Equinor to Return $14 Billion to Shareholders This Year — Update

By Dominic Chopping

Equinor will return $14 billion to shareholders through dividends and share buybacks this year, $3 billion less than it paid out in 2023 but still ahead of what analysts had been looking for.

Cash returns had been in focus with European peers Shell, BP and TotalEnergies all committing to lofty payouts despite volatile energy prices.

Equinor said it will pay an ordinary dividend of $0.35 and an extraordinary dividend of $0.35 for the fourth quarter. That is down overall from the $0.30 ordinary and $0.60 extraordinary dividend it paid in the third quarter, but said it now has an ambition to grow the quarterly cash dividend by $0.02 per year.

It also said it will buy back shares worth $10 billion-$12 billion over the next two years, with $6 billion of that expected in 2024.

"Equinor is pointing to $14 billion of distributions in 2024," RBC Capital Markets' Biraj Borkhataria said in a note. "This is above consensus expectations which we believe were in the $12 billion-$13 billion range."

The Norwegian energy major said gas prices are now significantly below the extraordinary price levels seen in 2022, and more than offset the company's higher oil production during the fourth quarter.

Oil and gas production increased 2.1% on the year in 2023, beating guidance for 1.5% growth. It expects stable oil and gas production in 2024.

Looking further out, Equinor aims to maintain oil and gas production of around 2 million barrels of oil equivalent per day through 2030. That compares with 2.08 million barrels produced in 2023.

The company said it aims to double its annual power production from renewable sources this year and said it is well positioned for profitable growth with a stronger cash flow, a broader energy offering and lower emissions toward 2035.

"We are extending the outlook for stable contribution from oil and gas to 2035. By 2030 we expect material and rapidly growing cash flow from our renewables and low carbon business," Chief Executive Anders Opedal said.

Adjusted earnings--the company's preferred measure--fell to $8.68 billion in the fourth quarter from $17.01 billion, against the $8.46 billion expected in a company-compiled consensus.

The company reported a net profit of $2.6 billion compared with $7.9 billion a year earlier, and against $2.46 billion expected in a FactSet poll.

Revenue fell 15% to $28.84 billion.

The company expects organic capital expenditure of around $13 billion in 2024.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

February 07, 2024 06:58 ET (11:58 GMT)

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