OSLO (Reuters) -Equinor on Thursday reported a sharper-than-expected decline in third-quarter profits, hit by weaker oil prices and lower production, and cut its full-year outlook for capital expenditure and renewable energy production growth.
The Norwegian oil and gas producer’s adjusted earnings before tax for July-September fell to $6.89 billion from $7.93 billion a year earlier, lagging the $7.08 billion seen in a poll of 25 analysts compiled by Equinor.
“With solid operational performance and results, we are well on track to deliver strong cashflow from operations in line with what we said at the capital markets update in February,” Equinor CEO Anders Opedal said in a statement.
Organic capital expenditure in 2024 is now seen at between $12 billion and $13 billion, down from a previous forecast of $13 billion, the group said.
The company maintained a projection that its oil and gas output would be unchanged in 2024 from the previous year.
Equinor said now expects its renewable energy output to grow this year by 50%, down from a previous view of 70% growth, due to slower than expected progress at the its Dogger Bank A offshore wind project off the British coast.
“Based on this, the expected growth in power production from renewable assets in 2024 is adjusted to around 50%,” Equinor said in a statement.
Equinor in the third quarter pumped 1.98 million barrels of oil equivalent per day (boed), in line with expectations in the analyst poll, down from 2.01 million boed a year ago.
The company in 2022 overtook Russia’s Gazprom (MCX:GAZP) as Europe’s biggest supplier of natural gas when Moscow’s invasion of Ukraine upended decades-long energy ties.
The majority state-owned company reiterated plans to return $14 billion to shareholders in combined cash dividends and share buybacks this year, down from $17 billion in 2023.
This post is originally published on INVESTING.
