Equinor makes 4th qtr. 2021, year end results and stock market announcements
Equinor reports record high adjusted earnings of USD 15.0 billion and USD 4.40 billion after tax in the fourth quarter of 2021. IFRS net operating income was USD 13.6 billion and the IFRS net income was USD 3.37 billion.
2021 was characterised by:
- Adjusted earnings after tax of USD 10.0 billion for the full year 2021.
- Increase in oil prices and unprecedented European gas price in second half.
- Strong operational performance and increased annual production of oil and gas by 3.2%(1).
- Continued cost focus and capital discipline.
- Very strong free cash flow of USD 25.0 billion(2) and net debt reduction.
- The Board proposes increasing the fourth quarter quarterly cash dividend to 20 cents per share, increasing the share buy-back programme up to USD 5 billion for 2022, and announce an extraordinary quarterly cash dividend of 20 cents per share for four quarters.
Adjusted earnings [5] were USD 15.0 billion in the fourth quarter, up from USD 0.76 billion in the same period in 2020. Adjusted earnings after tax [5] were USD 4.40 billion, up from negative USD 0.55 billion in the same period last year.
IFRS net operating income was USD 13.6 billion in the fourth quarter, up from negative USD 0.99 billion in the same period in 2020. IFRS net income was USD 3.37 billion in the quarter, compared to negative USD 2.41 billion in the fourth quarter of 2020. Net operating income was positively impacted by higher prices and increased production of gas and liquids. Following the high results for gas derivatives in third quarter, there has been a negative effect when the volumes have been delivered in the European gas market in the fourth quarter. The impairments of USD 1.80 billion in the fourth quarter includes the impairment of USD 1.78 billion related to Mariner in the UK caused by revision of the reserve estimates.
Read full release: Strong operational performance across all segments in the quarter
Equinor (OSE: EQNR, NYSE: EQNR) commences on 10 February 2022 the first tranche of around USD 1 billion, of the share buy-back programme for 2022, as announced at today’s Capital Markets Update, 9 February 2022.
The first tranche of the share buy-back programme for 2022 is USD 1 billion, including shares to be redeemed from the Norwegian State, and will end no later than 25 March 2022. For 2022 the annual share buy-back programme is increased from USD 1.2 billion to a level of up to USD 5 billion, including shares to be redeemed from the Norwegian State.
The annual share buy-back programme is expected to be executed when Brent Blend oil price is in or above the range of 50-60 USD/bbl, Equinor’s net debt ratio(1) stays within the communicated ambition of 15-30% and this is supported by commodity prices. The further share buy-back tranches after this first tranche in 2022 is subject to renewal of the authorisation at the annual general meeting 11 May 2022 and renewal of the agreement with the Norwegian State.
The purpose of the share buy-back programme is to reduce the issued share capital of the company. All shares repurchased as part of the programme will be cancelled.
According to an agreement between Equinor and the Norwegian State, the Norwegian State will participate in share buy-backs on a proportionate basis, ensuring that its ownership interest in Equinor remains unchanged at 67%.
The share buy-back programme for 2022 will be structured into tranches where Equinor will buy back a certain value in USD of shares over a defined period. For the first tranche for 2022, running from 10 February 2022 up to no later than 25 March 2022, Equinor is entering into a non-discretionary agreement with a third party who will make its trading decisions independently of the company.
In this first tranche, shares for up to around USD 330 million will be purchased in the market, implying a total first tranche of around USD 1 billion including redemption of shares from the Norwegian State. More…
Key information relating to the proposed cash dividend and extraordinary cash dividend to be paid by Equinor (OSE: EQNR, NYSE: EQNR) for fourth quarter 2021. Further details on the extraordinary cash dividend is included in the 4Q 2021/CMU stock market announcement published this morning.
Cash dividend amount: 0.20
Extraordinary cash dividend: 0.20
Declared currency: USD
Last day including rights: 11 May 2022
Ex-date : 12 May 2022
Record date: 13 May 2022
Payment date: 27 May 2022
The proposed cash dividend amount and extraordinary cash dividend is subject to approval by the Annual General Meeting on 11 May 2022.
Other information: Cash dividend and extraordinary dividend per share in NOK will be communicated 20 May 2022.
Information Source: Equinor –>
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