Equinor: Record Profits Despite Weak Stock Performance

Despite the disappointing stock market performance, Equinor continues to generate impressive profits and returns record amounts of capital to its shareholders. Among the leading companies in oil and gas dividend stocks, Equinor stands out due to strategic acumen and growth ambitions. As an international energy company, 75% owned by the Norwegian state and private Norwegian investors, Equinor is heavily influenced by Norwegian energy policy. With abundant offshore reserves along the Norwegian Continental Shelf (NCS), Equinor has amassed decades of experience in this region. Exploration in Norway continues to account for 85% of total operating profit in the oil and gas sector, securing Equinor a substantial revenue base. Technological advancements have opened up new opportunities along the NCS, notably the Johan Sverdrup field, which is the third-largest oil field in the region and accounts for one-third of Norwegian oil production. In the third quarter, Equinor reported remarkable statistics: over one billion barrels of oil production and revenues exceeding 80 billion USD over five years. Despite these impressive figures, production on the NCS grew by only 2% compared to the previous year, partly due to Norway's strict climate targets. Unlike ExxonMobil and Chevron, which significantly increased their investments in oil and gas in 2024, Equinor is pursuing a balanced investment strategy that prioritizes renewable energy. Equinor plans to install a renewable capacity of 12 to 16 gigawatts by 2030, with a notable increase in renewable power generation in the third quarter of 2024. This reached 677 GWh, compared to 373 GWh in the same period the previous year, demonstrating Equinor's commitment to a more sustainable energy future.