and Beacon Wind in the US and a 10% equity interest in

the Dogger Bank A and B in the UK.

IFRS net operating income was USD 5.22 billion in the first quarter, up from USD

0.06 billion in the same period in 2020. IFRS net income was USD 1.85 billion in

the first quarter, compared to negative USD 0.71 billion in the first quarter of

2020. Net operating income was impacted by higher prices for gas and liquids,

gains from transactions, and lower impairments of USD 0.43 billion in the first

quarter of 2021.

Equinor delivered total equity production of 2,168 mboe per day in the first

quarter, down from 2,233 mboe per day in the same period in 2020. Shut down of

the Hammerfest LNG plant and maintenance at Peregrino were partially offset by

higher flex gas volumes, increased gas volumes from the US onshore and increased

production from Johan Sverdrup and Snorre Expansion. Equity production of

renewable energy for the quarter was 450 GWh, down from 558 GWh for the same

period last year, impacted by lower winds than expected for the season.

At the end of first quarter 2021, Equinor has completed 5 exploration wells with

4 commercial discoveries and 11 wells were ongoing. The 4 discoveries at the

Norwegian continental shelf have added around 60 million boe net to Equinor near

existing infrastructure. Adjusted exploration expenses in the first quarter were

USD 0.23 billion, compared to USD 0.30 billion in the same quarter of 2020.

Cash flows provided by operating activities before taxes paid and changes in

working capital amounted to USD 6.62 billion for the first quarter, compared to

USD 4.50 billion for the same period in 2020. Organic capital expenditure [5]

was USD 1.96 billion for the first three months of 2021. At quarters end, net

debt to capital employed(1) was 24.6%, down from 31.7% last quarter. Including

the lease liabilities according to IFRS 16, the net debt to capital employed(1)

was 30.6%.

The board of directors has decided a cash dividend of USD 0.15 per share for the

first quarter 2021.

The safety statistics for the first quarter of 2021 indicate fewer serious

incidents and personal injuries in Equinor compared to the same period last

year. The twelve-month average Serious Incident Frequency (SIF) for the period

ending at 31 March was 0.5 for 2021, down from 0.6 in 2020. The twelve-month

average Recordable Injury Frequency (TRIF) for the period ending at 31 March was

2.3 for 2021, down from 2.4 in 2020.

* * *

(1) This is a non-GAAP figure. Comparison numbers and reconciliation to IFRS are

presented in the table Calculation of capital employed and net debt to capital

employed ratio as shown under the Supplementary section in the report.

[5] These are non-GAAP figures. See Use and reconciliation of non-GAAP financial

measures in the report for more details.

* * *

Further information from:

Investor relations

Peter Hutton, Senior vice president Investor relations,

+44 7881 918 792 (mobile)

Helge Hove Haldorsen, vice president Investor Relations North America,

+1 281 224 0140 (mobile)

Press

Bård Glad Pedersen, vice president Media relations,

+47 918 01 791 (mobile)

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act