UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE
 
ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
For the month of October 2023
Commission File Number 1-15200
Equinor ASA
(Translation of registrant’s name into English)
FORUSBEEN 50, N-4035, STAVANGER,
 
NORWAY
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F
X
 
Form 40-F
This Report on Form 6-K contains a report of the third quarter 2023 results of Equinor ASA.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equinor third quarter 2023
 
2
Equinor third quarter 2023
Equinor delivered adjusted earnings* of USD 8.02 billion and USD 2.73 billion after tax in the third
quarter of 2023. Net operating income was USD 7.45 billion, and net income was USD 2.50 billion.
Financial and operational performance
Strong earnings and cash flow from operations
High oil production. NCS gas production impacted by planned maintenance and extended turnarounds
Strong results from sales and trading of oil and oil products
Strategic progress
Dogger Bank A first power in the UK
Negative decision on petition for US Northeast Coast offshore wind projects
Breidablikk field onstream; approval
of Snøhvit Future PDO
Consent to develop the Rosebank field in the UK
Competitive capital distribution
 
Third quarter ordinary cash dividend of USD 0.30 per share, continued extraordinary cash dividend of USD 0.60 per share and
fourth tranche of share buy-back USD 1.67 billion
Anders Opedal, president and CEO of Equinor ASA:
 
“Equinor delivered strong cash flow and earnings in a quarter with considerably lower gas prices than last year. Through strong
operational performance, we delivered high oil production from Johan Sverdrup and our international portfolio. The gas production
from the Norwegian continental shelf was impacted by planned maintenance and extended turnarounds. We continue with significant
capital distribution and will deliver a total distribution of 17 billion dollars in 2023.”
“We continue our transition, with first power from Dogger Bank in the UK - the world’s largest offshore wind farm,
 
further expanding in
onshore renewables in Brazil and Poland, and investing in the Bayou Bend CCS project in the US. With the approved plan for
electrification of Hammerfest LNG, and start-up of power from shore for Gina Krog, we continue to reduce our own emissions.”
“We continue to contribute to energy security by developing profitable oil and gas projects with low emissions from production, through
the development of the Rosebank field in the UK and the start-up of the Breidablikk field on the NCS.”
Quarters
Change
Financial information
First nine months
Q3 2023
Q2 2023
Q3 2022
Q3 on Q3
(unaudited, in USD million)
2023
2022
Change
7,453
7,051
26,103
(71%)
Net operating income/(loss)
27,022
62,228
(57%)
8,024
7,543
24,472
1)
(67%)
Adjusted earnings*
27,539
 
59,907
1)
(54%)
2,501
1,829
9,371
(73%)
Net income/(loss)
9,296
20,847
(55%)
2,731
2,246
7,191
1)
(62%)
Adjusted earnings after tax*
8,492
 
17,961
1)
(53%)
5,236
1,857
6,578
(20%)
Cash flows provided by operating activities
21,965
30,869
(29%)
7,594
(356)
7,524
1%
Cash flow from operations after taxes paid*
16,953
32,952
(49%)
1,479
(10,758)
2,402
(38%)
Net cash flow*
(5,079)
21,719
N/A
Operational information
 
80.3
70.3
92.9
(14%)
Group average liquids price (USD/bbl) [1]
74.8
99.0
(24%)
2,007
1,994
2,021
(1%)
Total equity liquids
 
and gas production (mboe per day) [4]
2,043
2,037
0%
883
947
491
80%
Total power generation (GWh) Equinor share
2,993
1,328
>100%
373
345
294
27%
Renewable power generation (GWh) Equinor share
1,242
1,131
10%
*
For items marked with an asterisk throughout this report, see Use and reconciliation of non-GAAP
 
financial measures in the Supplementary disclosures
1) Restated. For more information, see Amended principles for Adjusted earnings in the section ‘Use and reconciliation
 
of non-GAAP financial measures’ in the
Supplementary disclosures.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equinor third quarter 2023
 
3
Health, safety and the environment
Twelve months average per
Full year
Q3 2023
2022
Serious incident frequency (SIF)
0.3
0.4
First nine months
Full year
2023
2022
Upstream CO
2
 
intensity (kg CO
2
/boe)
6.9
6.9
First nine months
First nine
months
2023
2022
Absolute scope 1+2 GHG emissions (million tonnes CO
2
e)
8.6
8.4
30 September
31 December
%-point
Net debt to capital employed adjusted*
2023
2022
change
Net debt to capital employed adjusted*
(22.9%)
(23.9%)
1.0
Dividend
(USD per share)
Q3 2023
Q2 2023
Q3 2022
Ordinary cash dividend per share
0.30
0.30
0.20
Extraordinary cash dividend per share
0.60
0.60
0.70
In the first nine months of 2023 Equinor settled shares in the market under the share buy-back programmes of USD 1.4 billion and
USD 3.6 billion for the Norwegian government’s share of the 2022 programme and the first tranche of the 2023 programme.
Strong oil production
Equinor delivered total equity production of 2,007 mboe per day in the third quarter, compared to 2,021 mboe per day in the same
quarter of 2022. Liquids production grew 12% compared to the same quarter last year. This was mainly driven by strong operational
performance and production from Johan Sverdrup on the NCS, the partner operated Vito field in the USA, the Peregrino field in Brazil
and the addition of the Buzzard field in the UK to the portfolio. Gas production was impacted by planned maintenance and unplanned
extended turnarounds on the Troll A-platform and the third-party operated Nyhamna gas processing facility. Following the unplanned
losses year to date, estimated production in 2023 is now adjusted to be around 1.5 % above 2022-level.
Power production from renewable energy sources was 373 GWh in the quarter, up from 294 GWh in the same quarter last year. The
increase was driven by higher production on UK wind farms and new production from onshore renewables in Poland, as well as the
floating wind farm Hywind Tampen in full production. Including UK gas-to-power, total power production ended at 883 GWh for the
quarter.
Strategic and industrial progress
Equinor continues to develop its renewables and low carbon solutions portfolio, while contributing to energy security by developing
profitable oil and gas projects with low emissions from production.
In the UK, Dogger Bank A, the world’s largest offshore wind farm, started production in October. It is expected to contribute to energy
security and the decarbonisation of the UK’s energy system. The Rosebank field received government approval to progress towards
planned oil production in 2026-27. With total recoverable resources of around 245 million barrels, the field is expected to strengthen
production and value creation on UK continental shelf and for Equinor.
On the NCS the Breidablikk field started production in October, ahead of schedule and with low costs and low emissions from
production. In the quarter, the plan for electrification and onshore compression at Hammerfest LNG received government approval,
enabling LNG exports with reduced emissions towards 2050. The plan for development of the Eirin field was also delivered, the field is
expected to contribute with gas volumes from 2025. Eirin will be developed as a subsea tie-back to Gina Krog, which was powered
from shore this quarter.
Offshore wind projects on the US Northeast Coast are negatively impacted by cost inflation and supply chain constraints. New York
Public Service Commission rejected price increase petitions from Equinor and other companies and Equinor is assessing the
implications for its projects.
In the quarter, Equinor acquired a stake in Bayou Bend CCS LLC, a company well positioned to develop one of the largest carbon
capture and storage projects in the USA.
 
Equinor third quarter 2023
 
4
Equinor completed 5 exploration wells offshore with 2 commercial discoveries in the quarter. At the quarter end, 12 wells were
ongoing.
Strong financial results
Equinor delivered strong adjusted earnings* of USD 8.02 billion and USD 2.73 billion after tax. This is lower than for the same quarter
last year, mainly due to gas prices coming down from the extraordinary levels in 2022.
The Marketing, Midstream & Processing (MMP) segment delivered strong results with adjusted earnings* of USD 876 million, above
the guided range for adjusted earnings*. The result was mostly driven by strong sales and trading of oil and oil products
,
optimisation
of the shipping portfolio and high refining margins.
In the third quarter, Equinor recognised net impairments of USD 971 million, mainly consisting of impairments of assets on the NCS
and in the MMP segment of USD 588 million and USD 346 million, respectively. In the Renewables segment, an impairment of USD
300 million was recognised. This was partially offset by a reversal of impairment of an asset in the US Gulf of Mexico of USD 290
million.
Cash flow provided by operating activities, before taxes paid and working capital items, amounted to USD 11.3 billion for the third
quarter.
Equinor paid an NCS tax instalment of USD 3.67 billion based on expected 2023 earnings. In October an extra instalment of USD 930
million was paid, and two ordinary instalments of USD 3.75 billion
(1)
, will be paid in the fourth quarter.
Organic capital expenditure* was USD 2.64 billion for the quarter, and total capital expenditures were USD 3.21 billion. After taxes,
capital distribution to shareholders and investments, net cash flow* ended at USD 1.48 billion for the third quarter.
Equinor maintains a strong financial position with adjusted net debt to capital employed ratio* at negative 22.9% by the end of the third
quarter, from negative 35.1% at the end of the second quarter of 2023.
Competitive capital distribution
The board of directors has decided an ordinary cash dividend of USD 0.30 per share, and to continue the extraordinary cash dividend
of USD 0.60 per share for the third quarter of 2023, in line with communication at the Capital Markets Update in February. The
Equinor shares will trade ex-dividend on Oslo Børs and New York Stock Exchange from and including 14 February 2024.
Total capital distribution for 2023 will be around USD 17 billion, including a share buy-back programme of USD 6 billion. The board of
directors has decided to initiate a fourth and final tranche of the share buy-back programme for 2023 of USD 1.67 billion. The fourth
tranche will commence on 30 October and end no later than 29 January 2024.
The third tranche of the share buy-back programme for 2023 was completed on 20 October 2023 with a total value of up to USD 1.67
billion.
All share buy-back amounts include shares to be redeemed by the Norwegian State.
(1)
 
NOK 37.5 billion, USD estimate based on a USD/NOK exchange rate assumption of 10.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equinor third quarter 2023
 
5
GROUP REVIEW
Quarters
Change
Financial information
First nine months
Q3 2023
Q2 2023
Q3 2022
Q3 on Q3
(unaudited, in USD million)
2023
2022
Change
26,024
22,872
43,633
(40%)
Total revenues and other income
78,120
116,486
(33%)
25,735
23,133
 
43,509
1)
(41%)
Adjusted total revenues and other income*
77,388
 
116,390
1)
(34%)
(18,571)
(15,821)
(17,531)
6%
Total operating expenses
(51,098)
(54,258)
(6%)
(12,392)
(10,676)
(13,969)
(11%)
Adjusted purchases* [5]
(34,331)
(41,635)
(18%)
(2,703)
(2,752)
(2,657)
2%
Adjusted operating and administrative expenses*
(8,305)
(7,497)
11%
(2,426)
(2,232)
(2,118)
15%
Adjusted depreciation, amortisation and net impairments*
(6,856)
(6,600)
4%
(190)
71
(292)
(35%)
Adjusted exploration expenses*
(357)
(751)
(52%)
7,453
7,051
26,103
(71%)
Net operating income/(loss)
27,022
62,228
(57%)
8,024
7,543
 
24,472
1)
(67%)
Adjusted earnings*
27,539
 
59,907
1)
(54%)
2,652
2,842
2,053
29%
Capital expenditures and Investments
7,545
6,382
18%
5,236
1,857
6,578
(20%)
Cash flows provided by operating activities
21,965
30,869
(29%)
7,594
(356)
7,524
1%
Cash flows from operations after taxes paid*
16,953
32,952
(49%)
Quarters
Change
First nine months
Q3 2023
Q2 2023
Q3 2022
Q3 on Q3
Operational information
2023
2022
Change
2,007
1,994
2,021
(1%)
Total equity liquid and
 
gas production (mboe/day)
2,043
2,037
0%
1,879
1,861
1,885
(0%)
Total entitlement
 
liquid and gas production (mboe/day)
1,917
1,895
1%
883
947
491
80%
Total Power generation (GWh) Equinor share
2,993
1,328
>100%
373
345
294
27%
Renewable power generation (GWh) Equinor share
1,242
1,131
10%
86.8
78.4
100.9
(14%)
Average Brent oil price (USD/bbl)
82.1
105.4
(22%)
80.3
70.3
92.9
(14%)
Group average liquids price (USD/bbl)
74.8
99.0
(24%)
8.83
10.23
42.34
(79%)
E&P Norway average internal gas price (USD/mmbtu)
12.48
32.59
(62%)
1.08
1.41
7.01
(85%)
E&P USA average internal gas price (USD/mmbtu)
1.78
5.80
(69%)
1) Restated. For more information, see Amended principles for Adjusted earnings in the section ‘Use and reconciliation of non-GAAP
financial measures’ in the Supplementary disclosures.
For the items impacting net operating income/(loss), see Use and reconciliation of non-GAAP financial measures in Supplementary
disclosures.
Operations and financial results
Equinor delivered strong financial results, despite the impact of lower gas prices, in the third quarter of 2023 through strong liquid
production across the global portfolio which secured a 12% growth in liquid equity production. Gas equity production fell by 13%
relative to the third quarter of 2022 impacted by maintenance and unplanned turnaround extensions primarily on the NCS.
Recent maturation of Equinor’s global portfolio positively contributed to the delivery of liquid production growth for both the third
quarter and year-to-date compared to the prior year. Peregrino resumed production in the second half of 2022, and Buzzard in the
UK, contributing from July this year following the acquisition of Suncor UK; both made notable contributions to liquid production. Ramp
up of the partner operated Vito field
and technical improvements on Cesar Tonga also generated increased production in the USA for
the period.
Johan Sverdrup on the NCS, including phase 2 which came on stream in December 2022, operated at plateau with high, efficient
production during the third quarter continuing to be the primary driver for the increase in E&P Norway liquid production in the third
quarter and year-to-date, offsetting the effects of divestments in Martin Linge and Ekofisk in the third quarter of 2022.
Turnarounds and unplanned losses continued to significantly impact gas production, which was 16% lower for E&P Norway in the
third quarter and 10% lower for the year-to-date than the same period in the prior year. Extended maintenance on the Troll field and a
postponed start-up from the second quarter turnaround at the third-party-operated Nyhamna facility notably reduced gas production in
the third quarter of 2023. The year-to-date decrease in gas production relative to 2022 was exacerbated by shutdown of Hammerfest
LNG during the second quarter, despite being partially mitigated by increased contributions from Snøhvit.
Equinor third quarter 2023
 
6
Steady production levels and high realised liquids prices drove strong revenue and results for Equinor in the third quarter of 2023. The
change in production mix combined with markedly lower realised gas prices caused the reduction from the extraordinary year of 2022.
The Marketing, Midstream and Processing segment contributed strong results in the third quarter, driven by liquids trading and
optimisation, and efficient shipping portfolio utilisation. The reduction compared to the prior year is influenced by reduced market
volatility in gas and power from extraordinary levels last year.
Operating and administrative expenses increased in the third quarter and first nine months of 2023 compared to the same periods last
year due to higher production capacity, maintenance related to turnarounds, and increased liquid transportation costs reflecting
increased liquid production. An increase in business development costs has further contributed to this rise. Reduced transportation
tariffs, coupled with strengthening of the USD against the NOK, partially offset the increase and its visibility in the reported costs.
Increased depreciation primarily reflects portfolio developments on stream since the prior year.
Net impairments of USD 971 million in the quarter and USD 993 million for the first nine months of 2023 include the recognition of a
USD 300 million impairment to Equinor’s offshore wind projects on the US North East Coast following the rejection of petitions related
to offtake agreements. The prior year’s third quarter and year-to-date included impairment reversals of USD 1,086 million and USD
1,334 million respectively, contributing to the relative decrease in net operating income for 2023.
Taxes
The reported effective tax rate was 66.5% for the third quarter of 2023 (65.5% for the third quarter of 2022) and 67.4% for the first nine
months of 2023 (67.5% for the first nine months of 2022). The movement in reported tax rates in the quarter and first nine months of
the year has been influenced by lower share of income from the Norwegian continental shelf and currency effects in entities that are
taxable in other currencies than the functional currency.
The effective tax rate on adjusted earnings* of 66.0% for the third quarter of 2023 and 69.2% for the first nine months decreased
compared to 70.6% and 70.0% in 2022 due to lower share of adjusted earnings* from the Norwegian continental shelf in 2023
compared to 2022, partially offset by the recognition of the US deferred tax assets in the fourth quarter of 2022.
Cash flow, net debt and capital distribution
Strong results from the business during the third quarter of 2023 generated a cash flow provided by operating activities before taxes
paid and working capital items of USD 11,336 million. This was a decrease of USD 13,162 million from the prior year due to the
significant downward movement in commodity prices from unprecedented highs in the third quarter of 2022.
Taxes paid of USD 3,743 million in the quarter mainly reflect the first instalment of Norwegian corporate income tax relating to the
2023 results of USD 3,669 million. The reduction in payment compared to the same period in the prior year reflects the lower pricing
environment of 2023 and an extraordinary tax payment in the third quarter last year.
A working capital increase of USD 2,357 million in the third quarter negatively impacts cash flow (increase of USD 946 million in
 
the
third quarter of 2022).
Net cash flow* increased by USD 12,237 million from the prior quarter to an inflow of USD 1,479 million, reflecting the reduced NCS
tax instalments and also a reduction in share buy-back outflow following the annual payment to the Norwegian state in the second
quarter. Net cash flow* for the first nine months was an outflow of USD 5,079 million compared to a high pricing environment driven
inflow of USD 21,719 million for the first nine months of 2022.
A decrease in liquid assets and a reduction of equity in the quarter due to capital distributions caused an increase in the adjusted net
debt to capital employed ratio* at the end of September 2023 from negative 35.1% to negative 22.9%.
The board of directors has decided an ordinary cash dividend of USD 0.30 per share, and to continue the extraordinary cash dividend
of USD 0.60 per share for the third quarter of 2023, in line with communication at the Capital Markets Update in February. The
Equinor Share will trade ex-dividend on Oslo Børs and New York Stock Exchange from and including 14 February 2024.
Expected total capital distribution for 2023 is around USD 17 billion, including a share buy-back programme of USD 6 billion. The
board of directors has decided to initiate a fourth tranche of the share buy-back programme for 2023 of USD 1.67 billion. The fourth
tranche will commence on 30 October and end no later than 29 January 2024. This fourth and final tranche will complete the
announced share buy-back program of USD 6 billion for 2023.
The third tranche of the share buy-back programme for 2023 was completed on 20 October 2023 with a total value of up to USD 1.67
billion.
All share buy-back amounts include shares to be redeemed by the Norwegian State.
 
Equinor third quarter 2023
 
7
OUTLOOK
 
Organic capital expenditures*
 
are estimated at USD 10-11 billion for 2023, and at an annual average of around USD 13 billion
for 2024-2026
1
.
Production
 
for 2023 is estimated to be around 1.5% above 2022 level [6].
 
Equinor’s ambition is to keep the
unit of production cost
 
in the top quartile of its peer group.
Scheduled maintenance activity
 
is estimated to reduce equity production by around 45 mboe per day for the full year of 2023.
These forward-looking statements reflect current views about future events and are, by their nature, subject to significant risks and
uncertainties because they relate to events and depend on circumstances that will occur in the future. Deferral of production to create
future value, gas off-take, timing of new capacity coming on stream and operational regularity and levels of industry product supply,
demand and pricing represent the most significant risks related to the foregoing production guidance. Our future financial
performance, including cash flow and liquidity, will be affected by the extent and duration of the current market conditions, the
development in realised prices, including price differentials and other factors discussed elsewhere in the report. For further
information, see section Forward-looking statements.
1
 
USD/NOK exchange rate assumption of 10.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equinor third quarter 2023
 
8
SUPPLEMENTARY
 
OPERATIONAL
 
DISCLOSURES
 
Quarters
Change
First nine months
Q3 2023
Q2 2023
Q3 2022
Q3 on Q3
Operational information
2023
2022
Change
Prices
86.8
78.4
100.9
(14%)
Average Brent oil price (USD/bbl)
82.1
105.4
(22%)
84.3
73.6
96.3
(12%)
E&P Norway average liquids price (USD/bbl)
78.3
102.2
(23%)
79.1
66.6
92.0
(14%)
E&P International average liquids price (USD/bbl)
72.4
98.9
(27%)
68.1
61.4
79.3
(14%)
E&P USA average liquids price (USD/bbl)
63.9
84.6
(25%)
80.3
70.3
92.9
(14%)
Group average liquids price (USD/bbl) [1]
74.8
99.0
(24%)
842
753
928
(9%)
Group average liquids price (NOK/bbl) [1]
783
933
(16%)
8.83
10.23
42.34
(79%)
E&P Norway average internal gas price (USD/mmbtu) [8]
12.48
32.59
(62%)
1.08
1.41
7.01
(85%)
E&P USA average internal gas price (USD/mmbtu) [8]
1.78
5.80
(69%)
10.93
11.46
44.37
1)
(75%)
Realised piped gas price Europe (USD/mmbtu) [7]
14.15
 
33.93
1)
(58%)
1.57
1.46
7.24
(78%)
Realised piped gas price US (USD/mmbtu) [7]
2.10
6.04
(65%)
15.2
8.2
14.1
8%
Refining reference margin (USD/bbl) [2]
11.6
14.2
(18%)
Entitlement production (mboe per day)
636
645
595
7%
E&P Norway entitlement liquids production
641
603
6%
252
221
208
21%
E&P International entitlement liquids production
235
194
21%
155
140
119
31%
E&P USA entitlement liquids production
142
119
19%
1,044
1,006
922
13%
Group entitlement liquids production
1,017
916
11%
647
658
773
(16%)
E&P Norway entitlement gas production
703
779
(10%)
25
24
25
0%
E&P International entitlement gas production
27
33
(17%)
164
173
166
(1%)
E&P USA entitlement gas production
169
167
1%
836
855
963
(13%)
Group entitlement gas production
900
979
(8%)
1,879
1,861
1,885
(0%)
Total entitlement
 
liquids and gas production [3]
1,917
1,895
1%
Equity production (mboe per day)
636
645
595
7%
E&P Norway equity liquids production
641
603
6%
318
290
285
12%
E&P International equity liquids production
298
277
7%
174
157
132
32%
E&P USA equity liquids production
158
132
20%
1,128
1,092
1,012
12%
Group equity liquids production
1,097
1,012
8%
647
658
773
(16%)
E&P Norway equity gas production
703
779
(10%)
37
38
39
(6%)
E&P International equity gas production
42
46
(10%)
195
206
197
(1%)
E&P USA equity gas production
201
199
1%
879
902
1,009
(13%)
Group equity gas production
946
1,025
(8%)
2,007
1,994
2,021
(1%)
Total equity liquids
 
and gas production [4]
2,043
2,037
0%
Power generation
883
947
491
80%
Total power generation
 
(GWh) Equinor share
2,993
1,328
>100%
373
345
294
27%
Renewable power generation (GWh) Equinor share
2)
1,242
1,131
10%
1) Restated. Restatement due to change in the definition of the price marker.
 
For more information see 'End notes'.
2) Includes Hywind Tampen
 
renewable power generation.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equinor third quarter 2023
 
9
Health, safety and the environment
Twelve months
average per
Full year
Q3 2023
2022
Total recordable injury
 
frequency (TRIF)
2.4
2.5
Serious Incident Frequency (SIF)
0.3
0.4
Oil and gas leakages (number of)
1)
10
8
First nine
months
Full year
2023
2022
Upstream CO
2
 
intensity (kg CO
2
/boe)
2)
6.9
6.9
First nine
months
First nine months
2023
2022
Absolute scope 1+2 GHG emissions (million tonnes CO
2
e)
3)
8.6
8.4
1)
 
Number of leakages with rate above 0.1 kg/second during the past 12 months.
2)
 
Operational control, total scope 1 emissions of CO
2
 
from exploration and production, divided by total production (boe).
3)
 
Operational control, total scope 1 and 2 emissions of CO
2
 
and CH
4.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equinor third quarter 2023
 
10
EXPLORATION
 
& PRODUCTION NORWAY
Quarters
Change
Financial information
First nine months
Q3 2023
Q2 2023
Q3 2022
Q3 on Q3
(unaudited, in USD million)
2023
2022
Change
7,938
8,282
24,034
(67%)
Total revenues and other income
28,264
59,200
(52%)
8,164
8,034
23,321
(65%)
Adjusted total revenues and other income*
28,342
58,475
(52%)
(2,604)
(2,082)
(2,220)
17%
Total operating expenses
(6,914)
(5,972)
16%
(849)
(888)
(984)
(14%)
Adjusted operating and administrative expenses*
(2,713)
(2,782)
(3%)
(1,107)
(1,064)
(1,143)
(3%)
Adjusted depreciation, amortisation and net impairments*
(3,285)
(3,767)
(13%)
(120)
(80)
(114)
5%
Adjusted exploration expenses*
(337)
(260)
30%
5,335
6,200
21,813
(76%)
Net operating income/(loss)
21,350
53,228
(60%)
6,087
6,003
21,079
(71%)
Adjusted earnings/(loss)*
22,005
51,665
(57%)
1,421
1,624
1,089
30%
Additions to PP&E, intangibles and equity accounted
investments
4,362
3,500
25%
Quarters
Change
Operational information
First nine months
Q3 2023
Q2 2023
Q3 2022
Q3 on Q3
E&P Norway
2023
2022
Change
1,283
1,304
1,368
(6%)
E&P entitlement liquid and gas production (mboe/day)
1,344
1,382
(3%)
84.3
73.6
96.3
(12%)
Average liquids price (USD/bbl)
78.3
102.2
(23%)
8.83
10.23
42.34
(79%)
Average internal gas price (USD/mmbtu)
12.48
32.59
(62%)
For items impacting net operating income/(loss), see Use and reconciliation of non-GAAP financial measures in the Supplementary
disclosures.
Production & revenues
 
Strong liquid production in the third quarter 2023 was attributable to the sustained high production levels and efficiency from Johan
Sverdrup. Gas fields however, experienced notably lower gas volumes primarily due to planned turnarounds and unplanned
turnaround extensions.
 
Compared to the third quarter of 2022, liquid volumes rose by 7% despite the divestment of Ekofisk non-
operated share and reduced ownership share in Martin Linge in the third quarter of 2022, while gas volumes decreased by 16%.
Notwithstanding these challenges, the additional production mainly driven by increased capacity offset some of the impact leading to
year-to-date production for 2023 being slightly below that of 2022.
 
Gas prices experienced a notably sharp decline from their 2022 peaks, while liquid commodity prices also saw reductions. This
decline coupled with reduced gas production, led to decreased revenues for the first nine months of 2023, in comparison to the same
period in 2022.
Operating expenses and financial results
 
For the
 
third quarter
 
of 2023,
 
there was
 
a noticeable
 
reduction in
 
adjusted operating
 
and administrative
 
expenses* compared
 
to the
same period in 2022. This decrease
 
can mainly be attributed to the
 
fall in energy prices, leading to
 
lower electricity and transportation
tariffs.
 
The
 
elevated
 
operation
 
and
 
maintenance
 
costs,
 
together
 
with
 
environmental
 
expenses,
 
partially
 
offset
 
the
 
overall
 
reduction
both for the third quarter
 
and year-to-date.
 
The development of the USD/NOK
 
exchange rate in 2023 further
 
impacted the visibility of
the reported cost for the third quarter and year-to-date.
In the third quarter
 
and year-to-date 2023, net
 
operating income was adversely
 
affected by an
 
impairment of USD
 
588 million related
to an asset in the North Sea. In the third quarter 2022 there was a positive effect of gain from sale of ownership shares in Martin Linge
and Ekofisk
 
of USD
 
655 million.
 
For the
 
first nine
 
months of
 
2022, net
 
operating income
 
was positively
 
impacted by
 
net impairment
reversals of USD 817 million.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equinor third quarter 2023
 
11
EXPLORATION
 
& PRODUCTION INTERNATIONAL
Quarters
Change
Financial information
First nine months
Q3 2023
Q2 2023
Q3 2022
Q3 on Q3
(unaudited, in USD million)
2023
2022
Change
1,990
1,605
1,767
13%
Total revenues and other income
5,143
5,057
2%
1,849
1,599
1,911
(3%)
Adjusted total revenues and other income*
5,003
5,719
(13%)
(1,152)
(828)
(955)
21%
Total operating expenses
(3,146)
(3,632)
(13%)
58
(100)
(22)
>(100%)
Adjusted purchases*
(25)
(31)
(20%)
(458)
(456)
(442)
4%
Adjusted operating and administrative expenses*
(1,356)
(1,238)
10%
(594)
(465)
(349)
70%
Adjusted depreciation, amortisation and net impairments*
(1,520)
(1,011)
50%
(47)
173
(157)
(70%)
Adjusted exploration expenses*
71
(308)
N/A
838
776
813
3%
Net operating income/(loss)
1,996
1,425
40%
809
751
942
(14%)
Adjusted earnings/(loss)*
2,174
3,131
(31%)
888
2,114
841
6%
Additions to PP&E, intangibles and equity accounted
investments
3,453
2,039
69%
Quarters
Change
Operational information
First nine months
Q3 2023
Q2 2023
Q3 2022
Q3 on Q3
E&P International
2023
2022
Change
355
328
324
9%
E&P equity liquid and gas production (mboe/day)
340
324
5%
277
245
232
19%
E&P entitlement liquid and gas production (mboe/day)
262
227
15%
78
83
92
(15%)
Production sharing agreements (PSA) effects
78
97
(19%)
79.1
66.6
92.0
(14%)
Average liquids price (USD/bbl)
72.4
98.9
(27%)
For items impacting net operating income/(loss), see Use and reconciliation of non-GAAP financial measures in the Supplementary
disclosures.
Production & Revenues
 
The strong production performance this quarter is largely attributed to high production efficiency from Peregrino, and the positive
contribution from Buzzard field in UK following the Suncor acquisition in July 2023. The production increased this quarter and the first
nine months, relative to last year, is primarily due to the restart of production at Peregrino in mid-July 2022 and the start-up of phase 2
in October 2022. The effects of natural decline in several mature fields, combined with the earlier divestment of Corrib, partially offset
this increase. The decrease in the effects of production sharing agreements (PSA) was mainly caused by lower oil and gas prices, in
combination with a decrease in production from several fields with PSAs.
The primary reason for the decline in adjusted revenues* in the third quarter and first nine months of 2023 was the lower prices for
liquids and gas. This was partially offset by increase in equity- and entitlement production and the fair value of derivatives impacting
revenues positively by USD 99 million in the first nine months of 2023.
Operating expenses and financial results
In the third quarter and the first nine months of 2023, adjusted operating and administrative expenses* saw an increase compared to
the same periods in the previous year, mainly caused by increased production and maintenance costs linked to turnarounds across
various fields. Increased royalties and production fees are linked to the restart of production at the Peregrino field. The increased
production at Peregrino and other fields, along with new investments, contributed to the increase in depreciation. These increases in
cost are partially offset by reduced exploration expenses, where the year-on-year numbers were impacted by recapitalised previously
expensed exploration wells in Brazil of USD 227 million, booked in the second quarter of 2023.
Net operating income in 2022 was impacted by impairments, amounting to USD 1,095 million, related to the exit from Russia.
Additions to PPE, intangibles and equity accounted investments increased year-on-year primarily due to the acquisition of Suncor
Energy UK Limited finalised in the second quarter of 2023.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equinor third quarter 2023
 
12
EXPLORATION
 
& PRODUCTION USA
Quarters
Change
Financial information
First nine months
Q3 2023
Q2 2023
Q3 2022
Q3 on Q3
(unaudited, in USD million)
2023
2022
Change
1,162
976
1,541
(25%)
Total revenues and other income
3,153
4,440
(29%)
1,130
976
1,541
(27%)
Adjusted total revenues and other income*
3,121
4,440
(30%)
(496)
(772)
(457)
9%
Total operating expenses
(1,944)
(1,239)
57%
(293)
(283)
(254)
15%
Adjusted operating and administrative expenses*
(849)
(715)
19%
(472)
(445)
(377)
25%
Adjusted depreciation, amortisation and net impairments*
(1,273)
(1,059)
20%
(23)
(22)
(21)
5%
Adjusted exploration expenses*
(91)
(183)
(50%)
666
204
1,084
(39%)
Net operating income/(loss)
1,210
3,201
(62%)
343
226
889
(61%)
Adjusted earnings/(loss)*
908
2,483
(63%)
338
274
186
82%
Additions to PP&E, intangibles and equity accounted
investments
874
482
81%
Quarters
Change
Operational information
First nine months
Q3 2023
Q2 2023
Q3 2022
Q3 on Q3
E&P USA
2023
2022
Change
369
363
329
12%
E&P equity liquid and gas production (mboe/day)
360
331
9%
319
313
285
12%
E&P entitlement liquid and gas production (mboe/day)
311
286
9%
50
50
44
13%
Royalties
49
45
8%
68.1
61.4
79.3
(14%)
Average liquids price (USD/bbl)
63.9
84.6
(25%)
1.08
1.41
7.01
(85%)
Average internal gas price (USD/mmbtu)
1.78
5.80
(69%)
For items impacting net operating income/(loss), see Use and reconciliation of non-GAAP financial measures in the Supplementary
disclosures.
Production & Revenues
 
Increased production in the third quarter and first nine months of 2023 compared to the same periods in 2022 was mainly driven by
the continued production ramp up of the partner operated Vito field in the US Gulf of Mexico after start-up in the first quarter of 2023,
increased production in the Caesar Tonga field in the US Gulf of Mexico due to new flow lines placed in service during the second half
of 2022, and additional wells online in the Appalachian basin. The increase was partially offset by a natural decline in the Appalachian
basin and several mature fields in the Gulf of Mexico.
Increased entitlement production helped to mitigate some of the downward impacts on revenue caused by the significantly lower price
environment this quarter and the first nine months of 2023, in particular for gas compared to the same periods last year.
 
Operating expenses and financial results
The start-up of the Vito platform, combined with increased maintenance activity in the Appalachian basin contributed to higher
operations and maintenance expenditure for the third quarter and first nine months of 2023 compared to the prior year. Reduced
downtime in certain Gulf of Mexico assets relative to 2022 also contributed to this increase in cost. Due to increased production and
additional capital expenditures both offshore and onshore, depreciation and amortisation witnessed an upswing in the third quarter
and the first nine months of 2023, relative to the same periods in 2022. Exploration costs in third quarter of 2023 stayed on par with
the same period in 2022, with the predominant focus being on field development expenses. For the first nine months of 2023,
exploration costs were lower due to higher dry well expenditures in the prior year.
During the first nine months of 2023, the net operating income included net impairment reversals amounting to USD 290 million,
compared to USD 721 million in reversals for the same period of 2022, which were primarily related to the assets in the Gulf of
Mexico.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equinor third quarter 2023
 
13
MARKETING, MIDSTREAM & PROCESSING
Quarters
Change
Financial information
First nine months
Q3 2023
Q2 2023
Q3 2022
Q3 on Q3
(unaudited, in USD million)
2023
2022
Change
25,712
22,639
42,585
(40%)
Total revenues and other income
77,240
114,514
(33%)
25,371
23,150
 
43,029
1)
(41%)
Adjusted total revenues and other income*
76,603
 
114,570
1)
(33%)
(24,730)
(22,489)
(40,669)
(39%)
Total operating expenses
(73,990)
(110,650)
(33%)
(23,083)
(21,065)
(40,081)
(42%)
Adjusted purchases* [5]
(69,492)
(107,980)
(36%)
(1,195)
(1,199)
(1,114)
7%
Adjusted operating and administrative expenses*
(3,623)
(3,127)
16%
(217)
(221)
(211)
3%
Adjusted depreciation, amortisation and net impairments*
(669)
(644)
4%
982
150
1,916
(49%)
Net operating income/(loss)
3,250
3,864
(16%)
876
665
 
1,623
1)
(46%)
Adjusted earnings*
2,818
 
2,818
1)
0%
371
426
1,742
(79%)
- Gas and Power
2)
1,567
2,731
(43%)
466
299
147
>100%
- Crude, Products and Liquids
2)
1,275
473
>100%
38
(61)
(266)
N/A
- Other
2)
(24)
(385)
(94%)
342
65
345
(1%)
Additions to PP&E, intangibles and equity accounted
investments
626
863
(27%)
Quarters
Change
Operational information
First nine months
Q3 2023
Q2 2023
Q3 2022
Q3 on Q3
Marketing, Midstream and Processing
 
2023
2022
Change
260.0
233.4
196.8
3)
32%
Liquids sales volumes (mmbl)
710.7
603.9
3)
18%
13.0
14.1
15.6
(17%)
Natural gas sales Equinor (bcm)
42.8
47.6
(10%)
12.0
12.3
14.2
(15%)
Natural gas entitlement sales Equinor (bcm)
38.7
41.9
(8%)
510
602
197
>100%
 
Power generation (GWh) Equinor share
1,751
197
>100%
 
10.93
11.46
44.37
3)
(75%)
Realised piped gas price Europe (USD/mmbtu)
14.15
33.93
3)
(58%)
1.57
1.46
7.24
(78%)
Realised piped gas price US (USD/mmbtu)
2.10
6.04
(65%)
1) Restated. For more information, see Amended principles for Adjusted earnings in the section ‘Use and reconciliation of
 
non-GAAP financial
measures’ in the Supplementary disclosures.
2) From Q1 2023, the presentation of MMP’s adjusted earnings* has been changed to align with organisational
 
structure and management’s
review of performance, with retrospective effect.
3) Restated. Restatement due to a change in definition of the price marker for realised gas price and improved methodology
 
for calculating liquids
sales volumes. For more information, see 'End notes'.
For items impacting net operating income/(loss), see Use and reconciliation of non-GAAP financial measures in the Supplementary
disclosures.
Volumes, Pricing & Revenues
Liquids sales volumes increased compared to the third quarter of 2022, due to higher sales of both equity and third party volumes.
Gas sales were lower in comparison to the third quarter of 2022, primarily because of a decrease in NCS piped gas sales.
Conventional combined cycle gas turbine (CCGT) activities strengthened Equinor's share in power generation in the third quarter of
2022.
Realised European piped gas price decreased compared to the third quarter of last year attributed to lower demand, increased LNG
imports and elevated storage levels.
The realised piped gas price in the US decreased compared to the third quarter of last year due to storage surplus and a drop in
weather-driven demand.
Equinor third quarter 2023
 
14
Financial Results
Strong results captured during the third quarter of 2023, were driven by Crude, Products and Liquids. All products within Crude and
Liquid achieved strong results through effectively capturing both financial and physical market opportunities, as well as optimizing the
shipping portfolio. Gas and Power contributed to adjusted earnings* through the marketing of LNG and piped gas. Adjusted earnings*
in the Other subsegment were positively impacted by high refining margins, which were partially offset by costs associated with
developing low-carbon projects.
 
Compared to third quarter of last year, a strong result from Crude, Product and Liquids coupled with higher refining margins and lower
loss on methanol production in the third quarter of 2023, was offset by a lower result in Gas and Power, down from the extraordinary
results in the prior year. The decrease in Gas and Power is attributed to reduced gas market volatility and diminished geographical
spreads impacting the opportunity to capture as much value in gas and power trading.
Adjusted earnings* for the first nine months of 2023 were consistent with those of the previous year. This result is due to the strong
performance in the Crude Products and Liquids and Other subsegments, offset by lower result in Gas and Power.
Net operating income includes net effects from impairments as well as changes in fair value related to storage and commodity
derivatives utilised for manage price risk exposure. During the first nine months of 2023, the net operating income included net
impairments amounting to USD 350 million, in contrast to USD 891 million in reversals in the prior year.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equinor third quarter 2023
 
15
RENEWABLES
Quarters
Change
Financial information
First nine months
Q3 2023
Q2 2023
Q3 2022
Q3 on Q3
(unaudited, in USD million)
2023
2022
Change
10
8
3
>100%
Revenues
24
96
(75%)
(16)
(4)
9
N/A
Net income/(loss) from equity accounted investments
(27)
50
N/A
(5)
4
12
N/A
Total revenues and other income
(3)
146
N/A
(5)
7
13
N/A
Adjusted total revenues and other income*
(3)
60
N/A
(406)
(95)
(69)
>100%
 
Total operating expenses
(589)
(167)
>100%
(100)
(89)
(58)
72%
Adjusted operating and administrative expenses*
(266)
(155)
71%
(3)
(2)
(1)
>100%
Adjusted depreciation, amortisation and net impairments*
(6)
(3)
>100%
(412)
(91)
(56)
>(100%)
Net operating income/(loss)
(591)
(21)
>(100%)
(108)
(84)
(46)
>(100%)
Adjusted earnings*
(275)
(98)
>(100%)
193
267
95
>100%
 
Additions to PP&E, intangibles and equity accounted
investments
1,311
195
>100%
 
Quarters
Change
Operational information
First nine months
Q3 2023
Q2 2023
Q3 2022
Q3 on Q3
Renewables
2023
2022
Change
352
335
294
20%
Renewables power generation (GWh) Equinor share
1,198
1,131
6%
For items impacting net operating income/(loss), see Use and reconciliation of non-GAAP financial measures in the Supplementary
disclosures.
Power generation
 
In the third quarter of 2023, our offshore wind farms produced 244 GWh, with the majority coming from Dudgeon, Sheringham Shoal
and Arkona. Onshore renewables contributed another 108 GWh. Compared to both the third quarter and the first nine months of 2022,
there was a significant increase in production. This increase was largely due to new production from onshore power plants in Poland
and higher average wind speeds.
 
 
 
Total revenues and other income
 
Total revenues decreased in the third quarter and the first nine months of 2023 compared to the same periods last year,
 
mainly due to
lower
 
net
 
income/(loss) from
 
equity
 
accounted investments.
 
This
 
decline was
 
attributed to
 
lower
 
prices, higher
 
maintenance costs,
one-off effect and higher expenditures associated with early phase projects.
 
The decrease in
 
total revenues during
 
the third quarter
 
was partially offset
 
by higher revenues
 
for third party
 
revenues, driven by
 
the
start-up
 
of
 
production
 
at
 
solar
 
plants
 
in
 
Poland.
 
Total
 
revenue
 
and
 
other
 
income
 
for
 
the
 
first
 
nine
 
months
 
saw
 
a
 
decrease
 
due
 
to
divestment gains from the Dogger Bank C wind farm project, which amounted to USD 87 million and was realised in the first quarter of
2022.
Operating expenses and financial results
 
Higher
 
business
 
development
 
expenditure
 
combined
 
with
 
increased
 
activity
 
levels
 
as
 
projects
 
mature
 
lead
 
to
 
an
 
upward
 
trend
 
of
operating
 
and
 
administrative
 
expenses
 
in
 
the
 
third
 
quarter
 
and
 
first
 
nine
 
months
 
of
 
2023
 
compared
 
to
 
2022.
 
The
 
increased
 
costs
associated with maturing projects predominantly stem from offshore wind activities in the UK and Asia.
 
Net operating
 
income in
 
the third
 
quarter and
 
the first
 
nine months
 
of 2023
 
saw a
 
significant decrease
 
from the
 
same period
 
of the
previous year. This reduction is mainly due to the recognition of USD 300 million impairment to Equinor’s offshore wind projects on the
US
 
North
 
East
 
Coast
 
following
 
the
 
rejection
 
of
 
petitions
 
related
 
to
 
offtake
 
agreements.
 
In
 
addition,
 
higher
 
development
 
costs
experienced in
 
2023 and
 
a divestment
 
gain recognised
 
in the
 
first nine
 
months of
 
2022 contributed
 
to the
 
decrease in
 
net operating
income.
Additions to
 
PP&E, intangibles,
 
and equity
 
accounted investments
 
for both
 
the third
 
quarter and
 
the first
 
nine months
 
of 2023
 
were
higher than
 
the corresponding
 
periods last
 
year.
 
In the
 
third quarter
 
2023, an
 
amount of
 
USD 72
 
million was
 
allocated for
 
offshore
wind projects, while USD 121
 
million was for onshore renewables,
 
primarily related to the acquisition
 
of onshore wind farm in
 
Poland.
Throughout the first
 
nine months of
 
2023, the acquisition
 
of BeGreen, commercial-scale
 
lease in California
 
and investment related
 
to
projects
 
in
 
the
 
US
 
made
 
a
 
substantial
 
contribution
 
to
 
the
 
overall
 
increase
 
in
 
PP&E,
 
intangibles
 
and
 
equity
 
accounted
 
investments
compared to same period in the prior year.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equinor third quarter 2023
 
16
CONDENSED INTERIM FINANCIAL STATEMENTS
Third quarter 2023
CONSOLIDATED STATEMENT
 
OF INCOME
Quarters
First nine months
Q3 2023
Q2 2023
Q3 2022
(unaudited, in USD million)
Note
2023
2022
25,924
22,870
42,726
Revenues
4
78,005
115,163
(25)
11
75
Net income/(loss) from equity accounted investments
 
30
225
124
(9)
833
Other income
85
1,098
26,024
22,872
43,633
Total revenues and
 
other income
2
78,120
116,486
(12,269)
(10,867)
(13,592)
Purchases [net of inventory variation]
(34,371)
(40,953)
(2,420)
(2,565)
(2,393)
Operating expenses
3
(7,707)
(6,581)
(295)
(216)
(221)
Selling, general and administrative expenses
(814)
(708)
(3,369)
(2,243)
(1,049)
Depreciation, amortisation and net impairments
(7,812)
(5,207)
(218)
71
(275)
Exploration expenses
 
(394)
(809)
(18,571)
(15,821)
(17,531)
Total operating expenses
2
(51,098)
(54,258)
7,453
7,051
26,103
Net operating income/(loss)
2
27,022
62,228
(412)
(418)
(336)
Interest expenses and other financial expenses
 
(1,292)
(929)
425
741
1,389
Other financial items
 
2,817
2,836
13
323
1,053
Net financial items
5
1,525
1,907
7,466
7,374
27,156
Income/(loss) before tax
 
28,547
64,135
(4,965)
(5,545)
(17,785)
Income tax
6
(19,251)
(43,289)
2,501
1,829
9,371
Net income/(loss)
9,296
20,847
2,497
1,824
9,384
Attributable to equity holders of the company
9,282
20,851
4
6
(13)
Attributable to non-controlling interests
14
(5)
0.84
0.60
2.98
Basic earnings per share (in USD)
3.05
6.54
0.84
0.60
2.97
Diluted earnings per share (in USD)
3.04
6.52
2,971
3,042
3,148
Weighted average number of ordinary shares outstanding (in millions)
3,043
3,187
2,978
3,049
3,157
Weighted average number of ordinary shares outstanding diluted (in millions)
3,050
3,196
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equinor third quarter 2023
 
17
CONSOLIDATED STATEMENT
 
OF COMPREHENSIVE INCOME
Quarters
First nine months
Q3 2023
Q2 2023
Q3 2022
(unaudited, in USD million)
2023
2022
2,501
1,829
9,371
Net income/(loss)
9,296
20,847
20
544
(42)
Actuarial gains/(losses) on defined benefit pension plans
618
(434)
(8)
(121)
15
Income tax effect on income and expenses recognised in OCI
1)
(145)
103
12
423
(26)
Items that will not be reclassified to the Consolidated statement of income
472
(331)
(284)
(45)
(3,488)
Foreign currency translation effects
(1,756)
(7,726)
(17)
92
0
Share of OCI from equity accounted investments
11
0
(301)
47
(3,488)
Items that may be subsequently reclassified to the Consolidated statement of
income
(1,745)
(7,726)
(289)
470
(3,515)
Other comprehensive income/(loss)
(1,273)
(8,057)
2,212
2,299
5,856
Total comprehensive
 
income/(loss)
8,023
12,789
2,207
2,293
5,869
Attributable to the equity holders of the company
8,009
12,794
4
6
(13)
Attributable to non-controlling interests
14
(5)
1) Other comprehensive income (OCI)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equinor third quarter 2023
 
18
CONSOLIDATED BALANCE SHEET
At 30 September
At 31 December
(unaudited, in USD million)
Note
2023
2022
1)
ASSETS
Property, plant and equipment
2
55,930
56,498
Intangible assets
3
5,732
5,158
Equity accounted investments
2,512
2,758
Deferred tax assets
7,629
8,732
Pension assets
1,342
1,219
Derivative financial instruments
413
691
Financial investments
2,913
2,733
Prepayments and financial receivables
7
990
2,063
 
Total non-current
 
assets
77,462
79,851
 
Inventories
4,834
5,205
Trade and other receivables
2
15,053
22,452
Derivative financial instruments
1,702
4,039
Financial investments
25,290
29,876
Cash and cash equivalents
3
14,944
15,579
 
Total current assets
61,823
77,152
 
Assets classified as held for sale
3
146
1,018
 
Total assets
139,430
158,021
 
EQUITY AND LIABILITIES
Shareholders' equity
48,718
53,988
Non-controlling interests
15
1
 
Total equity
48,733
53,989
 
Finance debt
5
22,205
24,141
Lease liabilities
2,283
2,410
Deferred tax liabilities
12,556
11,996
Pension liabilities
3,205
3,671
Provisions and other liabilities
7
13,273
15,633
Derivative financial instruments
2,551
2,376
 
Total non-current
 
liabilities
56,074
60,226
 
Trade, other payables and provisions
11,573
13,352
Current tax payable
6
13,674
17,655
Finance debt
5, 7
3,978
4,359
Lease liabilities
1,305
1,258
Dividends payable
2,665
2,808
Derivative financial instruments
1,093
4,106
 
Total current liabilities
34,289
43,539
 
Liabilities directly associated with the assets classified as held for sale
 
3
335
268
 
Total liabilities
90,698
104,032
 
Total equity and liabilities
139,430
158,021
1) Audited
2) Of which Trade receivables of USD 11.3
 
billion 30 September 2023 and USD 17.3 billion 31 December 2022
3) Includes collateral deposits of USD 2.3 billion for 30 September 2023 related to certain requirements set out by exchanges
 
where Equinor
is participating. The corresponding figure for 31 December 2022 is USD 6.1 billion.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equinor third quarter 2023
 
19
CONSOLIDATED STATEMENT
 
OF CHANGES IN EQUITY
(unaudited, in USD million)
Share
capital
Additional
paid-in
capital
Retained
earnings
Foreign
currency
translation
reserve
OCI from
equity
accounted
investments
Share-
holders'
equity
Non-
controlling
interests
Total equity
At 1 January 2022
1,164
6,408
36,683
(5,245)
0
39,010
14
39,024
Net income/(loss)
20,851
20,851
(5)
20,847
Other comprehensive
income/(loss)
(331)
(7,726)
(8,057)
(8,057)
Total comprehensive
income/(loss)
12,789
Dividends
(6,314)
(6,314)
(6,314)
Share buy-back
(22)
(2,753)
(2,775)
(2,775)
Other equity transactions
(9)
(9)
(1)
(10)
At 30 September 2022
 
1,142
3,647
50,889
(12,971)
0
42,706
8
42,714
At 1 January 2023
1,142
3,041
58,236
(8,855)
424
53,988
1
53,989
Net income/(loss)
9,282
9,282
14
9,296
Other comprehensive
income/(loss)
472
(1,756)
11
(1,273)
(1,273)
Total comprehensive
income/(loss)
8,023
Dividends
(8,140)
(8,140)
(8,140)
Share buy-back
1)
(42)
(5,093)
(5,135)
(5,135)
Other equity transactions
(3)
(3)
(3)
At 30 September 2023
1,101
(2,056)
59,849
(10,611)
434
48,718
15
48,733
1) For more information see note 8 Capital distribution.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equinor third quarter 2023
 
20
CONSOLIDATED STATEMENT
 
OF CASH FLOWS
Quarters
First nine
months
First nine
months
Q3 2023
Q2 2023
Q3 2022
(unaudited, in USD million)
Note
2023
2022
7,466
7,374
27,156
Income/(loss) before tax
28,547
64,135
3,369
2,243
1,049
Depreciation, amortisation and net impairment
7,812
5,207
52
(223)
(2)
Exploration expenditures written off (net)
(81)
159
12
(197)
(1,691)
(Gains)/losses on foreign currency transactions and balances
5
(1,140)
(4,228)
0
27
(642)
(Gains)/losses on sale of assets and businesses
3
260
(736)
21
(276)
(1,235)
(Increase)/decrease in other items related to operating activities
1)
(579)
(2,455)
195
1,213
(111)
(Increase)/decrease in net derivative financial instruments
1,735
845
407
627
113
Interest received
1,311
183
(186)
(303)
(138)
Interest paid
(740)
(490)
11,336
10,485
24,498
Cash flows provided by operating activities before taxes paid and working
capital items
37,126
62,620
(3,743)
(10,841)
(16,975)
Taxes paid
(20,173)
(29,668)
(2,357)
2,214
(946)
(Increase)/decrease in working capital
5,011
(2,083)
5,236
1,857
6,578
Cash flows provided by operating activities
 
21,965
30,869
(100)
(803)
(21)
Cash (used)/received in business combinations
3
(1,155)
147
(2,652)
(2,842)
(2,053)
Capital expenditures and investments
2)
3
(7,545)
(6,382)
(2,679)
11,241
2,821
(Increase)/decrease in financial investments
3,454
(3,098)
14
(738)
904
(Increase)/decrease in derivatives financial instruments
(1,527)
2,268
(219)
(24)
(63)
(Increase)/decrease in other interest-bearing items
(180)
(30)
0
71
269
Proceeds from sale of assets and businesses
2), 3)
3
118
919
(5,636)
6,905
1,856
Cash flows provided by/(used in) investing activities
(6,835)
(6,176)
0
(300)
0
Repayment of finance debt
(2,476)
0
(336)
(336)
(341)
Repayment of lease liabilities
(1,004)
(1,002)
(2,613)
(2,725)
(1,256)
Dividends paid
(8,199)
(3,149)
(531)
(4,079)
(1,996)
Share buy-back
(5,071)
(2,738)
(1,195)
1,101
(278)
Net current finance debt and other financing activities
7
779
(5,332)
(4,675)
(6,338)
(3,871)
Cash flows provided by/(used in) financing activities
(15,971)
(12,221)
(5,074)
2,424
4,563
Net increase/(decrease) in cash and cash equivalents
(841)
12,472
(156)
(154)
(1,778)
Effect of exchange rate changes on cash and cash equivalents
(318)
(3,111)
19,650
17,380
20,562
Cash and cash equivalents at the beginning of the period (net of overdraft)
15,579
13,987
14,420
19,650
23,348
Cash and cash equivalents at the end of the period (net of overdraft)
14,420
23,348
1)
 
The line item includes a fair value gain related to inventory of USD 885 million in the third quarter 2022. The corresponding amount in
 
the
third quarter 2023 was a fair value loss of USD 13 million.
2)
 
Cash inflow of USD 433 million received in the first quarter 2022 related to the disposal of parts of the interests in the Bacalhau
 
field in
2018 (contingent consideration) has been reclassified from Capital expenditures and investments to Proceeds from sale
 
of assets and
businesses.
3)
 
The line item includes cash consideration net of cash disposed, related to the disposal of Equinor Energy Ireland Limited at closing
 
date
31 March 2023. See note 3 Acquisitions and disposals for more information.
 
4)
 
At 30 September 2023 cash and cash equivalents included a net overdrafts of USD 524 million. At 30 September 2022
 
and at 31
December 2022 cash and cash equivalents net overdraft were zero.
 
 
Equinor third quarter 2023
 
21
Notes to the Condensed interim financial statements
1 Organisation and basis of preparation
Organisation and principal activities
Equinor Group (Equinor) consists of Equinor ASA and its subsidiaries. Equinor ASA is incorporated and domiciled in Norway and
listed on the Oslo Børs (Norway) and the New York Stock Exchange (USA). The registered office address is Forusbeen 50, N-4035,
Stavanger, Norway.
The objective of Equinor is to develop, produce and market various forms of energy and derived products and services, as well as
other businesses. The activities may also be carried out through participation in or cooperation with other companies. Equinor Energy
AS, a 100% owned operating subsidiary of Equinor ASA and owner of all of Equinor's oil and gas activities and net assets on the
Norwegian continental shelf, is a co-obligor or guarantor of certain debt obligations of Equinor ASA.
Equinor's condensed interim financial statements for the third quarter of 2023 were authorised for issue by the board of directors on
26 October 2023.
Basis of preparation
These condensed interim financial statements are prepared in accordance with International Accounting Standard 34 Interim Financial
Reporting as issued by the International Accounting Standards Board (IASB) and as adopted by the European Union (EU). The
condensed interim financial statements do not include all the information and disclosures required by International Financial Reporting
Standards (IFRS) for a complete set of financial statements and should be read in conjunction with the Consolidated annual financial
statements for 2022. IFRS as adopted by the EU differs in certain respects from IFRS as issued by the IASB, however the differences
do not impact Equinor's financial statements for the periods presented.
As a result of rounding differences, numbers or percentages may not add up to the total.
 
The condensed interim financial statements are unaudited.
Accounting policies
The accounting policies applied in the preparation of the condensed interim financial statements are consistent with those used in the
preparation of Equinor’s consolidated annual financial statements for 2022. A description of the material accounting policies is
included in Equinor’s consolidated annual financial statements for 2022. When determining fair value, there have been no changes to
the valuation techniques or models and Equinor applies the same sources of input and the same criteria for categorization in the fair
value hierarchy as disclosed in the consolidated annual financial statements for 2022.
For information about standards, amendments to standards and interpretations effective from 1 January 2023, that could affect the
consolidated financial statements, please refer to note 2 in Equinor’s consolidated financial statements for 2022. None of the
amendments effective from 1 January 2023 has had a significant impact on the condensed interim financial statements. Equinor has
not early adopted any standard, interpretation or amendment that has been issued but is not yet effective.
Use of judgements and estimates
The preparation of financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions
that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. The estimates
and associated assumptions are reviewed on an on-going basis and are based on historical experience and various other factors that
are believed to be reasonable under the circumstances. These estimates and assumptions form the basis for making the judgments
about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these
estimates. Please refer to note 2 in Equinor’s consolidated financial statements for 2022 for more information about accounting
judgement and key sources of estimation uncertainty. Refer to note 2 Segments in this report for further information about
management’s future commodity price assumptions.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equinor third quarter 2023
 
22
2 Segments
Equinor’s operations are managed through operating segments identified on the basis of those components of Equinor that are
regularly reviewed by the chief operating decision maker, Equinor's Corporate Executive Officer (CEO). The reportable segments
Exploration & Production Norway (E&P Norway), Exploration & Production International (E&P International), Exploration & Production
USA (E&P USA), Marketing, Midstream & Processing (MMP) and Renewables (REN) correspond to the operating segments. The
operating segments Projects, Drilling & Procurement (PDP), Technology,
 
Digital & Innovation (TDI) and Corporate staff and functions
are aggregated into the reportable segment Other based on materiality. The majority of the costs in PDP and TDI is allocated to the
three Exploration & Production segments, MMP and REN.
The accounting policies of the reporting segments equal those applied in these condensed interim financial statements,
 
except for the
line-item Additions to PP&E, intangibles and equity accounted investments in which movements related to changes in asset retirement
obligations are excluded as well as provisions for onerous contracts which reflect only obligations towards group external parties. The
measurement basis of segment profit is net operating income/(loss). Deferred tax assets, pension assets, non-current financial assets,
total current assets and total liabilities are not allocated to the segments. Transactions between the segments, mainly from the sale of
crude oil, gas, and related products, are performed at defined internal prices which have been derived from market prices. The
transactions are eliminated upon consolidation.
Third quarter 2023
E&P
Norway
 
E&P
International
E&P
 
USA
MMP
REN
Other
Eliminations
 
Total
 
(in USD million)
Revenues third party, other revenue and
other income
34
183
98
25,611
2
121
0
26,048
Revenues inter-segment
7,904
1,809
1,064
107
8
8
(10,902)
0
Net income/(loss) from equity accounted
investments
0
(2)
0
(6)
(16)
0
0
(25)
Total revenues and
 
other income
 
7,938
1,990
1,162
25,712
(5)
129
(10,902)
26,024
Purchases [net of inventory variation]
(1)
58
0
(22,987)
0
(0)
10,661
(12,269)
Operating, selling, general and
administrative expenses
(788)
(541)
(293)
(1,181)
(103)
(76)
267
(2,715)
Depreciation and amortisation
(1,107)
(594)
(472)
(217)
(3)
(34)
0
(2,426)
Net impairment (losses)/reversals
(588)
0
290
(346)
(300)
0
0
(943)
Exploration expenses
(120)
(75)
(23)
0
0
0
0
(218)
Total operating expenses
(2,604)
(1,152)
(496)
(24,730)
(406)
(110)
10,928
(18,571)
Net operating income/(loss)
5,335
838
666
982
(412)
18
27
7,453
Additions to PP&E, intangibles and equity
accounted investments
1,421
888
338
342
193
24
(0)
3,206
Balance sheet information
Equity accounted investments
 
3
92
0
772
1,572
73
0
2,512
Non-current segment assets
 
26,344
18,352
11,098
3,824
1,033
1,009
0
61,662
Non-current assets not allocated to
segments
 
13,288
Total non-current
 
assets
 
77,462
Assets held for sale
146
0
0
0
0
0
0
146
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equinor third quarter 2023
 
23
Second quarter 2023
E&P
Norway
 
E&P
International
E&P
 
USA
MMP
REN
Other
Eliminations
 
Total
 
(in USD million)
Revenues third party, other revenue and
other income
59
186
75
22,514
8
19
0
22,861
Revenues inter-segment
8,223
1,394
902
135
0
8
(10,661)
0
Net income/(loss) from equity accounted
investments
0
24
0
(9)
(4)
0
0
11
Total revenues and
 
other income
 
8,282
1,605
976
22,639
4
27
(10,661)
22,872
Purchases [net of inventory variation]
(0)
(100)
0
(21,094)
0
(0)
10,327
(10,867)
Operating, selling, general and
administrative expenses
(937)
(436)
(305)
(1,172)
(93)
(9)
172
(2,781)
Depreciation and amortisation
(1,064)
(465)
(445)
(221)
(2)
(35)
0
(2,231)
Net impairment (losses)/reversals
0
0
0
(2)
0
(10)
0
(12)
Exploration expenses
(80)
173
(22)
0
0
0
0
71
Total operating expenses
(2,082)
(828)
(772)
(22,489)
(95)
(54)
10,499
(15,821)
Net operating income/(loss)
6,200
776
204
150
(91)
(26)
(162)
7,051
Additions to PP&E, intangibles and equity
accounted investments
1,624
2,114
274
65
267
0
0
4,345
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equinor third quarter 2023
 
24
Third quarter 2022
E&P
Norway
 
E&P
International
E&P
 
USA
MMP
REN
Other
Eliminations
 
Total
 
(in USD million)
Revenues third party, other revenue and
other income
880
116
77
42,462
3
20
0
43,559
Revenues inter-segment
23,154
1,618
1,465
91
0
9
(26,336)
0
Net income/(loss) from equity accounted
investments
0
33
0
33
9
0
0
75
Total revenues and
 
other income
24,034
1,767
1,541
42,585
12
29
(26,336)
43,633
Purchases [net of inventory variation]
(0)
(22)
0
(40,253)
0
0
26,683
(13,592)
Operating, selling, general and
administrative expenses
(963)
(427)
(254)
(1,097)
(68)
11
183
(2,614)
Depreciation and amortisation
(1,143)
(349)
(377)
(211)
(1)
(38)
0
(2,118)
Net impairment (losses)/reversals
0
0
178
891
0
0
0
1,069
Exploration expenses
(114)
(157)
(4)
0
0
0
0
(275)
Total operating expenses
(2,220)
(955)
(457)
(40,669)
(69)
(27)
26,866
(17,531)
Net operating income/(loss)
21,813
813
1,084
1,916
(56)
2
531
26,103
Additions to PP&E, intangibles and equity
accounted investments
1,089
841
186
345
95
17
0
2,574
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equinor third quarter 2023
 
25
First nine months 2023
E&P
Norway
 
E&P
Internationa
l
E&P
 
USA
MMP
REN
Other
Eliminations
 
Total
 
(in USD million)
Revenues third party, other revenue and
other income
45
697
234
76,892
16
206
0
78,090
Revenues inter-segment
28,219
4,412
2,920
324
8
25
(35,909)
0
Net income/(loss) from equity accounted
investments
0
33
0
24
(27)
0
0
30
Total revenues and
 
other income
 
28,264
5,143
3,153
77,240
(3)
231
(35,909)
78,120
Purchases [net of inventory variation]
(1)
(25)
0
(69,439)
0
(1)
35,095
(34,371)
Operating, selling, general and
administrative expenses
(2,702)
(1,636)
(870)
(3,532)
(283)
(218)
720
(8,521)
Depreciation and amortisation
(3,285)
(1,520)
(1,273)
(669)
(6)
(102)
0
(6,855)
Net impairment (losses)/reversals
(588)
0
290
(350)
(300)
(10)
0
(957)
Exploration expenses
(337)
35
(91)
0
0
0
0
(394)
Total operating expenses
(6,914)
(3,146)
(1,944)
(73,990)
(589)
(330)
35,815
(51,098)
Net operating income/(loss)
21,350
1,996
1,210
3,250
(591)
(99)
(94)
27,022
Additions to PP&E, intangibles and equity
accounted investments
4,362
3,453
874
626
1,311
102
0
10,730
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equinor third quarter 2023
 
26
First nine months 2022
E&P
Norway
 
E&P
International
E&P
 
USA
MMP
REN
Other
Eliminations
 
Total
 
(in USD million)
Revenues third party, other revenue and
other income
1,222
415
236
114,208
96
84
0
116,261
Revenues inter-segment
57,979
4,501
4,204
272
0
28
(66,984)
0
Net income/(loss) from equity accounted
investments
0
141
0
33
50
0
0
225
Total revenues and
 
other income
59,200
5,057
4,440
114,514
146
111
(66,984)
116,486
Purchases [net of inventory variation]
0
(31)
(0)
(107,920)
0
(0)
66,999
(40,953)
Operating, selling, general and
administrative expenses
(2,762)
(1,187)
(719)
(2,977)
(164)
(70)
590
(7,289)
Depreciation and amortisation
(3,767)
(1,008)
(1,059)
(644)
(3)
(116)
0
(6,597)
Net impairment (losses)/reversals
821
(1,033)
711
891
0
0
0
1,390
Exploration expenses
(265)
(373)
(172)
0
0
0
0
(809)
Total operating expenses
(5,972)
(3,632)
(1,239)
(110,650)
(168)
(186)
67,589
(54,258)
Net operating income/(loss)
53,228
1,425
3,201
3,864
(22)
(75)
605
62,228
Additions to PP&E, intangibles and equity
accounted investments
3,500
2,039
482
863
195
87
0
7,166
 
 
 
 
 
 
 
 
 
Equinor third quarter 2023
 
27
Net impairments/reversal of impairments and changes to accounting assumptions
Management’s future commodity price assumptions are used for value in use impairment testing. While there are inherent
uncertainties in the assumptions, the commodity price assumptions reflect management’s best estimate of the price development over
the life of the Group’s assets based on its view of relevant current circumstances and the likely future development of such
circumstances, including energy demand development, energy and climate change policies as well as the speed of the energy
transition, population and economic growth, geopolitical risks, technology and cost development and other factors. Management’s
best estimate also takes into consideration a range of external forecasts.
Equinor has performed a thorough and broad analysis of the expected development in drivers for the different commodity markets.
Significant uncertainty exists regarding future commodity price development due to the transition to a lower carbon economy, future
supply actions by OPEC+ and other factors. Such analysis resulted in changes in the long-term price assumptions with effect from the
second quarter of 2023. The main price assumptions applied in impairment and impairment reversal assessments are disclosed in the
table below as price-points on price curves. Previous price-points applied from the third quarter of 2022 up to and including the first
quarter of 2023 are provided in brackets.
Year
 
Prices in real terms
1)
2025
2030
2040
2050
Brent Blend (USD/bbl)
79
(78)
78
(78)
73
(73)
68
(68)
European gas (USD/mmBtu) - TTF
15.5
(20.9)
9.1
(9.9)
9.5
(9.4)
9.5
(9.4)
Henry Hub (USD/mmBtu)
3.6
(4.2)
4.3
(3.9)
4.3
(3.9)
4.3
(3.9)
Electricity Germany (EUR/MWh)
106
(122)
78
(74)
71
(60)
71
(60)
EU ETS (EUR/tonne)
90
(84)
105
(84)
128
(111)
150
(137)
1) Basis year 2023.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equinor third quarter 2023
 
28
In the third quarter of 2023, Equinor recognised net impairments of USD 943 million., excluding impairments related to capitalized
exploration and evaluation expenditures. Equinor’s offshore wind projects on the US North East Coast are facing increased costs due
to inflation and supply chain constraints. On 12 October 2023, the New York State Public Service Commission (PSC) rejected price
increase petitions related to offtake agreements from several offshore and onshore wind farm developers, including Equinor’s joint
ventures. As a consequence, an impairment of USD 300 million has been recognised in the REN segment in the third quarter. The
recoverable amount of Equinor’s investments in the offshore wind projects on the US North East Coast has been established applying
a fair value approach. These investments are accounted for using the equity method.
Impairments in the E&P Norway segment amounted to USD 588 million and mainly relate to reduced expected reserves on a
producing asset. Impairments in the MMP segment amounted to USD 346 million and mainly relate to expectations of stabilizing
refinery margins at a lower level than the margins consumed in the recent quarterly periods. Impairment reversals in the E&P USA
segment amounted to USD 290 million and mainly relate to increased expected reserves on a producing asset. Recoverable amounts
in these impairment assessments, are based on value in use. Estimates of discounted cash flows used to determine the recoverable
amounts are based on internal forecasts on cost, production profiles and commodity prices.
Non-current assets by country
At 30 September
At 31 December
(in USD million)
2023
2022
Norway
30,294
33,242
USA
12,514
12,343
Brazil
10,038
9,400
UK
5,273
3,688
Azerbaijan
1,355
1,401
Canada
1,136
1,171
Denmark
913
497
Angola
902
895
Argentina
593
615
Algeria
506
622
Other
650
541
Total non-current
 
assets
1)
64,174
64,414
1) Excluding deferred tax assets, pension assets and non-current financial assets.
3 Acquisitions and disposals
 
Acquisitions
Acquisition of Suncor Energy UK Limited
On 30 June 2023, Equinor closed a transaction with Suncor Energy UK Holdings Ltd to acquire 100% of the shares in Suncor Energy
UK Limited for a total consideration of USD 803 million after customary adjustments for working capital. The transaction includes a
non-operated interest in the producing Buzzard oil field (29.89%) and an additional interest in the operated Rosebank development
(40%). The transaction has been accounted for within the E&P International segment as a business combination, resulting in an
increase in Equinor’s property, plant and equipment of USD 1,516 million and deferred tax liabilities of USD 694 million. The purchase
price and the purchase price allocation are preliminary.
Acquisition of BeGreen
On 26 January 2023, Equinor closed a transaction with the Bregentved Group and members of the executive board of BeGreen Solar
Aps to acquire 100% of the shares in the Danish solar developer BeGreen Solar Aps. The cash consideration amounted to USD 252
million (EUR 235 million), in addition to a consideration contingent on the successful delivery of future solar projects above an agreed
megawatt threshold. The transaction has been accounted for within the REN segment as a business combination, resulting in an
increase of Equinor’s intangible assets of USD 423 million. The purchase price and the purchase price allocation are preliminary.
Disposals
Equinor Energy Ireland Limited
On 31 March 2023, Equinor closed the transaction with Vermilion Energy Inc (Vermillion) to sell Equinor’s non-operated equity
position in the Corrib gas project in Ireland, covering 100% of the shares in Equinor Energy Ireland Limited (EEIL). Prior to closing,
Equinor received an extraordinary dividend of USD 371 million from EEIL. Total consideration amounted to USD 362 million, including
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equinor third quarter 2023
 
29
cash settlement of contingent consideration. A loss of USD 258 million has been recognised and presented in the line item Operating
expenses in the Consolidated statement of income within the E&P International segment.
4 Revenues
 
Revenues from contracts with customers by geographical areas
When attributing the line item Revenues from contracts with customers for the third quarter of 2023 to the country of the legal entity
executing the sale, Norway constitutes 78%, and the USA constitutes 20% of such revenues (76% and 20%, respectively, for the
second quarter of 2023; 80% and 17%, respectively, for the first nine months of 2023). For the third quarter of 2022, Norway and the
USA constituted 84% and 12% of such revenues, respectively (84% and 12% respectively for the first nine months of 2022).
Revenues from contracts with customers and other revenues
Quarters
First nine months
Q3 2023
Q2 2023
Q3 2022
(in USD million)
2023
2022
15,999
13,055
14,098
Crude oil
41,165
45,530
4,292
5,041
21,293
Natural gas
19,789
49,753
3,728
4,422
19,106
 
- European gas
17,378
44,913
217
199
846
 
- North American gas
813
2,233
347
419
1,341
 
- Other incl. Liquefied natural gas
1,598
2,607
2,528
2,368
2,766
Refined products
7,373
8,201
2,095
1,780
2,239
Natural gas liquids
6,258
7,345
272
395
399
Transportation
1,120
991
465
657
1,465
Other sales
2,081
3,233
25,650
23,295
42,259
Revenues from contracts with customers
77,786
115,053
274
(425)
466
Total other revenues
1)
219
110
25,924
22,870
42,726
Revenues
78,005
115,163
1) Principally relates to commodity derivatives and change in fair value less cost to sell for commodity inventories
 
held for trading purposes.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equinor third quarter 2023
 
30
5 Financial items
 
Quarters
First nine months
Q3 2023
Q2 2023
Q3 2022
(in USD million)
2023
2022
(12)
197
1,691
Net foreign currency exchange gains/(losses)
1,140
4,228
580
618
346
Interest income and other financial items
1,788
740
(54)
5
(44)
Gains/(losses) on financial investments
(16)
(402)
(89)
(79)
(604)
Gains/(losses) other derivative financial instruments
 
(94)
(1,730)
(412)
(418)
(336)
Interest and other finance expenses
(1,292)
(929)
13
323
1,053
Net financial items
1,525
1,907
Equinor reports significant unrealised foreign currency gains in the first nine months of 2023 and in the first nine months of 2022,
mainly related to the strengthening of USD versus NOK. These effects are mainly due to a large part of Equinor’s operations having
NOK as functional currency, and the effects are offset within equity as OCI effects arising on translation from functional currency to
presentation currency USD. Reduced net foreign currency exchange effects in third quarter 2023 compared to same period prior year
are due to reduced balances and less change in currency rates.
The increase in Interest income and other financial items in the first nine months compared to the same period prior year mainly
relates to higher interest rates.
Equinor has a US Commercial paper programme available with a limit of USD 5 billion. As of 30 September 2023, there were no
outstanding amounts compared to USD 0.2 billion utilised as of 31 December 2022.
6 Income taxes
Quarters
First nine months
Q3 2023
Q2 2023
Q3 2022
(in USD million)
2023
2022
7,466
7,374
27,156
Income/(loss) before tax
28,547
64,135
(4,965)
(5,545)
(17,785)
Income tax
(19,251)
(43,289)
 
66.5%
 
75.2%
 
65.5%
Effective tax rate
67.4 %
67.5 %
The effective tax rate for the third quarter and the first nine months of 2023 was significantly influenced by lower share of income from
the Norwegian continental shelf and currency effects in entities that are taxable in other currencies than the functional currency.
The effective tax rate for the third quarter and for the first nine months of 2022 was primarily influenced by positive income in countries
with lower tax rates and with unrecognised deferred tax assets and by tax exempted gains on divestment. The effective tax for the
third quarter and first nine months was also influenced by currency effects in entities that are taxable in other currencies than the
functional currency.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equinor third quarter 2023
 
31
7 Provisions, commitments, contingent items and related parties
Asset retirement obligation
Equinor's estimated asset retirement obligations (ARO) have decreased by USD 1.2 billion to USD 10.6 billion at 30 September 2023
compared to year-end 2022, mainly due to increased discount rates. Changes in ARO are reflected within Property, plant and
equipment and Provisions and other liabilities in the Consolidated balance sheet.
Litigation and claims
During the normal course of its business, Equinor is involved in legal and other proceedings, and several unresolved claims are
currently outstanding. The ultimate liability or asset in respect of such litigation and claims cannot be determined at this time. Equinor
has provided in its Condensed interim financial statements for probable liabilities related to litigation and claims based on the
company’s best judgement. Equinor does not expect that its financial position, results of operations or cash flows will be materially
affected by the resolution of these legal proceedings.
Related parties
The line-item Trade and other receivables include a receivable from the Norwegian state under the Marketing Instruction in relation to
the state’s (SDFI) participation in the gas sales activities of a foreign subsidiary of Equinor, estimated at USD 0.2 billion. At year-end
2022, the corresponding estimated amount of USD 1.5 billion was classified as a non-current item and included in the line-item
Prepayments and financial receivables. The decrease is mainly related to reduced cost price for gas storage volume. A corresponding
non-current liability of USD 0.2 billion has been recognised, representing SDFI's estimated interest in the gas sales activities in the
foreign subsidiary. The estimated total non-current liabilities to SDFI amounts to USD 0.8 billion at 30 September 2023 (USD 2.1
billion at year end 2022). In addition, the line-item Finance debt, which form part of the sub-total Total current liabilities, includes a
liability of USD 1.1 billion to SDFI due to cash received for collateral deposits requirement (0 at year end 2022).
8 Capital distribution
Dividend for the third quarter
On 26 October 2023, the Board of Directors resolved to declare an ordinary cash dividend for the third quarter of 2023 of USD 0.30
per share and an extraordinary cash dividend of USD 0.60 per share. The Equinor shares will be traded ex-dividend 14 February 2024
on the Oslo Børs and for ADR holders on the New York Stock Exchange. Record date will be 15 February 2024 and payment date will
be 27 February 2024.
Share buy- back programme 2023
Based on the authorisation from the annual general meeting on 10 May 2023, the Board of directors will on a quarterly basis decide
on share buy-back tranches. The 2023 programme is up to USD 6,000 million, including shares to be redeemed from the Norwegian
State.
During the first six months, Equinor launched two tranches of USD 2,667 million in total, of which USD 880 million was acquired in the
open market. In July 2023, Equinor launched the third tranche of USD 1,667 billion, of which USD 550 million has been recognised as
reduction in equity due to an irrevocable agreement with a third-party. Of the third tranche, USD 421 million has been acquired in the
open market and settled at September 2023.
On 26 October 2023 the Board of Directors decided to initiate a fourth and final share buy-back tranche of USD 1,667 million for 2023
(including the State’s share), starting 30 October 2023 and with an end-date no later than 29 January 2024.
In order to maintain the Norwegian States ownership share in Equinor, a proportionate share of the second, third and fourth tranche of
the 2022 programme as well as the first tranche of the 2023 programme was redeemed and annulled after approval by the annual
general meeting on 10 May 2023. The liability to the Norwegian State of USD 3,705 million (NOK 39,071 million) was settled in June
2023.
First nine months
Equity impact of share buy-back programmes (in USD million)
2023
2022
First tranche
330
330
Second tranche
550
440
Third tranche
550
605
Norwegian state share
1)
3,705
1,399
 
 
 
 
Equinor third quarter 2023
 
32
Total
5,135
2,775
1) Relates to second to fourth tranche of previous year programme and first tranche of current year
programme
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equinor third quarter 2023
 
33
SUPPLEMENTARY
 
DISCLOSURES
 
Exchange rates
Quarters
Change
First nine months
Q3 2023
Q2 2023
Q3 2022
Q3 on Q3
Exchange rates
2023
2022
Change
0.0954
0.0934
0.1001
(5%)
NOK/USD average daily exchange rate
0.0955
0.1060
(10%)
0.0941
0.0928
0.0921
2%
NOK/USD period-end exchange rate
0.0941
0.0921
2%
10.4818
10.7100
9.9903
5%
USD/NOK average daily exchange rate
10.4699
9.4322
11%
10.6225
10.7712
10.8574
(2%)
USD/NOK period-end exchange rate
10.6225
10.8574
(2%)
1.0880
1.0890
1.0065
8%
EUR/USD average daily exchange rate
1.0832
1.0609
2%
1.0594
1.0866
0.9748
9%
EUR/USD period-end exchange rate
1.0594
0.9748
9%
USE AND RECONCILIATION
 
OF NON-GAAP FINANCIAL MEASURES
Non-GAAP financial measures are defined as numerical measures that either exclude or include amounts or certain accounting items
that are not excluded or included in the comparable measures calculated and presented in accordance with GAAP (i.e., IFRS).
Management considers adjusted earnings and adjusted earnings after tax together with other non-GAAP financial measures as
defined below, to provide a better indication of the underlying operational and financial performance in the period (excluding
financing), and therefore better facilitate comparisons between periods.
The following financial measures may be considered non-GAAP financial measures:
Adjusted earnings
 
are based on net operating income/(loss) and adjusts for certain items affecting the income for the period in
order to separate out effects that management considers may not be well correlated to Equinor’s underlying operational
performance in the individual reporting period. Management considers adjusted earnings to be a supplemental measure to
Equinor’s IFRS measures, which provides an indication of Equinor’s underlying operational performance
 
in the period and
facilitates an alternative understanding of operational trends between the periods. Adjusted earnings include adjusted revenues
and other income, adjusted purchases, adjusted operating expenses and selling, general and administrative expenses, adjusted
depreciation expenses and adjusted exploration expenses.
Adjusted earnings after tax
 
– equals the sum of net operating income/(loss) less income tax in business areas and adjustments
to operating income taking the applicable marginal tax into consideration. Adjusted earnings after tax excludes net financial items
and the associated tax effects on net financial items. It is based on adjusted earnings less the tax effects on all elements included
in adjusted earnings (or calculated tax on operating income and on each of the adjusting items using an estimated marginal tax
rate). In addition, tax effect related to tax exposure items not related to the individual reporting period is excluded from adjusted
earnings after tax. Management considers adjusted earnings after tax, which reflects a normalised tax charge associated with its
operational performance excluding the impact of financing, to be a supplemental measure to Equinor’s net income. Certain net
USD denominated financial positions are held by group companies that have a USD functional currency that is different from the
currency in which the taxable income is measured. As currency exchange rates change between periods, the basis for measuring
net financial items for IFRS will change disproportionally with taxable income which includes exchange gains and losses from
translating the net USD denominated financial positions into the currency of the applicable tax return. Therefore, the effective tax
rate may be significantly higher or lower than the statutory tax rate for any given period. Adjusted taxes included in adjusted
earnings after tax should not be considered indicative of the amount of current or total tax expense (or taxes payable) for the
period.
Adjusted earnings and adjusted earnings after tax should be considered additional measures rather than substitutes for net operating
income/(loss) and net income/(loss), which are the most directly comparable IFRS measures. There are material limitations
associated with the use of adjusted earnings and adjusted earnings after tax compared with the IFRS measures as such non-GAAP
measures do not include all the items of revenues/gains or expenses/losses of Equinor that are needed to evaluate its profitability on
an overall basis. Adjusted earnings and adjusted earnings after tax are only intended to be indicative of the underlying developments
in trends of our on-going operations for the production, manufacturing and marketing of our products and exclude pre-and post-tax
impacts of net financial items. Equinor reflects such underlying development in our operations by eliminating the effects of certain
items that may not be directly associated with the period's operations or financing. However, for that reason, adjusted earnings and
adjusted earnings after tax are not complete measures of profitability. These measures should therefore not be used in isolation.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equinor third quarter 2023
 
34
Amended principles for Adjusted earnings with effect from the first quarter of 2023:
Equinor has made the following changes to the items adjusted for within Adjusted earnings:
 
With effect from the first quarter of 2023, movements in the fair value of commodity derivatives used to manage price risk
exposure of future sale and purchase contracts are excluded from adjusted earnings and deferred until the time of the physical
delivery. This change minimises the effects of timing differences and presents a measure more indicative of underlying economic
performance.
 
With effect from the first quarter of 2023, the principle used to adjust the valuation of commercial storages is based on the
forward price at the expected realisation date. Prior to this amendment, the valuation adjustment was based on short-term
forward prices which, for some storages, did not correspond to the forward price at the expected realisation date. This change
brings the valuation principle in line with how the corresponding derivative contract used to manage price exposure is valued.
These changes have been applied retrospectively to the comparative figures. The majority of the impact is due to the revised
treatment of commodity derivatives. These changes only affect the MMP reporting segment and currently do not have an impact on
other segments. Equinor deems that these changes lead to a better representation of performance in each period by appropriately
reflecting the economic impact of its risk management activities.
Impact of change
Q3 2022
First nine months 2022
MMP segment
As reported
Impact
Restated
As reported
Impact
Restated
Changes in fair value of derivatives
22
54
76
(7)
(407)
(414)
Periodisation of inventory hedging effect
251
118
369
46
432
478
Adjusted total revenues and other income
42,858
171
43,029
114,544
26
114,570
Adjusted earnings/(loss)
1,452
171
1,623
2,792
26
2,818
Adjusted earnings/(loss) after tax
523
475
998
820
1,066
1,886
Impact of change
Q3 2022
First nine months 2022
Equinor group
As reported
 
 
Impact
 
 
Restated
 
 
As reported
 
 
Impact
 
 
Restated
 
Changes in fair value of derivatives
85
54
138
255
(407)
(152)
Periodisation of inventory hedging effect
251
118
369
46
432
478
Adjusted total revenues and other income
43,337
171
43,509
116,364
26
116,390
Adjusted earnings/(loss)
24,301
171
24,472
59,881
26
59,907
Adjusted earnings/(loss) after tax
6,715
475
7,191
16,895
1,066
17,961
Effective tax rates on adjusted earnings
72.4%
(1.8%)
70.6%
71.8%
(1.8%)
70.0%
No other line items or segments were affected by the change.
Capital employed adjusted –
this measure is defined as Equinor's total equity (including non-controlling interests) and net
interest-bearing debt adjusted.
Net interest-bearing debt adjusted
 
– this measure is defined as Equinor's interest bearing financial liabilities less cash and cash
equivalents and current financial investments, adjusted for collateral deposits and balances held by Equinor's captive insurance
company and balances related to the SDFI.
Net debt to capital employed
,
Net debt to capital employed adjusted, including lease liabilities
and
 
Net debt to capital
employed ratio adjusted
– Following implementation of IFRS 16 Equinor presents a “net debt to capital employed adjusted”
excluding lease liabilities from the gross interest-bearing debt. Comparable numbers are presented in the table Calculation of
capital employed and net debt to capital employed ratio in the report include Finance lease according to IAS17, adjusted for
marketing instruction agreement.
In Equinor’s view, net debt ratio provides useful information about Equinor’s capital structure and
financial strength.
Organic capital expenditures (organic investments/capex)
– Capital expenditures, defined as Additions to PP&E, intangibles
and equity accounted investments in note 2 Segments to the Condensed interim financial statements, amounted to USD 3.2 billion
in Q3 2023 (Q3 2022: USD 2.6 billion). Organic capital expenditures are capital expenditures excluding acquisitions, recognised
lease assets (RoU assets) and other investments with significant different cash flow pattern. In Q3 2023, a total of USD 0.6 billion
(Q3 2022: USD 0.6 billion) is excluded in the organic capital expenditures. Forward-looking organic capital expenditures included
in this report are not reconcilable to its most directly comparable IFRS measure without unreasonable efforts, because the
amounts excluded from such IFRS measure to determine organic capital expenditures cannot be predicted with reasonable
certainty. Organic capital expenditure is a measure which Equinor believes gives relevant information about Equinor’s investments
in maintenance and development of the company’s assets.
Equinor third quarter 2023
 
35
Gross investments/capex
 
– Capital expenditures, defined as Additions to PP&E, intangibles and equity accounted investments
in the financial statements, including Equinor’s proportionate share of capital expenditures in equity accounted investments not
included in additions to equity accounted investments. Forward-looking gross capital expenditures included in this report are not
reconcilable to its most directly comparable IFRS measure without unreasonable efforts, because the amounts excluded from
such IFRS measure to determine gross capital expenditures cannot be predicted with reasonable certainty.
Cash flow from operations after taxes paid (CFFO after taxes paid)
represents, and is used by management, to evaluate cash
generated from operating activities after taxes paid, available for investing activities, for debt servicing and distribution to
shareholders. However, cash flow from operations after taxes paid is not a measure of our liquidity under IFRS and should not be
considered in isolation or as a substitute for an analysis of our results as reported in this report. Our definition of Cash flow from
operations after taxes paid is limited and does not represent residual cash flows available for discretionary expenditures.
 
Net cash flow (previously named free cash flow)
- Net cash flow represents, and is used by management to evaluate, cash
generated from operational and investing activities available for debt servicing and distribution to shareholders. The name of the
measure was updated in the first quarter of 2023, but no changes have been made to the definition.
 
Adjusted earnings
adjust for the following items:
Changes in fair value of derivatives
: In the ordinary course of business, Equinor enters into commodity derivative contracts to
manage the price risk exposure relating to future sale and purchase contracts. These commodity derivatives are measured at fair
value at each reporting date, with the movements in fair value recognised in the income statement. By contrast, the sale and
purchase contracts are not recognised until the transaction occurs resulting in timing differences. Therefore, with effect from the
first quarter of 2023, the unrealised movements in the fair value of these commodity derivative contracts are excluded from
adjusted earnings and deferred until the time of the physical delivery to minimise the effect of these timing differences. Further,
embedded derivatives within certain gas contracts and contingent consideration related to historical divestments are required to
be carried at fair value. Any accounting impacts resulting from such changes in fair value are also excluded from adjusted
earnings, as these fluctuations are not indicative of the underlying performance of the business.
Periodisation of inventory hedging effect
: Equinor enters into derivative contracts to manage price risk exposure relating to its
commercial storage. These derivative contracts are carried at fair value while the inventories are accounted for at the lower of
cost or market price. Therefore, measurement differences occur in relation to the recognition of gains and losses. An adjustment
is made to align the valuation principles of inventories with related derivative contracts. With effect from the first quarter of 2023,
the adjusted valuation of inventories is based on the forward price at the expected realisation date. This is so that the valuation
principles between commercial storages and derivative contracts are better aligned.
Over/underlift
: Over/underlift is accounted for using the sales method and therefore revenues were reflected in the period the
product was sold rather than in the period it was produced. The over/underlift position depended on several factors related to our
lifting programme and the way it corresponded to our entitlement share of production. The effect on income for the period is
therefore adjusted, to show estimated revenues and associated costs based upon the production for the period to reflect
operational performance and comparability with peers.
 
The
operational storage
is not hedged and is not part of the trading portfolio. Cost of goods sold is measured based on the
FIFO (first-in, first-out) method, and includes realised gains or losses that arise due to changes in market prices. These gains or
losses will fluctuate from one period to another and are not considered part of the underlying operations for the period.
Impairment and reversal of impairment
are excluded from adjusted earnings since they affect the economics of an asset for
the lifetime of that asset, not only the period in which it is impaired, or the impairment is reversed. Impairment and reversal of
impairment can impact both the exploration expenses and the depreciation, amortisation and impairment line items.
Gain or loss from sales of assets
is eliminated from the measure since the gain or loss does not give an indication of future
performance or periodic performance; such a gain or loss is related to the cumulative value creation from the time the asset is
acquired until it is sold.
Eliminations (Internal unrealised profit on inventories)
:
Volumes derived from equity oil inventory will vary depending on
several factors and inventory strategies, i.e., level of crude oil in inventory, equity oil used in the refining process and level of in-
transit cargoes. Internal profit related to volumes sold between entities within the group, and still in inventory at period end, is
eliminated according to IFRS (write down to production cost). The proportion of realised versus unrealised gain will fluctuate from
one period to another due to inventory strategies and consequently impact net operating income/(loss). Write-down to production
cost is not assessed to be a part of the underlying operational performance, and elimination of internal profit related to equity
volumes is excluded in adjusted earnings.
Other items of income and expense
are adjusted when the impacts on income in the period are not reflective of Equinor’s
underlying operational performance in the reporting period. Such items may be unusual or infrequent transactions, but they may
also include transactions that are significant which would not necessarily qualify as either unusual or infrequent. Other items are
carefully assessed and can include transactions such as provisions related to reorganisation, early retirement, etc.
Change in accounting policy
 
are adjusted when the impacts on income in the period are unusual or infrequent, and not
reflective of Equinor’s underlying operational performance in the reporting period.
For more information on our definitions and use of non-GAAP financial measures, see section 5.8 Use and reconciliation of non-
GAAP financial measures in Equinor's 2022 Integrated Annual Report.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equinor third quarter 2023
 
36
Reconciliation of adjusted earnings
The table specifies the adjustments made to each of the profit and loss line item included in the net operating income/(loss) subtotal.
Items impacting net operating income/(loss) in the
third quarter of 2023
Equinor
group
Exploration
&
Production
Norway
 
Exploration
&
Production
Internationa
l
Exploration
&
Production
USA
Marketing,
Midstream
&
Processing
Rene-
wables
Other
 
(in USD million)
Total revenues and
 
other income
26,024
7,938
1,990
1,162
25,712
(5)
(10,773)
Adjusting items
(289)
226
(140)
(32)
(341)
-
(1)
Changes in fair value of derivatives
(206)
20
(6)
-
(219)
-
-
Periodisation of inventory hedging effect
(22)
-
-
-
(22)
-
-
Over-/underlift
72
206
(134)
-
-
-
-
Other adjustments
(100)
-
-
-
(100)
-
-
Gain/loss on sale of assets
(33)
-
-
(32)
-
-
(1)
Adjusted total revenues and other income
25,735
8,164
1,849
1,130
25,371
(5)
(10,773)
Purchases [net of inventory variation]
(12,269)
(1)
58
-
(22,987)
-
10,661
Adjusting items
(123)
-
-
-
(97)
-
(27)
Operational storage effects
(92)
-
-
-
(92)
-
-
Provisions
(5)
-
-
-
(5)
-
-
Eliminations
(27)
-
-
-
-
-
(27)
Adjusted purchases [net of inventory variation]
(12,392)
(1)
58
-
(23,083)
-
10,634
Operating and administrative expenses
 
(2,715)
(788)
(541)
(293)
(1,181)
(103)
191
Adjusting items
12
(61)
83
-
(13)
4
-
Over-/underlift
21
(61)
83
-
-
-
-
Other adjustments
4
-
-
-
-
4
-
Provisions
(13)
-
-
-
(13)
-
-
Adjusted operating and administrative expenses
 
(2,703)
(849)
(458)
(293)
(1,195)
(100)
191
Depreciation, amortisation and net impairments
(3,369)
(1,695)
(594)
(181)
(562)
(303)
(34)
Adjusting items
943
588
-
(290)
346
300
-
Impairment
1,234
588
-
-
346
300
-
Reversal of Impairment
(290)
-
-
(290)
-
-
-
Adjusted depreciation, amortisation and net
impairments
(2,426)
(1,107)
(594)
(472)
(217)
(3)
(34)
Exploration expenses
(218)
(120)
(75)
(23)
-
-
-
Adjusting items
28
-
28
-
-
-
-
Impairment
28
-
28
-
-
-
-
Adjusted exploration expenses
(190)
(120)
(47)
(23)
-
-
-
Net operating income/(loss)
7,453
5,335
838
666
982
(412)
45
Sum of adjusting items
571
752
(29)
(323)
(106)
304
(27)
Adjusted earnings/(loss)
8,024
6,087
809
343
876
(108)
18
Tax on adjusted
 
earnings
(5,292)
(4,743)
(163)
(82)
(333)
11
17
Adjusted earnings/(loss) after tax
2,731
1,343
646
261
543
(97)
35
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equinor third quarter 2023
 
37
Items impacting net operating income/(loss) in the
third quarter of 2022
Equinor
group
Exploration
&
Production
Norway
Exploration
&
Production
Internationa
l
Exploration
&
Production
USA
Marketing,
Midstream
&
Processing
Rene-
wables
Other
(in USD million)
Total revenues and
 
other income
43,633
24,034
1,767
1,541
42,585
12
(26,307)
Adjusting items
(125)
(713)
144
-
444
0
(0)
Changes in fair value of derivatives
 
138
1)
(167)
229
-
 
76
1)
-
-
Periodisation of inventory hedging effect
 
369
1)
-
-
-
 
369
1)
-
-
Operating and administrative expenses
0
-
-
-
-
0
-
Over-/underlift
24
109
(85)
-
-
-
-
Gain/loss on sale of assets
(655)
(655)
-
-
-
-
(0)
Adjusted total revenues and other income
 
43,509
1)
23,321
1,911
1,541
 
43,029
1)
13
(26,307)
Purchases [net of inventory variation]
(13,592)
(0)
(22)
-
(40,253)
-
26,683
Adjusting items
(377)
-
-
-
171
-
(548)
Operational storage effects
171
-
-
-
171
-
-
Eliminations
(548)
-
-
-
-
-
(548)
Adjusted purchases [net of inventory variation]
(13,969)
(0)
(22)
-
(40,081)
-
26,135
Operating and administrative expenses
(2,614)
(963)
(427)
(254)
(1,097)
(68)
194
Adjusting items
(43)
(22)
(15)
(0)
(17)
10
-
Over-/underlift
(36)
(22)
(15)
-
-
-
-
Gain/loss on sale of assets
10
-
-
(0)
-
10
-
Provisions
(17)
-
-
-
(17)
-
-
Adjusted operating and administrative expenses
(2,657)
(984)
(442)
(254)
(1,113)
(58)
194
Depreciation, amortisation and net impairments
(1,049)
(1,143)
(349)
(199)
680
(1)
(38)
Adjusting items
(1,069)
-
(0)
(178)
(891)
-
-
Impairment
79
-
(0)
-
79
-
-
Reversal of impairment
(1,148)
-
-
(178)
(970)
-
-
Adjusted depreciation, amortisation and net
impairments
(2,118)
(1,143)
(349)
(377)
(211)
(1)
(38)
Exploration expenses
(275)
(114)
(157)
(4)
-
-
(0)
Adjusting items
(17)
-
(0)
(17)
-
-
-
Impairment
9
-
(0)
9
-
-
-
Reversal of impairment
(26)
-
-
(26)
-
-
-
Adjusted exploration expenses
(292)
(114)
(157)
(21)
-
-
-
Net operating income/(loss)
26,103
21,813
813
1,084
1,916
(56)
533
Sum of adjusting items
 
(1,631)
1)
(735)
129
(195)
 
(293)
1)
10
(548)
Adjusted earnings/(loss)
 
24,472
1)
21,079
942
889
 
1,623
1)
(46)
(15)
Tax on adjusted
 
earnings
 
(17,281)
1)
(16,356)
(301)
(21)
 
(625)
1)
14
9
Adjusted earnings/(loss) after tax
 
7,191
1)
4,723
641
868
 
998
1)
(32)
(6)
1) MMP segment and Equinor group are restated due to amended principles for adjusting items; 'changes in fair value
 
of derivatives' and
'periodisation of inventory hedging effect'. For further information see Amended principles for Adjusted earnings
 
in the section ‘Use and
reconciliation of non-GAAP financial measures’ in the Supplementary disclosures.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equinor third quarter 2023
 
38
Items impacting net operating income/(loss) in the
second quarter of 2023
Equinor
group
Exploration
&
Production
Norway
 
Exploration
&
Production
Internationa
l
Exploration
&
Production
USA
Marketing,
Midstream
&
Processing
Rene-
wables
Other
(in USD million)
Total revenues and
 
other income
22,872
8,282
1,605
976
22,639
4
(10,634)
Adjusting Items
261
(247)
(5)
-
511
2
-
Changes in fair value of derivatives
362
13
(4)
-
353
-
-
Periodisation of inventory hedging effect
158
-
-
-
158
-
-
Over-/underlift
(262)
(260)
(2)
-
-
-
-
Gain/loss on sale of assets
2
-
-
-
-
2
-
Adjusted total revenues and other income
23,133
8,034
1,599
976
23,150
7
(10,634)
Purchases [net of inventory variation]
(10,867)
(0)
(100)
-
(21,094)
-
10,327
Adjusting Items
191
-
-
-
29
-
162
Operational storage effects
29
-
-
-
29
-
-
Eliminations
162
-
-
-
-
-
162
Adjusted purchases [net of inventory variation]
(10,676)
(0)
(100)
-
(21,065)
-
10,489
Operating and administrative expenses
(2,781)
(937)
(436)
(305)
(1,172)
(93)
163
Adjusting Items
29
50
(20)
22
(27)
4
-
Over-/underlift
6
50
(44)
-
-
-
-
Other adjustments
26
-
-
22
-
4
-
Gain/loss on sale of assets
24
-
24
-
-
-
-
Provisions
(27)
-
-
-
(27)
-
-
Adjusted operating and administrative expenses
(2,752)
(888)
(456)
(283)
(1,199)
(89)
163
Depreciation, amortisation and net impairments
(2,243)
(1,064)
(465)
(445)
(223)
(2)
(44)
Adjusting Items
11
-
-
-
2
-
9
Impairment
11
-
-
-
2
-
9
Adjusted depreciation, amortisation and net
impairments
(2,232)
(1,064)
(465)
(445)
(221)
(2)
(36)
Exploration expenses
71
(80)
173
(22)
-
-
-
Adjusting Items
-
-
-
-
-
-
-
Adjusted exploration expenses
71
(80)
173
(22)
-
-
-
Net operating income/(loss)
7,051
6,200
776
204
150
(91)
(189)
Sum of adjusting items
492
(197)
(25)
22
515
6
171
Adjusted earnings/(loss)
7,543
6,003
751
226
665
(84)
(18)
Tax on adjusted
 
earnings
(5,297)
(4,636)
(332)
(52)
(328)
7
44
Adjusted earnings/(loss) after tax
2,246
1,366
419
173
337
(77)
26
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equinor third quarter 2023
 
39
Items impacting net operating income/(loss) in the
first nine months of 2023
Equinor
group
Exploration
&
Production
Norway
Exploration
&
Production
Internationa
l
Exploration
&
Production
USA
Marketing,
Midstream
&
Processing
Rene-
wables
Other
(in USD million)
Total revenues and
 
other income
78,120
28,264
5,143
3,153
77,240
(3)
(35,677)
Adjusting items
(732)
77
(139)
(32)
(637)
0
(1)
Changes in fair value of derivatives
(646)
128
(99)
-
(676)
-
-
Periodisation of inventory hedging effect
161
-
-
-
161
-
-
Impairment from associated companies
1
-
-
-
-
1
-
Over-/underlift
(92)
(52)
(40)
-
-
-
-
Other adjustments
(100)
-
-
-
(100)
-
-
Gain/loss on sale of assets
(56)
1
-
(32)
(23)
(0)
(1)
Adjusted total revenues and other income
77,388
28,342
5,003
3,121
76,603
(3)
(35,678)
Purchases [net of inventory variation]
(34,371)
(1)
(25)
-
(69,439)
-
35,095
Adjusting items
40
-
-
-
(53)
-
94
Operational storage effects
(48)
-
-
-
(48)
-
-
Provisions
(5)
-
-
-
(5)
-
-
Eliminations
94
-
-
-
-
-
94
Adjusted purchases [net of inventory variation]
(34,331)
(1)
(25)
-
(69,492)
-
35,188
Operating and administrative expenses
 
(8,521)
(2,702)
(1,636)
(870)
(3,532)
(283)
502
Adjusting items
216
(10)
280
22
(91)
16
-
Over-/underlift
(14)
(10)
(3)
-
-
-
-
Other adjustments
32
-
-
22
-
10
-
Gain/loss on sale of assets
289
-
283
-
-
6
-
Provisions
(91)
-
-
-
(91)
-
-
Adjusted operating and administrative expenses
 
(8,305)
(2,713)
(1,356)
(849)
(3,623)
(266)
502
Depreciation, amortisation and net impairments
(7,812)
(3,873)
(1,520)
(983)
(1,019)
(306)
(111)
Adjusting items
957
588
-
(290)
350
300
9
Impairment
1,247
588
-
-
350
300
9
Reversal of impairment
(290)
-
-
(290)
-
-
-
Adjusted depreciation, amortisation and net
impairments
(6,856)
(3,285)
(1,520)
(1,273)
(669)
(6)
(103)
Exploration expenses
(394)
(337)
35
(91)
-
-
(0)
Adjusting items
36
-
36
-
-
-
-
Impairment
36
-
36
-
-
-
-
Adjusted exploration expenses
(357)
(337)
71
(91)
-
-
(0)
Net operating income/(loss)
27,022
21,350
1,996
1,210
3,250
(591)
(193)
Sum of adjusting items
518
655
177
(301)
(432)
317
102
Adjusted earnings/(loss)
27,539
22,005
2,174
908
2,818
(275)
(91)
Tax on adjusted
 
earnings
(19,048)
(17,082)
(779)
(214)
(1,084)
30
80
Adjusted earnings/(loss) after tax
8,492
4,924
1,395
695
1,734
(245)
(11)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equinor third quarter 2023
 
40
Items impacting net operating income/(loss) in the
first nine months of 2022
Equinor
group
Exploration
&
Production
Norway
Exploration
&
Production
Internationa
l
Exploration
&
Production
USA
Marketing,
Midstream
&
Processing
Rene-
wables
Other
(in USD million)
Total revenues and
 
other income
116,486
59,200
5,057
4,440
114,514
146
(66,872)
Adjusting Items
(96)
(726)
661
-
56
(87)
(1)
Changes in fair value of derivatives
 
(152)
1)
(321)
583
-
 
(414)
1)
-
-
Periodisation of inventory hedging effect
 
478
1)
-
-
-
 
478
1)
-
-
Impairment from associated companies
1
-
-
-
-
1
-
Over-/underlift
329
251
78
-
-
-
-
Gain/loss on sale of assets
(752)
(655)
-
-
(9)
(87)
(1)
Adjusted total revenues and other income
 
116,390
1)
58,475
5,719
4,440
 
114,570
1)
60
(66,873)
Purchases [net of inventory variation]
(40,953)
0
(31)
(0)
(107,920)
-
66,999
Adjusting Items
(682)
-
-
-
(60)
-
(622)
Operational storage effects
(60)
-
-
-
(60)
-
-
Eliminations
(622)
-
-
-
-
-
(622)
Adjusted purchases [net of inventory variation]
(41,635)
0
(31)
(0)
(107,980)
-
66,377
Operating and administrative expenses
(7,289)
(2,762)
(1,187)
(719)
(2,977)
(164)
520
Adjusting Items
(208)
(20)
(51)
3
(150)
10
-
Over-/underlift
(77)
(20)
(57)
-
-
-
-
Change in accounting policy
6
-
6
-
-
-
-
Gain/loss on sale of assets
14
-
0
3
-
10
-
Provisions
(150)
-
-
-
(150)
-
-
Adjusted operating and administrative expenses
(7,497)
(2,782)
(1,238)
(715)
(3,127)
(154)
520
Depreciation, amortisation and net impairments
(5,207)
(2,945)
(2,041)
(348)
247
(3)
(116)
Adjusting Items
(1,393)
(821)
1,030
(711)
(891)
-
-
Impairment
1,109
-
1,030
-
79
-
-
Reversal of impairment
(2,502)
(821)
-
(711)
(970)
-
-
Adjusted depreciation, amortisation and net
impairments
(6,600)
(3,767)
(1,011)
(1,059)
(644)
(3)
(116)
Exploration expenses
(809)
(265)
(373)
(172)
-
-
(0)
Adjusting Items
59
4
65
(11)
-
-
-
Impairment
85
4
65
15
-
-
-
Reversal of impairment
(26)
-
-
(26)
-
-
-
Adjusted exploration expenses
(751)
(260)
(308)
(183)
-
-
0
Net operating income/(loss)
62,228
53,228
1,425
3,201
3,864
(21)
531
Sum of adjusting items
 
(2,321)
1)
(1,563)
1,706
(718)
 
(1,046)
1)
(77)
(623)
Adjusted earnings/(loss)
 
59,907
1)
51,665
3,131
2,483
 
2,818
1)
(97)
(93)
Tax on adjusted
 
earnings
 
(41,946)
1)
(40,078)
(940)
(55)
 
(932)
1)
23
36
Adjusted earnings/(loss) after tax
 
17,961
1)
11,587
2,191
2,428
 
1,886
1)
(74)
(57)
1) MMP segment and Equinor group are restated due to amended principles for adjusting items; 'changes in fair value
 
of derivatives' and
'periodisation of inventory hedging effect'. For further information see Amended principles for Adjusted earnings
 
in the section 'Use and
reconciliation of non-GAAP financial measures' in the Supplementary disclosures.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equinor third quarter 2023
 
41
Adjusted earnings after tax by reporting segment
Quarters
Q3 2023
Q2 2023
Q3 2022
1)
(in USD million)
Adjusted
earnings
Tax on
adjusted
earnings
Adjusted
earnings
after tax
Adjusted
earnings
Tax on
adjusted
earnings
Adjusted
earnings
after tax
Adjusted
earnings
Tax on
adjusted
earnings
Adjusted
earnings
after tax
E&P Norway
6,087
(4,743)
1,343
6,003
(4,636)
1,366
21,079
(16,356)
4,723
E&P International
809
(163)
646
751
(332)
419
942
(301)
641
E&P USA
343
(82)
261
226
(52)
173
889
(21)
868
MMP
876
(333)
543
665
(328)
337
1,623
(625)
998
REN
(108)
11
(97)
(84)
7
(77)
(46)
14
(32)
Other
18
17
35
(18)
44
26
(15)
9
(6)
Equinor group
8,024
(5,292)
2,731
7,543
(5,297)
2,246
24,472
(17,281)
7,191
Effective tax rates on adjusted
earnings
66.0%
70.2%
70.6%
1)
1) MMP segment and Equinor group have been restated due to amended principles for adjusting items; 'changes in fair value
 
of derivatives'
and 'periodisation of inventory hedging effect'. For further information see Amended principles
 
for Adjusted earnings in the section ‘Use and
reconciliation of non-GAAP financial measures’ in the Supplementary disclosures.
First nine months
2023
2022
1)
(in USD million)
Adjusted
earnings
Tax on
adjusted
earnings
Adjusted
earnings
after tax
Adjusted
earnings
Tax on
adjusted
earnings
Adjusted
earnings
after tax
E&P Norway
22,005
(17,082)
4,924
51,665
(40,078)
11,587
E&P International
2,174
(779)
1,395
3,131
(940)
2,191
E&P USA
908
(214)
695
2,483
(55)
2,428
MMP
2,818
(1,084)
1,734
2,818
(932)
1,886
REN
(275)
30
(245)
(97)
23
(74)
Other
(91)
80
(11)
(93)
36
(57)
Equinor group
27,539
(19,048)
8,492
59,907
(41,946)
17,961
Effective tax rates on adjusted earnings
69.2%
70.0%
1)
1) MMP segment and Equinor group are restated due to amended principles for adjusting items; 'changes in fair value
 
of derivatives' and
'periodisation of inventory hedging effect'. For further information see Amended principles for Adjusted earnings
 
in the section ‘Use and
reconciliation of non-GAAP financial measures’ in the Supplementary disclosures.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equinor third quarter 2023
 
42
Reconciliation of adjusted earnings after tax to net income
 
Quarters
Reconciliation of adjusted earnings after tax to net income
 
First nine
months
Q3 2023
Q2 2023
Q3 2022
(in USD million)
2023
2022
7,453
7,051
26,103
Net operating income/(loss)
A
27,022
62,228
5,003
5,474
17,906
Income tax less tax on net financial items
B
19,150
43,554
2,450
1,578
8,196
Net operating income after tax
C = A-B
7,872
18,674
571
492
 
(1,631)
2)
Items impacting net operating income/(loss)
1)
D
518
 
(2,321)
2)
289
(177)
 
(625)
2)
Tax on items impacting
 
net operating income/(loss)
E
(102)
 
(1,608)
2)
2,731
2,246
 
7,191
2)
Adjusted earnings after tax*
F = C+D-E
8,492
 
17,961
2)
13
323
1,053
Net financial items
G
1,525
1,907
39
(72)
121
Tax on net financial
 
items
H
(101)
265
2,501
1,829
9,371
Net income/(loss)
I = C+G+H
9,296
20,847
1) For items impacting net operating income/(loss), see Reconciliation of adjusted earnings in the Supplementary
 
disclosures.
2) Restated.
 
For more information, see Amended principles for Adjusted earnings in the section ‘Use and reconciliation of non-GAAP
financial measures’ in the Supplementary disclosures.
Quarters
Change
Adjusted exploration expenses
First nine months
Q3 2023
Q2 2023
Q3 2022
Q3 on Q3
(in USD million)
2023
2022
Change
179
122
102
76%
E&P Norway exploration expenditures
449
350
28%
52
63
172
(70%)
E&P International exploration expenditures
176
331
(47%)
110
48
23
>100%
E&P USA exploration expenditures
227
99
>100%
341
233
296
15%
Group exploration expenditures
852
780
9%
24
(223)
15
60%
Expensed, previously capitalised exploration expenditures
(117)
100
N/A
(175)
(81)
(19)
>100%
Capitalised share of current period's exploration activity
(378)
(129)
>100%
28
0
(17)
N/A
Impairment (reversal of impairment)
37
59
(38%)
218
(71)
275
(21%)
Exploration expenses according to IFRS
394
809
(51%)
(28)
-
17
N/A
Items impacting net operating income/(loss)
1)
(36)
(59)
(38%)
190
(71)
292
(35%)
Adjusted exploration expenses*
357
751
(52%)
1) For items impacting net operating income/(loss), see Reconciliation of adjusted earnings in the Supplementary disclosures.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equinor third quarter 2023
 
43
Calculation of CFFO after taxes paid and net cash flow
Quarters
Change
Calculation of CFFO after taxes paid
First nine months
Q3 2023
Q2 2023
Q3 2022
Q3 on Q3
(in USD million)
2023
2022
Change
11,336
10,485
24,498
(54%)
Cash flows provided by operating activities before taxes paid
and working capital items
37,126
62,620
(41%)
(3,743)
(10,841)
(16,975)
78%
Taxes Paid
(20,173)
(29,668)
32%
7,594
(356)
7,524
1%
Cash flow from operations after taxes paid (CFFO after
taxes paid)
16,953
32,952
(49%)
Quarters
Change
Calculation of net cash flow
First nine months
Q3 2023
Q2 2023
Q3 2022
Q3 on Q3
(in USD million)
2023
2022
Change
7,594
(356)
7,524
1%
Cash flow from operations after taxes paid (CFFO after taxes
paid)
16,953
32,952
(49%)
(100)
(803)
(21)
>(100%)
(Cash used)/received in business combinations
(1,155)
147
N/A
(2,652)
(2,842)
(2,053)
(29%)
Capital expenditures and investments
 
(7,545)
(6,382)
(18%)
(219)
(24)
(63)
>(100%)
(Increase)/decrease in other items interest-bearing
 
(180)
(30)
>(100%)
0
71
269
(100%)
Proceeds from sale of assets and businesses
 
118
919
(87%)
(2,613)
(2,725)
(1,256)
>(100%)
Dividend paid
 
(8,199)
(3,149)
>(100%)
(531)
(4,079)
(1,996)
73%
Share buy-back
 
(5,071)
(2,738)
(85%)
1,479
(10,758)
2,402
(38%)
Net Cash Flow
(5,079)
21,719
N/A
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equinor third quarter 2023
 
44
Calculation of capital employed and net debt to capital employed ratio
The table below reconciles the net interest-bearing debt adjusted, the capital employed, the net debt to capital employed ratio
adjusted including lease liabilities and the net debt to capital employed adjusted ratio with the most directly comparable financial
measure or measures calculated in accordance with IFRS.
Calculation of capital employed and net debt to capital employed ratio
At 30 September
At 31 December
(in USD million)
2023
2022
Shareholders' equity
48,718
53,988
Non-controlling interests
15
1
Total equity
 
A
48,733
53,989
Current finance debt and lease liabilities
5,283
5,617
Non-current finance debt and lease liabilities
24,488
26,551
Gross interest-bearing debt
B
29,771
32,168
Cash and cash equivalents
14,944
15,579
Current financial investments
25,290
29,876
Cash and cash equivalents and financial investment
 
C
40,234
45,455
Net interest-bearing debt [9]
B1 = B-C
(10,462)
(13,288)
Other interest-bearing elements
 
1)
2,731
6,538
Normalisation for cash-build up before tax payment (50% of Tax
 
Payment)
 
2)
2,236
-
Net interest-bearing debt adjusted normalised for tax payment, including lease liabilities*
B2
(5,495)
(6,750)
Lease liabilities
3,588
3,668
Net interest-bearing debt adjusted*
B3
(9,083)
(10,417)
Calculation of capital employed*
Capital employed
A+B1
38,270
40,701
Capital employed adjusted, including lease liabilities
A+B2
43,237
47,239
Capital employed adjusted
A+B3
39,649
43,571
Calculated net debt to capital employed*
Net debt to capital employed
(B1)/(A+B1)
(27.3%)
(32.6%)
Net debt to capital employed adjusted, including lease liabilities
(B2)/(A+B2)
(12.7%)
(14.3%)
Net debt to capital employed adjusted
(B3)/(A+B3)
(22.9%)
(23.9%)
1)
 
Cash and cash equivalents adjustments regarding collateral deposits classified as cash and cash equivalents in the Consolidated
balance sheet but considered as non-cash in the non-GAAP calculations as well as financial investments in Equinor Insurance
 
AS
classified as current financial investments.
2)
 
Adjustment to net interest-bearing debt for cash build-up in the first quarter and the third quarter before tax payment on
 
1 April and 1
October. This is to exclude 50% of the cash build-up to have a more
 
even allocation of tax payments between the four quarters and
hence a more representative net interest-bearing debt.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equinor third quarter 2023
 
45
FORWARD
 
-LOOKING STATEMENTS
 
This report contains certain forward-looking statements that involve risks and uncertainties. In some cases, we use words such as
"ambition", "continue", "could", "estimate", "intend", "expect", "believe", "likely", "may", "outlook", "plan", "strategy", "will", "guidance",
"targets", and similar expressions to identify forward-looking statements. Forward-looking statements include all statements other than
statements of historical fact, including, among others, statements regarding Equinor's plans, intentions, aims, ambitions and
expectations; the commitment to develop as a broad energy company; the ambition to be a leading company in the energy transition
and reduce net group-wide greenhouse gas emissions; our ambitions and expectations regarding decarbonisation;
future financial
performance, including earnings, cash flow and liquidity; accounting policies; the ambition to grow cash flow and returns; expectations
regarding progress on the energy transition plan; expectations regarding cash flow and returns from Equinor’s oil and gas portfolio;
expectations regarding operated emissions; plans to develop fields; expectations and plans for renewables production capacity and
investments in renewables and low carbon solutions; expectations and plans regarding development of renewables projects, CCUS
and hydrogen businesses;
future worldwide economic trends, market outlook and future economic projections and assumptions,
including commodity price, currency and refinery assumptions; organic capital expenditures through 2026; expectations and estimates
regarding production and development and execution of projects; expectations regarding growth in oil and gas and renewable power
production; estimates regarding tax payments; the ambition to keep unit of production cost in the top quartile of our peer group;
scheduled maintenance activity and the effects thereof on equity production; projected impact or timing of administrative or
governmental rules, standards, decisions, standards or laws; completion and results of acquisitions and disposals; expected amount
and timing of dividend payments and the implementation of our share buy-back programme; and provisions and contingent liabilities.
You should not place undue reliance on these forward-looking statements. Our actual results could differ materially from those
anticipated in the forward-looking statements for many reasons.
These forward-looking statements reflect current views about future events, are based on management’s current expectations and
assumptions and are, by their nature, subject to significant risks and uncertainties because they relate to events and depend on
circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ
materially from those expressed or implied by these forward-looking statements, including levels of industry product supply, demand
and pricing, in particular in light of significant oil price volatility and the uncertainty created by Russia’s invasion of Ukraine;
unfavourable macroeconomic conditions and inflationary pressures; exchange rate and interest rate fluctuations; levels and
calculations of reserves and material differences from reserves estimates; regulatory stability and access to resources, including
attractive low carbon opportunities; the effects of climate change and changes in stakeholder sentiment and regulatory requirements
regarding climate change; changes in market demand and supply for renewables; inability to meet strategic objectives; the
development and use of new technology; social and/or political instability, including as a result of Russia’s invasion of Ukraine; failure
to manage digital and cyber threats; operational problems; unsuccessful drilling; availability of adequate infrastructure; the actions of
field partners and other third-parties; reputational damage; the actions of competitors; the actions of the Norwegian state as majority
shareholder and exercise of ownership by the Norwegian state; changes or uncertainty in or non-compliance with laws and
governmental regulations; adverse changes in tax regimes; the political and economic policies of Norway and other oil-producing
countries; regulations on hydraulic fracturing and low-carbon value chains; liquidity, interest rate, equity and credit risks; risks relating
to trading and commercial supply activities; an inability to attract and retain personnel; ineffectiveness of crisis management systems;
inadequate insurance coverage; health, safety and environmental risks; physical security risks; failure to meet our ethical and social
standards; non-compliance with international trade sanctions; and other factors discussed elsewhere in this report and in Equinor's
Integrated Annual Report for the year ended December 31, 2022 (including section 5.2 - Risk factors thereof). Equinor's 2022
Integrated Annual Report is available at Equinor's website www.equinor.com.
Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot assure you that our
future results, level of activity, performance or achievements will meet these expectations. Moreover, neither we nor any other person
assumes responsibility for the accuracy and completeness of the forward-looking statements. Any forward-looking statement speaks
only as of the date on which such statement is made, and, except as required by applicable law, we undertake no obligation to update
any of these statements after the date of this report, either to make them conform to actual results or changes in our expectations.
We use certain terms in this document, such as "resource" and "resources", that the SEC's rules prohibit us from including in our
filings with the SEC. U.S. investors are urged to closely consider the disclosures in our Annual Report on Form 20-F for the year
ended December 31, 2022, SEC File No. 1-15200. This form is available on our website or by calling 1-800-SEC-0330 or logging on
to www.sec.gov.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equinor third quarter 2023
 
46
END NOTES
1.
The group's
average liquids price
 
is a volume-weighted average of the segment prices of crude oil, condensate and natural gas
liquids (NGL).
2.
The
refining reference margin
 
is a typical gross margin and will differ from the actual margin, due to variations in type of crude
and other feedstock, throughput, product yields, freight cost, inventory, etc
3.
Liquids volumes
 
include oil, condensate and NGL, exclusive of royalty oil. The 2022 liquid volumes were restated in the first
quarter 2023 due to a change in the calculation methodology. See table below for further information.
4.
Equity volumes
 
represent produced volumes under a
production sharing agreement (PSA)
 
that correspond to Equinor’s
ownership share in a field.
Entitlement volumes
, on the other hand, represent Equinor’s share of the volumes distributed to the
partners in the field, which are subject to deductions for, among other things, royalty and the host government's share of profit oil.
Under the terms of a PSA, the amount of profit oil deducted from equity volumes will normally increase with the cumulative return
on investment to the partners and/or production from the licence. Consequently, the gap between entitlement and equity volumes
will likely increase in times of high liquids prices. The distinction between equity and entitlement is relevant to most PSA regimes,
whereas it is not applicable in most concessionary regimes such as those in Norway, the UK, the US, Canada and Brazil.
 
5.
Transactions with the
Norwegian State.
 
The Norwegian State, represented by the Ministry of Trade, Industry and Fisheries, is
the majority shareholder of Equinor and it also holds major investments in other entities. This ownership structure means that
Equinor participates in transactions with many parties that are under a common ownership structure and therefore meet the
definition of a related party. Equinor purchases liquids and natural gas from the Norwegian State, represented by SDFI (the
State's Direct Financial Interest). In addition, Equinor sells the State's natural gas production in its own name, but for the
Norwegian State's account and risk, and related expenditures are refunded by the State.
6.
The production guidance reflects our estimates of
proved reserves
 
calculated in accordance with US Securities and Exchange
Commission (SEC) guidelines and additional production from other reserves not included in proved reserves estimates.
 
7.
The group's
average realised piped gas prices
 
include all realised piped gas sales, including both physical sales and related
paper positions. The realised piped gas price Europe for 2022 was restated in the first quarter of 2023 due to a change in the
definition and exclusion of LNG. This was done to report a realised European gas price that is comparable to relevant European
piped gas references/market prices. See table below for further information.
8.
The internal
transfer price
 
paid from the MMP segment to the E&P Norway and E&P USA segments.
9.
Since different legal entities in the group lend to projects and others borrow from banks, project financing through external bank
or similar institutions is not netted in the balance sheet and results in over-reporting of the debt stated in the balance sheet
compared to the underlying exposure in the group. Similarly, certain net interest-bearing debt incurred from activities pursuant to
the Marketing Instruction of the Norwegian government are offset against receivables on the SDFI. Some interest-bearing
elements are classified together with non-interest bearing elements and are therefore included when calculating the net interest-
bearing debt.
Liquid sales volume restatement (mmbl)
Q1 2022
Q2 2022
Q3 2022
Q4 2022
First nine
months
2022
Full year
2022
Liquid sales volume (old)
185.5
180.5
182.9
191.2
548.9
740.1
Liquid sales volume (new)
211.6
195.4
196.8
212.1
603.9
815.9
Average invoiced gas price restatement (mmbtu)
Q1 2022
Q2 2022
Q3 2022
Q4 2022
First nine
months
2022
Full year
2022
Average invoice gas price - Europe (old)
29.60
27.18
43.65
29.80
33.44
32.46
Realised piped gas price Europe (new)
30.25
27.43
44.37
29.84
33.93
32.84
Equinor third quarter 2023
 
47
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be
 
signed on its behalf by
the undersigned, thereunto duly authorised.
EQUINOR ASA
(Registrant)
Dated: 27 October, 2023
By: ___/s/ Torgrim
 
Reitan
Name: Torgrim Reitan
Title:
 
Chief Financial Officer

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