Equinor — Earnings Release 2018

Oct 25, 2018

Equinor third quarter 2018 and first nine months results

Equinor third quarter 2018 and first nine months results

Equinor (OSE: EQNR, NYSE: EQNR) reports adjusted earnings of USD 4.8 billion and

USD 2.0 billion after tax in the third quarter of 2018. IFRS net operating

income was USD 4.6 billion and the IFRS net income was USD 1.7 billion.

The third quarter was characterised by:

* Strong results and cash flow from operations. Net debt ratio reduced to

25.7%

* Reduced organic capex guiding to around USD 10 billion, continued strong

cost focus

* Value enhancing transactions to strengthen and sharpen the portfolio

"With solid operational performance and production efficiency, we delivered

strong results and cash flow across all segments. We continued to strengthen our

balance sheet and reduced our net debt ratio to 25.7 percent in the quarter,"

says Eldar Sætre, President and CEO of Equinor ASA.

"We have achieved significant cost improvements in recent years, allowing us to

capture more value from higher prices. We will continue with a strong cost focus

to further strengthen our competitive position. As a result of capital

discipline and efficient project execution, we are able to reduce our organic

capex guiding for 2018 to around 10 billion dollars," says Sætre.

"Project activity remains high, and we have submitted development plans for the

next phases of the high value, low carbon Johan Sverdrup and Troll fields. In

October we announced the acquisition of a 40% operated interest in the Rosebank

field in the UK and the divestments of two non-core assets in Norway. We also

continue to develop our portfolio within renewable energy. The Apodi solar

project in Brazil is on track, and we delivered first electricity from the

Arkona offshore wind project in Germany," says Sætre.

Adjusted earnings [5] were USD 4.8 billion in the third quarter, up from USD

2.3 billion in the same period in 2017. Adjusted earnings after tax [5] were USD

2.0 billion in the third quarter, up from USD 0.8 billion in the same period

last year. Higher prices for both liquids and gas, coupled with high production,

contributed to the increase. Adjusted for new fields in production and portfolio

changes, underlying operating costs and administrative expenses per barrel are

up slightly compared to the same quarter last year, mainly due to increased

turnarounds and preparation for start-up of new fields.

IFRS net operating income was USD 4.6 billion in the third quarter compared to

USD 1.1 billion in the same period of 2017. IFRS net income was USD 1.7 billion,

up from negative USD 0.5 billion in the third quarter of 2017.

Equinor delivered total equity production of 2,066 mboe per day in the third

quarter, an increase of 1% [7] from 2,045 mboe per day in the same period in

2017. The increase was primarily due to start-up of new fields, portfolio

changes and additional wells coming on stream, partially offset by high

maintenance.

As of third quarter 2018, Equinor had completed 15 exploration wells with seven

commercial discoveries. The appraisal of the Cape Vulture discovery confirmed

the doubling of the remaining reserves at Norne, extending the life and value of

the field. Adjusted exploration expenses [5] in the quarter were USD 239

million, down from USD 416 million in the same quarter of 2017, mainly due to a

higher capitalisation rate and lower drilling activity.

Cash flows provided by operating activities before tax amounted to USD 20.4

billion in the first nine months of 2018 compared to USD 15.2 billion for the

same period last year. Organic capital expenditure [5] was USD 7.2 billion for

the first nine months of 2018. At the end of the quarter, net debt to capital

employed [5] was reduced from 27.2% to 25.7%.

The board of directors has decided to maintain a dividend of USD 0.23 per share

for the third quarter.

The twelve-month average Serious Incident Frequency (SIF) was 0.5 for the twelve

months ending 30 September 2018, compared to 0.7 in the same period a year ago.

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 of the Norwegian Securities Trading Act.