OSLO (Reuters) -Equinor on Wednesday posted slightly higher-than-expected profits for the final quarter of 2024, while raising its oil and gas output forecast and scaling back plans for renewable energy capacity expansion.
The Norwegian oil and gas producer’s adjusted earnings before tax for October-December fell to $7.90 billion from $8.56 billion a year earlier, beating the $7.71 billion predicted in a poll of 24 analysts compiled by Equinor.
“In 2030 expected (oil and gas) production is around 2.2 million barrels of oil equivalent per day, up from a previous expectation of around 2 million,” Equinor said in a statement.
The company reduced its renewable energy target for 2030 to a capacity of between 10-12 gigawatt from 12-16 gigawatt previously, it said.
Equinor said it was “lowering (the) investment outlook for renewables and low-carbon solutions to adapt to market conditions and further strengthen value creation for shareholders”.
The company in 2022 overtook Russia’s Gazprom as Europe’s biggest supplier of natural gas when Moscow’s invasion of Ukraine upended decades-long energy ties. Norway now meets around one third of the continent’s demand.
In 2025, oil and gas output is expected to rise by 4% from 2024, Equinor said, adding that its giant Johan Sverdrup oilfield, Europe’s largest, will continue producing at levels close to what it did in 2023 and 2024.
Equinor had previously said the Sverdrup field, which can produce up to 755,000 barrels of oil per day, was to come off plateau production in early 2025.
Equinor said its annual organic capital spending target for 2025 was set to $13 billion, below the previously indicated 2025-2027 spending of between $14 billion and $15 billion per year on average.
The company said it expects total capital distribution, in the form of dividend and share buybacks, at $9 billion in line with its previous guidance of $8 billion-$10 billion.
The ordinary cash dividend for the fourth quarter was raised to $0.37 per share from $0.35 in the third.
(Reporting by Nerijus Adomaitis and Nora Buli, editing by Terje Solsvik and Gwladys Fouche)
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