Equinor Sees Revenue and Income Drops, Stock Falls Over 5%

Equinor suffers a 5% stock price drop following poor earnings. Revenue fell 5% year over year to $27.65B and net income declined 6%, affecting investor sentiment despite better-than-expected revenue figures.

Date: 06-02-2025

AI Rating: 4

Equinor’s latest earnings report raised concerns among investors as the company experienced top- and bottom-line slumps.

Earnings Per Share (EPS): The adjusted net income for the fourth quarter declined by 6% to $1.7 billion, translating to $0.63 per share. This was below analysts' expectations of $0.82 per share, indicating a negative sentiment about profitability.

Revenue Growth: Equinor reported a 5% year-over-year decline in revenue to $27.65 billion, though this exceeded analyst expectations of $25.57 billion. However, the overall decline still signifies negative growth trends that could potentially affect the stock price negatively.

The company also noted an 11% decrease in the average Brent crude oil price and single-digit declines in liquid and gas production, suggesting challenges in maintaining profitability and output. This performance, along with asset divestments impacting exploration and production, paints a challenging picture for the company.

The guidance for 2025 suggests that while Equinor anticipates a modest production increase of 4% from 2024, the lack of concrete confidence in significant earnings recovery might continue to deter investors. The dip of more than 5% in stock price following the earnings release indicates market apprehension.

Despite still being profitable and while the overall oil and gas industry may have bright prospects, the immediate report and its implications could lead to a more cautious stance from investors.

Stocks: EQNR