Equinor (EQNR) Q4 2024 & CMU 2025 earnings summary

Executive summary

• Delivered strong operational performance in 2024, with record production at key assets, robust cash flow generation, and a focus on high-return oil & gas, disciplined renewables growth, and competitive capital distribution.

• Positioned to deliver industry-leading returns, targeting above 15% return on capital employed through 2030, with a 2024 ROACE of 21%.

• Announced a $0.02 increase in quarterly dividend and a $5 billion share buyback for 2025, totaling $9 billion in capital distribution.

• Enhanced resilience through cost reductions, portfolio high-grading, and maintaining a strong balance sheet.

• Strategic progress included major acquisitions, divestments, a joint venture with Shell in the UK, and a 10% stake in Ørsted.

Financial highlights

• 2024 cash flow from operations after tax reached $17.9 billion, with organic capex at $12.1 billion.

• Adjusted operating income for Q4 2024 was $7.9 billion; net income was $2 billion; adjusted EPS was $0.63.

• Net debt ratio stood at 11.9% with over $23 billion in cash/cash equivalents at year-end.

• Free cash flow for 2025–2027 projected at $23 billion, with a $9 billion capital distribution planned for 2025.

• Full-year 2024 net operating income was $30.93 billion, down 14% from 2023.

Outlook and guidance

• Organic capex guidance for 2025–2027 is ~$13 billion per year, with flexibility to adjust based on market conditions.

• Oil & gas production expected to grow by more than 10% from 2024 to 2027, targeting ~2.2 million boe/d by 2030.

• Free cash flow of $23 billion projected over the next three years, driven by capex reduction and cost control.

• Renewables investment outlook reduced to $5 billion for 2025–2027, with 2030 renewables capacity ambition lowered to 10–12 GW.

• ROACE expected to remain above 15% through 2030.