Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Equinor plunges into the red as CEO warns of persistent Covid-19 ‘uncertainty’

© EquinorEquinor Norway
The Equinor Mariner A platform.

Norwegian energy giant Equinor warned of the continued considerable “uncertainty” caused by Covid-19 as it plunged into the red in the first-half of 2020.

Equinor suffered pre-tax losses of £503 million in the first six months of the year, against profits of £6.6 billion in the corresponding period in 2019.

First-half revenues fell by about a third to £17.7bn, as lower oil and gas prices took their toll.

The firm’s performance was dented by net impairments of £2.2bn, attributed to lower short-term oil price assumptions and construction delays.

Energy Voice reported last month that Equinor had shelved a project to upgrade the intervention and completion unit on Equinor’s Mariner A platform, east of Shetland.

Chief executive Eldar Saetre said: “We expect market volatility to continue going forward. The long-term market implications from Covid-19, with possible lower demand and reduced investments in the industry, remain uncertain.”

Equinor said it was on track to cut its costs by around £550m and that unit production costs were down significantly.

The company was buoyed by temporary tax changes introduced in Norway to help firms progress with their investment plans.

These include an immediate reduction against the Norwegian special tax for capital expenditure and an ability to receive a cash refund on any trading losses over the next two years.

First half production totalled 2.1 million barrels of oil equivalent per day, up 1%.

Equinor deferred the production of large volumes of gas with the intention of selling it later at higher prices.

Mr Saetre said: “We have reduced costs, maintained solid operational performance and continued to prioritise value over volume by deferring significant flexible gas production to periods with higher expected prices.

“We also continued to progress our highly competitive project portfolio, supported by active policy measures in Norway enabling the industry to continue to work on planned projects that will stimulate new investments and maintain activity in a challenging period.”

At the end of the second quarter, Equinor had completed 15 exploration wells with six commercial discoveries and two wells under evaluation.

Seventeen wells were ongoing at the quarter end.

Equinor is understood to be planning an exploration well on the Tiger Lily prospect in the central North Sea.

Recommended for you

More from Energy Voice

Latest Posts