Equinor ASA Q4 FY2025 earnings call

• Safety: Despite safety numbers moving in the right direction, serious incidents occurred, and safety remains the first priority. - Production: 2025 was a year of strong deliveries with record high production, driven by good operational performance and new fields like Johan Castberg and Bacalhau. - Portfolio Changes: Divested onshore assets in Argentina for $1.1 billion, established Adura JV with Shell, high-grading portfolio. - Strategic Priorities: Focus on Norwegian Continental Shelf for value creation, international oil and gas production and cash flow growth, integrated power business, and low-carbon solutions like CCS. - Cost and CapEx: Reduced CapEx outlook by $4 billion, aim to reduce unit production cost to $6 per barrel, target 10% OpEx and SG&A reduction in 2026.

Equinor's segment performance for 2025: E&P Norway had adjusted operating income of $5 billion, driven by increased production at lower prices. E&P International results were impacted by portfolio changes and an underlift situation in the quarter, but U.S. results were driven by significantly higher gas production. The MMP segment was driven by gas trading and optimization and a favorable price review result in January. Revenue contribution details: E&P Norway contributed significantly, E&P International had varying impacts, and MMP segment had specific drivers.

• 2026 CapEx outlook is around $13 billion, expecting 3% growth in oil and gas production. - Quarterly cash dividend increased by more than 5% to $0.39 per share, announced $1.5 billion share buyback for 2026. - Expect around $16 billion cash flow from operations after tax in 2026, with a flat price assumption leading to around $18 billion in 2027, reflecting lower price outlook and tax lag effects.

• Geopolitical uncertainty affecting oil and gas prices and market volatility. - Uncertainty around future tariffs for projects like Empire Wind. - Market volatility in energy markets, including potential pressure on oil prices due to strong supply and moderate demand growth, and gas market volatility with storage levels and export/import dynamics.

Q: Regarding Johan Sverdrup's production decline, how much more is expected in 2026 and what about future years?

A: Anders Opedal said Johan Sverdrup's decline in 2026 is more than 10% but well below 20%, and it's too early to say about 2027 and beyond as the team is working to mitigate decline.

Q: What's behind the price review that boosted MMP results?

A: Torgrim Reitan explained it's a normal gas contract mechanism where Equinor won an arbitration, resulting in a one-off revenue payment as they had a strong case.

Q: On the integrated power business, what does it mean for Equinor and how does �rsted fit in?

A: Anders Opedal said integrated power means combining intermittent power (offshore wind, onshore wind, solar) with flexible power (batteries, CCGTs), and �rsted fits in through potential collaborative structures.

Q: How should we think about the share buyback reduction from previous guidance?

A: Torgrim Reitan explained it's related to the balance sheet normalization and managing within means, with $1.5 billion being the current share buyback outlook considering the macro environment.

Q: On Empire Wind, what's the impact to the financial framework if the project doesn't complete?

A: Anders Opedal and Torgrim Reitan stated the threshold for stopping Empire Wind is extremely high, and the project's economics are solid, with focus on delivering it on time and schedule.