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Equinor Q2 Earnings Miss Estimates on Lower Liquids Production
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Key Takeaways
EQNR posted Q2 EPS of 64 cents, missing estimates and down 25% from the prior-year quarter's 84 cents.
Lower liquids production, divestitures, and weaker prices drove declines across all E&P segments.
Q2 revenues dropped to $25.15B as segment profits declined; full-year production outlook was reaffirmed.
Equinor ASA (EQNR - Free Report) reported second-quarter 2025 adjusted earnings per share (EPS) of 64 cents, which missed the Zacks Consensus Estimate of 66 cents. The bottom line declined 25% from the year-ago quarter’s level of 84 cents.
Total quarterly revenues of $25.15 billion declined from $25.54 billion in the prior-year quarter. The top line also missed the Zacks Consensus Estimate of $25.25 billion.
Weak quarterly results can be attributed to lower liquids production across major segments and reduced liquids prices. Natural declines and portfolio divestments in Nigeria and Azerbaijan also contributed to the decrease in overall production.
Exploration & Production Norway (E&P Norway): The segment reported adjusted earnings of $5,706 million, down 7% from $6,129 million in the year-ago quarter.
The segment was affected by a decline in gas production volumes, primarily due to maintenance activities during the quarter being directed mostly toward gas fields. Furthermore, the new wells that came online were producing more liquids than gas. Lower liquid prices also contributed to the same.
The company’s average daily production of liquids and gas decreased 1% to 1,359 thousand barrels of oil equivalent per day (MBoe/d) from 1,375 Mboe/d in the prior-year quarter. The decline in production can be attributed to natural depletion across several fields, reduced output from the Troll field and planned maintenance activities at Hammerfest LNG. This was partially offset by the new wells coming online, including Johan Castberg and Halten East.
E&P International: The segment’s adjusted operating profit totaled $429 million, down 39% from $699 million in the year-ago quarter. The segment was primarily impacted by a drop in production volumes and lower liquids prices.
The average daily equity production of liquids and gas declined 9% to 306 MBoe/d from 336 MBoe/d in the year-ago quarter. Equity production decreased year over year due to natural declines in certain fields and divestitures in Azerbaijan and Nigeria.
E&P USA: Equinor generated an adjusted quarterly profit of $183 million from this segment. The figure decreased 31% from $264 million in the second quarter of 2024. The segment was affected by a decline in liquids production and lower liquids prices. Additionally, an increase in depreciation, amortisation and net impairments contributed to the same.
The integrated firm’s average equity production of liquids and gas was 431 MBoe/d, up 28% from 337 MBoe/d in the year-ago period. The rise in production was primarily supported by increased gas production volumes from the Appalachia onshore assets following the acquisition of additional interests in late 2024. Heightened operational activity in the region also aided the increase in output.
Marketing, Midstream & Processing: The segment reported adjusted earnings of $333 million, a 36% decline from $521 million a year ago.
Renewables: The segment reported an adjusted loss of $75 million, narrower than the year-ago quarter’s loss of $90 million. This can be attributed to a reduction in project development costs and business development costs.
Net Cash Flow and Capital Expenditures
In the June-end quarter, Equinor generated a negative net cash flow of $2,579 million, compared with a negative net cash flow of $4,022 million in the year-ago period. Organic capital expenditures amounted to $3.4 billion in the second quarter.
Balance Sheet
As of June 30, 2025, the company reported $9,472 million in cash and cash equivalents. Its long-term debt was $24,505 million.
Outlook for EQNR
Equinor reiterated its 2025 oil and gas production guidance, expecting it to grow 4% on a year-over-year basis. The company also restated its organic capital spending budget of $13 billion for the year. Additionally, planned maintenance activities are expected to lower equity production by approximately 30 thousand barrels of oil equivalent per day throughout 2025.
Venture Global is primarily involved in the production and export of liquefied natural gas, sourced from the abundant gas basins in North America. It is the second-largest exporter of natural gas in the United States. The company is well-positioned to capitalize on the rise in LNG demand, partly driven by the growth of data centers and the global shift toward lower-emission fuels.
Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly with the Mopane discovery in the Orange Basin, offshore Namibia. After the initial exploration phase, Galp estimated that the Mopane prospect could hold nearly 10 billion barrels of oil. This discovery allows Galp to diversify its global presence, with the potential to become a significant oil producer in the region.
Eni is a leading global integrated energy company with a prominent focus on liquefied natural gas businesses. As natural gas has a lower carbon footprint compared with other fossil fuels, it will play an important role in the global energy transition process. Eni’s participation in the natural gas market will allow it to capitalize on the mounting global demand in the future.
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Equinor Q2 Earnings Miss Estimates on Lower Liquids Production
Key Takeaways
Equinor ASA (EQNR - Free Report) reported second-quarter 2025 adjusted earnings per share (EPS) of 64 cents, which missed the Zacks Consensus Estimate of 66 cents. The bottom line declined 25% from the year-ago quarter’s level of 84 cents.
Total quarterly revenues of $25.15 billion declined from $25.54 billion in the prior-year quarter. The top line also missed the Zacks Consensus Estimate of $25.25 billion.
Weak quarterly results can be attributed to lower liquids production across major segments and reduced liquids prices. Natural declines and portfolio divestments in Nigeria and Azerbaijan also contributed to the decrease in overall production.
Equinor ASA Price, Consensus and EPS Surprise
Equinor ASA price-consensus-eps-surprise-chart | Equinor ASA Quote
Segmental Analysis
Exploration & Production Norway (E&P Norway): The segment reported adjusted earnings of $5,706 million, down 7% from $6,129 million in the year-ago quarter.
The segment was affected by a decline in gas production volumes, primarily due to maintenance activities during the quarter being directed mostly toward gas fields. Furthermore, the new wells that came online were producing more liquids than gas. Lower liquid prices also contributed to the same.
The company’s average daily production of liquids and gas decreased 1% to 1,359 thousand barrels of oil equivalent per day (MBoe/d) from 1,375 Mboe/d in the prior-year quarter. The decline in production can be attributed to natural depletion across several fields, reduced output from the Troll field and planned maintenance activities at Hammerfest LNG. This was partially offset by the new wells coming online, including Johan Castberg and Halten East.
E&P International: The segment’s adjusted operating profit totaled $429 million, down 39% from $699 million in the year-ago quarter. The segment was primarily impacted by a drop in production volumes and lower liquids prices.
The average daily equity production of liquids and gas declined 9% to 306 MBoe/d from 336 MBoe/d in the year-ago quarter. Equity production decreased year over year due to natural declines in certain fields and divestitures in Azerbaijan and Nigeria.
E&P USA: Equinor generated an adjusted quarterly profit of $183 million from this segment. The figure decreased 31% from $264 million in the second quarter of 2024. The segment was affected by a decline in liquids production and lower liquids prices. Additionally, an increase in depreciation, amortisation and net impairments contributed to the same.
The integrated firm’s average equity production of liquids and gas was 431 MBoe/d, up 28% from 337 MBoe/d in the year-ago period. The rise in production was primarily supported by increased gas production volumes from the Appalachia onshore assets following the acquisition of additional interests in late 2024. Heightened operational activity in the region also aided the increase in output.
Marketing, Midstream & Processing: The segment reported adjusted earnings of $333 million, a 36% decline from $521 million a year ago.
Renewables: The segment reported an adjusted loss of $75 million, narrower than the year-ago quarter’s loss of $90 million. This can be attributed to a reduction in project development costs and business development costs.
Net Cash Flow and Capital Expenditures
In the June-end quarter, Equinor generated a negative net cash flow of $2,579 million, compared with a negative net cash flow of $4,022 million in the year-ago period. Organic capital expenditures amounted to $3.4 billion in the second quarter.
Balance Sheet
As of June 30, 2025, the company reported $9,472 million in cash and cash equivalents. Its long-term debt was $24,505 million.
Outlook for EQNR
Equinor reiterated its 2025 oil and gas production guidance, expecting it to grow 4% on a year-over-year basis. The company also restated its organic capital spending budget of $13 billion for the year. Additionally, planned maintenance activities are expected to lower equity production by approximately 30 thousand barrels of oil equivalent per day throughout 2025.
EQNR’s Zacks Rank & Key Picks
Currently, EQNR carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are Venture Global Inc. (VG - Free Report) , Galp Energia SGPS SA (GLPEY - Free Report) and Eni S.p.A (E - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1(Strong Buy) stocks here.
Venture Global is primarily involved in the production and export of liquefied natural gas, sourced from the abundant gas basins in North America. It is the second-largest exporter of natural gas in the United States. The company is well-positioned to capitalize on the rise in LNG demand, partly driven by the growth of data centers and the global shift toward lower-emission fuels.
Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly with the Mopane discovery in the Orange Basin, offshore Namibia. After the initial exploration phase, Galp estimated that the Mopane prospect could hold nearly 10 billion barrels of oil. This discovery allows Galp to diversify its global presence, with the potential to become a significant oil producer in the region.
Eni is a leading global integrated energy company with a prominent focus on liquefied natural gas businesses. As natural gas has a lower carbon footprint compared with other fossil fuels, it will play an important role in the global energy transition process. Eni’s participation in the natural gas market will allow it to capitalize on the mounting global demand in the future.