Equinor - Regulatory Filings 2021

6-K 1 eqnr2q21-mda_6k.htm EQUINOR SECOND QUARTER 2021 REPORT EDGAR HTML document created by Certent CDM HD version: 20.10.3 fsrq22021

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF THE

SECURITIES EXCHANGE ACT OF 1934

28 July 2021 Commission File Number 1-15200

Equinor ASA

(Translation of registrant’s name into English)

FORUSBEEN 50, N-4035, STAVANGER, NORWAY (Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-FXForm 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):_____

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):_____

This report on Form 6-K is being filed for the purposes of incorporation by reference in the Registration Statements on Form F-3 (File No. 333- 239808) and Form S-8 (File No. 333-168426). This report shall be deemed filed and incorporated by reference in such Registration Statements and shall be deemed to be a part thereof from the date on which this report is furnished, to the extent not superseded by documents or reports subsequently filed or furnished.

This document includes portions from the previously published results announcement of Equinor ASA as of, and for the six months ended 30 June 2021, as revised to comply with the requirements of Item 10(e) of Regulation S-K regarding non-GAAP financial information promulgated by the U.S. Securities and Exchange Commission. In addition, this document includes summarized financial information related to guaranteed debt securities. This document does not update or otherwise supplement the information contained in the previously published results announcement.

Equinor second quarter 2021

results

Equinor reports IFRS net operating income of USD 5.30 billion and IFRS net income of USD 1.94 billion in the second quarter

of 2021.

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 by Covid-19. ●Strong cash flow and significant improvement of net debt ratio of 23.2% and 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 adjusted 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.

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 2021.

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 benefitted 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.

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.

1This 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.

At the end of second quarter 2021, Equinor had completed 11 exploration wells with 5 commercial discoveries and 12 wells were ongoing. Exploration expenses in the second quarter were USD 0.33 billion, compared to USD 0.39 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(1)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 commence 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.

QuartersChangeFirst half

Q2 2021Q1 2021Q2 2020Q2 on Q2(in USD million, unless stated otherwise)20212020****Change

5,2985,220(472)N/ANet operating income/(loss)10,518(414)N/A

1,9431,854(251)N/ANet income/(loss)3,797(956)N/A

1,9972,1682,011(1%)Total equity liquids and gas production (mboe per day) [4]2,0822,122(2%)

63.756.422.9>100%Group average liquids price (USD/bbl) [1]60.033.679%

GROUP REVIEW

Second quarter 2021 review

Total equity liquids and gas production[4] was 1,997 mboe per day in the second quarter of 2021, down 1% compared to 2,011 mboe per day in the second quarter of 2020 mainly due to planned turnarounds, expected natural decline, divestment of an unconventional US onshore

asset in the second quarter of 2021, in addition to the shutdown at the Hammerfest LNG plant. Higher flexible gas off-take and ramp-up of fields on the Norwegian continental shelf partially offset the decrease. Total entitlement liquids and gasproduction [3] was 1,845 mboe per day in the second quarter of 2021, down 3% compared to 1,897 mboe per day in the second quarter of 2020. The production was negatively influenced by the factors mentioned above in addition to higher effects from production sharing agreements (PSA) [4]. The net effect of PSA and US royalties was 152 mboe per day in total in the second quarter of 2021 compared to 114 mboe per day in the second quarter of 2020.

QuartersChangeCondensed income statement under IFRS****First half Q2 2021Q1 2021Q2 2020Q2 on Q2(unaudited, in USD million)20212020****Change

17,46217,5897,603>100%Total revenues and other income35,05222,73354%| (7,399) | (7,166) | (2,750) | >100% | Purchases [net of inventory variation] | (14,565) | (10,146) | 44% | | --- | --- | --- | --- | --- | --- | --- | --- | | (2,329) | (2,160) | (2,411) | (3%) | Operating and administrative expenses | (4,489) | (5,014) | (10%) | | (2,111) | (2,797) | (2,522) | (16%) | Depreciation, amortisation and net impairment losses | (4,908) | (6,959) | (29%) | | (326) | (247) | (393) | (17%) | Exploration expenses | (572) | (1,028) | (44%) |

5,2985,220(472)N/ANet operating income/(loss)10,518(414)N/A

(393)(707)(248)(59%)Net financial items**(1,101)**(225)>(100%)

4,9054,513(720)N/AIncome before tax9,417(640)N/A

(2,962)(2,659)469>(100%)Income tax**(5,620)**(316)>100%

1,9431,854(251)N/ANet income/(loss)3,797(956)N/A

**Balance sheet information:**The sum of equity accounted investments and non-current segment assets was USD 74,579 million at 30 June 2021, compared to USD 75,858 million at 30 June 2020.

Net operating incomewas USD 5,298 million in the second quarter of 2021, compared to negative USD 472 million in the second quarter of 2020. The increase was mainly due to higher average prices for liquids and gas, and net reversal of impairments in the second quarter of 2021 compared to net impairment losses in second quarter of 2020. Lower results from liquids trading compared to the second quarter of 2020 partially offset the increase in net operating income.

In the second quarter of 2021, net operating income was positively impacted by net reversal of impairments2of USD 276 million,

operational storage effects of USD 87 million, net overlifted volumes of USD 80 million, inventory hedge contracts of USD 67 million and unrealised loss on gas derivatives of USD 60 million. In the second quarter of 2020, net operating income was negatively impacted by impairments of USD 374 million.

Total revenues and other incomewere USD 17,462 million in the second quarter of 2021, compared to USD 7,603 million in the second quarter of 2020. The increase was mainly due to significantly higher average prices for liquids and gas, and higher gas production, partially offset by lower liquids production.

2For more information, see note 2 Segments to the Condensed interim financial statements.

Purchases [net of inventory variation][6] were USD 7,399 million in the second quarter of 2021, compared to USD 2,750 million in the second quarter of 2020. The increase was mainly due to significantly higher average prices for liquids and gas in addition to higher third party volumes for gas in Europe.

Operating and administrative expenseswere USD 2,329 million in the second quarter of 2021, compared to USD 2,411 million in the second quarter of 2020. The decrease was mainly due to lower transportation costs, especially in the MMP segment, primarily due to lower freight rates on shipping of liquids in addition to lower volumes. The NOK/USD exchange rate development partially offset the decrease.

Depreciation, amortisation and net impairment losseswere USD 2,111 million in the second quarter of 2021, compared to USD

2,522 million in the second quarter of 2020. The decrease was mainly due to net impairment reversals in the second quarter of 2021 compared to impairment losses in the second quarter of 2020. Higher reserves estimates especially in the E&P International segment, lower depreciation basis resulting from net impairments in previous periods, and a classification of a US onshore asset as held for sale, contributed to the decrease. The decrease was partially offset by higher investments and the NOK/USD exchange rate development.

Exploration expenseswere USD 326 million in the second quarter of 2021, compared to USD 393 million in the second quarter of 2020. The decrease was mainly due to previously expensed wells being recapitalised this quarter due to related projects being matured, and lower drilling and other costs. This is partially offset by a lower portion of wells being capitalized this quarter and higher field development costs. For more information, see the table titled Exploration expenses in the Supplementary disclosures.

Net financial itemsamounted to negative USD 393 million in the second quarter of 2021, compared to negative USD 248 million in

the second quarter of 2020. The decrease of USD 145 million was mainly due to a loss on derivatives related to the long-term debt portfolio of USD 101 million in the second quarter of 2021, compared to a gain of USD 189 million in the second quarter of 2020, and a gain of USD 27 million on financial investments in the second quarter of 2021, compared to a gain of USD 248 million in the second quarter of 2020. The decrease was partially offset by a loss of USD 43 million on net foreign exchange in the second quarter of 2021, compared to a loss of USD 321 million in the second quarter of 2020, as well as effects from interest income and other financial items and interest and other financial expenses, with a combined loss of USD 276 million in the second quarter of 2021, compared to a combined loss of USD 365 million in the second quarter of 2020.

Income taxwas USD 2,962 million in the second quarter of 2021. The effective tax rate was 60.4%. In the second quarter of 2020, income tax was negative USD 469 million and the effective tax rate was 65.2%. For more information, see note5Income taxesto the Condensed interim financial statements.

Net incomein the second quarter of 2021 was USD 1,943 million, compared to negative USD 251 million in the second quarter of 2020. The increase was mainly due to positive changes in net operating income as discussed above, partially offset by negative changes for net financial items and higher income tax.

Cash flows provided by operating activitiesincreased by USD 6,275 million compared to the second quarter of 2020. The increase was mainly due to higher liquids and gas prices, decreased tax payments and a change in working capital.

Cash flows used in investing activitiesincreased by USD 918 million compared to the second quarter of 2020. The increase was mainly due to increased financial investments, partially offset by increased proceeds from sale of assets.

Cash flows used in financing activitiesincreased by USD 6,985 million compared to the second quarter of 2020. The increase was mainly due to bonds issued in the second quarter of 2020, partially offset by increased short-term debt and decreased dividend paid.

Total cash flowsdecreased by USD 1,628 million compared to the second quarter of 2020.

Free cash flow[5] in the second quarter of 2021 was USD 4,510 million compared to negative USD 1,853 million in the second quarter of 2020. The increase was mainly due to higher operating cash flow mainly due to higher liquids and gas prices, decreased tax payments, increased proceeds from sale of assets and decreased dividend paid.

First half 2021 review

Net operating incomewas USD 10,518 million in the first half of 2021, compared to negative USD 414 million in the first half of 2020. The

increase was mainly due to higher liquids and gas prices, lower net impairments in the first half of 2021 compared to the first half of 2020, and lower transportation and exploration costs. In the first half of 2021, net operating income was positively impacted by inventory hedge contracts of USD 354 million, operational storage effects of USD 191 million and net overlifted volumes of USD 79 million, partially offset by net impairments of USD 152 million. In the first half of 2020, net operating income was negatively impacted mainly by net impairments of USD 2,825 million.

Total revenues and other incomewere USD 35,052 million in the first half of 2021 compared to USD 22,733 million in the first half of 2020. The increase was mainly due to significantly higher average prices for liquids and gas, and higher gas production, partially offset by lower liquids production.

Purchases[6]were USD 14,565 million in the first half of 2021 compared to USD 10,146 million in the first half of 2020. The increase was mainly due to significantly higher average prices for liquids and gas, partially offset by lower volumes for liquids and third party sales.

Operating and administrative expenseswereUSD 4,489 million in the first half of 2021, compared to USD 5,014 million in the first half of 2020. The decrease was mainly due to lower transportation costs, especially in the MMP segment, primarily due to lower freight rates on shipping of liquids in addition to lower volumes. The NOK/USD exchange rate development partially offset the decrease.

Depreciation, amortisation and net impairment losseswere USD 4,908 million in the first half of 2021, compared to USD 6,959 million in

the first half of 2020. The decrease was mainly due to lower net impairment losses in the first half of 2021 compared to the first half of 2020. Higher reserves estimates especially in the E&P International segment, lower depreciation basis resulting from net impairments in previous periods, and a classification of a US onshore asset as held for sale added to the decrease. The decrease was partially offset by higher investments and the NOK/USD exchange rate development.

Exploration expenseswereUSD 572 million in the first half of 2021, compared to USD 1,028 million in the first half of 2020. The decrease

was mainly due to lower impairment losses in the first half of 2021 compared to the first half of 2020, in addition to lower drilling and other costs, a lower portion of exploration expenditure capitalized in earlier years being expensed this year, and wells expensed in earlier years being recapitalised this year due to related projects on NCS being matured. The decrease is partially offset by a lower portion of exploration expenditure being capitalized this year, and higher field development costs. For more information, see the table titled Exploration expenses in the Supplementary disclosures.

Net financial itemsamounted to negative USD 1,101 million in the first half of 2021, compared to negative USD 225 million in the first half of 2020. The decrease of USD 876 million was mainly due to a loss of USD 462 million on derivatives related to a long-term debt

portfolio in the first half of 2021 compared to a gain of USD 382 million in the first half of 2020. A lower gain of USD 72 million on Interest income and other financial items in the first half of 2021 compared to a gain of USD 238 million in the first half of 2020, and a loss on financial investments of USD 123 million in the first half of 2021 compared to a loss of USD 98 million in the first half of 2020, added to the decrease. The decrease was partially offset by a gain of USD 27 million on net foreign exchange in the first half of 2021 compared to a loss of USD 24 million in the first half of 2020, and a reduction in interest and other financial expenses by a negative USD 616 million in the first half of 2021 compared to a negative USD 723 million in the first half of 2020.

Income taxwas USD 5,620 million in the first half of 2021 and the effective tax rate was 59.7%. Income tax in the first half of 2020 was negative USD 316 million and the effective tax rate was negative 49,5%. For more information, see note 5 Income tax to the Condensed interim financial statements.

Net incomein the first half of 2021 was USD 3,797 million compared to negative USD 956 million in the first half of 2020. The increase was mainly due to the positive changes in net operating income as discussed above, partially offset by negative changes for net financial items and higher income tax.

Cash flows provided by operating activitiesincreased by USD 7,216 million compared to the first half of 2020. The increase was mainly due to higher liquids and gas prices and decreased tax payments, partially offset by a change in working capital and decreased cash flow from derivatives.

Cash flows used in investing activitiesdecreased by USD 244 million compared to the first half of 2020. The decrease was mainly due to increased proceeds from sale of assets, partially offset by increased financial investments.

Cash flows provided by financing activitiesincreased by USD 8,824 million compared to the first half of 2020. The increase was mainly due to bonds issued in the first half of 2020 and increased repayment of finance debt, partially offset by decreased dividend paid.

Total cash flowsdecreased by USD 1,364 million compared to the first half of 2020.

Free cash flow[5]for the first half of 2021 was USD 9,683 million, compared to negative USD 1,492 million in the first half of 2020. The increase was mainly due to higher operating cash flow mainly due to higher liquids and gas prices, decreased tax payments, increased proceeds from sale of assets and decreased dividend paid, partially offset by decreased cash flow from derivatives.

For information related to guaranteed debt securities, see Summarized financial information related to guaranteed debt securities in the Supplementary information

OUTLOOK

●Organic capital expenditures[5]are estimated at an annual average of USD 9-10 billion for 2021-2022 and around USD 12 billion annual average for 2023-20243. ●Productionfor 2021 is estimated to be around 2% above 2020 level4[7]. ●Equinor’s ambition is to keep theunit of production costin the top quartile of its peer group. ●Scheduled maintenance activityis estimated to reduce equity production by around 50 mboe per day for the full year of 2021.

These forward-looking statements reflect current views about future events and are, by their nature, subject to significant risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. We continue to monitor the impact of Covid-19 on our operations. Deferral of production to create future value, production cuts, gas off-take, timing of new capacity coming on stream, operational regularity, the ongoing impact of Covid-19 and activity level in the US onshore represent the most significant risks related to the foregoing production guidance. There has been considerable uncertainty created by the Covid-19 pandemic and we are still unable to predict the ultimate impact of this event, including impact on general economic conditions worldwide. Our future financial performance, including cash flow and liquidity, will be impacted by the extent and duration of the current market conditions, the development in realised prices, including price differentials and the effectiveness of actions taken in response to the pandemic. For further information, see section Forward-looking statements.

3USD/NOK exchange rate assumption of 9. 4Adjusted for portfolio measures.

EXPLORATION & PRODUCTION NORWAY

Second quarter 2021 review

Average daily production of liquids and gasdecreased by 2% to 1,257 mboe per day in the second quarter of 2021, compared to 1,281 mboe per day in the second quarter of 2020. The decrease was mainly due to planned turnarounds, expected natural decline and shutdown at the Hammerfest LNG plant, partially offset by higher flexible gas off-take and ramp-up on Johan Sverdrup.

Net operating incomewas USD 4,418 million in the second quarter of 2021 compared to negative USD 104 million in the second quarter of 2020. The increase was mainly due to higher liquids price and gas transfer price in addition to net reversal of impairments.

In the second quarter of 2021, net operating income was was positively impacted by net reversal of impairments of assets of USD 396 million, net underlifted volumes of USD 38 million and unrealised gain on derivatives of USD 19 million. In the second quarter of 2020, net operating income was negatively impacted by net underlifted volumes of USD 19 million. Total revenues and other incomeincreased mainly due to higher liquids price and gas transfer price. Operating and administrative expensesincreased mainly due to the NOK/USD exchange rate development, partially offset by lower Gassled removal costs and lower transportation costs. Depreciation, amortisation and net impairment lossesdecreased mainly due to reversal of impairments in the second quarter of 2021. The decrease was partially offset by the NOK/USD exchange rate development, decreased proved reserves on several fields and higher investments. Exploration expensesdecreased mainly due to previously expensed wells being recapitalised this quarter due to related projects being matured. Higher drilling and field development costs partially offset the decrease. **Balance sheet information:**The sum of equity accounted investments and non-current segment assets was USD 35,533 million at 30 June 2021, compared to USD 30,549 million at 30 June 2020.

QuartersChangeIncome statement under IFRS****First half Q2 2021Q1 2021Q2 2020Q2 on Q2(in USD million)20212020****Change

6,2105,7831,659>100%Total revenues and other income11,9925,196>100%| (828) | (794) | (706) | 17%Operating and administrative expenses | (1,622) | (1,341) | 21% | | --- | --- | --- | --- | --- | --- | --- | | (908)(1,570) | | (992) | (8%)Depreciation, amortisation and net impairment losses | (2,478) | (2,833) | (13%) | | (55) | (70) | (65) | (15%)Exploration expenses | (125) | (160) | (22%) |

4,4183,350(104)N/ANet operating income/(loss)7,767863>100%

First half 2021 review

Net operating incomefor E&P Norway was USD 7,767 million in the first half of 2021 compared to USD 863 million in the first half of 2020. The increase was mainly due to higher gas transfer price and liquids price in addition to net reversal of impairments.

In the first half of 2021, net operating income was positively impacted by net reversal of impairments of assets of USD 120 million, net underlifted volumes of USD 103 million and unrealised gain on derivatives of USD 19 million. In the first half of 2020, net operating income was negatively impacted by impairment of assets of USD 859 million and net underlifted volumes of USD 50 million.

Total revenues and other incomeincreased in the first half of 2021 compared to the first half of 2020, mainly due to higher gas transfer price and liquids price.

Operating and administrative expensesincreased mainly due to the NOK/USD exchange rate development, partially offset by lower Gassled removal costs and lower transportation costs.

Depreciation, amortisation and net impairment lossesdecreased in the first half of 2021 compared to the first half of 2020, mainly due to net reversal of impairments in the first half of 2021 compared to impairment losses in the first half of 2020. The decrease was partially offset by the NOK/USD exchange rate development, decreased proved reserves on several fields, increased depreciation of the asset retirement obligation (ARO) assets and higher investments.

Exploration expensesdecreased mainly due to previously expensed wells being recapitalised due to related projects being matured. Higher drilling and field development costs partially offset the decrease.

EXPLORATION & PRODUCTION INTERNATIONAL

Second quarter 2021 review

Average daily equity production of liquids and gaswas 349 mboe per day in the second quarter of 2021 compared to 325 mboe per day in the second quarter of 2020. The increase was primarily due to higher gas nominations, field specific production on the UK continental shelf and in Russia, partially offset by natural decline in mature fields.

Average daily entitlement production of liquids and gaswas 252 mboe per day in the second quarter of 2021 compared to 266 mboe per day in the second quarter of 2020. The decrease was due to higher effects from production sharing agreements (PSA) partially offset by higher equity production. The net effects from PSA were 97 mboe per day in the second quarter of 2021 compared to 59 mboe per day in the second quarter of 2020.

Net operating incomewas positive USD 591 million in the second quarter of 2021 compared to negative USD 548 million in the second quarter of 2020. The increase was mainly due to higher liquids and gas prices, lower depreciation and lower exploration expenses, in addition to net impairment reversals in the second quarter of 2021 compared to net impairment losses in the second quarter of 2020. The increase was partially offset by lower entitlement production in the second quarter of 2021.

In the second quarter of 2021, net operating income was positively impacted by net impairment reversals of USD 94 million, revenues related to a redetermination process of USD 57 million and net overlifted volumes of USD 41 million. In the second quarter of 2020, net operating income was negatively impacted by net impairment losses of USD 146 million.

Total revenues and other incomeincreased mainly due to higher liquids and gas prices.

Operating and administrative expensesincreased mainly due to increased royalties and production fees driven by higher prices.

Depreciation, amortisation and net impairment lossesdecreased mainly due to net impairment reversals in the second quarter of 2021 compared to impairment losses in the second quarter of 2020, increased reserve estimates and lower entitlement production from mature fields. Reduced ARO asset estimates and lower depreciation basis resulting from net impairments in previous periods added to the decrease, partially offset by higher investments and increased production from specific fields.

Exploration expensesdecreased mainly due to lower drilling and other costs, partially offset by a lower portion of exploration expenditure being capitalised in the second quarter of 2021.

**Balance sheet information:**The sum of equity accounted investments and non-current segment assets was USD 18,662 million at 30 June 2021, compared to USD 20,278 million at 30 June 2020.

QuartersChangeIncome statement under IFRS****First half

Q2 2021Q1 2021Q2 2020Q2 on Q2(in USD million)20212020****Change

1,4751,049555>100%Total revenues and other income2,5251,90333%| 14 | (29) | (26)>(100%) | Purchases [net of inventory variation] | (15) | (68)(78%) | | --- | --- | --- | --- | --- | --- | | (439) | (252) | (281) | 57%Operating and administrative expenses | (691) | (779)(11%) |

(228)	(400)	(509)	(55%)Depreciation, amortisation and net impairment losses	(627)(1,380)	(55%)
(231)	(107)	(288)	(20%)Exploration expenses	(338)	(536)(37%)

591261(548)N/ANet operating income/(loss)853(860)N/A

First half 2021 review

Net operating incomefor E&P International was positive USD 853 million in the first half of 2021, compared to negative USD 860 million in the first half of 2020. The positive development was mainly due to higher liquids and gas prices, lower depreciation, and lower exploration expenses, in addition to net impairment reversals in the first half of 2021 compared to net impairment losses in the first half of 2020. The increase was partially offset by lower entitlement production in the first half of 2021.

In the first half of 2021, net operating income was positively impacted by net impairment reversals of USD 39 million. In the first half of 2020, net operating income was negatively impacted by net impairment losses of USD 529 million.

Total revenues and other incomeincreased mainly due to higher liquids and gas prices.

Operating and administrative expensesdecreased mainly due to overlifted volumes in the first half of 2021 compared to underlifted volumes in the first half of 2020. The decrease was partially offset by increased royalties and production fees, primarily driven by increased prices.

Depreciation, amortisation and net impairment lossesdecreased mainly due to net impairment reversals in the first half of 2021 compared to net impairment losses in the first half of 2020, increased reserves estimates and lower entitlement production from mature fields. The decrease was partially offset by higher investments and increased production from certain fields.

Exploration expensesdecreased mainly due to lower drilling and other costs, lower exploration expenditure capitalized in earlier years being expensed in the first half of 2021, and lower impairment losses in the first half of 2021 compared to the first half of 2020. The decrease was partially offset by a lower portion of exploration expenditure being capitalized in the first half of 2021.

EXPLORATION & PRODUCTION USA

Second quarter 2021 review

Average daily equity production of liquids and gaswas 391 mboe per day in the second quarter of 2021 compared to 405 mboe per day in the second quarter of 2020. The decrease is due to divestment of an unconventional US onshore asset in the second quarter of 2021 and slightly lower US offshore production due natural decline offset slightly by increase in remaining unconventional US onshore assets.

Average daily entitlement production of liquids and gasdecreased slightly to 337 mboe per day in the second quarter of 2021 compared to 350 mboe per day in the second quarter of 2020. The decrease is due to divestment of an unconventional US onshore asset in the second quarter of 2021 and slightly lower US offshore production due natural decline offset slightly by increase in remaining unconventional US onshore assets.

Net operating incomewas positive USD 204 million in the second quarter of 2021 compared to negative USD 332 million in the second quarter of 2020. The increase was mainly due to higher commodity prices in the second quarter of 2021.

In the second quarter of 2021, net operating income was negatively impacted by net impairments of USD 11 million, relating to the US offshore leaseholds. In the second quarter of 2020, there were no impairments.

Total revenues and other incomeincreased mainly due to higher commodity prices.

Operating and administrative expensesdecreased mainly due to the divestment of an unconventional US onshore asset.

Depreciation, amortisation and net impairment lossesdecreased mainly due to lower depreciation basis resulting from classification of an unconventional US onshore asset as held for sale in the fourth quarter of 2020, where no depreciation expense has been recognised for the period up to the asset was divested in the second quarter of 2021.

Exploration expensesdecreased mainly due to lower drilling costs offset by a lower portion of exploration expenditure being capitalized.

Balance sheet information: The sum of equity accounted investments and non-current segment assets was USD 11,811 million at 30 June 2021, compared to USD 15,557 million at 30 June 2020.

QuartersChangeIncome statement under IFRS****First half

Q2 2021Q1 2021Q2 2020Q2 on Q2(in USD million)20212020****Change

968993475>100%Total revenues and other income1,9611,36044%

(287)(335)(293)(2%)Operating and administrative expenses**(622)**(664)(6%)| (438) | (436) | (475) | (8%)Depreciation, amortisation and net impairment losses | (873)(1,711) | (49%) | | --- | --- | --- | --- | --- | --- | | (39) | (70) | (40) | (2%)Exploration expenses | (109) | (332)(67%) |

204152(332)N/ANet operating income/(loss)356(1,347)N/A

First half 2021 review

Net operating incomefor E&P USA was positive USD 356 million in the first half of 2021 compared to negative USD 1,347 million in the first half of 2020. The positive development was mainly due to higher liquids and gas prices in the first half of 2021 compared to the first half of 2020 and lower impairments related to unconventional US onshore and US offshore assets in the first half of 2021 compared to the first half of 2020.

In the first half of 2021, net operating income was negatively impacted by net impairment losses of USD 51 million, mainly due to reduced fair value related to an asset held for sale in the first quarter of 2021. In the first half of 2020, net operating income was negatively impacted by net impairments of USD 1,014 million, mainly due to lower commodity price assumptions for the unconventional US onshore and US offshore assets.

Total revenues and other incomeincreased mainly due to higher liquids and gas prices.

Operating and administrative expensesdecreased mainly due to lower activity for unconventional US onshore as well as the divestment of an unconventional US onshore asset.

Explorationdecreased mainly due to lower impairment losses in the first half of 2021 compared to the first half of 2020, in addition to lower drilling costs. The decrease was partially offset by a lower portion of exploration expenditure being capitalised and a higher portion of exploration expenditure capitalised in earlier years being expensed this year.

MARKETING, MIDSTREAM & PROCESSING

Second quarter 2021 review

Natural gas sales volumesamounted to 14.2 billion standard cubic meters (bcm) in the second quarter of 2021, up 0.6 bcm compared to the second quarter of 2020. Of the total gas sales in the second quarter of 2021, entitlement gas was 12.6 bcm, up 0.6 bcm from the second quarter of 2020. The increase was mainly due to higher E&P International entitlement volumes, partially offset by the absence of equity LNG volumes as a result of the outage at the Hammerfest LNG plant due to shutdown.

Liquids sales volumesamounted to 180.6 million barrels (mmbl) in the first quarter of 2021, down by 14.3 mmbl compared to the second quarter of 2020 mainly due to decreased purchase from third party partially offset by increased volumes from E&P International.

Average invoiced European natural gas sales pricewas 237% higher in the second quarter of 2021 compared to the second

quarter of 2020 following the post-Covid-19 economic recovery, higher demand for heating combined with low storage levels. Average invoiced North American piped gas sales priceincreased by 53% in the same period mainly due to increased Henry Hub price resulting from higher export and increased demand for gas-fired power as a result of warm weather.

Net operating incomewas USD 152 million in the second quarter of 2021 compared to USD 610 million in the second quarter of

The decrease was mainly driven by lower results from liquids trading in the second quarter of 2021 compared to strong liquids trading results in the second quarter of 2020. In addition, absence of LNG sales due to the outage at the Hammerfest LNG plant and negative results from a weak refinery margin contributed to a lower gross margin. The decrease in net operating income was partially offset by lower impairment losses and lower operating expenses compared to the second quarter in 2020. The net operating income in the second quarter of 2021 includes significant gains related to derivatives connected to our bilateral contracts. The effect of these derivative gains is offset by a loss on gas price hedges in the second quarter of 2021.

In the second quarter of 2021, net operating income was negatively impacted by impairment losses and net provisions of USD 211 million, compared to USD 377 million in the second quarter of 2020. Unrealised gain on derivatives of USD 41 million positively impacted net on operating income in the second quarter of 2021, compared to a loss on derivatives of USD 36 million in the second quarter of 2020.

Total revenues and other incomeandPurchases [net of inventory variation]increased mainly due to higher prices for both liquids and gas, partially offset by lower third party volumes for liquids.

Operating and administrative expensesdecreased mainly due to lower transportation costs caused by lower freight rates on shipping of liquids in addition to lower volumes. The decrease was partially offset by higher costs at operating plants.

Depreciation, amortisation and net impairment lossesdecreased mainly due to lower impairment losses in the second quarter of 2021 compared to the second quarter of 2020.

**Balance sheet information:**The sum of equity accounted investments and non-current segment assets was USD 3,668 million at 30 June 2021, compared to USD 4,337 million at 30 June 2020.

QuartersChangeIncome statement under IFRS****First half

Q2 2021Q1 2021Q2 2020Q2 on Q2(in USD million)20212020****Change

16,98115,7897,486>100%Total revenues and other income32,77022,28947%

(15,448)(14,176)(5,127)>100%Purchases [net of inventory variation] [6](29,625)(18,627)59%

(1,097)(1,069)(1,423)(23%)Operating and administrative expenses**(2,166)**(2,767)(22%)

(284)(152)(326)(13%)Depreciation, amortisation and net impairment losses**(436)**(607)(28%)

152392610(75%)Net operating income/(loss)54428889%

First half 2021 review

Net operating incomefor MMP was USD 544 million in the first half of 2021 compared to USD 288 million in the first half of 2020.

The increase was mainly driven by a gain on liquids inventory hedging effects and operational storage of USD 545 million in the first half of 2021, compared to a loss of USD 422 million in the first half of 2020.The increase was partially offset by absence of LNG sales due to the outage at the Hammerfest LNG plant, and negative result from weaker refinery results. The net operating income in the first half of 2021 includes significant gains related to derivatives connected to our bilateral contracts. The effect of these derivative gains is offset by a loss on gas price hedges in the first half of 2021.

In the first half of 2021, net operating income was negatively impacted by impairment losses and provisions of USD 256 million compared to USD 604 million in the first half of 2020. Unrealised gain on derivatives of USD 24 million positively impacted net operating income in the first half of 2021, compared to a loss on derivatives of USD 83 million in the first half of 2020.

Total revenues and other incomeandPurchases [net of inventory variation]increased mainly due to higher prices for all products, partially offset by lower volumes for liquids.

Operating and administrative expensesdecreased mainly due to lower transportation costs caused by lower freight rates on shipping of liquids, in addition to lower volumes. The decrease was partially offset by higher costs at operating plants.

Depreciation, amortisation and net impairment lossesdecreased mainly due to lower impairment losses in the first half of 2021 compared to the first half of 2020.

RENEWABLES

As from the first quarter of 2021, Equinor changed its reporting as REN became a separate reporting segment. Previously the activities in REN were reported in the segment “Other”. The change has its basis in the increased strategic importance of the renewable business for Equinor and that the information is regarded useful for the readers of the financial statements. Following the change, Equinor has determined the adjusted earnings item of gain or loss from sales of assets is not applicable to REN, as the management considers presentation of the segment operations result, including the presentation of the gain or loss from divestments, as being reflective of the performance of the segment at this point of time. See Use and reconciliation of non-GAAP financial measures in the Supplementary disclosures for more information.

Second quarter 2021 review

Power generation5was 282 GWh in the second quarter of 2021, compared to 304 GWh in the second quarter of 2020. The decrease was due to wind being below seasonal average in the second quarter of 2021. The availability has been high in the second quarter of 2021.

Net operating incomewas negative USD 31 million in the second quarter of 2021 compared to USD 0 million in the second quarter

of 2020. The reduction was mainly due to increased activity level and higher costs due to the progressing of projects, mainly related to the Empire Wind and Beacon Wind assets on the US east coast. Increased business development costs driven by higher activity level in the US, UK and in Asia also added to the decrease in net operating income. The decrease in Net operating income was partially offset by higher net income from assets in operation compared to the second quarter of 2020.

Lower power generation this quarter compared to same quarter last year was offset by increased power prices and higher availability. Net income from assets in operation was positive both in the second quarter of 2021 and the second quarter of 2020.

Total revenue and other incomedecreased by USD 36 million compared to the second quarter of 2020 due to lower net income from

equity accounted investments. Reduced net result from equity accounted investments were mainly due to higher costs related to the progressing of the Empire Wind and Beacon Wind assets on the US east coast. These assets have changed consolidation method from proportional to equity accounted investments in 2021, following the farm-down of 50% of the owner share in the first quarter of 2021.

Operating and administrative expensesdecreased compared to the second quarter of 2020. The decrease was mainly driven by changed consolidation method for the Empire Wind and Beacon Wind assets. The decrease was partially offset by higher business development costs driven by higher activity level in the US, the UK and in Asia.

Depreciation, amortisation and net impairment losseswere slightly up compared to the second quarter of 2020 due to depreciation of certain water permits acquired in 2021.

QuartersChangeIncome statement under IFRS****First half

Q2 2021Q1 2021Q2 2020Q2 on Q2(in USD million)20212020****Change

21,38138(96%)Total revenues and other income1,38382>100%

(32)(40)(38)(16%)Operating and administrative expenses**(72)**(71)1%

(1)(0)(0)>100%Depreciation, amortisation and net impairment losses**(1)**(0)>100%

**(31)**1,341(0)>(100%)Net operating income/(loss)1,31011>100%

5Equinor share.

First half 2021 review

Net operating incomewas USD 1,310 million in the first half of 2021 compared to USD 11 million in the first half of 2020. The increase was due to gain on divestments completed in the first quarter of 2021 of around USD 1.4 billion. Net operating income in the first half of 2021 was impacted by lower net income from equity accounted investments compared to the first half of 2020. This was mainly driven by lower net income from equity accounted investments under development which contributed negatively to the result as expected due to increased activity level and higher costs compared to the first half of 2020 due to the progressing of projects.

Total revenue and other incomeincreased due to gain on divestments in the first half of 2021. The increase was partially offset by lower result from equity accounted investments which is included in this line item, mainly due to Empire Wind and Beacon Wind assets in development not accounted for as equity accounted investment in 2020.

Operating and administrative expensesremain at same level. Increase due to higher project activity and business development costs in the US, the UK and in Asia was offset by lower operating expenses due to change in ownership and consolidation method related to Empire Wind and Beacon Wind in the US, following the farm-down of 50% of the owner share in the first quarter of 2021.

Depreciation, amortisation and net impairment losseswere slightly up compared to the first half of 2020 due to depreciation of certain water permits acquired in 2021.

CONDENSED INTERIM FINANCIAL STATEMENTS

Second quarter 2021

CONSOLIDATED STATEMENT OF INCOME

QuartersFirst halfFull year Q2 2021Q1 2021Q2 2020****(unaudited, in USD million)Note202120202020*| 17,380 | 16,129 | 7,563Revenues | 233,508 | 22,627 | 45,753 | | --- | --- | --- | --- | --- | --- | | 16 | 30 | 33Net income/(loss) from equity accounted investments | 47 | 104 | 53 | | 66 | 1,431 | 7Other income | 31,497 | 2 | 12 |

17,46217,5897,603Total revenues and other income235,05222,73345,818| (7,399) | (7,166) | (2,750)Purchases [net of inventory variation] | (14,565) | (10,146) | (20,986) | | --- | --- | --- | --- | --- | --- | | (2,134) | (1,941) | (2,234)Operating expenses | (4,076) | (4,639) | (8,831) | | (195) | (218) | (177)Selling, general and administrative expenses | (413) | (374) | (706) | | (2,111) | (2,797) | (2,522)Depreciation, amortisation and net impairment losses | 6(4,908) | (6,959) | (15,235) | | (326) | (247) | (393)Exploration expenses | (572) | (1,028) | (3,483) |

(12,164)(12,369)(8,075)Total operating expenses2(24,534)(23,147)(49,241)

5,2985,220(472)Net operating income/(loss)210,518(414)(3,423)| (304) | (312) | (379)Interest expenses and other financial expenses | (616) | (723)(1,392) | | | --- | --- | --- | --- | --- | --- | | (90) | (396) | 130Other financial items | (485) | 498 | 556 |

(393)(707)(248)Net financial items4(1,101)(225)(836)

4,9054,513(720)Income/(loss) before tax9,417(640)(4,259)

(2,962)(2,659)469Income tax5(5,620)(316)(1,237)

1,9431,854(251)Net income/(loss)3,797(956)(5,496)

1,9381,851(254)Attributable to equity holders of the company3,789(961)(5,510)

533Attributable to non-controlling interests8614| 0.60 | 0.57 | (0.08)Basic earnings per share (in USD) | 1.17 | (0.29) | (1.69) | | --- | --- | --- | --- | --- | --- | | 0.60 | 0.57 | (0.08)Diluted earnings per share (in USD) | 1.16 | (0.29) | (1.69) | | 3,247 | 3,248 | 3,276Weighted average number of ordinary shares outstanding (in millions) | 3,248 | 3,290 | 3,269 | | | | Weighted average number of ordinary shares outstanding diluted (in | | | | | 3,257 | 3,256 | 3,284millions) | 3,257 | 3,298 | 3,277 |

Audited

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
	Quarters			First half	Full year
Q2 2021	Q1 2021	Q2 2020	(unaudited, in USD million)	2021	2020	2020*
1,943	1,854	(251)	Net income/(loss)	3,797	(956)(5,496)

107	117	41Actuarial gains/(losses) on defined benefit pension plans		224	163(106)
(24)	(25)	(8)Income tax effect on income and expenses recognised in OCI	1)	(50)	(50)	19
83	91	33Items that will not be reclassified to the Consolidated statement of		174	113	(87)
		income

119	(46)1,560	Foreign currency translation effects	73(2,622)	1,064
		Items that may be subsequently reclassified to the Consolidated
119	(46)1,560	statement of income	73(2,622)	1,064

202451,593Other comprehensive income/(loss)247(2,509)977

2,1441,8991,342Total comprehensive income/(loss)4,044(3,464)(4,519)| 2,140 | 1,896 | 1,340Attributable to the equity holders of the company | 4,036(3,470) | (4,533) | | --- | --- | --- | --- | --- | | 5 | 3 | 3Attributable to non-controlling interests | 8 | 614 |

Audited 1) Other comprehensive income (OCI).

CONSOLIDATED BALANCE SHEET

At 30 JuneAt 31 MarchAt 31 December****At 30 June

(unaudited, in USD million)Note202120212020*2020| ASSETS | | | | | | | --- | --- | --- | --- | --- | --- | | Property, plant and equipment | 6 | 65,373 | 63,161 | 65,672 | 63,941 | | Intangible assets | 6 | 6,829 | 8,150 | 8,148 | 10,317 | | Equity accounted investments | | 2,377 | 2,374 | 2,262 | 1,599 | | Deferred tax assets | | 5,231 | 4,880 | 4,974 | 3,794 | | Pension assets | | 1,552 | 1,437 | 1,310 | 963 | | Derivative financial instruments | | 1,691 | 1,573 | 2,476 | 1,630 | | Financial investments | | 3,895 | 3,922 | 4,083 | 3,157 | | Prepayments and financial receivables | | 934 | 774 | 861 | 1,311 |

Total non-current assets87,88286,27289,78686,711| Inventories | 2,548 | 2,917 | 3,084 | 2,974 | | --- | --- | --- | --- | --- | | Trade and other receivables | 8,564 | 8,692 | 8,232 | 5,489 | | Derivative financial instruments | 2,251 | 1,096 | 886 | 589 | | Financial investments | 15,152 | 10,922 | 11,865 | 9,319 | | Cash and cash equivalents | 9,912 | 8,992 | 6,757 | 9,700 |

Total current assets38,42632,61930,82428,072

Assets classified as held for sale39501,1001,3620

Total assets127,259119,991121,972114,783| EQUITY AND LIABILITIES | | | | | | --- | --- | --- | --- | --- | | Shareholders' equity | 37,023 | 35,764 | 33,873 | 35,587 | | Non-controlling interests | 18 | 18 | 19 | 23 |

Total equity37,04135,78233,89235,610

Finance debt1)428,11227,99129,11828,632

Lease liabilities		2,796	3,006	3,220	3,016
Deferred tax liabilities		12,306	11,440	11,224	8,907
Pension liabilities		4,411	4,363	4,292	3,572
Provisions and other liabilities	7	18,890	17,817	19,731	18,097
Derivative financial instruments		606	550	676	967

Total non-current liabilities67,12065,16768,26063,191| Trade, other payables and provisions | | | 10,022 | 10,592 | 10,510 | 8,620 | | --- | --- | --- | --- | --- | --- | --- | | Current tax payable | | 5 | 5,156 | 3,249 | 1,148 | 674 | | Finance debt | 1) | 4 | 3,463 | 2,784 | 4,591 | 4,324 | | Lease liabilities | 1) | | 1,113 | 1,131 | 1,186 | 1,139 | | Dividends payable | | | 487 | 0 | 357 | 297 | | Derivative financial instruments | | | 2,247 | 1,014 | 1,710 | 928 |

Total current liabilities22,48818,77019,50215,982

Liabilities directly associated with the assets classified as held for sale36102713180

Total liabilities90,21884,20988,08179,173

Total equity and liabilities127,259119,991121,972114,783

Audited

Lease liabilities are separated from the line item Finance debt and 2020 has been reclassified.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Foreign

**AdditionalcurrencyShare-**Non-

Sharepaid-inRetainedtranslationholders'controlling **(unaudited, in USD million)capitalcapitalearningsreserveequityinterests**Total equity| At 31 December 2019* | 1,185 | 7,732 | 37,481 | (5,258) | 41,139 | 2041,159 | | | --- | --- | --- | --- | --- | --- | --- | --- | | Net income/(loss) | | | (961) | | (961) | 6 | (956) | | Other comprehensive income/(loss) | | | 113 | (2,622) | (2,509) | (2,509) | | | Total comprehensive income/(loss) | | | | | | (3,464) | | | Dividends | | | (1,189) | | (1,189) | (1,189) | | | Share buy-back | | (890) | | | (890) | | (890) |

Other equity transactions(4)(0)(4)(2)(6)

At 30 June 20201,1856,83835,443(7,879)35,5872335,610| At 31 December 2020* | 1,164 | 6,852 | 30,050 | (4,194) | 33,873 | 1933,892 | | | --- | --- | --- | --- | --- | --- | --- | --- | | Net income/(loss) | | | 3,789 | | 3,789 | 8 | 3,797 | | Other comprehensive income/(loss) | | | 174 | 73 | 247 | | 247 | | Total comprehensive income/(loss) | | | | | | | 4,044 | | Dividends | | | (877) | | (877) | | (877) | | Other equity transactions | | (8) | 0 | | (8) | (9) | (18) |

At 30 June 2021	1,164	6,844	33,136	(4,121)	37,023	1837,041
* Audited

CONSOLIDATED STATEMENT OF CASH FLOWS

QuartersFirst halfFull year Q2 2021Q1 2021Q2 2020****(unaudited, in USD million)Note202120202020*

4,9054,513(720)Income/(loss) before tax9,417(640)(4,259)| 2,111 | 2,797 | 2,522 | Depreciation, amortisation and net impairment losses | 6 | 4,908 | 6,95915,235 | | | --- | --- | --- | --- | --- | --- | --- | --- | | 25 | 64 | 125 | Exploration expenditures written off | | 89 | 560 | 2,506 | | 43 | (70) | 321 | (Gains)/losses on foreign currency transactions and balances | 4 | (27) | 24 | 646 | | 16(1,383) | | (15) | (Gains)/losses on sale of assets and businesses | 3 | (1,367) | (1) | 18 | | (565) | 222 | 257 | (Increase)/decrease in other items related to operating activities | 1) | (343) | 492 | 918 | | 170 | 577 | 25 | (Increase)/decrease in net derivative financial instruments | | 746 | (264) | (451) | | 39 | 39 | 43 | Interest received | | 78 | 108 | 162 | | (199) | (141) | (198) | Interest paid | | (340) | (380) | (730) |

			Cash flows provided by operating activities before taxes paid and
6,543	6,617	2,360	working capital items	13,161	6,85914,045

(344)(84)(1,744)Taxes paid(428)(2,631)(3,134)

444(549)(248)(Increase)/decrease in working capital(106)1,183(524)

6,6435,984368Cash flows provided by operating activities12,6275,41110,386| (111) | 0 | 0 | Cash used in business combinations | 2) | 3(111) | 0 | 0 | | --- | --- | --- | --- | --- | --- | --- | --- | | (1,747) | (2,151) | (1,899) | Capital expenditures and investments | | (3,897) | (4,249) | (8,476) | | (4,224) | 699 | (2,730) | (Increase)/decrease in financial investments | 3) | (3,525) | (2,131) | (3,703) | | (65) | (305) | (45) | (Increase)/decrease in derivatives financial instruments | | (370) | (71) | (620) | | (134) | (3) | 2 | (Increase)/decrease in other interest-bearing items | | (137) | 3 | 202 | | 692 | 1,146 | 0 | Proceeds from sale of assets and businesses | | 31,839 | 2 | 505 |

(5,589)(613)(4,671)Cash flows used in investing activities(6,202)(6,446)(12,092)| 0 | 08,347 | New finance debt | | 0 | 8,347 | 8,347 | | --- | --- | --- | --- | --- | --- | --- | | (1)(1,424) | | 0Repayment of finance debt | 4) | (1,425) | 0(2,055) | |

(308)	(302)	(318)Repayment of lease liabilities	(610)	(623)(1,277)
(389)	(355)	(904)Dividends paid	(744)(1,750)	(2,330)
0	0	0Share buy-back	0	(58)(1,059)
687(1,015)		(150)Net current finance debt and other financing activities	(327)	(198)1,365

(10)(3,096)6,975Cash flows provided by/(used in) financing activities(3,107)5,7172,991

1,0442,2742,672Net increase/(decrease) in cash and cash equivalents3,3184,6821,285| 3 | (174) | 162 | Effect of exchange rate changes on cash and cash equivalents | (170) | (159) | 294 | | --- | --- | --- | --- | --- | --- | --- | | | | | Cash and cash equivalents at the beginning of the period (net of | | | | | 8,857 | 6,757 | 6,866 | overdraft) | 6,757 | 5,177 | 5,177 |

Cash and cash equivalents at the end of the period (net of 9,9048,8579,700overdraft)5)9,9049,7006,757

Audited

Second quarter 2021 includes redetermination settlement for the Agbami field. For more information see note 7 Provisions, commitments, contingent liabilities and contingent assets for more information.
Net after cash and cash equivalents acquired.
Includes sale of Lundin shares in the second quarter of 2020.
Repayment of lease liabilities are separated from the line item Repayment of finance debt and 2020 has been reclassified.
At 30 June 2021 cash and cash equivalents included a net overdraft of USD 7 million. At 31 December 2020 and at 30 June 2020 cash and cash equivalents net overdraft were zero.

Notes to the Condensed interim financial statements

1 Organisation and basis of preparation

Organisation and principal activities Equinor ASA, originally Den Norske Stats Oljeselskap AS, was founded in 1972 and is incorporated and domiciled in Norway. The address of its registered office is Forusbeen 50, N-4035 Stavanger, Norway.

The Equinor group’s (Equinor’s) business consists principally of the exploration, production, transportation, refining and marketing of petroleum and petroleum-derived products, and other forms of energy. Equinor ASA is listed on the Oslo Børs (Norway) and the New York Stock Exchange (USA).

All of Equinor's oil and gas activities and net assets on the Norwegian continental shelf are owned by Equinor Energy AS, a 100% owned operating subsidiary of Equinor ASA. Equinor Energy AS is co-obligor or guarantor of certain debt obligations of Equinor ASA.

Following changes in Equinor's internal reporting to management, the composition of Equinor's operating and reporting segments changed as of the first quarter 2021. Segment information for prior periods has been reclassified to align with the new segment presentation. Certain further changes to Equinor’s operating segments took effect on 1 June 2021, but this did not impact the reporting segments, and no reclassifications were required. For more information, see note 2 Segments to these condensed interim financial statements.

Equinor's condensed interim financial statements for the second quarter of 2021 were authorised for issue by the board of directors on 27 July 2021.

Basis of preparation These condensed interim financial statements are prepared in accordance with International Accounting Standard 34 Interim Financial Reporting as issued by the International Accounting Standards Board (IASB) and as adopted by the European Union (EU). The condensed interim financial statements do not include all the information and disclosures required by International Financial Reporting Standards (IFRS) for a complete set of financial statements, and these condensed interim financial statements should be read in conjunction with the Consolidated annual financial statements for 2020. IFRS as adopted by the EU differs in certain respects from IFRS as issued by the IASB, but the differences do not impact Equinor's financial statements for the periods presented. A description of the significant accounting policies applied in preparing these condensed interim financial statements is included in Equinor's Consolidated annual financial statements for 2020.

There have been no changes to the significant accounting policies during 2021 compared to the Consolidated annual financial statements for 2020.

The condensed interim financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair presentation of the financial position, results of operations and cash flows for the dates and interim periods presented. Interim period results are not necessarily indicative of results of operations or cash flows for an annual period. Certain amounts in the comparable periods in the note disclosures have been reclassified to conform to current period presentation. The subtotals and totals in some of the tables may not equal the sum of the amounts shown due to rounding.

The condensed interim financial statements are unaudited.

Use of estimates The preparation of financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an on-going basis, considering current and expected future market conditions. A change in an accounting estimate is recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The ongoing Covid-19 pandemic creates additional estimation uncertainties and impacts key assumptions applied by Equinor in the valuation of our assets and the measurement of our liabilities. Reference is made to note 2 Significant accounting policies in Equinor’s Consolidated annual financial statements for 2020 and to note 8 Impact of the Covid-19 pandemic to these condensed interim financial statements for further information.

2 Segments

As from 1 June 2021 Equinor’s operations are managed through the following operating segments (business areas): Exploration & Production Norway (EPN), Exploration & Production International (EPI), Exploration & Production USA (EPIUSA), Marketing, Midstream & Processing (MMP), Renewables (REN), Projects, Drilling and Procurement (PDP) and Technology, Digital & Innovation (TDI) and Corporate staff and functions.

The main change in the organisational corporate structure compared to previous periods is that the operating segment Development & Production Brazil is merged into the operating segment Exploration & Production International. In addition, the operating segment Exploration is divided and merged into Exploration & Production Norway, Exploration & Production International and Exploration & Production USA. Global Strategy & Business development is divided and merged into the functions for Chief Financial Officer and Safety, Security and Sustainability. The operating segment Technol ogy, Projects & Drilling is split into Technology, Digital & Innovation and Projects, Drilling & Procurement. The new organisational corporate structure has not implied any changes in the reportable segments.

The reporting segments Exploration & Production Norway (E&P Norway), Exploration & Production International (E&P International), Exploration & Production USA (E&P USA), Marketing, Midstream & Processing (MMP) and Renewables (REN) consist of the business areas EPN, EPI, EPIUSA, MMP and REN respectively. The operating segments, PDP, TDI and corporate staffs and functions are aggregated into the reporting segment “Other” due to the immateriality of these operating segments. The majority of the costs within the operating segments PDP and TDI are allocated to the E&P Norway, E&P International, E&P USA, MMP and REN reporting segments.

The changes have no material effect on comparable figures.

As from the first quarter of 2021, Equinor changed its reporting as REN became a separate reporting segment. Previously the activities in REN were reported in the segment “Other”. The new reporting structure has been applied retrospectively with comparable figures reclassified. The change has its basis in the increased strategic importance of the renewable business for Equinor and that the information is regarded useful for the readers of the financial statements.

Inter-segment sales and related unrealised profits, mainly from the sale of crude oil and products, are eliminated in the Eliminations column below. Inter-segment revenues are based upon estimated market prices.

The reported measure of segment profit is net operating income/(loss).Deferred tax assets, pension assets and non-current financial assets are not allocated to the segments.

The measurement basis for segments is IFRS as applied by the group with the exception of IFRS 16 Leases and the line item Additions to PP&E, intangibles and equity accounted investments. All IFRS 16 leases are presented within the Other segment. The lease costs for the period are allocated to the different segments based on underlying lease payments, with a corresponding credit in the Other segment. Lease costs allocated to licence partners are recognised as other revenues in the Other segment. Additions to PP&E, intangible assets and equity accounted investments in the E&P and MMP segments include the period’s allocated lease costs related to activity being capitalised with a corresponding negative addition in the Other segment. The line item Additions to PP&E, intangibles and equity accounted investments excludes movements related to changes in asset retirement obligations.

Second quarter 2021****E&P

E&PInternationaE&P (in USD million)NorwaylUSAMMPRENOtherEliminationsTotal| Revenues third party, other revenue and | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | other income | 42 | 287 | 10116,892 | | 7117 | | 017,446 | | | Revenues inter-segment | 6,167 | 1,170 | 867 | 82 | 0 | 1(8,287) | | 0 | | Net income/(loss) from equity accounted | | | | | | | | | | investments | 0 | 19 | 0 | 7 | (6) | (4) | 0 | 16 |

Total revenues and other income6,2101,47596816,9812114(8,287)17,462| Purchases [net of inventory variation] | 0 | 14 | (0)(15,448) | | 0 | (0)8,035 | (7,399) | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Operating, selling, general and | | | | | | | | | | administrative expenses | (828) | (439) | (287) | (1,097) | (32) | 57 | 298(2,329) | | | Depreciation, amortisation and net | | | | | | | | | | impairment losses | (908) | (228) | (438) | (284) | (1)(252) | | 0(2,111) | | | Exploration expenses | (55) | (231) | (39) | 0 | 0 | 0 | 0 | (326) |

Total operating expenses(1,792)(884)(764)(16,829)(33)(195)8,333(12,164)

Net operating income/(loss)4,418591204152(31)(82)465,298| Additions to PP&E, intangibles and equity | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | accounted investments | 1,368 | 429 | 180 | 59156 | 52 | 02,243 |

First quarter 2021****E&P

E&PInternationaE&P (in USD million)NorwaylUSAMMPRENOtherEliminationsTotal| Revenues third party, other revenue and | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | other income | 28 | 221 | 12115,697 | 1,382 | 111 | | 017,559 | | | Revenues inter-segment | 5,755 | 805 | 872 | 84 | 0 | 1(7,517) | | 0 | | Net income/(loss) from equity accounted | | | | | | | | | | investments | 0 | 23 | 0 | 8 | (1) | 0 | 0 | 30 |

Total revenues and other income5,7831,04999315,7891,381111(7,517)17,589| Purchases [net of inventory variation] | 0 | (29) | (0)(14,176) | | 0 | (0)7,040 | (7,166) | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Operating, selling, general and | | | | | | | | | | administrative expenses | (794) | (252) | (335) | (1,069) | (40) | 54 | 277(2,160) | | | Depreciation, amortisation and net | | | | | | | | | | impairment losses | (1,570) | (400) | (436) | (152) | (0)(240) | | 0(2,797) | | | Exploration expenses | (70) | (107) | (70) | 0 | 0 | 0 | 0 | (247) |

Total operating expenses(2,433)(788)(841)(15,397)(40)(187)7,317(12,369)

Net operating income/(loss)3,3502611523921,341(76)(200)5,220| Additions to PP&E, intangibles and equity | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | accounted investments | 1,308 | 396 | 157 | 38128 | (13) | (0)2,014 |

Second quarter 2020****E&P

E&PInternationaE&P (in USD million)NorwaylUSAMMPREN1)Other1)EliminationsTotal| Revenues third party, other revenue and | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | other income | 10 | 52 | 67 | 7,392 | (0) | 50 | 07,570 | | | Revenues inter-segment | 1,649 | 515 | 408 | 88 | 0 | 1(2,661) | | 0 | | Net income/(loss) from equity accounted | | | | | | | | | | investments | 0 | (11) | 0 | 7 | 38 | 0 | 0 | 33 |

Total revenues and other income1,6595554757,4863850(2,661)7,603| Purchases [net of inventory variation] | 0 | (26) | 0 | (5,127) | 0 | (0) | 2,403 | (2,750) | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Operating, selling, general and | | | | | | | | | | administrative expenses | (706) | (281) | (293) | (1,423) | (38) | 163 | 166 | (2,411) | | | (992) | (509) | (475) | (326) | (0)(220) | | 0 | (2,522) | | Depreciation, amortisation and net | | | | | | | | |

impairment losses
Exploration expenses	(65)	(288)	(40)	0	0	0	0(393)

Total operating expenses(1,762)(1,103)(808)(6,877)(38)(56)2,569(8,075)

Net operating income/(loss)(104)(548)(332)610(0)(6)(92)(472)| Additions to PP&E, intangibles and equity | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | accounted investments | 1,118 | 484 | 268 | 51 | 4382 | (0)2,307 |

Reclassified

First half 2021****E&P

E&PInternationaE&P (in USD million)NorwaylUSAMMPRENOtherEliminationsTotal| Revenues third party, other revenue and | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | other income | 70 | 508 | 222 | 32,589 | 1,389 | 227 | 035,005 | | | Revenues inter-segment | 11,923 | 1,975 | 1,739 | 166 | 0 | 2(15,804) | | 0 | | Net income/(loss) from equity accounted | | | | | | | | | | investments | 0 | 42 | 0 | 15 | (6) | (4) | 0 | 47 |

Total revenues and other income11,9922,5251,96132,7701,383225(15,804)35,052| Purchases [net of inventory variation] | 0 | (15) | (0)(29,625) | | 0 | (1)15,076 | (14,565) | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Operating, selling, general and | | | | | | | | | | administrative expenses | (1,622) | (691) | (622) | (2,166) | (72) | 110 | 574(4,489) | | | Depreciation, amortisation and net | | | | | | | | | | impairment losses | (2,478) | (627) | (873) | (436) | (1)(492) | | 0(4,908) | | | Exploration expenses | (125) | (338) | (109) | 0 | 0 | 0 | 0 | (572) |

Total operating expenses(4,225)(1,672)(1,605)(32,226)(73)(383)15,650(24,534)

Net operating income/(loss)7,7678533565441,310(157)(154)10,518| Additions to PP&E, intangibles and equity | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | accounted investments | 2,676 | 825 | 337 | 97284 | 38 | 04,257 |

Balance sheet information
Equity accounted investments	3	1,181	0	96	1,067	32	(0)2,377
Non-current segment assets	35,530	17,481	11,811	3,572	141	3,668	072,202
Non-current assets not allocated to
segments							13,303

Total non-current assets87,882

First half 2020****E&P

E&PInternationaE&P (in USD million)NorwaylUSAMMPREN1)Other1)EliminationsTotal| Revenues third party, other revenue and | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | other income | 17 | 218 | 208 | 22,087 | 0 | 99 | 022,629 | | | Revenues inter-segment | 5,179 | 1,680 | 1,152 | 184 | 0 | 1(8,197) | | 0 | | Net income/(loss) from equity accounted | | | | | | | | | | investments | 0 | 5 | 0 | 18 | 82 | 0 | 0104 | |

Total revenues and other income5,1961,9031,36022,28982100(8,197)22,733| Purchases [net of inventory variation] | 0 | (68) | 0 | (18,627) | 0 | (0) | 8,549 | (10,146) | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Operating, selling, general and | | | | | | | | | | administrative expenses | (1,341) | (779) | (664) | (2,767) | (71) | 255 | 353 | (5,014) | | Depreciation, amortisation and net | | | | | | | | | | impairment losses | (2,833) | (1,380) | (1,711) | (607) | (0)(429) | | 0 | (6,959) | | Exploration expenses | (160) | (536) | (332) | 0 | 0 | 0 | 0 | (1,028) |

Total operating expenses(4,333)(2,763)(2,707)(22,001)(72)(174)8,902(23,147)

Net operating income/(loss)863(860)(1,347)28811(74)705(414)| Additions to PP&E, intangibles and equity | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | accounted investments | 2,407 | 1,225 | 694 | 107 | 5484 | (0)4,922 |

Balance sheet information
Equity accounted investments	2	563	0	87	925	20	01,599
Non-current segment assets	30,547	19,715	15,557	4,350	1893,901		074,259
Non-current assets not allocated to
segments							10,853

Total non-current assets86,711

Reclassified

In the second quarter of 2021 Equinor recognised net impairment reversals of USD 276 million of which USD 113 million was impairments of acquisition cost and signature bonuses classified as exploration expenses. The line item Exploration expenses in the Consolidated statement of income also includes impairment of capitalised exploration well cost. For information regarding impairment of capitalised exploration cost, see note 6 Property, plant and equipment and intangible assets.

In the E&P International segment the net impairment reversal was USD 93 million. Impairments of USD 95 million related to exploration licenses in South America and were classified as exploration expenses. Net impairment reversal of other assets of USD

188 million were mainly related to an asset in the Europe and Asia area caused by positive change in the short-term price assumptions and a North America offshore asset valued at fair value less cost to sell following the reclassification to held for sale.

In the E&P Norway segment the net impairment reversal was USD 396 million mainly related to an offshore asset caused by a positive change in the short-term price assumptions.

In the MMP segment the impairments were USD 185 million mainly related to a refinery valued at fair value less cost to sell following the reclassification to held for sale.

In addition, in the segments Other and E&P USA total impairments of USD 29 million have been recognized.

For information on group impairment losses and reversals, see note 6 Property, plant and equipment and intangible assets.

For information regarding acquisition and disposal of interests, see note 3 Acquisitions and disposals.

See also note 8 Impact of the Covid-19 pandemic.

Revenues from contracts with customers by geographical areas When attributing the line item Revenues third party, other revenues and other income to the country of the legal entity executing the sale for the second quarter of 2021, Norway constitutes 76% and USA constitutes 16% of such revenues. For the second quarter of 2020, Norway and USA constituted 79% and 16% of such revenues, respectively.

For the first half of 2021, Norway constitutes 78% and the US constitutes 16% of such revenues. For the first half of 2020, Norway and the US constituted 80% and 15% of such revenues respectively.

Non-current assets by country

At 30 JuneAt 31 MarchAt 31 December****At 30 June

(in USD million)2021202120202020| Norway | 41,342 | 40,261 | 42,192 | 36,383 | | --- | --- | --- | --- | --- | | USA | 12,667 | 12,867 | 13,172 | 16,524 | | Brazil | 8,339 | 8,226 | 8,203 | 8,796 | | UK | 4,222 | 4,256 | 4,398 | 4,913 | | Azerbaijan | 1,674 | 1,670 | 1,683 | 1,696 | | Canada | 1,478 | 1,445 | 1,527 | 1,435 | | Russia | 1,012 | 974 | 973 | 427 | | Angola | 914 | 897 | 725 | 1,331 | | Algeria | 772 | 794 | 808 | 866 | | Denmark | 568 | 918 | 953 | 887 | | Other countries | 1,592 | 1,378 | 1,447 | 2,601 |

Total non-current assets1)74,57973,68676,08275,858

Excluding deferred tax assets, pension assets and non-current financial assets.

Revenues from contracts with customers and other revenues

QuartersFirst halfFull year

Q2 2021Q1 2021Q2 2020****(in USD million)20212020****2020

9,0608,7144,018Crude oil17,77411,85824,509| 3,443 | 3,298 | 1,188Natural gas | 6,741 | 3,358 | 7,213 | | --- | --- | --- | --- | --- | --- | | 2,908 | 2,661 | 923- European gas | 5,569 | 2,691 | 5,839 | | 319 | 422 | 196- North American gas | 741 | 486 | 1,010 | | 215 | 216 | 68- Other incl. Liquefied natural gas | 431 | 181 | 363 |

2,682	2,373	1,258Refined products	5,055	3,287	6,534
1,672	1,910	839Natural gas liquids	3,582	2,288	5,069
205	256	286Transportation	461	615	1,083
341	112	88Other sales	454	225	681

17,40216,6647,677Revenues from contracts with customers34,06721,63145,088| 80 | 78 | (9)Taxes paid in-kind | 158 | 38 | 93 | | --- | --- | --- | --- | --- | --- | | 294 | (159) | 152Physically settled commodity derivatives | 135 | 251 | 209 | | (471) | (523) | (318)Gain/(loss) on commodity derivatives | (994) | 594 | 108 | | 74 | 69 | 61Other revenues | 143 | 113 | 256 | | (23) | (536) | (114)Total other revenues | (558) | 996 | 665 |

17,38016,1297,563Revenues33,50822,62745,753

3 Acquisitions and disposals

Divestments

Bakken onshore unconventional field On 26 April 2021, Equinor closed the transaction to divest its interests in the Bakken field in the US states of North Dakota and Montana to Grayson Mill Energy, backed by EnCap Investments for an estimated total consideration of USD 819 million, including interim period settlement, for which payment has been received in the first half 2021. Post-closing settlement adjustments are ongoing, and the consideration will be final in early 2022. The asset was impaired in the first quarter 2021. In the second quarter 2021, an insignificant loss was recorded and is presented in the line item Operating expenses in the Consolidated statement of income in the E&P USA segment.

Divestment of 10% of Dogger Bank Farm A and B On 26 February 2021, Equinor closed the transaction with Eni to sell a 10% equity interest in the Dogger Bank Wind Farm A and B assets in the UK for a total consideration of GBP 206.4 million (USD 285 million), resulting in a gain of GBP 202.8 million (USD 280 million). After closing, the new overall shareholdings in Dogger Bank A and Dogger Bank B are SSE Renewables (40%), Equinor (40%), and Eni (20%). Equinor will continue to equity account for the remaining investment as a joint venture. The gain is presented in the line item Other income in the Consolidated statement of income in the REN segment.

Divestment of non-operated interest in the Empire Wind and Beacon Wind assets on the US east coast On 29 January 2021, Equinor closed the transaction with BP to sell 50% of the non-operated interests in the Empire Wind and Beacon Wind assets for a preliminary total consideration after interim period adjustments of USD 1.2 billion, resulting in a gain of USD 1.1 billion for the divested part, of which USD 500 million had been prepaid at the end of December 2020. Through this transaction, the two companies have established a strategic partnership for further growth within offshore wind in the USA. Following the transaction, Equinor remains the operator with a 50% interest. Equinor consolidated the assets until transaction closing, and thereafter the investments are classified as joint ventures and accounted for using the equity method. The gain is presented in the line item Other income in the Consolidated statement of income in the REN segment.

Acquisitions

Acquisition of Wento On 5 May 2021, Equinor completed a transaction to acquire 100% of the shares in Polish onshore renewables developer Wento from the private equity firm Enterprise Investors for a cash consideration of EUR 98 million (USD 117 million) after net cash adjustments. In addition, Equinor acquired a receivable of USD 3 million from Enterprise Investors towards investees. The assets and liabilities related to the acquired business have been recognised under the acquisition method. The acquisition resulted in an increase of Equinor’s intangible assets of USD 46 million, goodwill of USD 59 million, deferred tax liability of USD 9 million and other net assets of USD 21 million. The goodwill reflects the expected synergies, competence and access to the Polish renewables market obtained in the acquisition. The transaction has been accounted for in the REN reporting segment.

Held for sale On 10 June 2021, Equinor entered into an agreement with the Klesch Group to sell 100% of the shares in Equinor Refining Denmark A/S. Equinor Refining Denmark A/S consists of the Kalundborg refinery and terminal in the northwest of Zealand, the Hedehusene terminal near Copenhagen as well as associated infrastructure and industrial property. The assets and liabilities related to this entity are classified as held for sale and presented in the reporting segment MMP at 30 June 2021. Closing of the transaction is subject to customary approvals and contractual condition precedents. Closing is expected in the second half of 2021. Equinor has recognised an impairment loss based on the estimated fair value less costs to sell, see note 2 Segments.

In the second quarter 2021 Equinor has reached an agreement on commercial terms to sell its share of an asset in offshore North America. The assets and liabilities related to this entity are classified as held for sale and presented in the E&P International segment at 30 June 2021. The net carrying amount of the interests to be disposed of is immaterial. Equinor has recognised an impairment reversal based on the estimated fair value less costs to sell, see note 2 Segments.

4 Financial items

QuartersFirst halfFull year

Q2 2021Q1 2021Q2 2020****(in USD million)20212020****2020| (43) | 70 | (321)Net foreign currency exchange gains/(losses) | 27 | (24) | (646) | | --- | --- | --- | --- | --- | --- | | 28 | 45 | 14Interest income and other financial items | 72 | 238 | 248 | | 27 | (150) | 248Gains/(losses) on financial investments | (123) | (98) | 506 | | (101) | (360) | 189Gains/(losses) other derivative financial instruments | (462) | 382 | 448 | | (304) | (312) | (379)Interest and other finance expenses | (616) | (723)(1,392) | |

(393)(707)(248)Net financial items**(1,101)**(225)(836)

Gains/(losses) on derivative financial instruments is a loss of USD 101 million in the second quarter of 2021,compared to a gain of USD 189 million in the second quarter of 2020, mainly due to increased interest rates.

Equinor has a US Commercial paper programme available with a limit of USD 5 billion of which USD 950 million has been utilized as of 30 June 2021.

In the first half of 2021, Equinor recorded total lease payments of USD 663 million, of which USD 54 million were payment of interest and USD 610 million were down-payment of lease liabilities.

5 Income taxes

QuartersFirst halfFull year

Q2 2021Q1 2021Q2 2020****(in USD million)20212020****2020| 4,905 | 4,513 | (720)Income/(loss) before tax | 9,417 | (640) | (4,259) | | --- | --- | --- | --- | --- | --- | | (2,962) | (2,659) | 469Income tax | (5,620) | (316) | (1,237) | | 60.4% | 58.9% | 65.2%Effective tax rate | 59.7% | (49.5%) | (29.0%) |

The tax rate for the second quarter of 2021 and for the first half of 2021 was primarily influenced by positive operating income in countries with unrecognised deferred tax assets.

The tax rate for the second quarter of 2021 was also influenced by currency effects in entities that are taxable in other currencies than the functional currency.

The tax rate for the second quarter of 2020 and for the first half of 2020 was primarily influenced by the temporary changes to Norway’s petroleum tax system and changes in best estimates for uncertain tax positions.

The tax rate for the first half of 2020 was also influenced by losses including impairments recognised in countries with unrecognised deferred tax assets or in countries with lower than average tax rates and currency effects in entities that are taxable in other currencies than the functional currency.

The tax rate for the full year 2020 was primarily influenced by losses including net impairments recognised in countries with unrecognised deferred taxes or in countries with lower than average tax rates. The tax rate was also influenced by currency effects in entities that are taxable in other currencies than the functional currency, partially offset by the temporary changes to Norway’s petroleum tax system and changes in best estimates for uncertain tax positions.

6 Property, plant and equipment and intangible assets

Property, plant and****Intangible

(in USD million)equipmentassets| Carrying amount at 31 December 2020 | 65,672 | 8,148 | | --- | --- | --- | | Additions through business combinations | 4 | 106 | | Additions | 3,429 | 166 | | Transfers | 1,467 | (1,467) | | Disposals and reclassifications | 45 | (12) | | Transferred to assets classified as held for sale | (281) | (0) | | Expensed exploration expenditures and net impairment losses | - | (89) | | Depreciation, amortisation and net impairment losses | (4,890) | (18) | | Foreign currency translation effects | (73) | (5) |

Carrying amount at 30 June 202165,3736,829

Right-of-use (RoU) assets are included within property, plant and equipment with a net book value of USD 3,618 million per 30 June 2021. Additions to RoU assets amount to USD 167 million. Gross depreciation and impairment of RoU assets amount to USD 636 million in the first half of 2021, of which depreciation costs of USD 158 million have been allocated to exploration and development activities and are presented net on the Depreciation, amortisation and net impairment losses and Additions lines in the table above.

Net impairments/(reversal) of impairments For information on impairment losses and reversals per reporting segment, see note 2 Segments.

Property, plant and

Second quarter

equipmentIntangible assetsTotal

(in USD million)202120202021202020212020| Producing and development assets | (390) | 263 | 0 | 0 | (390) | 263 | | --- | --- | --- | --- | --- | --- | --- | | Goodwill | - | - | 0 | 0 | 0 | 0 | | Other intangible assets | - | - | 1 | 0 | 1 | 0 | | Acquisition costs related to oil and gas prospects | - | - | 113 | 111 | 113 | 111 |

Total net impairment loss/(reversal) recognised(390)263114111(276)374

Property, plant and

First half

equipmentIntangible assetsTotal

(in USD million)202120202021202020212020| Producing and development assets | 212,379 | | 12 | 277 | 332,656 | | | --- | --- | --- | --- | --- | --- | --- | | Goodwill | - | - | 1 | 1 | 1 | 1 | | Other intangible assets | - | - | 1 | 0 | 1 | 0 | | Acquisition costs related to oil and gas prospects | - | - | 117 | 170 | 117 | 170 |

Total net impairment loss/(reversal) recognised212,3791314481522,827

The net impairments have been recognised in the Consolidated statement of income as Depreciation, amortisation and net impairment losses and Exploration expenses based on the impaired assets’ nature of property, plant and equipment and intangible assets, respectively.

The recoverable amounts in the second quarter and first half of 2021 were mainly based on value in use.

Value in use estimates and discounted cash flows used to determine the recoverable amount of assets tested for impairment are based on internal forecasts on costs, production profiles and commodity prices.

7 Provisions, commitments, contingent liabilities and contingent assets

Asset retirement obligation Equinor’s estimated asset retirement obligations (ARO) have decreased by USD 548 million to USD 16,743 million compared to yearend 2020, mainly due to the increase in discount rates and divestments, partially offset by increase in cost estimates and additions. Changes in ARO are reflected within Property, plant and equipment and Provisions and other liabilities in the Consolidated balance sheet.

Supreme Court decision related to ICMS indirect tax (Imposto sobre Circulaçao de Mercadorias - Tax on the Circulation of

Goods and Certain Services) In Brazil, the State of Rio de Janeiro in 2015 published a law whereby crude oil extraction would be subject to a 18% ICMS indirect tax (Imposto sobre Circulaçao de Mercadorias - Tax on the Circulation of Goods and Certain Services). The Brazilian Industry Association filed a suit with the Federal Supreme Court of Brazil challenging the law’s constitutionality, and in March 2021 the plenary of Brazil’s Supreme Court declared the State of Rio de Janeiro’s law to be unconstitutional. The decision became final in May 2021. As a result, Equinor requested that the Supreme Court’s decision is reflected in the ICMS related legal proceedings which previously were initiated by Equinor and which currently are ongoing for the Roncador and Peregrino fields in in the legal system of the State of Rio de Janeiro. During the second quarter, developments in these state-level legal proceedings regarding the Peregrino field resulted in a reduction in Equinor’s overall maximum exposure, which at the end of the second quarter 2021 is estimated at USD 428 million. Following the Supreme Court’s decision, Equinor evaluates the probability of any cash outflow in these cases to be remote. As no provisions have previously been made in the matter, the Brazilian Supreme Court’s decision does not impact Equinor’s condensed interim financial statements for the second quarter or first half of 2021.

Redetermination process for Agbami field Through its ownership in OML 128 in Nigeria, Equinor is a party to an ownership interest redetermination process for the Agbami field, which will reduce Equinor’s ownership interest. A non-binding agreement for settlement of the redetermination was reached during the fourth quarter of 2018. The parties to the non-binding agreement have thereafter continued to work towards a final settlement and agreed-upon ownership percentage adjustment. In June 2021, Equinor paid a total of USD 822 million to two of the partners in the Agbami Unit. The payment covered outstanding amounts between the three parties as of 31 March 2021. Following the payment, an adjustment to the previous provision by USD 57 million has been reflected in the E&P International segment under Other Revenue. The remaining Agbami redetermination related provision reflected in Trade and other payables in the Consolidated balance sheet at second quarter end is immaterial.

Mineral rights dispute along the Missouri riverbank Equinor produces minerals from wells in spacing units along the Missouri River in which ownership of the mineral rights associated with the near shore region up to the ordinary high-water mark have been disputed. As operator of wells in those units, Equinor has a right to part of the proceeds, and a responsibility to distribute the remainder of the proceeds from the production to the owners of the mineral rights. As the riverbank has moved continuously over time, updated river-surveys have resulted in interest claims from several parties, including the State of North Dakota, the United States, and private parties. During the second quarter of 2021, Equinor has received updated title opinions reflecting the latest State survey that resulted in clarification among the main parties. Certain limited procedural matters remain, but Equinor’s maximum exposure in the case has been significantly reduced and at this stage is minor. Amounts reflected in the matter in the Consolidated balance sheet at 30 June 2021 and in the Consolidated statement of income during the second quarter and for the first half of 2021 are immaterial.

During the normal course of its business, Equinor is involved in legal and other proceedings, and several claims are unresolved and currently outstanding. The ultimate liability or asset in respect of such litigation and claims, cannot be determined now. Equinor has provided in its Condensed interim financial statements for probable liabilities related to litigation and claims based on the company's best judgement. Equinor does not expect that its financial position, results of operations or cash flows will be materially affected by the resolution of these legal proceedings.

8 Impact of the Covid-19 pandemic

In 2021, the Covid-19 pandemic continues to impact worldwide economic growth and energy demand, and the uncertainties with regard to recovery from the effects of the pandemic remain. During the first half of 2021, oil prices rebounded after an unprecedented collapse and increased volatility in 2020. Developments related to the ongoing pandemic, such as new or continued lockdowns or other measures implemented by various countries, new outbreaks, and the success of ongoing vaccination efforts, will continue to impact energy demand, energy prices, and related volatilities in 2021 and beyond. At the same time, markets are currently showing signs of increased demand relative to supply, reflected in higher price levels for oil and gas in the near term.

On 19 March 2021, Equinor published its 2020 Annual Report and Form 20-F. The impact of the Covid-19 pandemic for the Equinor group, including the impact for future energy price levels and demand, is discussed and reflected in a number of notes to those 2020 annual consolidated financial statements. The Covid-19 pandemic related information with a reach beyond 2020 continue, in all material aspects, to apply for the first half of 2021.

During the first half of 2021, Equinor has only experienced immaterial effects of the pandemic from assets in operation, due to measures taken to maintain and secure safe production. The Covid-19 pandemic continues to impact Equinor’s maintenance and development project portfolio world-wide with personnel limitation issues causing schedule delays and cost increases. The situation continues to be unpredictable and may have additional consequences for the progress and costs of our projects.

Within the group, some projects in the portfolio continue to be impacted by the Covid-19 pandemic, and especially related to Equinor’s Brazilian organization and the Peregrino field projects and some of the Norwegian development projects.

9 Subsequent events

On 27 July 2021, the board of directors resolved to declare a dividend for the second quarter of 2021 of USD 0.18 per share. The Equinor shares will trade ex-dividend 11 November 2021 on the Oslo Børs and 10 November 2021 for ADR holders on the New York Stock Exchange. Record date will be 12 November 2021 and payment date will be 24 November 2021.

On 27 July 2021, the board of directors resolved the commencement of the first tranche of the share buy-back programme for a total of USD 300 million, including shares to be redeemed from the Norwegian State. The purpose of the share buy-back programme is to reduce the issued share capital of the company. All shares repurchased as part of the programme will be cancelled. The first tranche will end no later than 28 September 2021.

Supplementary disclosures| Operational data | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | Quarters | | Change | | First half | | | | Q2 2021 | Q1 2021 | Q2 2020****Q2 on Q2 | | Operational data | 2021 | 2020****Change | | | | | | | Prices | | | | | 68.8 | 60.9 | 29.2 | >100% | Average Brent oil price (USD/bbl) | 64.9 | 39.7 | 63% | | 64.9 | 57.3 | 23.5 | >100% | E&P Norway average liquids price (USD/bbl) | 60.8 | 34.0 | 79% | | 65.3 | 58.6 | 24.4 | >100% | E&P International average liquids price (USD/bbl) | 62.3 | 36.4 | 71% | | 56.7 | 50.5 | 19.0 | >100% | E&P USA average liquids price (USD/bbl) | 53.5 | 29.5 | 81% | | 63.7 | 56.4 | 22.9 | >100% | Group average liquids price (USD/bbl) [1] | 60.0 | 33.6 | 79% | | 533 | 480 | 229 | >100% | Group average liquids price (NOK/bbl) [1] | 507327.5 | | 55% | | 7.08 | 5.46 | 0.91 | >100% | E&P Norway average internal gas price (USD/mmbtu) [9] | 6.23 | 1.82>100% | | | 1.82 | 2.28 | 1.26 | 44% | E&P USA average internal gas price (USD/mmbtu) [9] | 1.99 | 1.41 | 41% | | 7.54 | 6.65 | 2.24 | >100% | Average invoiced gas prices - Europe (USD/mmbtu) [8] | 7.07 | 3.23>100% | | | 2.25 | 2.71 | 1.47 | 53% | Average invoiced gas prices - North America (USD/mmbtu) [8] | 2.50 | 1.68 | 49% | | 3.4 | 1.5 | 3.9 | (13%) | Refining reference margin (USD/bbl) [2] | 2.4 | 2.8(13%) | |

			Entitlement production (mboe per day)
604	662	637	(5%)E&P Norway entitlement liquids production	633	643	(2%)
212	212	235	(10%)E&P International entitlement liquids production	212	250(15%)
138	150	172	(20%)E&P USA entitlement liquids production	144	179(19%)
954	1,024	1,044	(9%)Group entitlement liquids production	989	1,072	(8%)
652	723	644	1%E&P Norway entitlement gas production	687	694	(1%)
39	55	31	26%E&P International entitlement gas production	47	44	7%
199	212	179	12%E&P USA entitlement gas production	206	177	17%
891	990	854	4%Group entitlement gas production	940	915	3%
1,845	2,014	1,897	(3%)Total entitlement liquids and gas production [3]	1,929	1,987	(3%)

			Equity production (mboe per day)
604	662	637	(5%)E&P Norway equity liquids production	633	643	(2%)
295	299	291	1%E&P International equity liquids production	297	322	(8%)
153	169	195	(22%)E&P USA equity liquids production	161	204(21%)
1,052	1,130	1,123	(6%)Group equity liquids production	1,091	1,169	(7%)
652	723	644	1%E&P Norway equity gas production	687	694	(1%)

54	61	34	57%E&P International equity gas production	57	51	13%
239	254	210	13%E&P USA equity gas production	246	208	18%
945	1,037	888	6%Group equity gas production	991	953	4%
1,997	2,168	2,011	(1%)Total equity liquids and gas production [4]	2,082	2,122	(2%)

			REN power generation
282	450	304	(7%)Power generation (GWh)	732	862(15%)

Exchange rates
	Quarters		Change		First half
Q2 2021	Q1 2021	Q2 2020	Q2 on Q2	Exchange rates	2021	2020Change
0.1195	0.1174	0.1000	20%	NOK/USD average daily exchange rate	0.1184	0.1027	15%
0.1168	0.1173	0.1026	14%	NOK/USD period-end exchange rate	0.1168	0.1026	14%
8.3697	8.5146	10.0023	(16%)	USD/NOK average daily exchange rate	8.4445	9.7382	(13%)
8.5592	8.5249	9.7446	(12%)	USD/NOK period-end exchange rate	8.5592	9.7446	(12%)
1.2058	1.2048	1.1008	10%	EUR/USD average daily exchange rate	1.2053	1.1015	9%
1.1884	1.1725	1.1198	6%	EUR/USD period-end exchange rate	1.1884	1.1198	6%

Health, safety and the environment| Twelve months average per | | | First half | First half | | --- | --- | --- | --- | --- | | Q2 2021 | Q2 2020 | Health, safety and the environment | 2021 | 2020 | | | | Injury/incident frequency | | | | 2.5 | 2.2 | Total recordable injury frequency (TRIF) | 2.5 | 2.0 | | 0.5 | 0.6 | Serious Incident Frequency (SIF) | 0.3 | 0.5 | | | | Oil spills | | | | 125 | 165 | Accidental oil spills (number of) | 58 | 68 | | 50 | 8,968 | Accidental oil spills (cubic metres) | 27 | 129 |

		First half	Full year
Climate		2021	2020
Upstream CO2 intensity (kg CO2/boe)	1)	7.4	8.0

Total scope 1 emissions of CO2 (kg CO2) from exploration and production, divided by total production (boe).| Exploration expenses | | | | | | | --- | --- | --- | --- | --- | --- | | | Quarters | | Change****Exploration expenses | First half | | | Q2 2021 | Q1 2021 | Q2 2020****Q2 on Q2 | (in USD million) | 2021 | 2020****Change | | 186 | 114 | 97 | 92%E&P Norway exploration expenditures | 300227 | 32% | | 127 | 133 | 234 | (46%)E&P International exploration expenditures | 260455 | (43%) | | 29 | 17 | 76 | (61%)E&P USA exploration expenditures | 46121 | (62%) |

342264	407	(16%)1)Group exploration expenditures	606	802(24%)	2)
(88)	4714	N/AExpensed, previously capitalised exploration expenditures	(41)	113	N/A
(42)(81)	(140)	(70%)Capitalised share of current period's exploration activity	(123)(334)	(63%)
113	17111	2%Impairment (reversal of impairment)	130	447(71%)

326247393(17%)Exploration expenses according to IFRS5721,028(44%)

18 wells with activity with 6 completed in the second quarter of 2021 compared to 27 wells with 10 completed in the second quarter of 2020.
23 wells with activity with 11 completed in the first half of 2021 compared to 32 wells with activity with 15 completed in the first half of 2020.

Summarized financial information related to guaranteed debt securities

The following summarized financial information provides financial information of Equinor Energy AS as co-obligor and guarantor as required by SEC Rule 3-10 and 13-01 of Regulation S-X.

Equinor Energy AS is a 100% owned subsidiary of Equinor ASA. Equinor Energy AS is the co-obligor of certain existing debt securities of Equinor ASA and has guaranteed certain existing debt securities of Equinor ASA, including in each case debt securities that are registered under the US Securities Act of 1933 ("US registered debt securities").

As co-obligor, Equinor Energy AS fully, unconditionally and irrevocably assumes and agrees to perform, jointly and severally with Equinor ASA, the payment and covenant obligations for certain debt held by Equinor ASA. As a guarantor, Equinor Energy AS fully and unconditionally guarantees the payment obligations for certain debt held by Equinor ASA. Total debt as at 30 June 2021 is USD 29,366 million, all of which is either guaranteed by Equinor Energy AS (USD 27,205 million), or for which Equinor Energy AS is coobligor (USD 2,161 million). In the future, Equinor ASA may from time to time issue debt for which Equinor Energy AS will be the coobligor or guarantor.

The applicable US registered debt securities and related guarantees of Equinor Energy AS are unsecured and rank equally with all other unsecured and unsubordinated indebtedness of Equinor ASA and Equinor Energy AS. The guarantees of Equinor Energy AS are subject to release in limited circumstances upon the occurrence of certain customary conditions. With respect to US registered debt securities (and certain other debt securities) issued on or after 18 November 2019, Equinor Energy AS will automatically and unconditionally be released from all obligations under its guarantee and the guarantee shall thereupon terminate and be discharged of no further force or effect, in the event that at substantially the same time as its guarantee of such debt securities is terminated, the aggregate amount of indebtedness for borrowed money for which Equinor Energy AS is an obligor (as a guarantor, co-issuer or borrower) does not exceed 10% of the aggregate principal amount of indebtedness for borrowed money of Equinor ASA and its subsidiaries, on a consolidated basis, as of such time.

Internal dividends, group contributions and repayment of capital from Equinor Energy AS to Equinor ASA are regulated in the Norwegian Public Limited Liabilities Act §§ 3-1 - 3-5.

The following summarized financial information as at and for the six months ended 30 June 2021 and as at and for the year ended 31 December 2020 provides financial information about Equinor ASA, as issuer, and Equinor Energy AS, as co-obligor and guarantor on a combined basis after elimination of transactions between Equinor ASA and Equinor Energy AS. Investments in non-guarantor subsidiaries are eliminated.

Intercompany balances and transactions between the obligor group and the non-guarantor subsidiaries are presented on separate lines. Transactions with related parties are also presented on a separate line item and includes transactions with the Norwegian State's and the Norwegian State’s share of dividend declared but not paid.

The combined summarized financial information is prepared in accordance with Equinor's IFRS accounting policies as described in Equinor group accounts in note 2, Significant accounting policies, to the Consolidated Financial Statements for the year ended 31 December 2020..

COMBINED PROFIT AND LOSS STATEMENT

(unaudited, in USD million)First half 2021Full year 2020| Revenues and other income | 30,552 | 31,560 | | --- | --- | --- | | External | 26,055 | 36,467 | | Non-guarantor subsidiaries | 4,651 | (4,940) | | Related parties | (154) | 33 |

Operating expenses	(20,252)	(34,762)
External (incl depreciation)	(11,239)	(20,707)
Non-guarantor subsidiaries	(4,186)	(8,028)
Related parties	(4,827)	(6,027)

Net operating income10,300(3,202)| Net financial items | (963) | (478) | | --- | --- | --- | | External | (1,351) | (546) | | Non-guarantor subsidiaries | 388 | 190 | | Related parties | - | (122) |

Income before tax9,337(3,680)

Income tax(5,548)(1,830)

Net income3,789(5,510)

COMBINED BALANCE SHEET

At 30 June****At 31 December

(unaudited, in USD million)20212020| Non-current assets | 57,651 | 59,794 | | --- | --- | --- | | External | 45,450 | 47,224 | | Non-guarantor subsidiaries | 12,021 | 12,344 | | Related parties | 180 | 226 |

Current assets	34,323	25,430
External	30,077	23,620
Non-guarantor subsidiaries	4,092	1,758
Related parties	154	52

Non-current liabilities	59,861	60,628
External	59,314	60,024
Non-guarantor subsidiaries	141	141
Related parties	406	463

Current liabilities	30,605	24,619
External	14,832	12,307
Non-guarantor subsidiaries	15,008	11,787
Related parties	765	525

Calculation of capital employed and net debt to capital employed ratio The table below reconciles the net interest-bearing debt adjusted, the capital employed, the net debt to capital employed ratio adjusted including lease liabilities and the net debt to capital employed adjusted ratio with the most directly comparable financial measure or measures calculated in accordance with IFRS.| Calculation of capital employed and net debt to capital employed ratio | At 30 June | At 31 March | At 31 | At 30 June | | --- | --- | --- | --- | --- | | | | | December | | | (in USD million) | 2021 | 2021 | 2020 | 2020 | | Shareholders' equity | 37,023 | 35,764 | 33,873 | 35,587 | | Non-controlling interests | 18 | 18 | 19 | 23 |

Total equityA37,04135,78233,89235,610| Current finance debt and lease liabilities | 4,576 | 3,915 | 5,777 | 5,463 | | --- | --- | --- | --- | --- | | Non-current finance debt and lease liabilities | 30,908 | 30,997 | 32,338 | 31,647 |

Gross interest-bearing debtB35,48434,91338,11537,110| Cash and cash equivalents | 9,912 | 8,992 | 6,757 | 9,700 | | --- | --- | --- | --- | --- | | Current financial investments | 15,152 | 10,922 | 11,865 | 9,319 |

Cash and cash equivalents and financial investmentC25,06319,91418,62119,020

Net interest-bearing debt [10]B1 = B-C10,42114,99819,49318,091| Other interest-bearing elements | 1) | | 777 | 773 | 627 | 832 | | --- | --- | --- | --- | --- | --- | --- | | Normalisation for cash-build up before tax payment (50% of Tax Payment) | | 2) | - | 39 | - | - |

Net interest-bearing debt adjusted normalised for tax payment, including lease liabilities [5]B211,19815,81120,12118,923

Lease liabilities3,9094,1374,4054,154

Net interest-bearing debt adjusted [5]B37,28911,67415,71614,768

Calculation of capital employed [5] Capital employedA+B147,46150,78153,38553,700

Capital employed adjusted, including lease liabilities	A+B2	48,238	51,593	54,012	54,532
Capital employed adjusted	A+B3	44,330	47,456	49,608	50,378

Calculated net debt to capital employed [5]
Net debt to capital employed	(B1)/(A+B1)	22.0%	29.5%	36.5%	33.7%
Net debt to capital employed adjusted, including lease liabilities	(B2)/(A+B2)	23.2%	30.6%	37.3%	34.7%
Net debt to capital employed adjusted	(B3)/(A+B3)	16.4%	24.6%	31.7%	29.3%

Cash and cash equivalents adjustments regarding collateral deposits classified as cash and cash equivalents in the Consolidated balance sheet but considered as non-cash in the non-GAAP calculations as well as financial investments in Equinor Insurance AS classified as current financial investments.
Adjustment to net interest-bearing debt for cash build-up in the first quarter and the third quarter before tax payment on 1 April and 1 October. This is to exclude 50% of the cash build-up to have a more even allocation of tax payments between the four quarters and hence a more representative net interest-bearing debt.

USE AND RECONCILIATION OF NON-GAAP FINANCIAL

MEASURES

Non-GAAP financial measures are defined as numerical measures that either exclude or include amounts or certain accounting items that are not excluded or included in the comparable measures calculated and presented in accordance with GAAP (i.e. IFRS).

Management considers adjusted earnings and adjusted earnings after tax together with other non-GAAP financial measures as defined below, to provide a better indication of the underlying operational and financial performance in the period (excluding financing), and therefore better facilitate comparisons between periods.

The following financial measures may be considered non-GAAP financial measures:

●Net debt to capital employed, Net debt to capital employed adjusted,including lease liabilities andNet debt to capital employed ratio adjusted– Following implementation of IFRS 16 Equinor presents a “net debt to capital employed adjusted” excluding lease liabilities from the gross interest-bearing debt. Comparable numbers are presented in the table Calculation of

capital employed and net debt to capital employed ratio in the report include Finance lease according to IAS17, adjusted for marketing instruction agreement ●Organic capital expenditures– Capital expenditures, defined as Additions to PP&E, intangibles and equity accounted investments in note 2 Segments to the Condensed interim financial statements, amounted to USD 2.2 billion in the second quarter of 2021. Organic capital expenditures are capital expenditures excluding acquisitions, recognised lease assets (RoU assets) and other investments with significant different cash flow pattern. In the second quarter of 2021, a total of USD 0.2 billion are excluded in the organic capital expenditures. Forward-looking organic capital expenditures included in this report are not reconcilable to its most directly comparable IFRS measure without unreasonable efforts, because the amounts excluded from such IFRS measure to determine organic capital expenditures cannot be predicted with reasonable certainty. ●Gross capital expenditures –Capital expenditures, defined as Additions to PP&E, intangibles and equity accounted investments in the financial statements, including Equinor’s proportionate share of capital expenditures in equity accounted investments not included in additions to equity accounted investments. Forward-looking gross capital expenditures included in this report are not reconcilable to its most directly comparable IFRS measure without unreasonable efforts, because the amounts excluded from such IFRS measure to determine gross capital expenditures cannot be predicted with reasonable certainty. ●Free cash flow for the second quarter 2021includes the following line items in the Consolidated statement of cash flows: Cash flows provided by operating activities before taxes paid and working capital items (USD 6.5 billion), taxes paid (negative USD 0.3 billion), cash used in business combinations (negative USD 0.1 billion), capital expenditures and investments (negative USD 1.7 billion), (increase)/decrease in other items interest-bearing (negative USD 0.1 billion), proceeds from sale of assets and businesses (USD 0.7 billion), dividend paid (negative USD 0.4 billion) and share buy-back (USD 0.0 billion), resulting in a free cash flow of USD 4.5 billion in the second quarter of 2021. ●Free cash flow for the first half of 2021includes the following line items in the Consolidated statement of cash flows: Cash flows provided by operating activities before taxes paid and working capital items (USD 13.2 billion), taxes paid (negative USD 0.4 billion), cash used in business combinations (negative USD 0.1 billion), capital expenditures and investments (negative USD 3.9 billion), (increase)/decrease in other items interest-bearing (negative USD 0.1 billion), proceeds from sale of assets and businesses (USD 1.8 billion), dividend paid (negative USD 0.7 billion) and share buy-back (USD 0.0 billion), resulting in a free cash flow of USD 9.7 billion in the first half of 2021.

FORWARD-LOOKING STATEMENTS

This report contains certain forward-looking statements that involve risks and uncertainties. In some cases, we use words such as "ambition", "continue", "could", "estimate", "intend", "expect", "believe", "likely", "may", "outlook", "plan", "strategy", "will", "guidance", "targets", and similar expressions to identify forward-looking statements. Forward-looking statements include all statements other than statements of historical fact, including, among others, statements regarding Equinor's plans, intentions, aims, ambitions and expectations, including with respect to the Covid-19 pandemic and its impacts, consequences and risks; Equinor's response to the Covid-19 pandemic, including measures to protect people, operations and value creation, operating costs and assumptions; the ambition to reduce net carbon intensity and be a net-zero energy company by 2050; the commitment to develop as a broad energy company; the ambition to be a leader in the energy transition; future financial performance, including cash flow and liquidity; accounting policies; plans to develop fields; plans for renewables production capacity, development of related projects and investments in renewables; expectations regarding development of CCUS and hydrogen businesses; ambitions regarding capex for renewables and low carbon solutions; market outlook and future economic projections and assumptions, including commodity price assumptions; organic capital expenditures through 2024; estimates regarding production; ambition to keep unit of production cost in the top quartile of our peer group; scheduled maintenance activity and the effects on equity production thereof; completion and results of acquisitions and disposals; expected amount and timing of dividend payments and the implementation of our share buy-back programme; and provisions and contingent liabilities. You should not place undue reliance on these forward-looking statements. Our actual results could differ materially from those anticipated in the forward-looking statements for many reasons.

These forward-looking statements reflect current views about future events and are, by their nature, subject to significant risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements, including levels of industry product supply, demand and pricing, in particular in light of the uncertainty regarding demand created by the Covid-19 pandemic and oil price volatility triggered, among other things, by the changing dynamic among OPEC+ members; levels and calculations of reserves and material differences from reserves estimates; natural disasters, adverse weather conditions, climate change, and other changes to business conditions; regulatory stability and access to attractive renewable opportunities; unsuccessful drilling; operational problems, in particular in light of quarantine rules and social distancing requirements triggered by the Covid-19 pandemic; health, safety and environmental risks; impact of the Covid-19 pandemic; the effects of climate change; regulations on hydraulic fracturing; security breaches, including breaches of our digital infrastructure (cybersecurity); ineffectiveness of crisis management systems; the actions of competitors; the development and use of new technology, particularly in the renewable energy sector; inability to meet strategic objectives; the difficulties involving transportation infrastructure; political and social stability and economic growth in relevant areas of the world; reputational damage; exercise of ownership by the Norwegian state; an inability to attract and retain personnel; risks related to implementing a new corporate structure; inadequate insurance coverage; changes or uncertainty in or non-compliance with laws and governmental regulations; the actions of the Norwegian state as majority shareholder; failure to meet our ethical and social standards; the political and economic policies of Norway and other oilproducing countries; non-compliance with international trade sanctions; the actions of field partners; adverse changes in tax regimes; exchange rate and interest rate fluctuations; factors relating to trading, supply and financial risk; general economic conditions; and other factors discussed elsewhere in this report. Additional information, including information on factors that may affect Equinor's business, is contained in Equinor's Annual Report on Form 20-F for the year ended December 31, 2020, filed with the U.S. Securities and Exchange Commission (including section 2.12 Risk review - Risk factors thereof). Equinor's 2020 Annual Report and Form 20-F is available at Equinor's website www.equinor.com.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot assure you that our future results, level of activity, performance or achievements will meet these expectations. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made, and, except as required by applicable law, we undertake no obligation to update any of these statements after the date of this report, either to make them conform to actual results or changes in our expectations.

We use certain terms in this document, such as "resource" and "resources" that the SEC's rules prohibit us from including in our filings with the SEC. U.S. investors are urged to closely consider the disclosures in our Form 20-F, SEC File No. 1-15200. This form is available on our website or by calling 1-800-SEC-0330 or logging on to www.sec.gov.

END NOTES

The group'saverage liquids priceis a volume-weighted average of the segment prices of crude oil, condensate and natural gas liquids (NGL).
Therefining reference marginis a typical average gross margin of our two refineries, Mongstad and Kalundborg. The reference margin will differ from the actual margin, due to variations in type of crude and other feedstock, throughput, product yields, freight cost, inventory, etc.

3.Liquids volumesinclude oil, condensate and NGL, exclusive of royalty oil.

4.Equity volumesrepresent produced volumes under a**production sharing agreement (PSA)**that correspond to Equinor’s ownership share in a field.Entitlement volumes, on the other hand, represent Equinor’s share of the volumes distributed to the partners in the field,

which are subject to deductions for, among other things, royalty and the host government's share of profit oil. Under the terms of a PSA, the amount of profit oil deducted from equity volumes will normally increase with the cumulative return on investment to the partners and/or production from the licence. Consequently, the gap between entitlement and equity volumes will likely increase in times of high liquids prices. The distinction between equity and entitlement is relevant to most PSA regimes, whereas it is not applicable in most concessionary regimes such as those in Norway, the UK, the US, Canada and Brazil.

These are**non-GAAP figures.**See Use and reconciliation of non-GAAP financial measures in the report for more details.
Transactions with the**Norwegian State.**The Norwegian State, represented by the Ministry of Petroleum and Energy (MPE), is the

majority shareholder of Equinor and it also holds major investments in other entities. This ownership structure means that Equinor participates in transactions with many parties that are under a common ownership structure and therefore meet the definition of a related party. Equinor purchases liquids and natural gas from the Norwegian State, represented by SDFI (the State's Direct Financial Interest). In addition, Equinor sells the State's natural gas production in its own name, but for the Norwegian State's account and risk as well as related expenditures are refunded by the State.

The production guidance reflects our estimates ofproved reservescalculated in accordance with US Securities and Exchange Commission (SEC) guidelines and additional production from other reserves not included in proved reserves estimates.
The group'saverage invoiced gas pricesinclude volumes sold by the MMP segment.
The internaltransfer pricepaid from the MMP segment to the E&P Norway and E&P USA segments.

10.Since different legal entities in the group lend to projects and others borrow from banks, project financing through external bank

or similar institutions is not netted in the balance sheet and results in over-reporting of the debt stated in the balance sheet compared to the underlying exposure in the group. Similarly, certain net interest-bearing debt incurred from activities pursuant to the Marketing Instruction of the Norwegian government are offset against receivables on the SDFI. Some interest-bearing elements are classified together with non-interest bearing elements and are therefore included when calculating the net interestbearing debt.

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorised.

EQUINOR ASA

(Registrant)

Dated: 28 July, 2021

By: ___/s/ Ulrica Fearn

Name: Ulrica Fearn Title: Chief Financial Officer

EXHIBITS

The following exhibit is filed as part of this quarterly report:

EXHIBIT 101 Interactive Data Files (formatted in XBRL (Extensible Business Reporting Language)). Submitted electronically with this report on Form 6-K.

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Equinor Regulatory Filings 2021

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Equinor — Regulatory Filings 2021

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Equinor Regulatory Filings 2021