Equinor Reports Q4 Dip in Earnings but Increases Dividend

Equinor ASA sees its net income decline by 23% to $2 billion in Q4, with EPS down 17%. However, it proposes a higher dividend, projecting stronger production growth going forward.

Date: 05-02-2025

AI Rating: 5

Earnings Per Share (EPS)
Equinor reported a basic EPS of $0.73 for the fourth quarter, which is down 17% compared to $0.88 from the previous year. This decline indicates lower profitability in terms of earnings available to shareholders.

Net Income
The net income for the fourth quarter was reported at $2 billion, a significant drop of 23% from $2.61 billion a year prior. A fall in net income can often signal challenges in maintaining profitability, which could affect investor sentiment.

Revenue Growth
Total revenues and other income fell by 5% to $27.65 billion from $29.05 billion in the prior year. A decrease in revenue growth can hint at declining demand or pricing pressures, which could negatively impact stock performance.

Net Operating Income
Net operating income was reported to be nearly flat with the previous year at $8.735 billion, indicating stability in operating performance despite lower overall profitability. However, adjusted operating income saw an 8% decrease, further reinforcing concerns regarding the company’s operational efficiency.

Capital Distribution and Growth Projections
Despite the decreased net income and revenues, the company announced a proposed ordinary cash dividend increase to $0.37 per share and plans for a share buy-back program worth up to $5 billion in 2025. This indicates a commitment to return capital to shareholders, which might positively impact stock prices. Additionally, Equinor's CEO projects a return on average capital employed above 15%, signaling optimistic growth. Furthermore, the company expects production to grow by over 10% from 2024 to 2027, which, if realized, could bolster future financial performance and investor confidence.

Stocks: EQNR