Equinor

Earnings Release • Jul 28, 2021

Correction: Equinor second quarter 2021 results - regarding the attached English press release

Correction: Equinor second quarter 2021 results - regarding the attached English press release

The attached English version of the press release published at 06:44 CEST today

("Press Release Equinor Second Quarter 2021 Results.pdf") wrongly contained

information on page 5 and 6. The attachment has now been replaced with the

correct version.

* * *

Equinor (OSE: EQNR, NYSE: EQNR) reports adjusted earnings of USD 4.64 billion

and USD 1.58 billion after tax in the second quarter of 2021. IFRS net operating

income was USD 5.30 billion and the IFRS net income was USD 1.94 billion.

The second quarter of 2021 was characterised by:

* Strong results due to higher prices, sustained value focus and strict

capital discipline.

* Solid operational performance and progress in the project portfolio, some

projects impacted negatively by Covid-19.

* Strong cash flow and significant improvement of adjusted net debt ratio(1)

to 16.4%.

* Cash dividend of USD 0.18 per share and launch of share buy-back programme.

"We deliver a strong result in the second quarter. Solid operational performance

and continued focus on value creation have enabled us to capture additional

value from higher commodity prices. Strict capital discipline and a net cash

flow of more than USD 4.5 billion, reduce our net debt ratio to 16.4 percent and

make us robust for volatility in commodity prices going forward," says Anders

Opedal, President and CEO of Equinor ASA.

"Systematic and sustained improvements on the NCS enable us to capture

additional value in the quarter. We progressed our project portfolio with the

Norwegian government's approval of the development plan for Breidablikk, start-

up of Martin Linge on NCS and the final investment decision on Bacalhau Phase 1

in Brazil. Projects in execution are progressing despite the impact of Covid-

19," says Opedal.

"We continue to accelerate within renewables through strategic positions and

partnerships. In Poland we made significant progress with the award of the

support regime for Baltyk II & III with a potential total capacity at 1,440

megawatts. We continue our efforts to reduce emissions. In this quarter we

submitted the plan for development and operation of the Troll West

electrification, and we have made good progress on Hywind Tampen, the world's

first floating windfarm to power offshore oil and gas platforms," says Opedal.

Adjusted earnings [5] were USD 4.64 billion in the second quarter, up from USD

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

USD 1.58 billion, up from USD 0.65 billion in the same period last year.

IFRS net operating income was USD 5.30 billion in the second quarter, up from

negative USD 0.47 billion in the same period in 2020. IFRS net income was USD

1.94 billion in the second quarter, compared to negative USD 0.25 billion in the

second quarter of 2020. Net operating income was impacted by higher prices for

gas and liquids, and net reversals of impairments of USD 0.28 billion including

USD 0.11 billion impairment of exploration licences in the second quarter of

The results of all E&P segments are positively impacted by the higher commodity

prices. Strong operational performance, continued improvement focus and strict

capital discipline supported additional value creation.

E&P Norway benefited from improved prices and solid operational performance.

Combined with taxes paid based on the low 2020 results this contributed strongly

to the group cash flow.

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

losses on hedges of gas forward sales, shut down of the Hammerfest LNG plant and

weak refinery margins.

Compared to the same quarter last year the Renewables segment experienced lower

winds for the offshore wind assets, partially offset by improved availability.

The segment delivered adjusted earnings of negative USD 31 million, down from

negative USD 1 million in the second quarter last year.

Equinor delivered total equity production of 1,997 mboe per day in the second

quarter, down from 2,011 mboe per day in the same period in 2020. High planned

maintenance, divestment of Bakken and shut down of the Hammerfest LNG plant were

partially offset by higher flex gas volumes to capture higher prices and

increased production from Johan Sverdrup. Equity production of renewable energy

for the quarter was 282 GWh, down from 304 GWh for the same period last year,

impacted by lower winds than the same quarter last year.

At the end of second quarter 2021, Equinor had completed 11 exploration wells

with 5 commercial discoveries and 12 wells were ongoing. Adjusted exploration

expenses in the second quarter were USD 0.21 billion, compared to USD 0.28

billion in the same quarter of 2020.

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

working capital amounted to USD 6.54 billion for the second quarter, compared to

USD 2.36 billion for the same period in 2020. Organic capital expenditure [5]

was USD 4.03 billion for the first six months of 2021. At the end of the quarter

adjusted net debt to capital employed(1) was 16.4%, down from 24.6% in the first

quarter of 2021. Including the lease liabilities according to IFRS 16, the net

debt to capital employed was 23.2%.

The board of directors has declared a cash dividend of USD 0.18 per share for

the second quarter of 2021. 28 July Equinor commences execution of the first

tranche of around USD 300 million of the USD 600 million share buy-back program

for 2021 announced 15 June.

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

30 June was 0.5 for 2021, and down from 0.6 in 2020. The twelve-month average

Recordable Injury Frequency (TRIF) for the period ending at 30 June was 2.5, up

from 2.2 in 2020.

On the Capital Markets Day on 15 June 2021 Equinor presented its updated

strategy for accelerating its transition while growing cash flow and returns.

Equinor's ambition is to deliver a competitive capital distribution and

presented an updated programme for cash dividend and share buy-back. Equinor has

an ambition to reach a 40% reduction in net carbon intensity by 2035, on the way

towards net zero by 2050, and interim ambitions to reduce net carbon intensity

with 20% by 2030.

Equinor expects gross investments [5] in renewables of around USD 23 billion

from 2021 to 2026, and to increase the share of gross investments for renewables

and low carbon solutions from around 4% in 2020 to more than 50% by 2030. Based

on early low-cost access at scale, Equinor expects to reach an installed

capacity of 12 - 16 GW (Equinor share) by 2030. Early access followed by

targeted farm down is an integrated part of Equinor's value creation

proposition. So far, Equinor has divested assets for USD 2.3 billion and booked

a capital gain of USD 1.7 billion.

By 2035, Equinor's ambition is to develop the capacity to store 15 -30 million

tonnes CO2 per year and to provide clean hydrogen in 3-5 industrial clusters.

* * *

(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)

Press

Sissel Rinde, vice president Media relations,

+47 412 60 584 (mobile)

This information is subject to the disclosure requirements pursuant to Section

5-12 of the Norwegian Securities Trading Act