Equinor has increased its forecast for oil and gas production growth in 2026 to around 4%. This increase is attributed to high commodity prices and record profits at the Mongstad refinery, which have doubled operating profit in the third quarter of the year.
Production and Profit Performance
This Norwegian producer now expects faster growth compared to its previous forecast of 3%. Recent quarterly production was equivalent to 2.166 million barrels of oil per day. International growth has contributed to an increase in total production, while production from Norway's oil platforms has remained generally stable. Reported operating profit has risen to $11.96 billion from $5.27 billion last year. Adjusted operating income reached $12.35 billion, slightly above the $12.19 billion forecast by analysts.
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Impact of Prices and Refining Margins
Equinor reported gas prices in Europe at $20 per million British thermal units and an average liquid price of $92.30 per barrel. These prices have supported upstream revenues, and high refining margins and strong operational performance at the Mongstad refinery have resulted in record profits. The marketing, midstream, and processing segment generated an adjusted operating income of $893 million, exceeding analysts' forecast of $793 million.
LNG trading has also contributed significantly. However, profits across the overall trading business were not uniform. The crude, products, and liquids segment faced losses as the negative impacts from derivative positions in a tight shipping market outweighed the strong profits from product trading.
International Growth and Challenges
Equinor's total production rose from 2.130 million barrels of oil per day last year to 2.166 million barrels of oil per day, exceeding analysts' forecast of 2.129 million barrels. Production in the international oil and gas segment increased by 21%, with projects such as Adora in the UK and Bacalhau in Brazil being significant contributors to this increase.
However, the increase in production did not fully translate into higher sales. The increased international volumes were less than Equinor's production share, which limited revenue benefits during this period. On Norway's oil platforms, projects such as Halten East, Vårdal, and new wells compensated for natural declines.
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