Equinor and Aker BP Q3 Results: Better Than Expected Profits and Share Prices Rise

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Both Equinor and Aker BP presented their results for the third quarter in the morning on Friday. Analysts liked what they saw. Equinor’s adjusted operating profit was six percent better than analysts had previously expected, while Aker BP’s ebitda, operating profit before depreciation, was three percent above expectations.

– The share price is going up, said both Teodor Sveen-Nilsen in Sparebank 1 Markets and John Olaisen in ABG Sundal Collier before the stock exchange opening.

And when Oslo Børs opened, both companies rose over one percent from the start.

– Equinor surprises the most

– As far as Equinor is concerned, the adjusted operating result was nine percent better than we had expected. It is mainly driven by everything but Norway. The Norwegian continental shelf is very similar to our estimate, says Teodor Sveen-Nilsen and points out that the results from the international business, the American business and the MMP area were better than expected.

– Die solid, is the characteristic Sveen-Nilssen uses about Aker BP’s results.

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– Also for Aker BP, the reason is lower operating costs, says John Olaisen

– Who surprises the most from Equinor and Aker BP?

– Equinor surprises the most. Six percent better than expected is a lot, says Olaisen.

Can terminate and wait for the next round

Neither of the two analysts is surprised that Equinor is lowering its production guidance for the rest of the year, from three percent growth to 1.5 percent.

– The fact that they are reducing production guidance should not come as a surprise. This is due to lower gas production on the NCS in the second and third quarters. But this is a separate choice because the gas price has been low, says John Olaisen.

Equinor writes down its offshore wind venture in the US with USD 300 million. John Olaisen reminds us that Equinor has not completely given up on the offshore wind projects outside New York.

– I spoke to the company this morning. The company is making no changes to the investment estimate for the years 2024 to 2026. Equinor expects investments of 13 billion dollars compared to 10 to 11 this year. An important part of that was the USA projects. They say they will have to come back to it at Capital Markets Day in February. But they say they have not given up on the projects. They can terminate the price contracts, but still own the areas and can bid on future license rounds, says Olaisen. (Terms) Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using links, which lead directly to our pages. Copying or other forms of use of all or part of the content may only take place with written permission or as permitted by law. For further terms see here.

2023-10-27 07:07:30
#Price #rise #Equinor #Aker #Equinor #surprises