Equinor ASA (NYSE:EQNR) reported third-quarter adjusted operating income before tax of $12.4 billion, nearly double the level recorded in the same period a year earlier, as higher commodity prices, increased production and strong refining performance lifted results.
Chief Financial Officer Torgrim Reitan said cash flow from operations after tax was $8.1 billion for the quarter, bringing the year-to-date total to $21.8 billion. Adjusted earnings per share were $1.20, including a negative effect from net financial items that was mainly related to foreign-exchange movements.
The company’s board approved a quarterly cash dividend of $0.39 per share and a fourth share-buyback tranche of up to $1.125 billion. The tranche brings Equinor’s planned 2026 share repurchases to $3 billion.
Production outlook raised
Equinor increased its full-year production-growth guidance to around 4%, from a prior estimate of 3%, after reporting a 2% increase in equity production during the quarter and nearly 5% growth year to date.
Production on the Norwegian Continental Shelf was stable, with natural declines offset by new fields contributing roughly 70,000 barrels per day. International production rose 5%, supported by Adura and the Bacalhau field, which has reached plateau production. These gains more than offset the effects of divestments in Peregrino and Argentina, as well as lower U.S. offshore output during planned turnaround activity.
Reitan said full-year production has benefited from strong operational performance, high regularity across the portfolio, lower-than-expected decline at Johan Sverdrup and Bacalhau’s ramp-up. Johan Sverdrup’s year-to-date production decline was 11%, within the lower end of the company’s previously indicated 10% to 20% range. He said the field’s decline is expected to be higher in 2027.
While Reitan described 2026 as an unusually strong year for production because of multiple ramp-ups and start-ups, he said 2027 output should exceed 2025 levels and remain consistent with Equinor’s path toward production growth through 2030. Bacalhau, Rosebank, Jackdaw and Yggdrasil are expected to contribute to 2027 production.
Refining, cash flow and capital spending
Equinor’s Mongstad refinery posted a record result during the quarter, driven by operating performance and strong refining margins. The Marketing, Midstream and Processing business delivered results above guidance, Reitan said, while LNG also contributed positively. The crude, products and liquids segment’s reported result was affected by shipping derivatives, he added, while underlying crude operations performed well.
Group cash flow from operations before tax payments totaled $14.7 billion in the quarter. Equinor paid two Norwegian tax installments totaling $6.2 billion during the period and expects to pay three installments totaling NOK 93 billion in the fourth quarter. The company had increased second-half tax payments in August amid sustained high prices, but Reitan said first-half 2027 tax payments are now expected to exceed those in the second half of 2026 because prices have continued to rise.
Organic capital expenditures were $3.3 billion in the quarter. Equinor maintained its full-year organic capital-expenditure expectation of about $13 billion, though Reitan said currency movements have created upward pressure while schedule effects, including at Empire Wind, will shift some spending into next year.
At current forward prices, Equinor expects about $29 billion in 2026 cash flow from operations, compared with guidance of $25 billion provided at its Capital Markets Day based on an $80-per-barrel Brent price and gas prices of $15 per MMBtu.
The company ended the quarter with $24 billion in cash and cash equivalents and a 3.8% net debt ratio. Reitan said the ratio could be around zero at year-end using current forward prices, but would be somewhat above 10% when adjusted for the lag between Norwegian tax accruals and payments.
Projects and portfolio activity
Equinor said Empire Wind was approximately 80% complete. Most remaining work involves offshore turbine installation, now expected to begin next year, with first power planned in the first half of 2027. The company said total capital expenditure has not changed and it expects to realize about $2 billion of investment tax credits in 2027, with the remainder expected in 2028.
The company is progressing Bay du Nord in Canada after bringing Shell into the project in October. Equinor continues to target a final investment decision in early 2027. Reitan said the planned development is based on only part of Equinor’s discoveries in the area, leaving potential future tie-back opportunities.
Equinor also cited exploration activity and acreage additions in Angola, Brazil and Namibia. In Namibia, where it has entered an exploration opportunity with Chevron, it plans to spud a well during the fourth quarter. On the Norwegian Continental Shelf, it has begun a strategic exploration collaboration with Aker BP and Vår Energi intended to mature and test as many as 25 standalone prospects over coming years.
Reitan said Wisting has seen costs decline, though further work remains ahead of a planned concept selection. Equinor is targeting a final investment decision in roughly a year and does not intend to change the project partnership.
Gas markets and capital allocation
Reitan described Europe’s gas market as tight and vulnerable, citing storage levels of 73%, the lowest since 2011, continued Asian LNG demand and limited LNG cargo movements through the Strait of Hormuz. He said Equinor will seek to maximize gas deliveries to Europe and maintains 70% of its gas exposure on a day-ahead basis and 30% on a month-ahead basis.
On capital allocation, Reitan reiterated that dividends remain the company’s first priority, with an expectation of annual quarterly-dividend growth of more than 5%. Investment in the business and maintaining a strong balance sheet rank ahead of share buybacks, which Equinor views as the flexible component of distributions.
Beginning in 2027, the company plans quarterly buyback announcements under a framework calling for $2 billion to $4 billion in annual repurchases when oil prices are between $60 and $80 per barrel and European gas prices range from $7 to $11 per MMBtu. Reitan said buybacks may rise when prices exceed those ranges but would not necessarily increase in a linear manner, as Equinor aims to preserve financial capacity through commodity-price cycles.
About Equinor ASA (NYSE:EQNR)
Equinor ASA is a Norwegian energy company headquartered in Stavanger, Norway. Founded in 1972 as Den norske stats oljeselskap, the company was later known as Statoil and StatoilHydro before adopting the Equinor name in 2018. The Norwegian state remains its largest shareholder.
Equinor’s core business is the exploration, development, production and marketing of oil and natural gas, with Norway’s continental shelf serving as its principal operating area. The company also processes and markets energy products and supplies natural gas and crude oil to customers in Europe and other international markets.
In addition to its oil and gas operations, Equinor is developing lower-carbon energy businesses, including offshore wind, solar power, carbon capture and storage, and other renewable energy projects.
