Equinor Asa · OSL:EQNR
Equinor Asa — Q4 2022 Earnings Presentation
15 slides from Equinor Asa's earnings presentation, Feb 8, 2023
Slide 1: Value creation through the transition
2023 Capital Markets Update Value creation through the transition Torgrim Reitan CHIEF FINANCIAL OFFICER
Slide 2: Fourth quarter and full year: key financial results and messages
DELIVERIES 2022 Fourth quarter and full year Key financial results and messages • Solid operations, contributing to energy security • Strong adjusted earnings for 4Q and the full year • Increased value creation from marketing and trading • Strong cash flow with further net debt reduction • Cost focu
Slide 3: Production
2022 Production Oil and gas Power • High gas production from NCS to Europe • Renewable power generation 6% higher than 2021 • Russia exit and NCS divestments1 • Hywind Tampen production first power 4Q 2022 • Johan Sverdrup Phase 2 and Njord on stream, • Four months power generation from Triton (gas-
Slide 4: Financial results
4Q 2022 Financial results FY 2022 ~ 79 ~ 75 ~ 23 BN USD BN USD BN USD Reported NOI Adjusted Adjusted • Strong earnings earnings earnings (after tax) • Combined liquids and gas price of 109 USD/boe ⎻ Liquids up 6% to 80.4 USD/bbl 4Q 2022 7,897 16,584 (1,525) 15,059 (9,263) 5,796 ⎻ European gas up 4%
Slide 5: Adjusted earnings
4Q 2022 Adjusted earnings E&P Norway E&P International E&P USA MMP REN − Strong earnings and cash − Solid earnings and cash flow − Solid earnings and cash − Strong results from gas − Assets in operation flow flow and power sales contributed USD 37 million − Ramp up Peregrino Phase 1 and trading − So
Slide 6: Cash flow
2022 Cash flow Cash flow 2022 Million USD • Record cash flow from operations Cash flow • Organic capex USD 8.1 billion for full year 2022 from operating activities3 Taxes paid • 4Q highlights 83,608 (43,856) ⎻ Strong cash flow from operations before tax USD ~21 billion ⎻ NCS tax payment USD 13.6 bil
Slide 7: Demonstrating resilience
FINANCIAL FRAMEWORK Demonstrating resilience Strong cash flow VALUE OVER VOLUME > 15 PERCENT RoACE ~ 20 BN USD ROBUST TO LOWER PRICES < 50 USD / BBL Cash flow neutral 2023-301 Average annual CFFO 2023-302 after tax 2023-301 ROBUST 15-30 Clear capital allocation ENERGY Net Zero CAPITAL PERCENT • Comp
Slide 8: Step-up in capital distribution
CAPITAL DISTRIBUTION Step-up in capital distribution Long term commitment USD 17 bn total expected capital distribution 20231 ORDINARY EXTRAORDINARY Step-up in ordinary cash dividend • 50% increase in 4Q 2022 ordinary cash dividend to 30 cents per share • Ambition to grow the ordinary annual cash di
Slide 9: Ensuring a robust transition
STRONG OUTLOOK Ensuring a robust transition CFFO2 and capex3 • Significant group free cash flow BN USD, average per year - Around USD 25 billion in 2023-261 2023 2024-26 2027-30 40 • Portfolio robustness to lower prices 35 - Below 50 USD/ bbl cash flow neutral before capital distribution 30 • Signif
Slide 10: Cost and capital discipline
RESILIENCE THROUGH CYCLES Cost and capital discipline • Using portfolio flexibility • Strategic collaboration with suppliers • Scope bundling to drive efficiency • Standardisation to ensure pace and scale <6 USD / BOE 4 BN USD Unit production cost Improvement ambition 2023-26 cash flow impact realis
Slide 11: Long-term value creation
OIL AND GAS Long-term value creation Key projects coming on stream within 10 years1 Exploration and Production Norway and International ~ 35 USD / BBL ~ 30 PERCENT Sanctioned projects Non-sanctioned Break-even Internal rate of return Johan Castberg Oseberg OGP Fram Sør Rosebank Volume weighted avera
Slide 12: Disciplined growth
RENEWABLES AND LOW CARBON SOLUTIONS Disciplined growth Project pipeline1 4-8 PERCENT Renewables Renewables real base Low Carbon Solutions (under maturation) In operation Sanctioned (2023-2026) project return CO2 transport and storage Excluding effects from farmdowns Sheringham Shoal Dogger Bank A an
Slide 13: Strong returns through the transition
DELIVERING ON OUR STRATEGY Strong returns through the transition Outlook Strong resilient cash flow ~20 > 15 Organic capex1 BN USD PERCENT • Keeping focus and discipline through cycles Average annual cash Return on capital 2023 10-11 BILLION USD • High cashflow and return in a volatile market flow f
Slide 14: Forward-looking statements
Forward-looking statements This presentation contains certain forward-looking statements that involve risks and uncertainties. In some cases, we statements, including levels of industry product supply, demand and future fluctuations in oil & gas prices, in use words such as "ambition", "continue", "
Slide 15: Investor Relations in Equinor
CONTACT INFORMATION Investor Relations in Equinor E-mail: irpost@equinor.com Norway/UK Bård Glad Pedersen Senior Vice President bgp@equinor.com +47 91 80 17 91 Lars Valdresbråten IR Officer lava@equinor.com +47 40 28 17 89 Erik Gonder IR Officer ergon@equinor.com +47 99 56 26 11 Amberley Doskey IR O