Equinor ASA (NYSE:EQNR) stock fell Wednesday after the company reported fourth-quarter fiscal 2025 results.
Adjusted revenue declined 4% year over year (Y/Y) to $25.26 billion, beating the consensus of $20.17 billion.
Earnings Details
Equinor reported an adjusted operating income of $6.20 billion in the quarter, down 22% Y/Y due to lower liquids prices.
The company posted adjusted operating income of $5.03 billion from E&P Norway, $214 million from E&P International, and $359 million from E&P USA.
Adjusted EPS of 81 cents beat the consensus of 63 cents.
Operating cash flow (after taxes paid) stood at $3.31 billion in the quarter.
Organic capital expenditure totaled $3.29 billion in the quarter and $13.1 billion for the full year.
Key Metrics
Equinor reported strong fourth-quarter production, with total equity liquids and gas production reaching 2,198 mboe per day (+6% Y/Y) and equity gas production increasing 9% Y/Y to 1,120 mboe per day (+13% Y/Y), in the quarter.
Equinor reported an increase in production, thanks to high output from the Norwegian Continental Shelf (NCS) and strong contributions from its E&P USA segment.
Meanwhile, the company stated that exits from Nigeria and Azerbaijan, along with the sale of a 40% stake in Brazil’s Peregrino field, lowered E&P International production in 2025.
Group average liquids price fell 14% Y/Y to $58.6/bbl, and realized piped gas price in the U.S. was $3.29/MMBtu (+39% Y/Y).
Equinor clocked a total power generation of 1.18 TWh from the renewable portfolio in the quarter.
Anders Opedal, President and CEO of Equinor ASA, said, “With new fields on stream and strong operations, we deliver record-high production and competitive returns in 2025. We continue to allocate capital to further develop and maximise value from the Norwegian continental shelf.”
“At the same time, we are delivering focused growth in our international oil and gas portfolio and building our integrated power business, now focusing on the execution of already-sanctioned projects. In 2026, we expect around 3% production growth, up from record levels in 2025. We are taking firm actions to strengthen free cash flow, remain robust towards lower prices and maintain competitive capital distribution.”
Dividend & Repurchase
Equinor proposed a fourth-quarter 2025 cash dividend of 39 cents per share, representing a 2-cent increase from the prior quarter. The stock will trade ex-dividend on May 13, 2026.
Equinor will begin the first tranche of its 2026 share buyback program on February 05, 2026.
In the first tranche of its 2026 program, the company will buy up to $123.75 million worth of shares, bringing the total tranche to $375 million when including shares redeemed from the Norwegian State. This tranche is scheduled to conclude by March 30, 2026.
The company has announced a share buyback program of up to $1.5 billion for 2026, including shares to be redeemed from the Norwegian State.
2026 Outlook
Equinor expects to spend about $13 billion in organic capital expenditures in 2026.
Oil and gas production is forecast to rise by roughly 3% year over year.
The company reiterated its ambition to keep unit production costs in the top quartile of its global peer group.
Planned maintenance is expected to cut equity production by around 35,000 barrels of oil equivalent per day over the full year.
EQNR Price Action: Equinor shares were down 0.68% at $26.16 during premarket trading on Wednesday, according to Benzinga Pro data.
Photo by JHVEPhoto via Shutterstock
