Equinor ASA (EQNR) Quarterly Earnings Preview and Financial Analysis

Equinor ASA (NYSE:EQNR) is a prominent player in the energy sector, primarily involved in oil and gas exploration and production. The company operates globally, with significant activities in the US onshore gas sector. Equinor competes with other major energy companies like ExxonMobil and Shell. On July 23, 2025, Equinor reported its earnings, revealing an EPS of $0.64, slightly below the expected $0.66.

Despite the EPS miss, Equinor's revenue surpassed expectations, reaching approximately $25.1 billion against the estimated $24.3 billion. This strong revenue performance was driven by robust operational execution and production growth, particularly in the US onshore gas sector, where higher prices were captured. Equinor's ability to maintain stable costs and capital expenditures contributed to its solid financial standing.

Equinor's second-quarter profit saw a decline, aligning with market expectations due to falling oil prices. However, the company reported an adjusted operating income of $6.53 billion and $1.74 billion after tax. The net operating income was $5.72 billion, with a net income of $1.32 billion. Adjusted net income stood at $1.67 billion, resulting in adjusted EPS of $0.64, as highlighted by the earnings report.

Strategically, Equinor made significant progress on key projects like Johan Castberg and Johan Sverdrup phase 3. The company also announced the divestment of the Peregrino field in Brazil for $3.5 billion. Additionally, Equinor reached financial close on the Baltyk 2 & 3 offshore wind projects in Poland and resumed execution of the Empire Wind 1 project, showcasing its commitment to renewable energy.

Equinor's financial metrics reflect its valuation and financial health. The company has a P/E ratio of approximately 8.24, indicating a relatively low valuation compared to its earnings. Its price-to-sales ratio is about 0.61, and the enterprise value to sales ratio is approximately 0.82. The debt-to-equity ratio is about 0.65, showing moderate debt levels, while the current ratio of approximately 1.54 indicates a strong ability to cover short-term liabilities.

• Equinor ASA (NYSE:EQNR) is set to release its quarterly earnings with an anticipated EPS of $0.82 and projected revenue of $24.4 billion.
• The Johan Sverdrup oilfield's recent power outage could impact Equinor's revenue and earnings projections.
• Equinor's financial metrics suggest potential undervaluation with a P/E ratio of 6.98 and a price-to-sales ratio of 0.62.

Equinor ASA, listed on the NYSE as EQNR, is a prominent player in the energy sector, primarily involved in oil and gas exploration and production. As the company prepares to release its quarterly earnings on February 5, 2025, analysts anticipate an earnings per share (EPS) of $0.82 and projected revenue of $24.4 billion. This report will be available before the market opens.

The Johan Sverdrup oilfield, a key asset for Equinor, recently faced a power outage lasting approximately eight hours, as reported on the Nord Pool website. This incident could affect operations at one of Equinor's significant oilfields, potentially impacting the company's revenue and earnings projections.

Equinor's financial metrics provide insight into its market valuation and operational efficiency. With a price-to-earnings (P/E) ratio of 6.98, the market values Equinor's earnings relatively low compared to its peers. The price-to-sales ratio of 0.62 further indicates a low valuation in relation to its sales, suggesting potential undervaluation.

The company's enterprise value to sales ratio of 0.84 and enterprise value to operating cash flow ratio of 4.33 highlight its overall valuation and cash flow efficiency. An earnings yield of 14.33% suggests Equinor offers a substantial return on its earnings relative to its share price, appealing to investors seeking returns.

Equinor's debt-to-equity ratio of 0.67 reflects a moderate level of debt, while a current ratio of 1.45 indicates a strong liquidity position. These metrics suggest Equinor is well-positioned to manage its short-term liabilities and maintain financial stability amidst operational challenges.

On Monday, May 13, 2024, Santander downgraded its rating on Equinor ASA (NYSE:EQNR) to Underperform, marking a significant shift from its previous Neutral stance. This downgrade comes at a time when Equinor, a major player in the oil and gas sector, faces increasing scrutiny over its environmental policies and alignment with global climate goals. The company, headquartered in Norway, is a key contributor to the country's status as a significant oil and gas exporter. However, it is also under pressure to adapt its strategies to meet the objectives of the Paris Agreement and reduce greenhouse gas emissions.

The downgrade by Santander to Underperform from Neutral, with Equinor's stock priced at $28.53, as reported by TheFly, reflects broader market concerns. These concerns are not only about Equinor's financial performance but also about its environmental commitments and the potential impact of global climate policies on its operations. The company's stock has seen fluctuations, trading between a low of $28.495 and a high of $29.035 on the day of the announcement, indicating market sensitivity to news affecting Equinor's strategic direction and investor sentiment.

Adding to the complexity of Equinor's situation are the actions of two of its top ten investors, Storebrand Asset Management and KLP. These investors have publicly supported a shareholder resolution initiated by UK-based Sarasin & Partners. This resolution, set to be voted on at Equinor's annual general meeting, urges the company to ensure its strategy is in line with the Paris Agreement. Specifically, it demands transparency on how Equinor plans to develop new oil and gas reserves without compromising global climate goals. This move underscores the growing demand from investors for oil and gas companies to demonstrate a clear commitment to environmental sustainability and climate action.

The tension between Norway's economic interests as an oil and gas exporter and its environmental commitments is at the heart of the challenges facing Equinor. The upcoming vote on the shareholder resolution reflects a broader trend where investors are increasingly vocal about the need for greater climate action. This trend is particularly relevant in the context of recent energy crises and rising fuel prices, which have heightened the debate over the future of fossil fuels and the transition to renewable energy sources. Equinor's ability to navigate these complex pressures will be critical in determining its future financial performance and its role in the global energy landscape.