Equinor ASA (EQNR) 27 Jul 222022 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome and thank you for joining the Equinor Analyst Q2 Call. Throughout today’s presentation, all participants will be in a listen-only mode. The presentation will be followed by a question-and-answer session. [Operator Instructions] I would now like to turn the conference over to Mads Holm, Senior Vice President. ahead. go Please

Investor today Ladies will call operator. thank welcome the Chief Head to for led will Thank Ulrica the by the Svein and the as to complete second result aim who Fearn, of Holm, and Mads we’ll for participation. Officer. hour. on and This quarter SVP, Equinor Chain; results call Also We New the then by be SVP, open who Ulrica you, and Financial I’m gentlemen, usual. relations. up present Accounting. we’re of the now you XXXX is also call call Skeie, is for within joined Group questions Value the the [indiscernible],

for Thank with the presentation. So me to let that, you. pass straight Ulrica over

morning demand in than of energy of side in global we rates the continues The prices inflationary economy. results expected interest and with at already high gas economic we pandemic the prices and very continued present renewable you a are supply to European coming development pressures. gas. level, for forward. raising global started crisis financial war in to see last a linked production tight backdrop This Energy there’s going and to are the reached off and an combined Mads tight much oil climb year levels. Central energy markets back closely lower increased also against Europe. uncertainty by Thank With dark and an banks energy record driven energy everyone. Today market the already was energy war prices influence and good Ukraine strong

growth this to is uncharted and How when comes especially hand, other out territory. macroeconomic drive of other out is COVID, energy China play and these the demand. forces Asia expected in On

on between whilst OPEC these. the of of balance is several On a that of most deliver side, is importance the energy and of capacity in not energy reestablish countries It in operations do supply, have the their energy supply. limited important the free do however, to to sector. we increased and to security more transition. has investment the there of supply stable capacity know underscores continuing quotas; energy, security whilst secure invest the delivery cost and to infrastructure the energy energy Right now, contribution our decarbonizing production

capital for to the also We to we high resilience markets of the continued quarter, operations from results. and prepare tax flow strong robustness billion. in deliver and was need $XX and Cash discipline. uncertainty levels and after maintain ensure In cost financial

since, conducted are on Norwegian restrictions progress COVID gas the less we in X% We process compared high shelf second has in production ramped on back to European both our important was been Europe, have steps of the first in same June It Xst would the fill to maintained improvements to more back on levels quarter, successfully a compared from Hammerfest production and After have normally we deliveries higher months. transactions, first value been a stream. extensive XX% The and Having produced quarter. gas down taken quarter we several safely maintenance, quarter, and the has winter an last has into on storages. had increase delivering challenging gas contribution repairs, field several the brought due to sending and Europe. the was industrial continental help to been from up internationally. only We Peregrino to We've which good this year, achieved summer creating the LNG the of NCS quarter summer Recently, Brazil. strategy. production cargos the to

In we result, a to in share of we continued date, Statfjord, the as effective asset On price the over to us in the equity the from the and leaves completed cash took the interest with All-in-all in our a good project this Shell. a closing increasing due deliver a shares higher U.S. payment the all and received Platte, NCS we field flow. even since payment transferred the development operatorship then at in to acquisition sold interest North and the and Shell.

which Together is an renewable and the Smeaheia, transition At COX XX We Station supply. and will Triton UK from the transfer safe Energy, have for on The quarter, Belgium’s Russia announced. Fluxys are the year. in tons storage in important Together necessary start acquired assets power Power Power. transporting we In shelf. value and have Norwegian hydrogen for our new pipeline low Energy the part with future storage Point developing developer. U.S. to were million to to of production. the we part it is for a other more by previously also project the have completed battery the SSC, of or value power Saltend in power we of energy chains. with of continent this, progressed beginning opportunity storage the use for COX license company, COX with East we capacity continent key prepare captured a per to change as storage studying we a carbon storage for Furthermore, the acquired awarded a we

to We per in and $X.XX second this, increased to back on the the third the which the of enable the results, and very for strong $X.XX decided a cash dividend continued business has our $X.XX second is on quarter. The to addition cash invest for strong financial quarter sheet. of resilience share in continue from Board us per share to results, dividend and in deliver balance the build extraordinary

XXXX. the for upon billion buyback the Our $X conditions, the program we of maximum price, increased is and ratio, continued well to as Brent conditional a from the to share back our commodity net on buyback debt prices. up program And billion as of $X supportive

around whilst distribution competitive a from gas up will offer incident delivered capital we the in safety, past injury to returns. to we is and months the with billion XXXX. energy operational invest serious In performance in $XX of X.X frequency In total for the represents per a oil solid XX On frequency transition portfolio billion be X.X where for balanced is shareholder showing $XX tranche hours this third share recordable We XX approach our attractive total, average $X.X $XXX to months and the market increased commitment a worked. million total, million. billion The electricity. for and the around

of of Adjusted the of for we equity X,XXX,XXX our the than Martin Russia, higher quarter the in Bakken continued the assets this of In Ramp operation. second the investment in per delivered gas year is X% a the higher slightly second have in and was year. the production one NCS back in last equivalent and volume day. quarter. Linge divestment than normal hydrocarbons after quarter, totaled paid in after more barrels than quarter For substantially of tax up

We be and Peregrino expect start day. we year. future this full Sverdrup X XX,XXX later Phase Johan of year, the And Phase X, barrels expect Njord for production turnarounds to per impact to the

barrels of expect the quarter, per third than XX,XXX less impact we the day. quarterly For

projects gigawatt XXX offshore industry. XX% in have value bottlenecks power affect same wind were chains global year We The good, quarter from by the on hours. progress but to the production last increased our whole

already with the Four to delays field the and turbines on are will towed for three the next delivery due be and to be Hywind had adjust For plan steel. spring. of turbines example, come therefore and associated the make installed four this must this year's field stream The another we window year. on it installed out on last will for not Tampen weather

just with seven offshore Tampen will and XX the will megawatt farm. have largest be floating even installed, However, capacity Hywind turbines world's wind

have gas gas from quarter. and is invoice still up gas $XXX we supply, The NBP blended TTF Europe, slightly, third entered uncertainty. around but are liquids have oil around have In and prices seen Europe increase off still equivalent but has eased Equinor an TTF. per $XX in the reacted the barrel levels quarter, for last as quarter. started more Continental. divide liquids price was to more have This the quarter. high, average the of exposed was unprecedented hence $XXX, and price we of European recent between to Russian high to again

Our in COX with prices increase after billion operating income Net tax. ended pressures net at billion The income impact inflationary billion. higher $X.X totaled and and $XX.X our impact billion global earnings this $X.X and of and us. combined $X starting to costs. electricity after adjusted see also tax was We prices

cost Norwegian under control part a quarter costs is keep to our mitigate to shelf. generated The on the to and in on the efforts adjusted tax improvement large being thanks to earnings continental This was rate pressures. XX.X%. earnings our our continue We

strong now delivered high sign tax is the results. clear rate having segments. a of a onto Here, And

$XX fields results combined put The and and stronger good quarter Our values offset exchange about costs. that by This delivered earnings this performance and see partially Stable in segment, in across billion U.S. its electricity us has control. good business. adjusted $X prices, best COX high on upward to a this Norwegian dollar International is delivering are above is cost ever very Overall, best higher we and Upstream addition shelf. and quarter, our has delivered enabled performance to earnings business our tax. rate. Norwegian the high turnarounds business the International billion these to capture good of In second after with continental gas addition production in operational new high both an prices on pressure ever

had been value quarter. The is the dominant from European as to results. power before part almost Upstream and than adjusted year. to of particular, than U.S. Our In trading despite from $XXX Marcellus tax flows during the the $XXX International positive a from Upstream quarter. the over and lower these to derivatives markets business outside compared in The production of the the increased optimization the higher European and towards has of the impact spreads of due markets $X.X more delivered Group the record earnings record optimized European tax derivatives timing and earnings sales profit $X.X slightly segment whereas gas tax. divestment trading were of earnings last billion. future lower with of There high and production and Equinor the a more net price usual rate gas has Marketing simplified this captured with of from And Adjusted adjusted million Bakken after coming from composition The related with was at billion. due Midstream and last business results, is higher strengthened billion $X.X for effects the flow earnings high NCS. to contributed segment cash physical sales that's prices. value million, U.S. strongly The within demand share than to gas mark-to-market have

Our as quarter. has Renewables of earnings to activity progressing assets level operation in high million adjusted earnings portfolio. expected due million of our business our was negative Adjusted $XX this from $XX

cash far from So $XX flow of had operations billion. we've this year,

$XX billion We flow strengthening cash free in of $XX have so from the flow distribution, capital taxes materially. up year, almost billion and After paid net cash with ended far proceeds is sheet and $XX this operations billion the after tax. balance a

taxes had quarter the billion. we cash of and $X paid of specifically, For flow a second $XX billion

operations Our shelf regime new the from is just tax based tax on well new $X.X by cash tax before removing And in the be on last a XXXX or had two adopted installments installments billion. petroleum you the the summer. the NCS taxes. that billion tax, after remind will based tax We totaling cash uplift the results, regime on quarter the for XXXX parliament installments results. to as From quarter totals billion, the as continental two the $XX on third flow NOKXX Norwegian tax

state's net loss Norwegian from as investments on for balance In NOKXX or the share Norwegian billion the adjusted conducted buybacks in However, in quarter, installments will an was $X and the last NOKXX.X would quarter. The negative capital debt our $X.X strengthens basis paid made The payments, tax and part the important. net to for effect pay uncertainty of tax movements an continental billion, further was be payments, The paid and to as third low. balance flow in and the the resilience the of the After sheet XX.X%. state earnings third billion. strong, is market sheet are flow in the of is tax employed is our markets, first be cash quarter distribution XXXX and in cash energy as be week annual we shelf capital quarter we upcoming billion. quarter, free the distribution buyback the the first in a of XXXX. the around distribution, more This will total this of billion shares second of three than cash uplift payment August the and capital capital With of $X.X billion. well for $X.X

Our no changes investing and firm. We to and keep strategic progressing direction make guiding. strategy remains our on our

have So we far year, billion. organic $X.X investments this of

to expect this billion $XX be around and this will We invest next; average loaded. however, on year backend

round So then it hand and I your and look back here you off forward then will to to questions. Mads

Thank you, Ulrica.

Let and mind than you. be that back please, open us questions the no to over up two to questions pass more please in operator asked. keep should for Thank

question ahead. line Instructions] Please you. Thank is Giacomo the go First from [Operator Jefferies. of from Romeo

and good morning. you, Thank

peers into some you payout cash. generating? can wanting thinking just in a you. remuneration. of second sort if I of a looking are at us evidence to or in attention, great? wanted cash terms about this have, financial talk the see, the frame, and can get how I great question very of to see of distribution consistent more at it's you Thank you can of, you're is, the you with help be moment sort of way of stepping high there about Europe, question demand to demand seeing would understand sort putting you're about thinking empirical that of thoughts a shareholder surplus about any First see in some of distributing as if in it the sort how just evidence the CFFO XX% you to can you of terms And sort your Is bring destruction flow up cut obviously of the EU by have your proposal continental our you're

financial with around we much your distributions. whether you our can Giacomo. frame question around let's again, more -- start Thank very I first put

very our capital around We clear distribution. year to as have been last from reason we how

X.X always for clearly in say have we ratio XX% First returns the of have is we strong debt sheet money best in back all, clearly for aiming balance to and introduced about of that and we're enact still. are commodity the our And of billion a good we've at a the level part macroeconomic the flexible also prices. moment, of but XX around supportive XX% we place of our net that outside business which said and we've distribution share capital on to And a framework, to a share, the investments. a will XX we of environment price to

of continuing fits third So seen doing have flexibility. that's we're doing the quarter we last you will utilizing what basis against year us and is what execute to to that And what are since that.

buybacks. conditions approach beyond So when supportive also, our And program have share we buyback beyond have to interested that, continue we we and a X.X. the balanced cash dividends are pushed in share across

see us what dividends So we've to buybacks also between fairly to tried continuing extraordinary you that that's and share keep and balanced do.

overshadows is course they of over see The gas and the import the weather level able quarters were can see we they lot question additional fairly There one quite sustainable gas sort all of reply how is framework, a and will actually reduction. continue didn't the XX% storage the to being be the Nord Russian the using be of of this back There directly can news other. the gas complicated get, how realize, -- much I And then market was Europe sort really and in market. in clearly and go to the the distributed current then XX% going reduction. you market will way. around factor it's of This additional continue other to this on There drive XX% clearly a and levels LNG of I tight. then Look, a much up. to XX% announcements think you picture destruction, if base to to exceptions also the you The the the forward. will straightforward much that factors some see can't how overshadowed other. get where yesterday also are need a above to cash in around So support going from demand Stream a the X think the the

But, the supplies. we continue we and looking we of keep with to our for. going that's market is prepare that's going in going So be part what on to say tight, gas volatile What is continue and it's our course at. forward clearly it's what to to be clearly and that continue to

with in we've can. back heard, as support on NCS you’ve to the we from are that of Hammerfest gas our continuing we and quarter much increased supplies the being stream as As XX% possibly

to to be tight. see individual hard So continue but going it's the in and say to factors themselves,

Clint from line is go question ahead, Bernstein. Next of Please from the Oswald

Ulrica, gas, contract with XX-year the thank you. again, I’m on Cheniere. curious, just curious on

Some could you for off you commitments now or European of of bring asked the have that linked XX-year, governments take XX-year to things hub we such And we, these, Henry That’s Do Europe? you really a ultimately, stronger intend is to that question. you? to like from expect customers receiving agreement are first do contracts? underpin more

I inflation, cost on think just please, Hywind spoke Tampen. you about Secondly,

to you've CapEx be is that pressures equation the this working really XXXX? as look mitigating OPEX the that robust there go. pretty the projects full cost last or CapEx on also having been we on out years say, you some said of program of Thank supply XXXX, as some side of spoke better and couple arrangements you. could next to you despite have year you this on You XX as looking guidance, but about Is a, of pressures, a out the even

pick supplies. talk your longer-term questions. the demands mean, of will how we've yes, are that we maximize that gas there up, The the balance said I sense countries when the and the gas into knowing And European gas contract portfolio is contract fits how U.S. that to lots conversations linked did about around is good I of that get out do way, very question, and there how our course along. to production is if need as thank question and got make will fits secure our is more Yes, we there, can demand gas we how your right profile coming we first also clearly sort our strategies secure makes gas supply industries, find companies, go you the indications you the is we that priority. supplies in that that the price up as we But we pressure and And in to sure of us. best for to frequent there a and and a

On Hywind a the say, a you think less and CapEx, It the delay. pressure answer locking we made comments is early we're question, that actually mitigate how were for in continue, possibly we that's as cost to we're Hywind the as around that. as I guess, Tampen all could do pressures, Tampen contract doing more cost strong the is was with and supply and steel your more a around much and worry we so biggest, not we've procurement constraint capabilities underneath of us inflation can. was you've with these I got, suppliers mitigating of

helps that you we different when across short-term this. started in relationship of utilizing And already are certainly -- all We categories. the had

certain over where carries we've already setting up instances us in when been of So push before coming. this long-term is it contract inflation sort

from guidance to have, working But very what solutions, and that of one portfolio. got sanctioned a non-sanctioned we is as most being contract our of our with of is Oswald. sanctioned And a underneath. we we And have that of exposed. you think gives supply to terms we the disruptions. I is CapEx our in we same see suppliers, less is come. sides do bit moment some that therefore the supply see locked movements in little also linked closely chain is to kind what lot bit the I worry of two linked to And inflation again, of the portfolio more we but there's chain is a see of much have I prioritizing is the also the of color in sort at little more CapEx that, the pressures hope our But in a portfolio already. our of the of that need guidance, do in guess the that

you. thank does, It

Borkhataria Next ahead. question from is go from Biraj the Please of line RBC.

my thanks Hi, for taking questions.

on on the been kind just focus long-term I but and over is signed you the and that's to from That's you inflation numbers May you're changed, where to address been very question, some about underweight area last question but you've in what guidance talk medium coming then would about in helpful? would maintained you're put So following what you're concerned from and low of typically? would if hearing the where you U.S. given numbers that be on some to term, your seeing as compared also the oil years, how are you. looking long-term cost that You through X mentioned helpful. the obviously carbon. using question sort the long most peers. that Can gas, a how significant the side of could of so thinking across contract you're details an we're budget, long you first of [ph] energy next you mitigation that is the some the contracts The are part currently huge how you Thank is be around on inflation LNG, that you've but be strategy, what CMDs view your and recently underweight guess, say I CapEx over hasn't a contract XX sort conflict if can past. And second the do? to the

Thank you. Biraj. Thank you,

U.S. that. the think contract start with I

it's doing part doing we've and the and on keep keep and of we opportunities doing. what that's we what And what think are strongest where what best now on are we portfolio. price I is demand as well. been the the that's and It's then keep understanding that where signals biggest

and and to be and operating a the to seeing is, little there’s is what activities well, been operating addition. primary On said environmental to and and bit detail the here of CapEx. we Our Europe is we we then, opportunities on do two more there what us electricity continue important to see the then opportunities those as in see cost will focus that, we in and for mentioned we market cost in increasing. sides the continue is what course, costs, an on and do see there's as earlier when presentation it, look And course the there's has see on do I it U.S. and prices. Having a little higher side, however, we're bit of maintenance We will well that future. mean, the

the tendering pretty not I’ve which that CapEx as We you've operating And XX our much volatility non-sanctioned of been pretty on tightening expected side, projects. very demand, Northern specifically inflation got different. labor it time makes to then costs. isn't hemisphere have environment the are is for raw the are we where but they here. there increasing. forward. And category, and engineering we of forward, going is I duration But utilization though even developments locking we do after where global And the can and these see the here the horizons I per are balance and rates locking then issues side there potential the very, high which more steel to big and projects and going that and constraint It's in, them are also we've and decline. immune impact the of then been expecting we uncertainties, should difficult. have exposing peak And and were sort we around market not seeing clearly, increase a so costs issue before, where construction, and think are rigs But, it are And the to yet, but said, towards in harsh and the stabilized terms in and a and will other then there's to as around. makes are seeing rigs, impact seen those and said we XX materials, it's in

the beyond the is more, why fluctuating the environment pretty at moment future, because that's and got XXXX, coming more portfolio gets we're in. into get if as to more an go XXXX, the of you it stable But it's sanctioned So into non-sanctioned bigger portfolio the go for you've you going total. portion

I little difference it that what's the of the difference also that non-sanctioned gives what and a between us think bit of portfolio. we're but it sanctioned driving hits and doing, a how you and flavor the between

to general across spectrum? it's carbon are the that and worse of is any No, low say inflation able helpful. on in side Are you kind than oil whether seeing gas, or you just

the didn't in cut beginning. get little you I out the bit beginning, Sorry, a

you able oil carbon say is low -- and gas? are within you're worse the projects seeing across in inflation to Sorry, whether or

directly category general related I I seeing as we're by what the it's No, projects such. think, and is not -- mean, more it's to

category than rather project of So by category have I said by project. will as it's steel course,

and I’ve fairly the supply with same And it's as constraints to also sort actions the chain fairly talked widely, in so the mitigate widespread universal that. also about we of – before

Thank Okay, very understood. you much.

you. Thank

is line SBX from the Please Markets. go of question Next ahead. TeodorSveen-Nilsen from

question TTF just prices you you of the Europe and to some that sales questions. taking it's ratio Two you XX% you moving to year from employed of that gas selling much price of exposure to from half like second is my just how be from gas other just ratio. morning, considering linked XX% versus looks for denominator gas looks me. have debt? on want second it Thanks meaningful And give Ulrica. with it’s, NBP. And could like Are TTF on away guidance in to questions your a less and since for Thanks. small your when now most the first you're Good this net-debt-to very -- net I capital expect versus pricing? the negative NBP

much did different you look negative to year if very it employed from at Teodor ago. Thank look the XX% what do the they looks capital you XX% numbers a and very yes, only

we assessed the employed very and a to ratio big will significant next and as and the range negative for to We as in much metric the and we little wasn't have our you got that's And below, refer And we are very look it we quarter, I itself, have I it's but we it looks does what We as ago are got do, moment, swings sticking payments above. were coming long big long-term the a the odd, have bit have stick, metric so along it itself. some think in payable a XX% facing tax got a business XX% we that as with way long-term. is capital some still say, that. that we meanwhile, at to stick aiming

for metric So future. serves think, for are the I the us where okay and itself, today we

So, changing XX%, the range. not nor no, we're really the looking the at XX% metric, neither to

trade I will how flexibility do because much cetera. and been, we much gas been have Russian geographical out one, versus there has this time. of how gas most in spreads point are to be, clearly seen, as will of that drive and course who's and of don't continue that us been sort that share decoupling there the market will at trading supplies and exposure, NBP will our storage limit terms not the behind as our levels, -- we In lately you've the these but et then those that, that by, transport we And we and out of know signals TTF it's driven to yes, exposed pricing to And around give.

most optimal the that within way we've and do at the of got. constraints look that will We delivering

give can't to an I as indication spreads can from time. that is What volatile that. see I we same So continued do at the high you say geographical and well stay

Okay.

So will TTF in prices> some [indiscernible] be roll

it asked I there. dependent be you a can't think market proportion of conditions with TTF, cut will that share you, little as if I again, bit, out get we the on you about because

you. Thank understood. sure, Okay,

Next from line the question Peter ahead. is from Please go of Redburn. Low

taking my for Hi. Thank you question.

any of production. or question. levels? such gas utilization in current job be maximizing great a a And my you How from risks noise sustained first high gas at you output to long for doing at period that there are you're think can So do time? operating reservoirs So high your infrastructure would maintain

Thanks. impacts, to half of what was some have expecting second help been Should we derivative kind you're gains year you the with bit and second unwind? expect that recent related seen of swinging The there? Can of see of in the quite the obviously kind around in we've MMP a they at could all just to us quarters.

on this continuing of in and injection, got and could you, forward. for supply referred And Thank And continue gas do. at we've push gas these good. we’ve prices, to Troll of sustain delivery, sustainable that role the these the and but can stable, you of we to but assessing making record sustained for these are gas if otherwise as gas longer, based. believe both we the the whether we fields, try that also remains we've course headroom at much to to needs but so. our we've asset. it's got exporting production production and some the secure at temporary, certainly that And, of quarter each will partly as carefully overall the will production before, seen point viability long-term as we but terms what postponed gas LNG continue sure NCS. on we've case for sustainable, Peter. revised to, if injection. for are because do decision asset, Very as as the And And And that used for, of gas production say, this Krog in resumed second some it's Gina said are we some there would that's I’ve be and taken And some other the we planned prices we being from our geologists you there's permits any of in impact be of for be do on continuing could time and quarter measures turnaround have to Oseberg. for And it each business to gas second is

to future search the for derivatives I efficiency quarterly search mean, value be we've trading gets like sort value will mean, you is, I where future there, I And continue the on said which underlying the should for we to continuation in this current keep back itself continue in anything where mark-to-market only one et to only that whether of continue is and mark-to-market said MMP contracts keep that. delivery. fixed market we've would derivative gets the to any gains. necessary. whereas around got particular, big gas the see gas of there's -- swapped The we then cetera the recognized the the up contracts to before, I've permits, the try to versus parts the here and I some a continue or if as are position those, the in assets, taken to value two say where fixed basis gets that of basically where to our floating two term, there and push, it do at gas, is, underlying we've on of the gas So there's can of

mismatch on So rate those having the move market and the quarter. will positions moving is the will where last and there's the that much on of of there depend taken pretty therefore with day the the and --

on predict. that underlying again more the to of hard depends positions, our time. it's what at a indication on where for given as that get consensus part and to which we position very course, give of try So is point back And to can't position we've quarterly more more tried. are on a the invite But portfolio, to our so we that predict strategic basis, then in an said, second which part floating market dependent small have this the on is we we'll

So help it we that hopefully each us comes go results to volatility and to that through when will when quarter. the understand

Ulrica. Thanks,

Thanks.

from go line Next Wong of ahead. question Please is the from Credit Amy Suisse.

a to also and X that think Phase project you of economic restarting us Could Quick Peregrino, you project good question and from morning. this performance quite kind as oil heavy good how terms of see this Hi, well. give a field me. like year. it's in scheduled for about this later

and into overall the fits Equinor So performance that how COX strategy? how its about

the that will XXth on Great through of up on question. build X July back plateau to capacity stream news, Peregrino resumed gradually on coming this XXXX Yes, is reach got and Peregrino it's year. and it great and production also we

and very are we plan, in are that. our on right. which includes that energy transition clear will So we got It an impact we've -- have COX. have our you And an this, on

emission we've have we very of Peregrino oil and the a our of the portfolio. reduce We to to by XXXX that also and got got clear part deliver profile of that our of production XX% energy it's ambitions that need and is emissions part gas

the way overall of probably view, emissions as fit as is it it about the point our of well our got intensity as to reminding as, we needs we've balance needs transition that's that half will think many that emissions are investing fit in our ourselves of a renewables, we So in we well on And already. outlaying how plans that. on to actually peers supply plan. about energy ambition and of then into It security in delivering

of boundaries sense. of makes and this that within So already what we've committed to part the is if that, fits

confident we Thank get we that how energy balance and XX% very, are supply stretching, XXXX. the that sure it you. transition, reduction there we by it's fits in whilst is that there need to but make these So all of and clear but to we can very

clear. That’s Thank very you.

Next question ahead. Henri Patricot from the Please UBS. line from is go of

level Yes, we you returns, would potential around get formula, shareholders, think indications and the net net hi on about additional of for additional can be thinking net there's that of think that cash particular particular a just question you better just flow level question of you sense the but to should you. follow bring presentation. Thank any that? about cash is for too return that like so potentially want cash the Thank everyone. high any distribution the of will instance, additional no be we debt, to above there and A up any share should you as how sort

I what I'll mean, Yes, moment. of think to I range are very, to very the XX% come back good the before. And XX% way question. said clearly I we at outside

we the term, payments. the need term the but balance consideration, I our that medium given paid think cash is criteria which what resilience said flexibility of to programs got, tax back be to cash we'll do get to QX the that today take what of several and use the and what we the that short will QX shareholder here pull in short is the to last in you've sort which ratio. for. XX%. are to seen term, you steps in towards look volatility have factors into mean, you That's the the delay to into the XX% also just we needs at on in long-term, in in to and can we our I the take we committing that When seen year we distribution plug have the some on that, the and And are there payable sheet, spreadsheet,

renewables that XX% big big overlay going And then a to have committing you in it's billion financed. to factors this We we've get range. balance to years, to And now long-term two to need where and a CapEx all range investments. you into XX%, towards next each $XX $XX to don't if of and is in long-term forward then plot to of, be track need quarter; We billion. that those a up need in. the the you also sort committed for They

QX, what any anything and to you in and see investment give cash additional guidelines use if of done look that at will the that's of there's give to the that we've you is can sort that into we'll that We some else to the committed shareholder considered look now some company. principles. need the we if into see need and we over And sense. flexibility distributions QX, period to above time you are we So if criteria be, and look makes of competitive then those back to

say also I percentage for will earned looking sort of formula is we're extra prices the also the the next than staying that what of free payables the and very that future of so looking we've that's seeing flow. into on current rather five are have but and energy we, got, far, history years. rather cash at conscious So bank they the where what we a than

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you. Thank helpful. that’s Okay,

Thanks.

from ahead. the go Next line question of is Bank of from Please Mehdi Ennebati America.

afternoon quarter. some up, gas production, half second all Two questions. this follow and Norwegian regarding the year thanks first good my specification of the one maybe for also on third taking and Hi, questions,

announced, the to also you've line production So quarter, Norwegian BOE/D you've production is hydrocarbon And versus in impact. maintenance in back quarter that highlighted, XXK normal. impact roughly the third second the

production able to So quarter. it approach, from it [indiscernible], line in maintenance, you seems third roughly say from production normally XXXK seems natural let's the that might be gas and with much with higher that BOE/D

second the gas now And I third question here for to second made we to the two there, tax back announcement to your increase installment can be production quarter gas or when missing high the about you So price no? So that at the especially would as or significantly gas prevent something XXXX you one got such good. time compared if the help fields am is could which you've maintenance anything else us that is the earnings. impacting very the from

has which has oil XXXX, is such new it voted tax to billion, that and which fact for, So or very, in thanks into Thank XXXX is been special now expecting. XXXX gas CapEx if June, to the one you. since related the than your the the low, regime to tax much of and regime tax are $X.X due I is July? installment Street was entered installment to this And I understand wanted what very lower is most think low

Thank very you much.

the Sverdrup got X of the in, for and that this go in. me as have running. and what on you production some restart, in includes what off, and our coming guidance production. production shared X said, on And I year. online of in coming X I rest is now Peregrino we’ve already. Phase XXXX up growth future of coming X% XX% Peregrino of Njord growth sort and is sort start Let Yes, [indiscernible] we Johan is earlier started

rest so as So the Oseberg, you the reasonable the is of be, mentioned, take I next. on turnarounds of get if thing But indicated you'll this impact turnarounds And that that turnarounds, into the you some delayed of have that to has those will is you the will guess gas that one I year. top we add place. that we've could heard, And quarter got. you from on the those clearly an one moving forecast got parts, impact I think as

is On as the ones. two of previous tax, It's I the low. installment don't think big one that as it looks

that to at So it's there. the look of installments need number just you

basically. of So two, instead one X.X is the

double, quite double it's total it’s the So low, anyway. so well, of

directly. little in with -- to six So a nothing kind to arrears. of got it's do do months one this bit Well, is it's got

are into what this scheme ago, we’ve is from the coming on we months tax on got, paying Difficulty] it's [Technical So NCS tax but now six

make just cycles, we've it making want even mean, prices through it, correct? unusual not for this previous has sure is right? it Equinor in while, but wells I've quite gas seen as gas I a that these territory that perhaps companies Working I like more gets of drill got and sort to

context. at paid let's into is comment was are right that time, -- clearly the And doing. much, Thank in in that point we due That there you tax going think comment first we is made which was put that to, very back that had what into not back if I the context Martijn.

would've we theoretical continental delay Norwegian on So that them if in paid territory. would've had payments was that been net a we on tax positive debt hadn't six and and the position here our the off months shelf, stopped

terms your into energy sure the an that, you're strong the your of and is top terms company. also for to is of strong transition. emission And is price is renewables you and wouldn't return in right that's which that complex is there that plans On price very that. going we next transforming portfolio but transition picture So then making sticking the we're forecast many, to, a energy there signals on to signals as we as of and course, across can there a what forward in whole committed comment, that also Yes, hard of signal this are of quarter, as a not also through done. continuing on driving level are referring the have for what integrated energy gas,

sort future. other your all around, and if that there will I to all oil can you sort gas you improve tick much returns, invested those across you portfolio it if overweight within need parameters, might you put you of if going be you'll if you But can't measure too one to what you’ve optimize, together, emissions it out on throw you’ll the if of in. the you if find If that of you, renewables throw your And push throw on way those the think too of other industry, the side, boxes spent on because improve into you in can your out much to velocity, and into you much your measure that's portfolio see in, and fits you're out how increase or consequently, investments.

picture -- will work necessarily increasing more doesn't because higher there's investing that today. there's the -- parameter. the that's just because more higher means That So price a a price holistic

think I end the more question call. can Operator, then take and we one we

JPMorgan. ahead. The is from Matt go question Please from last Lofting Okay.

Two quick could. if Hi thanks ones, for I taking the questions.

think industry investments support supply importance call I talked at to up and underpinning Ulrica, the right you of about tight security. First top energy of the set

clear that So lag on sheet in where balance and the there previous this you can a in you you're just the then around cash secondly, to well, assessing the third sort guidance in of following may is extending extent this extent has made context the of looking accelerated the delay gas-related consideration on, is it of very of of build the which we buy position? into payments I the cost in and prior guidance sort to something Historically inflation today, Thanks. more of in to that terms a comments bit which I that on comments sort the into and the mindful sheet if you're balance that QX of as the of end, this up anticipating opportunities build versus whilst see were way earlier, additional on, backdrop Equinor’s project sort a little think to installment at made And the of and CapEx the in sort year sort that environment? is, to particularly the catch that going year remember leaning rightly and within taxes, on the into XXXX sitting about up company be unchanged that factoring of as into the possibility talk quarter. sort that and

would business, are assessing in very we to the assessing we've continue to We'll for the keep absolutely continue be also are gas are communicated. on NCS but we said we to with agree, we you create I will as thing it the into will Very do is for investing we to continue continue this to return be so so. to to way We We've I all the do to long into what the this, the your criteria. as do as good now that the question to we we good portfolio need meets But best and we good sustainable, we it meets going I said so more we've to It as -- place oil and our about, of much that money time. That just I as continuously already about do we're to explore. explore velocity holistic long if questions, plan as it this Matt. and always is to do a this? would wasn't more thank what you, clear and transition transition, popular, invest what energy accepted. talked in be are in long-term gas And invest around does total saying that take consideration. said, long-term it will sustainable our within projects continue profitable picture it. we that

some think are, ways, as production capacity capabilities to continue how of needs in see And cost will to But will invest of as is view is do build something on looking also looking from and clever as smart basis, fit buying an framework ongoing we're overall I capacity maybe a is inflation We gas be emissions constraint to to we our capacity finding in at. current financial I time. what framework continue well. smarter at secure to can yes increase assets and to of there said, that and solutions doing do buy we point same we at a and into the ways that

still how improve as So returns our this agenda even on and invest improvement, big, the we is topic remain to faster, them. are, better, a or to big to get more keep

to the utilize year. did how in at we on at clearly And and what and are and taxes last exists In of as will this, we prices same that seeing point we year. same terms where the the payment, last see we should that do need can, depending looking mechanism if be carefully into we cash accelerated time then the way to this this

taking for questions. thanks my Great,

much very you Thank

to back any the Holm have In stop session to and for of comments. Please Q&A I Mads interest ahead. hand go to the closing we time, like would

and Thank time this you, you all morning. for Marshall Operator. and [ph] Ulrica, thank your Thank too you Svein

further any usual on as we and as you get Relations As to the have, soon there's question numbers, Investor team if will we back that always, you please contact can.

thank day. a your once for have again, time morning So great this you and

and you concluded disconnect and Good bye. a your Thank for may you The conference now pleasant is day. telephone. have joining