# Equinor ASA (EQNR) — Narrative, third quarter 2026 Equinor reports in US dollars under IFRS, so every amount below is as the company states it; none has been converted. Figures marked "adjusted" are the company's own non-GAAP measures. Sources: the annual report on Form 20-F for 2025 (accession 0001140625-26-000013), including the 2025 Annual Report filed as its Exhibit 15.4, and the third quarter 2026 financial statements and review furnished on Form 6-K (accession 0001140625-26-000027, filed 28 October 2026). --- ## Business *From the 2025 Form 20-F and its Exhibit 15.4 (2025 Annual Report), accession 0001140625-26-000013.* Equinor is a Norwegian, state-controlled energy company. It earns most of its money by producing oil and natural gas, about two million barrels of oil equivalent a day, and selling it mainly into Europe. Two-thirds of its equity production comes from the Norwegian continental shelf (NCS), and the rest from the US, Brazil, the UK, Angola, Algeria and other countries. Equinor describes itself as the largest supplier of oil and gas to Europe. It also markets the Norwegian state's own oil and gas alongside its own, runs refineries and gas-processing plants, trades crude, products, gas, LNG and power worldwide, and is building a power business of offshore and onshore wind, solar, batteries and gas-fired plants. Revenue is booked mostly in the Marketing, Midstream & Processing segment, which buys the upstream segments' output at internal transfer prices and sells it to customers. In 2025, crude oil made up $58.40 billion of $105.24 billion in revenue from contracts with customers. Natural gas made up $25.29 billion (European gas alone $21.22 billion), refined products $10.38 billion, natural gas liquids $7.04 billion and power $2.10 billion. Adding $0.59 billion of other revenues (taxes paid in kind, commodity derivatives and other items), $18 million of income from equity-accounted investments and $616 million of other income gives the $106.46 billion of total revenues and other income reported for 2025. The company has around 24,600 employees in more than 20 countries. The Norwegian state owns 67% directly and another 3% through the National Insurance Fund (Folketrygdfondet). The shares trade in Oslo and, as ADSs representing one share each, on the New York Stock Exchange. **Reporting segments.** The six segments below have applied since the first quarter of 2026, when the new Power business area became a reportable segment and 2025 comparatives were restated: - **E&P Norway** is the backbone of the portfolio. It produced 1,410 mboe/d of equity output in 2025, about two-thirds of the group total, and operates 47 fields; Equinor is responsible for about 70% of Norway's oil and gas production. Its stated goal is to hold 2035 NCS production at the 2020 level through near-field exploration, faster development of discoveries and a new operating model introduced in 2026. - **E&P International** produced 293 mboe/d of equity output in 2025. Its main assets are in Brazil (the Bacalhau field started up in late 2025; the Raia gas project is expected in 2028), Angola, Algeria, Canada and the UK, where its interests are held through Adura, a joint venture with Shell completed in the fourth quarter of 2025. - **E&P USA** produced 434 mboe/d of equity output in 2025 from US offshore fields, where Equinor ranks itself fifth-largest producer in the Gulf of America, and from onshore gas in the Appalachian Basin. The Sparta offshore project is under development. - **Marketing, Midstream & Processing (MMP)** markets and trades crude, products, gas and LNG globally, including the Norwegian state's volumes. It refines crude (including at the Mongstad refinery) and operates onshore processing plants. MMP is also the technical service provider for the Northern Lights CO₂ transport and storage venture. In 2025 it sold 1,106 million barrels of liquids and 67 bcm of natural gas. - **Power** combines the former Renewables segment with flexible power assets and Danske Commodities' power trading, both previously in MMP. It has about 2 GW of installed capacity and about 3 GW under construction, including Empire Wind (New York), Dogger Bank (UK) and Bałtyk 2 and 3 (Poland). - **Other** covers Projects, Drilling & Procurement, Technology, Digital & Innovation, and corporate functions. **Strategy and capital allocation.** Equinor's three investment priorities are developing the NCS, focused international oil and gas growth, and an integrated power business. In its 2025 annual report it described a revised investment programme for 2026–27 with less capital for low-carbon and renewables projects, citing fewer attractive opportunities. It also lowered its net carbon intensity reduction ambition to 5–15% by 2030 (previously 15–20%) and 15–30% by 2035 (previously 30–40%), while keeping its target of a 50% net cut in operated scope 1 and 2 emissions by 2030 and net zero by 2050. Its distribution policy is a quarterly cash dividend it aims to grow with long-term underlying earnings, plus share buy-backs as the flexible part. Because the state holds 67%, a proportionate share of the state's shares is redeemed alongside each buy-back to keep its stake unchanged. --- ## Risk factors *From Section 5.2 Risk factors of the 2025 Annual Report (Exhibit 15.4), incorporated as Item 3.D of the 2025 Form 20-F, accession 0001140625-26-000013.* The risks below are condensed from Equinor's own list. They are those most specific to its business: - **Commodity prices and currency.** Oil and gas prices are the main drivers of results, liquidity and the ability to fund capital spending. Long periods of low prices could force production changes, impairments or the cancellation of projects. High prices bring higher taxes and cost inflation. There is also a currency mismatch: revenues are mostly in or driven by US dollars, gas and product sales are mainly in euros and sterling, but a large share of operating costs, capital spending, distributions and income taxes are in Norwegian kroner. - **Geopolitics.** Equinor names the security situations in Europe and the Middle East, instability around supply routes, sanctions and tariffs as current factors that could disrupt operations, projects and trade. - **Resource base and access to opportunities.** Future production depends on finding, buying and developing new resources in time. Reserve estimates can be revised, which could trigger impairments. Access to acreage depends on governments and national oil companies. Building power and low-carbon businesses depends on finding projects with acceptable commercial terms. - **Policy, tax and state intervention.** Changes in laws, tax regimes or energy policy in any host country could hurt results. Examples include rules on hydraulic fracturing for US onshore assets. Offshore wind and some national-oil-company partnerships are subject to heavy state control, including the risk of expropriation, cancellation or renegotiation. The US offshore wind business shows this concretely: Empire Wind received stop-work orders in April and December 2025, and the annual report's financial review notes that at 31 December 2025 the project's gross book value was about $3.7 billion, and $2.7 billion was drawn on its project-finance loan. - **Climate policy and the energy transition.** Tighter climate rules, litigation, carbon costs and changing demand could reduce asset values. For investment decisions Equinor assumes a minimum carbon price of $100 per tonne in 2027, rising to $122 per tonne by 2030 (2025 real terms). Pressure from both "pro-ESG" and "anti-ESG" investors could affect access to and cost of capital. Equinor also warns that its climate ambitions may not be met. - **The Norwegian state as majority owner.** With 67% of the shares, the state can decide any shareholder vote, including changes to the articles of association. Its coordinated ownership strategy requires Equinor to market the state's oil and gas together with its own as a single economic unit, taking the state's interests into account. A change in ownership policy could affect strategy and returns. - **Project delivery and operations.** Equinor runs many large and "first-off" projects (new concepts, regions, partners or value chains). These are exposed to cost inflation, delays, technical problems and a lack of infrastructure to reach markets at viable prices. - **Partners, joint ventures and contractors.** Many activities are run through joint arrangements, including Adura with Shell since 2025, where Equinor has limited control. It can still be held liable when an operator or contractor fails. - **Trading losses.** Trading in crude, products, gas and power derivatives exposes Equinor to adverse price moves and counterparty default. The filing notes that traders have in the past acted outside their mandates. - **Cyber and digital disruption.** Failures or attacks on IT and operational systems, its own or third parties', could halt production, cause safety incidents or lead to data loss and regulatory action. Equinor says AI adds to this risk. - **Health, safety, environment and security.** Blowouts, leaks, fires, explosions, vessel collisions and extreme weather could harm people and the environment and lead to large liabilities. Security threats, including sabotage, terrorism and insider threats, are becoming less predictable, and Equinor says its role as a leading energy supplier to Europe makes it particularly vulnerable. - **Compliance and integrity.** Equinor faces anti-corruption, sanctions, competition, trading and reporting rules in many jurisdictions. A breach, even a small one in money terms, could bring heavy penalties. - **Workforce, crisis response and insurance.** Equinor may be unable to keep the skills it needs. Restructuring may not deliver. Part of its insurable risk is held in a wholly owned captive insurer, so outside recoveries may be limited. --- ## Management's discussion of 2025 *From Item 5 of the 2025 Form 20-F and Section 2.2 Financial performance of the 2025 Annual Report (Exhibit 15.4), accession 0001140625-26-000013. Segment figures are on the 2025 reporting basis (Renewables shown separately; flexible power still in MMP).* In 2025, equity production reached a record 2,137 mboe/d, helped by new NCS fields (Johan Castberg, Halten East) and the start of Bacalhau in Brazil. Lower liquids prices still cut earnings. Total revenues and other income rose to $106.46 billion from $103.77 billion, as higher gas prices and volumes offset lower liquids prices. Net operating income fell to $25.35 billion from $30.93 billion. Net income fell to $5.06 billion ($1.94 per share) from $8.83 billion ($3.12). Adjusted operating income was $27.6 billion against $29.8 billion, and adjusted earnings per share were $2.47 against $3.24. Net impairments totalled $2.48 billion, mainly from reduced expected synergies in US offshore wind and updated price assumptions. Income tax was $20.03 billion, an effective rate of 79.8% (71.5% in 2024). Equinor says the rate rose because a larger share of income came from high-tax jurisdictions, the UK Energy Profits Levy was extended, and it derecognised deferred tax assets and booked a loss on forming the Adura joint venture. By segment: - **E&P Norway** earned $24.12 billion in net operating income (2024: $24.56 billion) on revenues of $34.39 billion. Revenues held up on higher production, with higher gas prices offset by lower liquids prices, and the result included a $491 million gain from an asset swap with Petoro. Depreciation rose 19% as new fields ramped up and the dollar weakened against the krone. - **E&P International** earned $470 million (2024: $2.75 billion). Lower volumes and prices, the absence of the 2024 gain on selling the Nigerian business, and $851 million of impairments on assets held for sale in the UK ($650 million) and Brazil ($201 million) drove the fall. On 11 November 2025 Equinor closed the sale of its 40% operated interest in Peregrino to PRIO for total cash consideration of $1,795 million net of interim period adjustments, and it recognised a $5.57 billion interest in Adura. - **E&P USA** earned $668 million (2024: $1.03 billion). Entitlement production grew 27% on Appalachian interests acquired at the end of 2024, but costs rose on a higher abandonment estimate for a late-life offshore asset, and impairments were $385 million. - **MMP** earned $1.70 billion (2024: $3.33 billion). Gas trading, LNG and a favourable price review drove the result. Adjusted operating income fell on weaker LNG trading and lower power-trading gains, partly offset by stronger refining margins. - **Renewables** lost $1.61 billion (2024: loss of $676 million), including $1.4 billion of impairments mainly on Empire Wind and the South Brooklyn Marine Terminal, plus early-phase onshore project rights. **Cash flow, balance sheet and distributions.** Cash flow from operations after taxes paid was $18.0 billion (2024: $17.2 billion). Taxes paid were $20.46 billion. Organic capital expenditure was $13.12 billion. Net cash flow before capital distribution was $5.59 billion, against $10.71 billion paid to shareholders. Equinor distributed $9 billion in total for 2025: a quarterly dividend of $0.37 per share and $5 billion of buy-backs. Return on average capital employed was 14.5% (2024: 20.6%), which ranked second in Equinor's peer group. Gross interest-bearing debt was $31.2 billion after bond issues of $1.75 billion in May and $1.5 billion in November and a $2.7 billion project-finance loan. The adjusted net-debt-to-capital-employed ratio rose to 17.8% from 11.9%. Credit ratings were Aa2 (Moody's) and AA- (S&P), both including an uplift for state ownership. In its 2025 annual report, Equinor guided to about $13 billion of organic capital expenditure (assuming 10 kroner to the dollar) and about 3% production growth for the year. It raised the quarterly dividend to $0.39 and set an initial 2026 buy-back of $1.5 billion. --- ## Current quarter: third quarter 2026 *From the third quarter 2026 financial statements and review, Form 6-K, accession 0001140625-26-000027 (unaudited; quarter ended 30 September 2026).* **Results.** Much higher oil and European gas prices than a year earlier, together with a record contribution from the Mongstad refinery, drove a sharp rise in earnings. Brent averaged $97.0 per barrel against $69.1 in the third quarter of 2025. Equinor's realised European piped gas price was $19.99 per MMBtu against $11.43. Total revenues and other income rose 27% to $33.19 billion. Net operating income was $11.95 billion (Q3 2025: $5.27 billion). Adjusted operating income almost doubled to $12.35 billion. Net income was $2.55 billion, or $1.07 per share, compared with a loss of $204 million (−$0.08) a year earlier. Adjusted net income was $2.86 billion, or $1.20 per share (Q3 2025: $0.37). Most of the gap between operating income and net income is tax. The effective tax rate was 77.6%, because a high share of income came from the NCS, where the statutory rate is 78%, and because of currency effects. Reported results included a $628 million impairment of a cross-border offshore asset in Norway and the UK, after updated production profiles, and a $120 million provision increase in E&P International. A $165 million impairment reversal on a Norwegian offshore asset partly offset these. For the first nine months, net income was $10.49 billion against $3.74 billion, and adjusted operating income was $33.61 billion against $21.40 billion. The nine-month figures include a $467 million gain on the sale of Argentine onshore assets. **Production.** Equity production was 2,166 mboe/d, up 2% from a year earlier. In the first nine months it averaged 2,214 mboe/d, up 5%. NCS output was flat: Halten East, Verdande and new wells offset natural decline and unplanned losses at Johan Castberg and Troll. International output rose 21% on Bacalhau and Adura, net of divestments. US output fell 4% on planned offshore downtime and decline. Renewable generation rose 26% to 1.15 TWh, mainly from Dogger Bank. **Segments** (adjusted operating income, Q3 2026 against Q3 2025 restated): - **E&P Norway**: $10.57 billion against $5.62 billion. The internal gas price rose 81% to $18.07 per MMBtu, and liquids reached $98.2 per barrel. - **E&P International**: $545 million against $396 million. A large underlift, meaning less was sold than produced, cut adjusted total revenues and other income by 5% to $1,248 million, and higher prices only partly offset it. The rise in adjusted operating income came from lower adjusted operating and administrative expenses, $297 million against $532 million, mainly because of divestments and lower lifted volumes. Reported net operating income was $275 million after the UK impairment and the provision increase. - **E&P USA**: $345 million against $37 million, on higher liquids prices and lower operating costs, including a smaller charge than a year earlier for revised abandonment costs at a late-life offshore asset. - **MMP**: $893 million against $307 million. Refining margins were high amid refinery disruptions in the Middle East and Russia, and Mongstad posted a record result. Gas and LNG trading contributed $444 million. Crude, Products and Liquids lost $96 million on derivative positions in a tight shipping market. - **Power**: an adjusted loss of $5 million (against a $72 million loss). Strong power trading was offset by project development costs. **Cash flow and balance sheet.** Cash flow from operations before taxes and working capital was $14.68 billion (Q3 2025: $9.10 billion). After taxes paid of $6.54 billion, mostly the first two Norwegian tax instalments for 2026, cash flow from operations after taxes paid was $8.14 billion (Q3 2025: $5.33 billion). Reported cash flow from operating activities was $7.55 billion. Organic capital expenditure was $3.28 billion. Net cash flow before capital distribution was $5.18 billion, and after $4.08 billion of distributions Equinor took in $1.11 billion of net cash. The adjusted net-debt-to-capital-employed ratio fell to 3.8%, from 10.4% at the end of June and 17.8% at the end of 2025. At 30 September 2026, cash was $6.30 billion and current financial investments were $17.69 billion, against finance debt of $25.38 billion. No new finance debt was raised in the first nine months. **Portfolio moves in the quarter.** - Equinor agreed on 6 August 2026 to buy 87.71% of the Class A shares of the Lackawanna Energy Center, a gas-fired power plant in Pennsylvania, for $940 million in cash, subject to adjustments. Invenergy AMPCI Thermal Power LLC holds the rest. The stake will be equity-accounted as a joint venture in the Power segment. Closing is expected in the fourth quarter of 2026 or the first quarter of 2027, subject to regulatory approval. - Equinor acquired bp's interest in the Bay du Nord oil project offshore Canada. The report gives no price. - Equinor entered Namibia through an exploration licence, took part in new discoveries in Angola, formed an NCS exploration partnership with Aker BP and Vår Energi, and signed energy supply agreements with companies in Poland, the Netherlands and Germany. - Equinor has agreed to sell its remaining 20% of the Peregrino field in Brazil. At 30 September, $916 million of assets and $164 million of liabilities were held for sale. Completion is expected in the fourth quarter of 2026 or the first quarter of 2027. - The sale of the Argentine Vaca Muerta onshore position to Vista Energy closed on 7 May 2026. Consideration had a fair value of $1,425 million: $722 million in cash, $408 million in Vista shares, and contingent payments over five years. **Empire Wind and litigation.** On 30 September 2026, a US court dismissed Empire Offshore Wind's challenge to the December 2025 suspension order as moot, because the order had expired. Equinor says this removes the risk that the project's $2.7 billion loan becomes repayable within twelve months. In a separate case, the Brazilian class action seeking to annul Petrobras' 2016 sale of its BM-S-8 interest to Equinor closed on 20 July 2026 with no material financial impact. **Outlook (as of 28 October 2026).** Equinor raised its 2026 production growth guidance to about 4% from about 3%. It kept organic capital expenditure at about $13 billion (assuming 10 kroner to the dollar) and scheduled maintenance at about 35 mboe/d for the year, and it aims to keep unit production cost in the top quartile of its peers. At its 16 June 2026 Capital Markets Day it raised the 2026 buy-back programme by $1.5 billion to up to $3 billion. **Safety.** The twelve-month serious incident frequency rose to 0.26 per million hours worked, from 0.21 at the end of 2025. --- ## Subsequent events *From the third quarter 2026 report, Form 6-K accession 0001140625-26-000027, and Forms 6-K accessions 0001171843-26-006832 (27 October 2026), 0001171843-26-006878 and 0001171843-26-006880 (both 28 October 2026). The interim report has no separate subsequent-events note; the items below are the post-period events it and these filings disclose.* - **Bay du Nord farm-down (October 2026).** The report states that in October, after the quarter ended, Equinor sold a 30% interest in the Bay du Nord project in Canada to Shell. The project continues toward an investment decision. No price was disclosed. - **Third buy-back tranche completed (22 October 2026).** The third tranche of the 2026 programme was completed, totalling $1,125 million including the Norwegian state's share. - **Third-quarter dividend (declared 27 October 2026).** $0.39 per share. Shares go ex-dividend on 15 February 2027 in Oslo and 16 February 2027 on the NYSE, with record date 16 February 2027 and payment on 26 February 2027. - **Fourth and final 2026 buy-back tranche (decided 27 October 2026).** Up to $1,125 million including the state's share, of which up to $371.3 million will be bought in the market, running 29 October 2026 to no later than 1 February 2027. This brings the 2026 programme to its full $3 billion. - **Pending transactions.** Neither the Lackawanna Energy Center purchase nor the sale of the remaining 20% of Peregrino, both described above, had closed when the report was issued. - **Financings.** The report and the filings above disclose no new borrowing after 30 September 2026.