Equinor’s Falling Net Profits: Analysis of Reasons

Norwegian energy giant Equinor reported sharply lower quarterly results, mainly due to falling prices, but exceeded expectations despite pressure from geopolitical and economic factors.

Share:

Equinor entreprise

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

The Norwegian energy giant Equinor reported a fall in net profit. It shows a sharp drop, mainly due to falling prices, particularly for natural gas. However, the results were better than expected.

Fall in net income

In the third quarter, Equinor’s net profit fell by a spectacular 73% to $2.5 billion. This significant drop reflects the pressure exerted on raw material prices.

Adjusted operating income

The Group’s preferred indicator, adjusted operating income, which excludes certain exceptional items, came in at $8 billion, three times less than a year ago, but ahead of analysts’ forecasts. The latter were forecasting 7.6 billion.

Impact of the Geopolitical Situation

Like its competitors, Equinor, in which the Norwegian state holds a two-thirds stake, is suffering the consequences of the fall in prices from the peaks reached the previous year, due to events in Russia, although prices remain high. The price of a barrel of North Sea Brent crude fell by 14% year-on-year to $86.8, while the price of Norwegian gas dropped by 79%. Equinor’s hydrocarbon production also fell by 1%, to 2 million barrels of oil equivalent per day (Mboe/d).

Impact on Equinor’s finances

Equinor’s quarterly sales totaled $26 billion, down almost $18 billion on the same period last year. In addition, the Group booked a provision of $300 million for a wind farm project off the coast of New York. In collaboration with the British group BP, Equinor tried to negotiate more advantageous financial terms for the project, pointing to rising costs in the offshore wind sector, but was unsuccessful. In its report, Equinor says: “Equinor assesses the implications for its projects.”

In short, Equinor’s quarterly results testify to the challenges facing the energy sector, but also demonstrate the company’s ability to adapt and outperform forecasts despite difficult market conditions. This economic situation highlights the importance of global economic stability and geopolitical developments for companies operating in the energy sector.

Noble Corporation reported a net loss in the third quarter of 2025 while strengthening its order backlog to $7.0bn through several major contracts, amid a transitioning offshore market.
SLB, Halliburton and Baker Hughes invest in artificial intelligence infrastructure to offset declining drilling demand in North America.
The French energy group announced the early repayment of medium-term bank debt, made possible by strengthened net liquidity and the success of recent bond issuances.
Large load commitments in the PJM region now far exceed planned generation capacity, raising concerns about supply-demand balance and the stability of the US power grid.
The termination of a strategic contract with Dutch grid operator TenneT triggered the administration of Petrofac’s holding company, reigniting tensions with creditors.
Algeria has removed Rachid Hachichi from the leadership of Sonatrach, two years after his appointment, replacing him with Noureddine Daoudi, former head of the National Agency for the Valorisation of Hydrocarbon Resources.
Portugal’s Galp Energia reported an adjusted net profit of €407 million in Q3, driven by higher refining margins and strong contribution from liquefied natural gas.
Air Liquide signs agreement to acquire NovaAir, strengthening its presence in India’s industrial gas market by expanding its national footprint.
Voltalia's Q3 2025 revenue rises to €164.7mn, fuelled by a sharp increase in services activity, while energy sales decline due to currency effects and lower prices.
Altano Energy secured €81mn ($85.7mn) to construct two onshore wind farms and three photovoltaic plants in southern Spain, reinforcing its multi-technology generation strategy.
Baker Hughes recorded a 23% increase in orders in Q3 2025, driven by its gas segment, while net income fell 20% year-on-year to $609mn.
Colombian company Ecopetrol has secured authorisation to borrow COP700 000 million ($171mn) from Banco Davivienda to bolster its liquidity over a five-year period.
Eni's net profit rose to €803mn in the third quarter, supported by a 6% increase in production despite falling crude prices.
French group Vinci posted revenue growth in the third quarter, supported by all its divisions, and reaffirmed its ambitions for 2025 despite a more restrictive tax environment.
T1 Energy secured $72mn via a direct offering of over 22 million common shares, aiming to strengthen its cash position and fund energy technology and infrastructure projects.
The American university unveils a new institute focused on the future of energy, funded by a $50mn gift from Robert Zorich, managing partner of EnCap Investments, to support applied research and training of new experts.
Sintana Energy has initiated legal proceedings in the Isle of Man to secure approval for its all-share acquisition of Challenger Energy, with support from over one-third of the target company’s shareholders.
TotalEnergies has signed an agreement to sell its subsidiary GreenFlex to engineering group Oteis, marking a step in its strategy to concentrate on energy production and supply.
VoltaGrid and Halliburton launch a strategic collaboration to deploy distributed power systems for data centres, with an initial rollout planned in the Middle East.
Japan's power futures market is poised for rapid expansion, backed by a government reform requiring supply contracts up to three years in advance.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.