Norwegian energy giant Equinor on Wednesday announced outstanding financial results for the year 2022. Net income tripled to $28.7 billion, driven by soaring gas prices. Production fell slightly by 2% to 2.04 million barrels of oil equivalent per day (Mboe/d), but was offset by the surge in gas prices.
Effects of the war in Ukraine on results
Equinor’s surge in earnings mirrors the trend of British and U.S. energy companies (Shell, BP, ExxonMobil, Chevron), all of which reported strong numbers due to the war in Ukraine. The reduction in Russian gas deliveries to Europe has pushed prices to record levels in 2022, and has made Norway, where Equinor is the dominant player, the continent’s leading gas supplier.
Adjusted net income – which erases certain one-time items – was $22.7 billion, up from $10 billion in 2021, with revenue up 66% to $150.8 billion.
Future investments
This exceptional financial performance will allow Equinor to generously reward its shareholders. The group plans to redistribute $17 billion in dividends and share buybacks in 2023.
In addition, Equinor plans to invest between $10 and $11 billion in 2023 and increase its hydrocarbon production by 3%. Anders Opedal, CEO of Equinor, said in a statement, “By 2022, we have responded to the energy crisis and contributed to security of supply.”
Equinor’s outstanding financial results for 2022, as well as future investment plans and generous shareholder compensation, show a company that is growing and strongly positioned for the future.
