DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION | 6 Months Ended |
Jun. 30, 2021 | |
Document and Entity Information [abstract] | |
Document Type | 6-K |
Document Period End Date | Jun. 30, 2021 |
Amendment Flag | false |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q2 |
Current Fiscal Year End Date | --12-31 |
Entity Registrant Name | EQUINOR ASA |
Entity Central Index Key | 0001140625 |
CONSOLIDATED STATEMENT OF INCOM
CONSOLIDATED STATEMENT OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
CONSOLIDATED STATEMENT OF INCOME [Abstract] | ||||||
Revenues | $ 17,380 | $ 16,129 | $ 7,563 | $ 33,508 | $ 22,627 | $ 45,753 |
Net income/(loss) from equity accounted investments | 16 | 30 | 33 | 47 | 104 | 53 |
Other Income | 66 | 1,431 | 7 | 1,497 | 2 | 12 |
Total revenues and other income | 17,462 | 17,589 | 7,603 | 35,052 | 22,733 | 45,818 |
Purchases (net of inventory variation) | (7,399) | (7,166) | (2,750) | (14,565) | (10,146) | (20,986) |
Operating expenses | (2,134) | (1,941) | (2,234) | (4,076) | (4,639) | (8,831) |
Selling, general and administrative expenses | (195) | (218) | (177) | (413) | (374) | (706) |
Depreciation, amortisation and net impairment losses | (2,111) | (2,797) | (2,522) | (4,908) | (6,959) | (15,235) |
Exploration expenses | (326) | (247) | (393) | (572) | (1,028) | (3,483) |
Total operating expenses | (12,164) | (12,369) | (8,075) | (24,534) | (23,147) | (49,241) |
Net operating income/(loss) | 5,298 | 5,220 | (472) | 10,518 | (414) | (3,423) |
Interest and other financial expenses | (304) | (312) | (379) | (616) | (723) | (1,392) |
Other financial items | (90) | (396) | 130 | (485) | 498 | 556 |
Net financial items | (393) | (707) | (248) | (1,101) | (225) | (836) |
Income/(loss) before tax | 4,905 | 4,513 | (720) | 9,417 | (640) | (4,259) |
Income tax | (2,962) | (2,659) | 469 | (5,620) | (316) | (1,237) |
Net income/(loss) | 1,943 | 1,854 | (251) | 3,797 | (956) | (5,496) |
Attributable to equity holders of the company | 1,938 | 1,851 | (254) | 3,789 | (961) | (5,510) |
Attributable to non-controlling interests | $ 5 | $ 3 | $ 3 | $ 8 | $ 6 | $ 14 |
Basic earnings per share (in USD) | $ 0.6 | $ 0.57 | $ (0.08) | $ 1.17 | $ (0.29) | $ (1.69) |
Diluted earnings per share (in USD) | $ 0.6 | $ 0.57 | $ (0.08) | $ 1.16 | $ (0.29) | $ (1.69) |
Weighted average number of ordinary shares outstanding (in millions) | 3,247 | 3,248 | 3,276 | 3,248 | 3,290 | 3,269 |
Weighted average number of ordinary shares outstanding diluted (in millions) | 3,257 | 3,256 | 3,284 | 3,257 | 3,298 | 3,277 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | ||
Consolidated statements of comprehensive income [Abstrct] | |||||||
Net income/(loss) | $ 1,943 | $ 1,854 | $ (251) | $ 3,797 | $ (956) | $ (5,496) | |
Actuarial gains (losses) on defined benefit pension plans | 107 | 117 | 41 | 224 | 163 | (106) | |
Income tax effect on income and expenses recognised in OCI | [1] | (24) | (25) | (8) | (50) | (50) | 19 |
Items that will not be reclassified to the Consolidated statement of income | 83 | 91 | 33 | 174 | 113 | (87) | |
Foreign currency translation effects | 119 | (46) | 1,560 | 73 | (2,622) | 1,064 | |
Items that may be subsequently reclassified to the Consolidated statement of income | 119 | (46) | 1,560 | 73 | (2,622) | 1,064 | |
Other comprehensive income/(loss) | 202 | 45 | 1,593 | 247 | (2,509) | 977 | |
Total comprehensive income/(loss) | 2,144 | 1,899 | 1,342 | 4,044 | (3,464) | (4,519) | |
Attributable to the equity holders of the company | 2,140 | 1,896 | 1,340 | 4,036 | (3,470) | (4,533) | |
Attributable to non-controlling interests | $ 5 | $ 3 | $ 3 | $ 8 | $ 6 | $ 14 | |
[1] | 1) Other comprehensive income (OCI). |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | |
Noncurrent assets [abstract] | |||||
Property, plant and equipment | $ 65,373 | $ 63,161 | $ 65,672 | $ 63,941 | |
Intangible assets | 6,829 | 8,150 | 8,148 | 10,317 | |
Equity accounted investments | 2,377 | 2,374 | 2,262 | 1,599 | |
Deferred tax assets | 5,231 | 4,880 | 4,974 | 3,794 | |
Pension assets | 1,552 | 1,437 | 1,310 | 963 | |
Derivative financial instruments | 1,691 | 1,573 | 2,476 | 1,630 | |
Financial investments | 3,895 | 3,922 | 4,083 | 3,157 | |
Prepayments and financial receivables | 934 | 774 | 861 | 1,311 | |
Total non-current assets | 87,882 | 86,272 | 89,786 | 86,711 | |
Current assets [abstract] | |||||
Inventories | 2,548 | 2,917 | 3,084 | 2,974 | |
Trade and other receivables | 8,564 | 8,692 | 8,232 | 5,489 | |
Derivative financial instruments | 2,251 | 1,096 | 886 | 589 | |
Financial investments | 15,152 | 10,922 | 11,865 | 9,319 | |
Cash and cash equivalents | 9,912 | 8,992 | 6,757 | 9,700 | |
Total current assets | 38,426 | 32,619 | 30,824 | 28,072 | |
Assets classified as held for sale | 950 | 1,100 | 1,362 | 0 | |
Total assets | 127,259 | 119,991 | 121,972 | 114,783 | |
Equity [abstract] | |||||
Shareholders equity | 37,023 | 35,764 | 33,873 | 35,587 | |
Non-controlling interests | 18 | 18 | 19 | 23 | |
Total equity | 37,041 | 35,782 | 33,892 | 35,610 | |
Noncurrent liabilities [abstract] | |||||
Finance debt | [1] | 28,112 | 27,991 | 29,118 | 28,632 |
Lease liabilities | [1] | 2,796 | 3,006 | 3,220 | 3,016 |
Deferred tax liabilities | 12,306 | 11,440 | 11,224 | 8,907 | |
Pension liabilities | 4,411 | 4,363 | 4,292 | 3,572 | |
Provisions and other liabilities | 18,890 | 17,817 | 19,731 | 18,097 | |
Derivative financial instruments | 606 | 550 | 676 | 967 | |
Total non-current liabilities | 67,120 | 65,167 | 68,260 | 63,191 | |
Current liabilities [abstract] | |||||
Trade, other payables and provisions | 10,022 | 10,592 | 10,510 | 8,620 | |
Current tax payable | 5,156 | 3,249 | 1,148 | 674 | |
Finance debt | [1] | 3,463 | 2,784 | 4,591 | 4,324 |
Lease liabilities | [1] | 1,113 | 1,131 | 1,186 | 1,139 |
Dividends payable | 487 | 0 | 357 | 297 | |
Derivative financial instruments | 2,247 | 1,014 | 1,710 | 928 | |
Total current liabilities | 22,488 | 18,770 | 19,502 | 15,982 | |
Liabilities directly associated with the assets classified as held for sale | 610 | 271 | 318 | 0 | |
Total liabilities | 90,218 | 84,209 | 88,081 | 79,173 | |
Total equity and liabilities | $ 127,259 | $ 119,991 | $ 121,972 | $ 114,783 | |
[1] | 1) Lease liabilities are separated from the line item Finance debt and 2020 has been reclassified. |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Share capital [member] | Additional paid in capital [member] | Retained earnings [member] | Currency translation adjustments [member] | Shareholder's equity [member] | Non-controlling interest [member] |
Equity beginning balance at Dec. 31, 2019 | $ 41,159 | $ 1,185 | $ 7,732 | $ 37,481 | $ (5,258) | $ 41,139 | $ 20 |
Net income/(loss) | (956) | (961) | (961) | 6 | |||
Other comprehensive income/(loss) | (2,509) | 113 | (2,622) | (2,509) | |||
Total comprehensive income | (3,464) | ||||||
Dividends | (1,189) | (1,189) | (1,189) | ||||
Share buy-back | (890) | (890) | (890) | ||||
Other equity transactions | (6) | (4) | 0 | (4) | (2) | ||
Equity ending balance at Jun. 30, 2020 | 35,610 | 1,185 | 6,838 | 35,443 | (7,879) | 35,587 | 23 |
Equity beginning balance at Dec. 31, 2019 | 41,159 | 1,185 | 7,732 | 37,481 | (5,258) | 41,139 | 20 |
Net income/(loss) | (5,496) | ||||||
Other comprehensive income/(loss) | 977 | ||||||
Total comprehensive income | (4,519) | ||||||
Equity ending balance at Dec. 31, 2020 | 33,892 | 1,164 | 6,852 | 30,050 | (4,194) | 33,873 | 19 |
Net income/(loss) | 1,854 | ||||||
Other comprehensive income/(loss) | 45 | ||||||
Total comprehensive income | 1,899 | ||||||
Equity ending balance at Mar. 31, 2021 | 35,782 | ||||||
Equity beginning balance at Dec. 31, 2020 | 33,892 | 1,164 | 6,852 | 30,050 | (4,194) | 33,873 | 19 |
Net income/(loss) | 3,797 | 3,789 | 3,789 | 8 | |||
Other comprehensive income/(loss) | 247 | 174 | 73 | 247 | |||
Total comprehensive income | 4,044 | ||||||
Dividends | (877) | (877) | (877) | ||||
Share buy-back | 0 | 0 | 0 | 0 | |||
Other equity transactions | (18) | (8) | 0 | (8) | (9) | ||
Equity ending balance at Jun. 30, 2021 | 37,041 | 1,164 | 6,844 | 33,136 | (4,121) | 37,023 | 18 |
Equity beginning balance at Mar. 31, 2021 | 35,782 | ||||||
Net income/(loss) | 1,943 | ||||||
Other comprehensive income/(loss) | 202 | ||||||
Total comprehensive income | 2,144 | ||||||
Equity ending balance at Jun. 30, 2021 | $ 37,041 | $ 1,164 | $ 6,844 | $ 33,136 | $ (4,121) | $ 37,023 | $ 18 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |||||
Cash flows from (used in) operating activities [abstract] | ||||||||||
Income/(loss) before tax | $ 4,905 | $ 4,513 | $ (720) | $ 9,417 | $ (640) | $ (4,259) | ||||
Depreciation, amortisation and net impairment losses | 2,111 | 2,797 | 2,522 | 4,908 | 6,959 | 15,235 | ||||
Exploration expenditures written off | 25 | 64 | 125 | 89 | 560 | 2,506 | ||||
(Gains) /losses on foreign currency transactions and balances | 43 | (70) | 321 | (27) | 24 | 646 | ||||
(Gains) /losses on sales of assets and businesses | 16 | (1,383) | (15) | (1,367) | (1) | 18 | ||||
(Increase)/decrease in other items related to operating activities | [1] | (565) | 222 | 257 | (343) | 492 | 918 | |||
(Increase) /decrease in net derivative financial instruments | 170 | 577 | 25 | 746 | (264) | (451) | ||||
Interest received | 39 | 39 | 43 | 78 | 108 | 162 | ||||
Interest paid | (199) | (141) | (198) | (340) | (380) | (730) | ||||
Cash flows provided by operating activities before taxes paid and working capital items | 6,543 | 6,617 | 2,360 | 13,161 | 6,859 | 14,045 | ||||
Taxes paid | (344) | (84) | (1,744) | (428) | (2,631) | (3,134) | ||||
(Increase) decrease in working capital | 444 | (549) | (248) | 106 | 1,183 | (524) | ||||
Cash flows provided by operating activities | 6,643 | 5,984 | 368 | 12,627 | 5,411 | 10,386 | ||||
Cash flows from (used in) investing activities [abstract] | ||||||||||
Cash used in business combinations | [2] | (111) | 0 | 0 | (111) | 0 | 0 | |||
Capital expenditures and investments | (1,747) | (2,151) | (1,899) | (3,897) | (4,249) | (8,476) | ||||
(Increase) /decrease in financial investments | [3] | (4,224) | 699 | (2,730) | (3,525) | (2,131) | (3,703) | |||
(Increase) /decrease in derivatives financial instruments | (65) | (305) | (45) | (370) | (71) | (620) | ||||
(Increase) /decrease in other items interest bearing | (134) | (3) | 2 | (137) | 3 | 202 | ||||
Proceeds from sale of assets and businesses | 692 | 1,146 | 0 | 1,839 | 2 | 505 | ||||
Cash flows used in investing activities | (5,589) | (613) | (4,671) | (6,202) | (6,446) | (12,092) | ||||
Cash flows from (used in) financing activities [abstract] | ||||||||||
New finance debt | 0 | 0 | 8,347 | 0 | 8,347 | 8,347 | ||||
Repayment of finance debt | [4] | (1) | (1,424) | 0 | (1,425) | 0 | (2,055) | |||
Repayment of lease liabilities | [4] | (308) | (302) | (318) | (610) | (623) | (1,277) | |||
Dividend paid | (389) | (355) | (904) | (744) | (1,750) | (2,330) | ||||
Share buy-back | 0 | 0 | 0 | 0 | (58) | (1,059) | ||||
Net current finance debt and other financing activities | 687 | (1,015) | (150) | (327) | (198) | 1,365 | ||||
Cash flows provided by (used in) financing activities | (10) | (3,096) | 6,975 | (3,107) | 5,717 | 2,991 | ||||
Net increase (decrease) in cash and cash equivalents | 1,044 | 2,274 | 2,672 | 3,318 | 4,682 | 1,285 | ||||
Effect of exchange rate changes on cash and cash equivalents | 3 | (174) | 162 | (170) | (159) | 294 | ||||
Cash and cash equivalents at the beginning of the period (net of overdraft) | 8,857 | [5] | 6,757 | [5] | 6,866 | 6,757 | [5] | 5,177 | 5,177 | |
Cash and cash equivalents at the end of the period (net of overdraft) | [5] | $ 9,904 | $ 8,857 | $ 9,700 | $ 9,904 | $ 9,700 | $ 6,757 | |||
[1] | Second quarter 2021 includes redetermination settlement for the Agbami field. For more information see note 7 Provisions, commitments, contingent liabilities and contingent assets for more information. | |||||||||
[2] | Net after cash and cash equivalents acquired. | |||||||||
[3] | Includes sale of Lundin shares in the second quarter of 2020 . | |||||||||
[4] | Repayment of lease liabilities are separated from the line item Repayment of finance debt and 2020 has been reclassified. | |||||||||
[5] | At 30 June 2021 cash and cash equivalents included a net overdraft of USD 7 million. At 31 December 2020 and at 30 June 2020 cash and cash equivalents net overdraft were zero . |
CONSOLIDATED STATEMENT OF CAS_2
CONSOLIDATED STATEMENT OF CASH FLOWS - (Parenthectical) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Cash and cash equivalents includes: [abstract] | |||
Bank overdrafts | $ 7 | $ 0 | $ 0 |
Organisation and basis of prepa
Organisation and basis of preparation | 6 Months Ended |
Jun. 30, 2021 | |
Organisation and basis of preparation [Abstract] | |
Organisation and basis of preparation | 1 Organisation and basis of preparation Organisation and principal activities Equinor ASA , originally Den Norske Stats Oljeselskap AS , was founded in 1972 and is incorporated and domiciled in Norway . The address of its registered office is Forusbeen 50, N-4035 Stavanger, Norway . The Equinor group’s (Equinor’s) business consists principally of the exploration, production, transportation , refining and marketing of petroleum and petroleum-derived products, and other forms of energy. Equinor ASA is listed on the Oslo Børs (Norway) and the New York Stock Exchange (USA). All of Equinor's oil and gas activities and net assets on the Norwegian continental shelf are owned by Equinor Energy AS, a 100 % owned operating subsidiary of Equinor ASA. Equinor Energy AS is co-obligor or guarantor of certain debt obligations of Equinor ASA. Following changes in Equinor's internal reporting to management, th e composition of Equinor's operating and reporting segments changed as of the first quarter 2021. Segment information for prior periods has been reclassified to align with the new segment presentation. Certain further changes to Equinor’s operating segment s took effect on 1 June 2021, but this did not impact the reporting segments, and no reclassifications were required. For more information , see n ote 2 Segments to these condensed interim financial statements. Equinor's c ondensed interim financial statemen ts for the second quarter of 202 1 were authorised for issue by the board of directors on 27 July 202 1 . Basis of preparation These c ondensed interim financial statements are prepared in accordance with International Accounting Standard 34 Interim Financial Reporting as issued by the International Accounting Standards Board (IASB) and as adopted by the European Union (EU). The c ondensed interim financial statements do not include all the information and disclosures required by International Financial Reporting Standards (IFRS) for a complete set of financial statements, and these c ondensed interim financial statements should be read in c onjunction with the C onsolidated annual financial statements for 20 20 . IFRS as adopted by the EU differ s in certain respects from IFRS as issued by the IASB, but the differences do not impact Equinor's financial statements for the periods presented. A desc ription of the significant accounting policies applied in preparing these c ondensed interim financial statements is included in Equinor's C onsolidated annual financial statements for 20 20 . There have been no changes to the significant accounting policies during 202 1 compared to the C onsolidated annual financial statements for 20 20 . The c ondensed interim financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair presentation of the financial position, results of operations and cash flows for the dates and interim periods presented. Interim period results are not necessarily indicative of results of operations or cash flows for an annual period. Certain amounts in the comparable periods in the note disclosures h ave been reclassified to conform to current period presentation. The subtotals and totals in some of the tables may not equal the sum of the amounts shown due to rounding. The c ondensed interim financial statements are unaudited. Use of estimates The prep aration of financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making the judgments about carrying values of assets and liabilities that are not r eadily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an on-going basis, considering current and expected future market conditions. A change in an accounting estimate is recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The ongoing C ovid-19 pandemic create s additional estimation uncertainties and impact s key assumptions applied by Equinor in the valuation of our assets and the measurement of our liabilities. Reference is made to note 2 Significant accounting policies in Equinor ’ s C onsolidated annual financial statements for 2020 and to n ote 8 Impact of the C ovid-19 pandemic to these condensed interim financial statements for further information. |
Segments
Segments | 6 Months Ended |
Jun. 30, 2021 | |
Segments [abstract] | |
Segments | 2 Segments A s from 1 J une 2021 Equinor’s operations are managed through the following operating segments (business areas): Exploration & Production Norway ( E PN), Exploration & Production International ( E PI), Exploration & Production USA ( E PIUSA), Marketing, Midstream & Processing (MMP), Renewables (REN) , Projects , Drilling and Procurement ( PDP ) and Technology, Digital & Innovation (TDI) and Corporate staff and functions. The main change in the organisational corporate structure compared to previous periods is that the operating segment Development & Production Brazil is merged into the operating segment Exploration & Production International . In addition, the operating segment Exploration is divided and merged into Exploration & Production Norway , Exploration & Production International and Exploration & Production USA . Global Strategy & Business development is divided and merged into the functions for Chief Financial Officer and Safety, Se curity and Sustainability. The operating segment Technology, Projects & Drilling is split into Technology, Digital & Innovation and Projects, Drilling & Procurement. The new organisational corporate structure has not implied any changes in the reportable s egments. The reporting segments Exploration & Production Norway (E&P Norway) , Exploration & Production International (E&P International), Exploration & Production USA (E&P USA) , Marketing, Midstream & Processing ( MMP) and Renewables (REN) consist of the bu siness areas EPN , EPI, EPI USA , MMP and REN respectively . The operating segments, PDP, TDI and corpora te staffs and functions are aggregated into the reporting segment “Other” due to the immateriality of these operating segments. The majority of the costs within the operating segments PDP and TDI are allocated to the E&P Norway, E&P International, E&P USA, MMP and REN reporting segments. The changes have no material effect on comparable figures. As from the first quarter of 2021, Equinor changed its reporting as REN became a separate reporting segment. Previously the activities in REN were reported in the segment “Other”. The new reporting structure has been applied retrospectively with comparable figures reclassified. The change has its basis in the increased strategic importance of the renewable business for Equinor and that the information is regarded us eful for the readers of the financial statements. Inter-segment sales and related unrealised profits, mainly from the sale of crude oil and products, are eliminated in the Eliminations column below. Inter-segment revenues are based upon estimated market p rices. The reported measure of segment profit is net operating income/(loss) . Deferred tax a ssets, pension assets and non-current financial assets are not allocated to the segments. The measurement basis for segments is IFRS as applied by the group with the exception of IFRS 16 Leases and the line item Additions to PP&E, intangibles and equity a ccounted investments. All IFRS 16 leases are presented within the Other segment. The lease costs for the period are allocated to the different segments based on underlying lease payments, with a corresponding credit in the Other segment. Lease costs alloca ted to licence partners are recognised as other revenue s in the Other segment. Additions to PP&E, intangible assets and equity accounted investments in the E&P and MMP segments include the period’s allocated lease costs related to activity being capitalise d with a corresponding negative addition in the Other segment. The line item Additions to PP&E, intangibles and equity accounted investments excludes movements related to changes in asset retirement obligation s. Second quarter 2021 E&P Norway E&P International E&P USA MMP REN Other Eliminations Total (in USD million) Revenues third party, other revenue and other income 42 287 101 16,892 7 117 0 17,446 Revenues inter-segment 6,167 1,170 867 82 0 1 (8,287) 0 Net income/(loss) from equity accounted investments 0 19 0 7 (6) (4) 0 16 Total revenues and other income 6,210 1,475 968 16,981 2 114 (8,287) 17,462 Purchases [net of inventory variation] 0 14 (0) (15,448) 0 (0) 8,035 (7,399) Operating, selling, general and administrative expenses (828) (439) (287) (1,097) (32) 57 298 (2,329) Depreciation, amortisation and net impairment losses (908) (228) (438) (284) (1) (252) 0 (2,111) Exploration expenses (55) (231) (39) 0 0 0 0 (326) Total operating expenses (1,792) (884) (764) (16,829) (33) (195) 8,333 (12,164) Net operating income/(loss) 4,418 591 204 152 (31) (82) 46 5,298 Additions to PP&E, intangibles and equity accounted investments 1,368 429 180 59 156 52 0 2,243 First quarter 2021 E&P Norway E&P International E&P USA MMP REN Other Eliminations Total (in USD million) Revenues third party, other revenue and other income 28 221 121 15,697 1,382 111 0 17,559 Revenues inter-segment 5,755 805 872 84 0 1 (7,517) 0 Net income/(loss) from equity accounted investments 0 23 0 8 (1) 0 0 30 Total revenues and other income 5,783 1,049 993 15,789 1,381 111 (7,517) 17,589 Purchases [net of inventory variation] 0 (29) (0) (14,176) 0 (0) 7,040 (7,166) Operating, selling, general and administrative expenses (794) (252) (335) (1,069) (40) 54 277 (2,160) Depreciation, amortisation and net impairment losses (1,570) (400) (436) (152) (0) (240) 0 (2,797) Exploration expenses (70) (107) (70) 0 0 0 0 (247) Total operating expenses (2,433) (788) (841) (15,397) (40) (187) 7,317 (12,369) Net operating income/(loss) 3,350 261 152 392 1,341 (76) (200) 5,220 Additions to PP&E, intangibles and equity accounted investments 1,308 396 157 38 128 (13) (0) 2,014 Second quarter 2020 E&P Norway E&P International E&P USA MMP REN 1) Other 1) Eliminations Total (in USD million) Revenues third party, other revenue and other income 10 52 67 7,392 (0) 50 0 7,570 Revenues inter-segment 1,649 515 408 88 0 1 (2,661) 0 Net income/(loss) from equity accounted investments 0 (11) 0 7 38 0 0 33 Total revenues and other income 1,659 555 475 7,486 38 50 (2,661) 7,603 Purchases [net of inventory variation] 0 (26) 0 (5,127) 0 (0) 2,403 (2,750) Operating, selling, general and administrative expenses (706) (281) (293) (1,423) (38) 163 166 (2,411) Depreciation, amortisation and net impairment losses (992) (509) (475) (326) (0) (220) 0 (2,522) Exploration expenses (65) (288) (40) 0 0 0 0 (393) Total operating expenses (1,762) (1,103) (808) (6,877) (38) (56) 2,569 (8,075) Net operating income/(loss) (104) (548) (332) 610 (0) (6) (92) (472) Additions to PP&E, intangibles and equity accounted investments 1,118 484 268 51 4 382 (0) 2,307 1) Reclassified First half 2021 E&P Norway E&P International E&P USA MMP REN Other Eliminations Total (in USD million) Revenues third party, other revenue and other income 70 508 222 32,589 1,389 227 0 35,005 Revenues inter-segment 11,923 1,975 1,739 166 0 2 (15,804) 0 Net income/(loss) from equity accounted investments 0 42 0 15 (6) (4) 0 47 Total revenues and other income 11,992 2,525 1,961 32,770 1,383 225 (15,804) 35,052 Purchases [net of inventory variation] 0 (15) (0) (29,625) 0 (1) 15,076 (14,565) Operating, selling, general and administrative expenses (1,622) (691) (622) (2,166) (72) 110 574 (4,489) Depreciation, amortisation and net impairment losses (2,478) (627) (873) (436) (1) (492) 0 (4,908) Exploration expenses (125) (338) (109) 0 0 0 0 (572) Total operating expenses (4,225) (1,672) (1,605) (32,226) (73) (383) 15,650 (24,534) Net operating income/(loss) 7,767 853 356 544 1,310 (157) (154) 10,518 Additions to PP&E, intangibles and equity accounted investments 2,676 825 337 97 284 38 0 4,257 Balance sheet information Equity accounted investments 3 1,181 0 96 1,067 32 (0) 2,377 Non-current segment assets 35,530 17,481 11,811 3,572 141 3,668 0 72,202 Non-current assets not allocated to segments 13,303 Total non-current assets 87,882 First half 2020 E&P Norway E&P International E&P USA MMP REN 1) Other 1) Eliminations Total (in USD million) Revenues third party, other revenue and other income 17 218 208 22,087 0 99 0 22,629 Revenues inter-segment 5,179 1,680 1,152 184 0 1 (8,197) 0 Net income/(loss) from equity accounted investments 0 5 0 18 82 0 0 104 Total revenues and other income 5,196 1,903 1,360 22,289 82 100 (8,197) 22,733 Purchases [net of inventory variation] 0 (68) 0 (18,627) 0 (0) 8,549 (10,146) Operating, selling, general and administrative expenses (1,341) (779) (664) (2,767) (71) 255 353 (5,014) Depreciation, amortisation and net impairment losses (2,833) (1,380) (1,711) (607) (0) (429) 0 (6,959) Exploration expenses (160) (536) (332) 0 0 0 0 (1,028) Total operating expenses (4,333) (2,763) (2,707) (22,001) (72) (174) 8,902 (23,147) Net operating income/(loss) 863 (860) (1,347) 288 11 (74) 705 (414) Additions to PP&E, intangibles and equity accounted investments 2,407 1,225 694 107 5 484 (0) 4,922 Balance sheet information Equity accounted investments 2 563 0 87 925 20 0 1,599 Non-current segment assets 30,547 19,715 15,557 4,350 189 3,901 0 74,259 Non-current assets not allocated to segments 10,853 Total non-current assets 86,711 1) Reclassified In the second quarter of 20 2 1 Equinor recognised net impairment reversals of USD 276 million of which USD 113 million was impairments of acquisition cost and signature bonuses classified as exploration expenses. The line item Exploration expenses in the Consolidated statement of income also includes impairment of capitali s ed exploration well cost . For information regarding impairment of capitalised exploration cost , see note 6 Property, plant and equipment and intangible assets. In the E&P International segment the net impairment reversal w as USD 93 million . Impairments of USD 95 million related to exploration license s in South America and w ere classified as exploration expenses. Net i mpairment reversal of other assets of USD 188 million w ere mainly related to an asset in the Europe and Asia are a caused by positive change in the short-term price assumptions and a North America offshore asset valued at fair value less cost to sell following the re classifi cation to held for sale . In the E&P Norway segment the net impairment reversal was USD 3 96 million mainly related to an offshore asset caused by a positive change in the short-term price assumptions. In the MMP segment the impairments were USD 185 million mainly related to a refinery valued at fair value less cost to sell following the reclassification to held for sale. In addition, in the segments Other and E&P USA total impairments of USD 29 million have been recognized. For information on gro up impairment losses and reversals , see note 6 Property, plant and equipment and intangible assets. For information regarding acquisition and disposal of interests, see note 3 Acquisitions and disposals. See also note 8 Impact of the Covid-19 pandemic. Revenues from contract s with customer s by geographical areas When attributing the line item Revenues third party, other revenues and other income to the country of the legal entity executing the sale for the second quarter of 2021 , Norway constitutes 76 % and USA constitutes 16 % of such revenues. For the second quarter of 2020 , Norway and US A constituted 79 % and 16 % of such r evenues , r espectively. For the first half of 2021 , Norway constitutes 7 8 % and the US con stitutes 16 % of such revenues. For the first half of 2020 , Norway and the US constituted 80 % and 15 % of such revenues respectively Non-current assets by country At 30 June At 31 March At 31 December At 30 June (in USD million) 2021 2021 2020 2020 Norway 41,342 40,261 42,192 36,383 USA 12,667 12,867 13,172 16,524 Brazil 8,339 8,226 8,203 8,796 UK 4,222 4,256 4,398 4,913 Azerbaijan 1,674 1,670 1,683 1,696 Canada 1,478 1,445 1,527 1,435 Russia 1,012 974 973 427 Angola 914 897 725 1,331 Algeria 772 794 808 866 Denmark 568 918 953 887 Other countries 1,592 1,378 1,447 2,601 Total non-current assets 1) 74,579 73,686 76,082 75,858 1) Excluding deferred tax assets, pension assets and non-current financial assets . Revenues from contracts with customers and other revenues Quarters First half Full year Q2 2021 Q1 2021 Q2 2020 (in USD million) 2021 2020 2020 9,060 8,714 4,018 Crude oil 17,774 11,858 24,509 3,443 3,298 1,188 Natural gas 6,741 3,358 7,213 2,908 2,661 923 - European gas 5,569 2,691 5,839 319 422 196 - North American gas 741 486 1,010 215 216 68 - Other incl. Liquefied natural gas 431 181 363 2,682 2,373 1,258 Refined products 5,055 3,287 6,534 1,672 1,910 839 Natural gas liquids 3,582 2,288 5,069 205 256 286 Transportation 461 615 1,083 341 112 88 Other sales 454 225 681 17,402 16,664 7,677 Revenues from contracts with customers 34,067 21,631 45,088 80 78 (9) Taxes paid in-kind 158 38 93 294 (159) 152 Physically settled commodity derivatives 135 251 209 (471) (523) (318) Gain/(loss) on commodity derivatives (994) 594 108 74 69 61 Other revenues 143 113 256 (23) (536) (114) Total other revenues (558) 996 665 17,380 16,129 7,563 Revenues 33,508 22,627 45,753 |
Acquisitions and disposals
Acquisitions and disposals | 6 Months Ended |
Jun. 30, 2021 | |
Acquisitions and disposals [Abstract] | |
Acquisitions and disposals | 3 Acquisitions and disposals Divestments Bakken onshore unconventional field On 26 April 2021, Equinor closed the transaction to divest its interests in the Bakken field in the US states of North Dakota and Montana to Grayson Mill Energy, backed by EnCap Investments for an estimated total consideration of USD 819 million, including interim period settlement, for which payment has been received in the first half 2021. Post-closing settlement adjustments are ongoing, and the consideration will be final in early 2022. The asset was impaired in the first quarter 2021. In the second quar ter 2021, an insignificant loss was recorded and is presented in the line item Operating expenses in the Consolidated statement of income in the E&P USA segment. Divestment of 10% of Dogger Bank Farm A and B On 26 February 202 1 , Equinor closed the transaction with Eni to sell a 10 % equity interest in the Dogger Bank Wind Farm A and B assets in the UK for a total consideration of GBP 20 6 . 4 million (USD 28 5 million ) , resulting in a gain of GBP 20 2 . 8 million (USD 28 0 million) . After closing , the new overall shareholding s in Dogger Bank A and Dogger Bank B are S SE Renewables ( 40 %), Equinor ( 40 %) , and Eni ( 20 %). Equinor will continue to equity account for the remaining investment as a joint venture. T he gain is presented in the l ine item Other income in the Consolidated statement of income in the REN segmen t. Divestment of non-operated interest in the Empire Wind and Beacon Wind assets on the US east coast On 29 January 2021, Equinor closed the transaction with BP to sell 50 % of the non-operated interests in the Empire Wind and Beacon Wind assets for a preliminary total consideration after interim period adjustments of USD 1. 2 billion , resulting in a gain of USD 1. 1 billion for the divested part , of which USD 500 million had been prepaid at the end of December 2020 . Through this transaction, the two companies have establis hed a strategic partnership for further growth within offshore wind in the US A . Following the transaction, Equinor remain s the operator with a 50 % interest . Equinor consolidated the assets until transaction closing, and thereafter the investments are classified as joint ventures and accounted for using the equity method. T he gain is presented in the line item Other income in the Consolidated statement of income in the REN segment. Acquisitions Acquisition of Wento On 5 May 2021, Equinor completed a transaction to acquire 100 % of the shares in Polish onshore renewables developer Wento from the private equity firm Enterprise Investors for a cash consideration of EUR 9 8 million (USD 1 17 million) after net cash adjustments. In addition, Equinor acquired a receivable of USD 3 million from Enterprise Investors towards investees. The assets and liabilities related to the acquired business have been recognised under the acquisition method . The acquisition resulted in an increase of Equinor’s intangible assets of USD 46 million, goodwill of USD 59 million, deferred tax liability of USD 9 million and other net assets of USD 2 1 million. The goodwill reflects the expected synergies, competence and access to the Polish renewables market obtained in the acquisition. The transaction has been accounted for in the REN reporting segment. H eld for sale On 10 June 2021, Equinor entered into an agreement with the Klesch Group to sell 100 % of the shares in Equinor Refining Denmark A/S. Equinor Refining Denmark A/S consists of the Kalundborg refinery and terminal in the northwest of Zealand, the Hedehusene terminal near Copenhagen as well as associated infrastructure and industrial property. The assets and liabilities related to this entity are classified as held for sale and presented in the reporting segment MMP at 30 June 2021. Closing of the transaction is subject to customary approvals and contractual condition precedents. Closing is expected in the second half of 2021. Equinor has recognised an impairment loss based on the estimated fair value less costs to sell , see note 2 Segments. In the second quarter 2021 Equinor has reached an agreement on commercial terms to sell its share of an asset in offshore North America. The assets and liabilities related to this entity are classified as held for sale and presented in the E&P Internationa l segment at 30 June 2021. The net carrying amount of the interests to be disposed of is immaterial . Equinor has recognised an impairment reversal based on the estimated fair value less costs to sell , see note 2 Segments. |
Financial items
Financial items | 6 Months Ended |
Jun. 30, 2021 | |
Financial items [Abstract] | |
Financial items | 4 Financial items Quarters First half Full year Q2 2021 Q1 2021 Q2 2020 (in USD million) 2021 2020 2020 (43) 70 (321) Net foreign currency exchange gains/(losses) 27 (24) (646) 28 45 14 Interest income and other financial items 72 238 248 27 (150) 248 Gains/(losses) on financial investments (123) (98) 506 (101) (360) 189 Gains/(losses) other derivative financial instruments (462) 382 448 (304) (312) (379) Interest and other finance expenses (616) (723) (1,392) (393) (707) (248) Net financial items (1,101) (225) (836) Gains/(losses) on derivative financial instruments is a loss of USD 101 million in the second quarter of 2021, compared to a gain of USD 189 million in the second quarter of 2020 , mainly due to increased interest rates. Equinor has a US Commercial paper programme available with a limit of USD 5 billion of which USD 950 million has been utilized as of 3 0 June 202 1 . In the first half of 2021 , Equinor recorded total lease payments of USD 663 million, of which USD 54 million were payment of interest and USD 610 million were down- payment of lease liabilities. |
Income taxes
Income taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income taxes [abstract] | |
Income taxes | 5 Inco me taxes Quarters First half Full year Q2 2021 Q1 2021 Q2 2020 (in USD million) 2021 2020 2020 4,905 4,513 (720) Income/(loss) before tax 9,417 (640) (4,259) (2,962) (2,659) 469 Income tax (5,620) (316) (1,237) 60.4% 58.9% 65.2% Effective tax rate 59.7% (49.5%) (29.0%) The tax rate for the second quarter of 2021 and for the first half of 2021 was primarily influenced by positive operating income in countries with unrecognised deferred tax assets. The tax rate for the second quarter of 2021 was also influenced by currency effects in entities that are taxable in other currencies than the functional currency. The tax rate for the second quarter of 2020 and for the first half of 2020 was primarily influenced by the temporary ch anges to Norway’s petroleum tax system and changes in best estimates for uncertain tax positions. The tax rate for the first half of 2020 was also influenced by losses including impairments recognised in countries with unrecognised deferred tax assets or in countries with lower than average tax rates and currency effects in entities that are taxable in other currencies than the functional currency. The tax rate for the full year 2020 was primarily influenced by losses including net impairments recognise d in countries with unrecognised deferred taxes or in countries with lower than average tax rates . The tax rate was also influenced by currency effects in entities that are taxable in other currencies than the functional currency , partially offset by the t emporary changes to Norway’s petroleum tax system and changes in best estimates for uncertain tax positions. |
Property, plant and equipment a
Property, plant and equipment and intangible assets | 6 Months Ended |
Jun. 30, 2021 | |
Property, plant and equipment and intangible assets [abstract] | |
Property, plant and equipment and intangible assets | 6 Property, plant and equipment and intan gible assets (in USD million) Property, plant and equipment Intangible assets Carrying amount at 31 December 2020 65,672 8,148 Additions through business combinations 4 106 Additions 3,429 166 Transfers 1,467 (1,467) Disposals and reclassifications 45 (12) Transferred to assets classified as held for sale (281) (0) Expensed exploration expenditures and net impairment losses - (89) Depreciation, amortisation and net impairment losses (4,890) (18) Foreign currency translation effects (73) (5) Carrying amount at 30 June 2021 65,373 6,829 R ight-of-use (RoU) assets are included within property, plant and equipment with a net book value of USD 3,618 million per 3 0 June 20 21. A dditions to RoU assets amount to USD 167 million . G ross depreciation and impairment of RoU assets amount to USD 636 million in the first half of 2021 , of which depreciation costs of USD 158 million have been allocated to exploration and development activities and are presented net on the Depreciation, amortisation and net impairment losses and Additions lines in the table above. Net i mpairments /(reversal) of impairments For information on impairment losses and reversals per reporting segment, see note 2 Segments. Second quarter Property, plant and equipment Intangible assets Total (in USD million) 2021 2020 2021 2020 2021 2020 Producing and development assets (390) 263 0 0 (390) 263 Goodwill - - 0 0 0 0 Other intangible assets - - 1 0 1 0 Acquisition costs related to oil and gas prospects - - 113 111 113 111 Total net impairment loss/(reversal) recognised (390) 263 114 111 (276) 374 First half Property, plant and equipment Intangible assets Total (in USD million) 2021 2020 2021 2020 2021 2020 Producing and development assets 21 2,379 12 277 33 2,656 Goodwill - - 1 1 1 1 Other intangible assets - - 1 0 1 0 Acquisition costs related to oil and gas prospects - - 117 170 117 170 Total net impairment loss/(reversal) recognised 21 2,379 131 448 152 2,827 The net impairments have been recognised in the Consolidated statement of income as Depreciation, amortisation and net impairment losses and Exploration expenses based on the impaired assets’ nature of property, plant and equipment and intangible as sets, respectively. The recoverable amounts in the second quarter and first half of 2021 were mainly based on value in use. Value in use estimates and discounted cash flows used to determine the recoverable amount of assets tested for impairment are based on internal for ecasts on costs, production pro files and commodity prices. |
Provisions, commitments, contin
Provisions, commitments, contingent liabilities and contingent assets | 6 Months Ended |
Jun. 30, 2021 | |
Provisions, commitments, contingent liabilities and contingent assets [abstract] | |
Provisions, commitments, contingent liabilities and contingent assets | 7 Provisions, commitments, contingent liabilities and contingent assets Asset retirement obligation Equinor’s estimated asset retirement obligations (ARO) have decreased by USD 548 million to USD 1 6 , 743 million compared to year-end 20 20 , mainly due to the in crease in discount rates and divestments , partially offset by increase in cost estimates and additions. Changes in ARO are reflected within Property, plant and equipment and P rovisions and other liabilities i n the Consolidated balance sheet . Supreme Court decision related to ICMS indirect tax (Imposto sobre Circulaçao de Mercadorias - Tax on the Circulation of Goods and Certain Services) In Brazil, the State of Rio de Janeiro in 2015 published a law whereby c rude oil extraction would be subject to a 18 % ICMS indirect tax (Imposto sobre Circulaçao de Mercadorias - Tax on the Circulation of Goods and Certain Services). The Brazilian Industry Association filed a suit with the Federal Supreme Court of Brazil chall enging the law’s constitutionality, and in March 2021 the plenary of Brazil’s Supreme Court declared the State of Rio de Janeiro’s law to be unconstitutional. The decision became final in May 2021. As a result, Equinor requested that the Supreme Court’s de cision is reflected in the ICMS related legal proceedings which previously were initiated by Equinor and which currently are ongoing for the Roncador and Peregrino fields in in the legal system of the State of Rio de Janeiro. During the second quarter, dev elopments in these state-level legal proceedings regarding the Peregrino field resulted in a reduction in Equinor’s overall maximum exposure, which at the end of the second quarter 2021 is estimated at USD 428 million. Following the Supreme Court’s decisio n, Equinor evaluates the probability of any cash outflow in these cases to be remote. As no provisions have previously been made in the matter, the Brazilian Supreme Court’s decision does not impact Equinor’s condensed interim financial statements for the second quarter or first half of 2021. Redetermination process for Agbami field Through its ownership in OML 128 in Nigeria, Equinor is a party to an ownership interest redetermination process for the Agbami field, which will reduce Equinor’s ownership interest. A non-binding agreement for settlement of the redetermination was reached during the fourth quarter of 2018. The parties to the non-binding agreement have thereafter continued to work towards a final settlement and agreed-upon ownership percentage adjustment. I n June 2021 , Equinor paid a total of USD 822 million to two of the partners in the Agbami Unit . The payment covered outstanding amounts between the three parties as of 31 March 2021. Following the payment, an adjustment to the prev ious provision by USD 57 million has been reflected in the E&P International segment under Other Revenue. The remaining Agbami redetermination related provision reflected in Trade and other payables in the Consolidated balance sheet at second quarter end i s immaterial. Mineral rights dispute along the Missouri riverbank Equinor produces minerals from wells in spacing units along the Missouri River in which ownership of the mineral rights associated with the near shore region up to the ordinary high-water mark have been disputed. As operator of wells in those units, Equinor has a right to part of the proceeds, and a responsibility to distribute the remainder of the proceeds from the production to the owners of the mineral rights. As the riverbank has moved continuously over time, updated river-surveys have resulted in interest claims from several parties, including the State of North Dakota, the United States, and private parties. During the second quarter of 2021, Equinor has received updated title opinion s reflecting the latest State survey that resulted in clarification among the main parties. Certain limited procedural matters remain, but Equinor’s maximum exposure in the case has been significantly reduced and at this stage is minor. Amounts reflected i n the matter in the Consolidated balance sheet at 30 June 2021 and in the Consolidated statement of income during the second quarter and for the first half of 2021 are immaterial. During the normal course of its business, Equinor is involved in legal and other proceedings, and several claims are unresolved and currently outstanding. The ultimate liability or asset in respect of such litigation and claims, cannot be determined now. Equinor has provided in its Condensed interim financial statements for prob able liabilities related to litigation and claims based on the company's best judgement. Equinor does not expect that its financial position, results of operations or cash flows will be materially affected by the resolution of these legal proceedings. |
Impact of the Covid-19 pandemic
Impact of the Covid-19 pandemic and oil price decline | 6 Months Ended |
Jun. 30, 2021 | |
Impact of the Covid-19 pandemic and oil price decline [abstract] | |
Impact of the Covid-19 pandemic and oil price decline | 8 Impact of the Covid-19 pandemic In 2021, the Covid-19 pandemic continues to impact worldwide economic growth and energy demand, and the uncertainties with regard to recovery from the effects of the pandemic remain. During the first half of 2021, oil prices rebounded after an unprecedente d collapse and increased volatility in 2020. Developments related to the ongoing pandemic, such as new or continued lockdowns or other measures implemented by various countries, new outbreaks, and the success of ongoing vaccination efforts, will continue t o impact energy demand, energy prices, and related volatilities in 2021 and beyond. At the same time, markets are currently showing signs of increased demand relative to supply, reflected in higher price levels for oil and gas in the near term. On 19 Marc h 2021, Equinor published its 2020 Annual Report and Form 20-F. The impact of the Covid-19 pandemic for the Equinor group, including the impact for future energy price levels and demand, is discussed and reflected in a number of notes to those 2020 annual consolidated financial statements. The Covid-19 pandemic related information with a reach beyond 2020 continue, in all material aspects, to apply for the first half of 2021. During the first half of 2021, Equinor has only experienced immaterial effects of the pandemic from assets in operation, due to measures taken to maintain and secure safe production. The Covid-19 pandemic continues to impact Equinor’s maintenance and development project portfolio world-wide with personnel limitation issues causing sche dule delays and cost increases. The situation continues to be unpredictable and may have additional consequences for the progress and costs of our projects. Within the group, some projects in the portfolio continue to be impacted by the C ovid -19 pandemic , and especially related to Equinor’s Brazilian organization and the Peregrino field projects and some of the Norwegian development projects. |
Subsequent events
Subsequent events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent events [abstract] | |
Subsequent events | 9 Subsequent events On 27 July 2021, the board of directors resolved to declare a dividend for the second quarter of 2021 of USD 0.18 per share. The Equinor shares will trade ex-dividend 11 November 2021 on the Oslo Børs and 10 November 2021 for ADR holders on the New York Stock Exchange. Record date will be 12 November 2021 and payment date will be 24 November 2021. On 27 July 2021, th e board of directors resolved the commencement of the first tranche of the share buy-back programme for a total of USD 300 million, including shares to be redeemed from the Norwegian State. The purpose of the share buy-back programme is to reduce the issue d share capital of the company. All shares repurchased as part of the programme will be cancelled. The first tranche will end no later than 28 September 2021. |
Organisation and basis of pre_2
Organisation and basis of preparation (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Organisation and basis of preparation | |
Basis of preparation | Basis of preparation These c ondensed interim financial statements are prepared in accordance with International Accounting Standard 34 Interim Financial Reporting as issued by the International Accounting Standards Board (IASB) and as adopted by the European Union (EU). The c ondensed interim financial statements do not include all the information and disclosures required by International Financial Reporting Standards (IFRS) for a complete set of financial statements, and these c ondensed interim financial statements should be read in c onjunction with the C onsolidated annual financial statements for 20 20 . IFRS as adopted by the EU differ s in certain respects from IFRS as issued by the IASB, but the differences do not impact Equinor's financial statements for the periods presented. A desc ription of the significant accounting policies applied in preparing these c ondensed interim financial statements is included in Equinor's C onsolidated annual financial statements for 20 20 . There have been no changes to the significant accounting policies during 202 1 compared to the C onsolidated annual financial statements for 20 20 . The c ondensed interim financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair presentation of the financial position, results of operations and cash flows for the dates and interim periods presented. Interim period results are not necessarily indicative of results of operations or cash flows for an annual period. Certain amounts in the comparable periods in the note disclosures h ave been reclassified to conform to current period presentation. The subtotals and totals in some of the tables may not equal the sum of the amounts shown due to rounding. The c ondensed interim financial statements are unaudited. |
Use of estimates | Use of estimates The prep aration of financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making the judgments about carrying values of assets and liabilities that are not r eadily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an on-going basis, considering current and expected future market conditions. A change in an accounting estimate is recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The ongoing C ovid-19 pandemic create s additional estimation uncertainties and impact s key assumptions applied by Equinor in the valuation of our assets and the measurement of our liabilities. Reference is made to note 2 Significant accounting policies in Equinor ’ s C onsolidated annual financial statements for 2020 and to n ote 8 Impact of the C ovid-19 pandemic to these condensed interim financial statements for further information. |
Segments (Tables)
Segments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segments [abstract] | |
Operating segments data [text block] | Second quarter 2021 E&P Norway E&P International E&P USA MMP REN Other Eliminations Total (in USD million) Revenues third party, other revenue and other income 42 287 101 16,892 7 117 0 17,446 Revenues inter-segment 6,167 1,170 867 82 0 1 (8,287) 0 Net income/(loss) from equity accounted investments 0 19 0 7 (6) (4) 0 16 Total revenues and other income 6,210 1,475 968 16,981 2 114 (8,287) 17,462 Purchases [net of inventory variation] 0 14 (0) (15,448) 0 (0) 8,035 (7,399) Operating, selling, general and administrative expenses (828) (439) (287) (1,097) (32) 57 298 (2,329) Depreciation, amortisation and net impairment losses (908) (228) (438) (284) (1) (252) 0 (2,111) Exploration expenses (55) (231) (39) 0 0 0 0 (326) Total operating expenses (1,792) (884) (764) (16,829) (33) (195) 8,333 (12,164) Net operating income/(loss) 4,418 591 204 152 (31) (82) 46 5,298 Additions to PP&E, intangibles and equity accounted investments 1,368 429 180 59 156 52 0 2,243 First quarter 2021 E&P Norway E&P International E&P USA MMP REN Other Eliminations Total (in USD million) Revenues third party, other revenue and other income 28 221 121 15,697 1,382 111 0 17,559 Revenues inter-segment 5,755 805 872 84 0 1 (7,517) 0 Net income/(loss) from equity accounted investments 0 23 0 8 (1) 0 0 30 Total revenues and other income 5,783 1,049 993 15,789 1,381 111 (7,517) 17,589 Purchases [net of inventory variation] 0 (29) (0) (14,176) 0 (0) 7,040 (7,166) Operating, selling, general and administrative expenses (794) (252) (335) (1,069) (40) 54 277 (2,160) Depreciation, amortisation and net impairment losses (1,570) (400) (436) (152) (0) (240) 0 (2,797) Exploration expenses (70) (107) (70) 0 0 0 0 (247) Total operating expenses (2,433) (788) (841) (15,397) (40) (187) 7,317 (12,369) Net operating income/(loss) 3,350 261 152 392 1,341 (76) (200) 5,220 Additions to PP&E, intangibles and equity accounted investments 1,308 396 157 38 128 (13) (0) 2,014 Second quarter 2020 E&P Norway E&P International E&P USA MMP REN 1) Other 1) Eliminations Total (in USD million) Revenues third party, other revenue and other income 10 52 67 7,392 (0) 50 0 7,570 Revenues inter-segment 1,649 515 408 88 0 1 (2,661) 0 Net income/(loss) from equity accounted investments 0 (11) 0 7 38 0 0 33 Total revenues and other income 1,659 555 475 7,486 38 50 (2,661) 7,603 Purchases [net of inventory variation] 0 (26) 0 (5,127) 0 (0) 2,403 (2,750) Operating, selling, general and administrative expenses (706) (281) (293) (1,423) (38) 163 166 (2,411) Depreciation, amortisation and net impairment losses (992) (509) (475) (326) (0) (220) 0 (2,522) Exploration expenses (65) (288) (40) 0 0 0 0 (393) Total operating expenses (1,762) (1,103) (808) (6,877) (38) (56) 2,569 (8,075) Net operating income/(loss) (104) (548) (332) 610 (0) (6) (92) (472) Additions to PP&E, intangibles and equity accounted investments 1,118 484 268 51 4 382 (0) 2,307 1) Reclassified First half 2021 E&P Norway E&P International E&P USA MMP REN Other Eliminations Total (in USD million) Revenues third party, other revenue and other income 70 508 222 32,589 1,389 227 0 35,005 Revenues inter-segment 11,923 1,975 1,739 166 0 2 (15,804) 0 Net income/(loss) from equity accounted investments 0 42 0 15 (6) (4) 0 47 Total revenues and other income 11,992 2,525 1,961 32,770 1,383 225 (15,804) 35,052 Purchases [net of inventory variation] 0 (15) (0) (29,625) 0 (1) 15,076 (14,565) Operating, selling, general and administrative expenses (1,622) (691) (622) (2,166) (72) 110 574 (4,489) Depreciation, amortisation and net impairment losses (2,478) (627) (873) (436) (1) (492) 0 (4,908) Exploration expenses (125) (338) (109) 0 0 0 0 (572) Total operating expenses (4,225) (1,672) (1,605) (32,226) (73) (383) 15,650 (24,534) Net operating income/(loss) 7,767 853 356 544 1,310 (157) (154) 10,518 Additions to PP&E, intangibles and equity accounted investments 2,676 825 337 97 284 38 0 4,257 Balance sheet information Equity accounted investments 3 1,181 0 96 1,067 32 (0) 2,377 Non-current segment assets 35,530 17,481 11,811 3,572 141 3,668 0 72,202 Non-current assets not allocated to segments 13,303 Total non-current assets 87,882 First half 2020 E&P Norway E&P International E&P USA MMP REN 1) Other 1) Eliminations Total (in USD million) Revenues third party, other revenue and other income 17 218 208 22,087 0 99 0 22,629 Revenues inter-segment 5,179 1,680 1,152 184 0 1 (8,197) 0 Net income/(loss) from equity accounted investments 0 5 0 18 82 0 0 104 Total revenues and other income 5,196 1,903 1,360 22,289 82 100 (8,197) 22,733 Purchases [net of inventory variation] 0 (68) 0 (18,627) 0 (0) 8,549 (10,146) Operating, selling, general and administrative expenses (1,341) (779) (664) (2,767) (71) 255 353 (5,014) Depreciation, amortisation and net impairment losses (2,833) (1,380) (1,711) (607) (0) (429) 0 (6,959) Exploration expenses (160) (536) (332) 0 0 0 0 (1,028) Total operating expenses (4,333) (2,763) (2,707) (22,001) (72) (174) 8,902 (23,147) Net operating income/(loss) 863 (860) (1,347) 288 11 (74) 705 (414) Additions to PP&E, intangibles and equity accounted investments 2,407 1,225 694 107 5 484 (0) 4,922 Balance sheet information Equity accounted investments 2 563 0 87 925 20 0 1,599 Non-current segment assets 30,547 19,715 15,557 4,350 189 3,901 0 74,259 Non-current assets not allocated to segments 10,853 Total non-current assets 86,711 1) Reclassified |
Non-current assets by country [text block] | Non-current assets by country At 30 June At 31 March At 31 December At 30 June (in USD million) 2021 2021 2020 2020 Norway 41,342 40,261 42,192 36,383 USA 12,667 12,867 13,172 16,524 Brazil 8,339 8,226 8,203 8,796 UK 4,222 4,256 4,398 4,913 Azerbaijan 1,674 1,670 1,683 1,696 Canada 1,478 1,445 1,527 1,435 Russia 1,012 974 973 427 Angola 914 897 725 1,331 Algeria 772 794 808 866 Denmark 568 918 953 887 Other countries 1,592 1,378 1,447 2,601 Total non-current assets 1) 74,579 73,686 76,082 75,858 1) Excluding deferred tax assets, pension assets and non-current financial assets . |
Revenues from contracts with customers [text block] | Revenues from contracts with customers and other revenues Quarters First half Full year Q2 2021 Q1 2021 Q2 2020 (in USD million) 2021 2020 2020 9,060 8,714 4,018 Crude oil 17,774 11,858 24,509 3,443 3,298 1,188 Natural gas 6,741 3,358 7,213 2,908 2,661 923 - European gas 5,569 2,691 5,839 319 422 196 - North American gas 741 486 1,010 215 216 68 - Other incl. Liquefied natural gas 431 181 363 2,682 2,373 1,258 Refined products 5,055 3,287 6,534 1,672 1,910 839 Natural gas liquids 3,582 2,288 5,069 205 256 286 Transportation 461 615 1,083 341 112 88 Other sales 454 225 681 17,402 16,664 7,677 Revenues from contracts with customers 34,067 21,631 45,088 80 78 (9) Taxes paid in-kind 158 38 93 294 (159) 152 Physically settled commodity derivatives 135 251 209 (471) (523) (318) Gain/(loss) on commodity derivatives (994) 594 108 74 69 61 Other revenues 143 113 256 (23) (536) (114) Total other revenues (558) 996 665 17,380 16,129 7,563 Revenues 33,508 22,627 45,753 |
Financial items (Table)
Financial items (Table) | 6 Months Ended |
Jun. 30, 2021 | |
Financial items [Abstract] | |
Schedule of Finance items [text block] | Quarters First half Full year Q2 2021 Q1 2021 Q2 2020 (in USD million) 2021 2020 2020 (43) 70 (321) Net foreign currency exchange gains/(losses) 27 (24) (646) 28 45 14 Interest income and other financial items 72 238 248 27 (150) 248 Gains/(losses) on financial investments (123) (98) 506 (101) (360) 189 Gains/(losses) other derivative financial instruments (462) 382 448 (304) (312) (379) Interest and other finance expenses (616) (723) (1,392) (393) (707) (248) Net financial items (1,101) (225) (836) |
Income taxes (Table)
Income taxes (Table) | 6 Months Ended |
Jun. 30, 2021 | |
Income taxes [abstract] | |
Significant components of income tax expense [Table Text Block] | Quarters First half Full year Q2 2021 Q1 2021 Q2 2020 (in USD million) 2021 2020 2020 4,905 4,513 (720) Income/(loss) before tax 9,417 (640) (4,259) (2,962) (2,659) 469 Income tax (5,620) (316) (1,237) 60.4% 58.9% 65.2% Effective tax rate 59.7% (49.5%) (29.0%) |
Property, plant and equipment_2
Property, plant and equipment and intangible assets (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Property, plant and equipment and intangible assets [abstract] | |
Property, plant and equipment [text block] | (in USD million) Property, plant and equipment Intangible assets Carrying amount at 31 December 2020 65,672 8,148 Additions through business combinations 4 106 Additions 3,429 166 Transfers 1,467 (1,467) Disposals and reclassifications 45 (12) Transferred to assets classified as held for sale (281) (0) Expensed exploration expenditures and net impairment losses - (89) Depreciation, amortisation and net impairment losses (4,890) (18) Foreign currency translation effects (73) (5) Carrying amount at 30 June 2021 65,373 6,829 |
Impairments [text block] | Second quarter Property, plant and equipment Intangible assets Total (in USD million) 2021 2020 2021 2020 2021 2020 Producing and development assets (390) 263 0 0 (390) 263 Goodwill - - 0 0 0 0 Other intangible assets - - 1 0 1 0 Acquisition costs related to oil and gas prospects - - 113 111 113 111 Total net impairment loss/(reversal) recognised (390) 263 114 111 (276) 374 First half Property, plant and equipment Intangible assets Total (in USD million) 2021 2020 2021 2020 2021 2020 Producing and development assets 21 2,379 12 277 33 2,656 Goodwill - - 1 1 1 1 Other intangible assets - - 1 0 1 0 Acquisition costs related to oil and gas prospects - - 117 170 117 170 Total net impairment loss/(reversal) recognised 21 2,379 131 448 152 2,827 |
Organisation and basis of pre_3
Organisation and basis of preparation (Details) | 6 Months Ended |
Jun. 30, 2021 | |
Organisation and basis of preparation [Abstract] | |
Name of reporting entity or other means of identification | Equinor ASA |
Domicile of entity | Norway |
Country of incorporation | Norway |
Address of entity's registered office | Forusbeen 50, N-4035 Stavanger, Norway |
Description of nature of entity's operations and principal activities | The Equinor group’s (Equinor’s) business consists principally of the exploration, production, transportation, refining and marketing of petroleum and petroleum-derived products, and other forms of energy. |
Equinor Energy AS [member] | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Segments - Segment Data (Detail
Segments - Segment Data (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Disclosure of operating segments [line items] | ||||||
Revenues third party, other revenue and other income | $ 17,446 | $ 17,559 | $ 7,570 | $ 35,005 | $ 22,629 | |
Revenues inter-segment | 0 | 0 | 0 | 0 | 0 | |
Net income/(loss) from equity accounted investments | 16 | 30 | 33 | 47 | 104 | $ 53 |
Total revenues and other income | 17,462 | 17,589 | 7,603 | 35,052 | 22,733 | 45,818 |
Purchases (net of inventory variation) | (7,399) | (7,166) | (2,750) | (14,565) | (10,146) | (20,986) |
Operating, selling, general and administrative expenses | (2,329) | (2,160) | (2,411) | (4,489) | (5,014) | |
Depreciation, amortisation and net impairment losses | (2,111) | (2,797) | (2,522) | (4,908) | (6,959) | (15,235) |
Exploration expenses | (326) | (247) | (393) | (572) | (1,028) | (3,483) |
Total operating expenses | (12,164) | (12,369) | (8,075) | (24,534) | (23,147) | (49,241) |
Net operating income/(loss) | 5,298 | 5,220 | (472) | 10,518 | (414) | (3,423) |
Additions to PP&E, intangibles and equity accounted investments | 2,243 | 2,014 | 2,307 | 4,257 | 4,922 | |
Balance sheet information [abstract] | ||||||
Equity accounted investments | 2,377 | 2,374 | 1,599 | 2,377 | 1,599 | 2,262 |
Noncurrent Assets | 87,882 | 86,272 | 86,711 | 87,882 | 86,711 | $ 89,786 |
Segments [member] | ||||||
Balance sheet information [abstract] | ||||||
Noncurrent Assets | 72,202 | 74,259 | 72,202 | 74,259 | ||
Segments [member] | E&P Norway [member] | ||||||
Disclosure of operating segments [line items] | ||||||
Revenues third party, other revenue and other income | 42 | 28 | 10 | 70 | 17 | |
Revenues inter-segment | 6,167 | 5,755 | 1,649 | 11,923 | 5,179 | |
Net income/(loss) from equity accounted investments | 0 | 0 | 0 | 0 | 0 | |
Total revenues and other income | 6,210 | 5,783 | 1,659 | 11,992 | 5,196 | |
Purchases (net of inventory variation) | 0 | 0 | 0 | 0 | 0 | |
Operating, selling, general and administrative expenses | (828) | (794) | (706) | (1,622) | (1,341) | |
Depreciation, amortisation and net impairment losses | (908) | (1,570) | (992) | (2,478) | (2,833) | |
Exploration expenses | (55) | (70) | (65) | (125) | (160) | |
Total operating expenses | (1,792) | (2,433) | (1,762) | (4,225) | (4,333) | |
Net operating income/(loss) | 4,418 | 3,350 | (104) | 7,767 | 863 | |
Additions to PP&E, intangibles and equity accounted investments | 1,368 | 1,308 | 1,118 | 2,676 | 2,407 | |
Balance sheet information [abstract] | ||||||
Equity accounted investments | 3 | 2 | 3 | 2 | ||
Noncurrent Assets | 35,530 | 30,547 | 35,530 | 30,547 | ||
Segments [member] | E&P International [member] | ||||||
Disclosure of operating segments [line items] | ||||||
Revenues third party, other revenue and other income | 287 | 221 | 52 | 508 | 218 | |
Revenues inter-segment | 1,170 | 805 | 515 | 1,975 | 1,680 | |
Net income/(loss) from equity accounted investments | 19 | 23 | (11) | 42 | 5 | |
Total revenues and other income | 1,475 | 1,049 | 555 | 2,525 | 1,903 | |
Purchases (net of inventory variation) | 14 | (29) | (26) | (15) | (68) | |
Operating, selling, general and administrative expenses | (439) | (252) | (281) | (691) | (779) | |
Depreciation, amortisation and net impairment losses | (228) | (400) | (509) | (627) | (1,380) | |
Exploration expenses | (231) | (107) | (288) | (338) | (536) | |
Total operating expenses | (884) | (788) | (1,103) | (1,672) | (2,763) | |
Net operating income/(loss) | 591 | 261 | (548) | 853 | (860) | |
Additions to PP&E, intangibles and equity accounted investments | 429 | 396 | 484 | 825 | 1,225 | |
Balance sheet information [abstract] | ||||||
Equity accounted investments | 1,181 | 563 | 1,181 | 563 | ||
Noncurrent Assets | 17,481 | 19,715 | 17,481 | 19,715 | ||
Segments [member] | E&P USA [member] | ||||||
Disclosure of operating segments [line items] | ||||||
Revenues third party, other revenue and other income | 101 | 121 | 67 | 222 | 208 | |
Revenues inter-segment | 867 | 872 | 408 | 1,739 | 1,152 | |
Net income/(loss) from equity accounted investments | 0 | 0 | 0 | 0 | 0 | |
Total revenues and other income | 968 | 993 | 475 | 1,961 | 1,360 | |
Purchases (net of inventory variation) | 0 | 0 | 0 | 0 | 0 | |
Operating, selling, general and administrative expenses | (287) | (335) | (293) | (622) | (664) | |
Depreciation, amortisation and net impairment losses | (438) | (436) | (475) | (873) | (1,711) | |
Exploration expenses | (39) | (70) | (40) | (109) | (332) | |
Total operating expenses | (764) | (841) | (808) | (1,605) | (2,707) | |
Net operating income/(loss) | 204 | 152 | (332) | 356 | (1,347) | |
Additions to PP&E, intangibles and equity accounted investments | 180 | 157 | 268 | 337 | 694 | |
Balance sheet information [abstract] | ||||||
Equity accounted investments | 0 | 0 | 0 | 0 | ||
Noncurrent Assets | 11,811 | 15,557 | 11,811 | 15,557 | ||
Segments [member] | MMP [member] | ||||||
Disclosure of operating segments [line items] | ||||||
Revenues third party, other revenue and other income | 16,892 | 15,697 | 7,392 | 32,589 | 22,087 | |
Revenues inter-segment | 82 | 84 | 88 | 166 | 184 | |
Net income/(loss) from equity accounted investments | 7 | 8 | 7 | 15 | 18 | |
Total revenues and other income | 16,981 | 15,789 | 7,486 | 32,770 | 22,289 | |
Purchases (net of inventory variation) | (15,448) | (14,176) | (5,127) | (29,625) | (18,627) | |
Operating, selling, general and administrative expenses | (1,097) | (1,069) | (1,423) | (2,166) | (2,767) | |
Depreciation, amortisation and net impairment losses | (284) | (152) | (326) | (436) | (607) | |
Exploration expenses | 0 | 0 | 0 | 0 | 0 | |
Total operating expenses | (16,829) | (15,397) | (6,877) | (32,226) | (22,001) | |
Net operating income/(loss) | 152 | 392 | 610 | 544 | 288 | |
Additions to PP&E, intangibles and equity accounted investments | 59 | 38 | 51 | 97 | 107 | |
Balance sheet information [abstract] | ||||||
Equity accounted investments | 96 | 87 | 96 | 87 | ||
Noncurrent Assets | 3,572 | 4,350 | 3,572 | 4,350 | ||
Segments [member] | REN (member) | ||||||
Disclosure of operating segments [line items] | ||||||
Revenues third party, other revenue and other income | 7 | 1,382 | 0 | 1,389 | 0 | |
Revenues inter-segment | 0 | 0 | 0 | 0 | 0 | |
Net income/(loss) from equity accounted investments | (6) | (1) | 38 | (6) | 82 | |
Total revenues and other income | 2 | 1,381 | 38 | 1,383 | 82 | |
Purchases (net of inventory variation) | 0 | 0 | 0 | 0 | 0 | |
Operating, selling, general and administrative expenses | (32) | (40) | (38) | (72) | (71) | |
Depreciation, amortisation and net impairment losses | (1) | 0 | 0 | (1) | 0 | |
Exploration expenses | 0 | 0 | 0 | 0 | 0 | |
Total operating expenses | (33) | (40) | (38) | (73) | 72 | |
Net operating income/(loss) | (31) | 1,341 | 0 | 1,310 | 11 | |
Additions to PP&E, intangibles and equity accounted investments | 156 | 128 | 4 | 284 | 5 | |
Balance sheet information [abstract] | ||||||
Equity accounted investments | 1,067 | 925 | 1,067 | 925 | ||
Noncurrent Assets | 141 | 189 | 141 | 189 | ||
Segments [member] | Other [member] | ||||||
Disclosure of operating segments [line items] | ||||||
Revenues third party, other revenue and other income | 117 | 111 | 50 | 227 | 99 | |
Revenues inter-segment | 1 | 1 | 1 | 2 | 1 | |
Net income/(loss) from equity accounted investments | (4) | 0 | 0 | (4) | 0 | |
Total revenues and other income | 114 | 111 | 50 | 225 | 100 | |
Purchases (net of inventory variation) | 0 | 0 | 0 | (1) | 0 | |
Operating, selling, general and administrative expenses | 57 | 54 | 163 | 110 | 255 | |
Depreciation, amortisation and net impairment losses | (252) | (240) | (220) | (492) | (429) | |
Exploration expenses | 0 | 0 | 0 | 0 | 0 | |
Total operating expenses | (195) | (187) | (56) | (383) | (174) | |
Net operating income/(loss) | (82) | (76) | (6) | (157) | (74) | |
Additions to PP&E, intangibles and equity accounted investments | 52 | (13) | 382 | 38 | 484 | |
Balance sheet information [abstract] | ||||||
Equity accounted investments | 32 | 20 | 32 | 20 | ||
Noncurrent Assets | 3,668 | 3,901 | 3,668 | 3,901 | ||
Unallocated amounts [member] | ||||||
Balance sheet information [abstract] | ||||||
Noncurrent Assets | 13,303 | 10,853 | 13,303 | 10,853 | ||
Eliminations [member] | ||||||
Disclosure of operating segments [line items] | ||||||
Revenues third party, other revenue and other income | 0 | 0 | 0 | 0 | 0 | |
Revenues inter-segment | (8,287) | (7,517) | (2,661) | (15,804) | (8,197) | |
Net income/(loss) from equity accounted investments | 0 | 0 | 0 | 0 | 0 | |
Total revenues and other income | (8,287) | (7,517) | (2,661) | (15,804) | (8,197) | |
Purchases (net of inventory variation) | 8,035 | 7,040 | 2,403 | 15,076 | 8,549 | |
Operating, selling, general and administrative expenses | 298 | 277 | 166 | 574 | 353 | |
Depreciation, amortisation and net impairment losses | 0 | 0 | 0 | 0 | 0 | |
Exploration expenses | 0 | 0 | 0 | 0 | 0 | |
Total operating expenses | 8,333 | 7,317 | 2,569 | 15,650 | 8,902 | |
Net operating income/(loss) | 46 | (200) | (92) | (154) | 705 | |
Additions to PP&E, intangibles and equity accounted investments | 0 | $ 0 | 0 | 0 | 0 | |
Balance sheet information [abstract] | ||||||
Equity accounted investments | 0 | 0 | 0 | 0 | ||
Noncurrent Assets | $ 0 | $ 0 | $ 0 | 0 | ||
Eliminations [member] | E&P Norway [member] | ||||||
Disclosure of operating segments [line items] | ||||||
Additions to PP&E, intangibles and equity accounted investments | 2,407 | |||||
Eliminations [member] | E&P International [member] | ||||||
Disclosure of operating segments [line items] | ||||||
Additions to PP&E, intangibles and equity accounted investments | 1,225 | |||||
Eliminations [member] | E&P USA [member] | ||||||
Disclosure of operating segments [line items] | ||||||
Additions to PP&E, intangibles and equity accounted investments | 694 | |||||
Eliminations [member] | MMP [member] | ||||||
Disclosure of operating segments [line items] | ||||||
Additions to PP&E, intangibles and equity accounted investments | 107 | |||||
Eliminations [member] | REN (member) | ||||||
Disclosure of operating segments [line items] | ||||||
Additions to PP&E, intangibles and equity accounted investments | 5 | |||||
Eliminations [member] | Other [member] | ||||||
Disclosure of operating segments [line items] | ||||||
Additions to PP&E, intangibles and equity accounted investments | $ 484 |
Segments - Non current assets b
Segments - Non current assets by country (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Disclosure of geographical areas [line items] | ||||
Non-current assets | $ 74,579 | $ 73,686 | $ 76,082 | $ 75,858 |
Norway [member] | ||||
Disclosure of geographical areas [line items] | ||||
Non-current assets | 41,342 | 40,261 | 42,192 | 36,383 |
USA [member} | ||||
Disclosure of geographical areas [line items] | ||||
Non-current assets | 12,667 | 12,867 | 13,172 | 16,524 |
Brazil [member] | ||||
Disclosure of geographical areas [line items] | ||||
Non-current assets | 8,339 | 8,226 | 8,203 | 8,796 |
UK [member] | ||||
Disclosure of geographical areas [line items] | ||||
Non-current assets | 4,222 | 4,256 | 4,398 | 4,913 |
Azerbaijan [member] | ||||
Disclosure of geographical areas [line items] | ||||
Non-current assets | 1,674 | 1,670 | 1,683 | 1,696 |
Canada [member] | ||||
Disclosure of geographical areas [line items] | ||||
Non-current assets | 1,478 | 1,445 | 1,527 | 1,435 |
Russia [member] | ||||
Disclosure of geographical areas [line items] | ||||
Non-current assets | 1,012 | 974 | 973 | 427 |
Denmark [member] | ||||
Disclosure of geographical areas [line items] | ||||
Non-current assets | 568 | 918 | 953 | 887 |
Angola [member] | ||||
Disclosure of geographical areas [line items] | ||||
Non-current assets | 914 | 897 | 725 | 1,331 |
Algeria [member] | ||||
Disclosure of geographical areas [line items] | ||||
Non-current assets | 772 | 794 | 808 | 866 |
Other countries [Member] | ||||
Disclosure of geographical areas [line items] | ||||
Non-current assets | $ 1,592 | $ 1,378 | $ 1,447 | $ 2,601 |
Segments - Revenues from contra
Segments - Revenues from contracts with customers (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Disclosure of geographical areas [line items] | ||||||
Revenue from contracts with customers | $ 17,402 | $ 16,664 | $ 7,677 | $ 34,067 | $ 21,631 | $ 45,088 |
Taxes paid in kind | 80 | 78 | (9) | 158 | 38 | 93 |
Other revenues | 74 | 69 | 61 | 143 | 113 | 256 |
Total other revenues | (23) | (536) | (114) | (558) | 996 | 665 |
Revenues | 17,380 | 16,129 | 7,563 | 33,508 | 22,627 | 45,753 |
Commodity derivatives [member] | ||||||
Disclosure of geographical areas [line items] | ||||||
Physically settled commodity derivatives | 294 | (159) | 152 | 135 | 251 | 209 |
Gain/(loss) on commodity derivatives | (471) | (523) | (318) | (994) | 594 | 108 |
Crude oil [member] | ||||||
Disclosure of geographical areas [line items] | ||||||
Revenue from contracts with customers | 9,060 | 8,714 | 4,018 | 17,774 | 11,858 | 24,509 |
Natural gas [Member] | ||||||
Disclosure of geographical areas [line items] | ||||||
Revenue from contracts with customers | 3,443 | 3,298 | 1,188 | 6,741 | 3,358 | 7,213 |
Natural gas [Member] | European [member] | ||||||
Disclosure of geographical areas [line items] | ||||||
Revenue from contracts with customers | 2,908 | 2,661 | 923 | 5,569 | 2,691 | 5,839 |
Natural gas [Member] | North America [member] | ||||||
Disclosure of geographical areas [line items] | ||||||
Revenue from contracts with customers | 319 | 422 | 196 | 741 | 486 | 1,010 |
Natural gas [Member] | Other including LNG [member] | ||||||
Disclosure of geographical areas [line items] | ||||||
Revenue from contracts with customers | 215 | 216 | 68 | 431 | 181 | 363 |
Refined products [Member] | ||||||
Disclosure of geographical areas [line items] | ||||||
Revenue from contracts with customers | 2,682 | 2,373 | 1,258 | 5,055 | 3,287 | 6,534 |
Natural gas liquids [Member] | ||||||
Disclosure of geographical areas [line items] | ||||||
Revenue from contracts with customers | 1,672 | 1,910 | 839 | 3,582 | 2,288 | 5,069 |
Transportation [Member] | ||||||
Disclosure of geographical areas [line items] | ||||||
Revenue from contracts with customers | 205 | 256 | 286 | 461 | 615 | 1,083 |
Other sales [member] | ||||||
Disclosure of geographical areas [line items] | ||||||
Revenue from contracts with customers | $ 341 | $ 112 | $ 88 | $ 454 | $ 225 | $ 681 |
Segments - Narrative (Details)
Segments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure of operating segments [line items] | ||||
Net impairment | $ (276) | |||
Net Impairment loss recognised as exploration expense | $ 113 | |||
Norway [member] | ||||
Disclosure of operating segments [line items] | ||||
Percentage of entity's revenue | 76.00% | 79.00% | 78.00% | 80.00% |
US [member} | ||||
Disclosure of operating segments [line items] | ||||
Percentage of entity's revenue | 16.00% | 16.00% | 16.00% | 15.00% |
E&P International [member] | ||||
Disclosure of operating segments [line items] | ||||
Net impairment | $ (93) | |||
E&P International [member] | South America [member] | ||||
Disclosure of operating segments [line items] | ||||
Net Impairment loss recognised as exploration expense | 95 | |||
E&P International [member] | Europe and Asia area [member] | ||||
Disclosure of operating segments [line items] | ||||
Net impairment | (188) | |||
MMP [member] | ||||
Disclosure of operating segments [line items] | ||||
Net impairment | 185 | |||
E&P Norway [member] | ||||
Disclosure of operating segments [line items] | ||||
Net impairment | $ (396) |
Acquisitions and disposals- Acq
Acquisitions and disposals- Acquisitions (Details) - May 05, 2021 - Wento [member] - REN (member) € in Millions, $ in Millions | USD ($) | EUR (€) | USD ($) |
Acquisitions [line items] | |||
Percentage of share acquired | 100.00% | 100.00% | |
Cash consideration | € 98 | $ 117 | |
Acquired receivable | 3 | ||
Increase in intangible assets | 46 | ||
Goodwill | $ 59 | ||
Increase in deferred tax liabilities | $ 9 | ||
Increase in other net assets | $ 21 |
Acquisitions and disposals- Div
Acquisitions and disposals- Divestures (Details) £ in Millions, $ in Millions | Jun. 10, 2021 | Feb. 26, 2021GBP (£) | Feb. 26, 2021USD ($) | Jan. 29, 2021USD ($) | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Bakken onshore unconventional field [member] | ||||||
Divestments [Line Items] | ||||||
Proceeds from divesture/sale | $ 819 | |||||
Dogger Bank Farm A and B [member] | ||||||
Divestments [Line Items] | ||||||
Ownership interest in joint venture | 40.00% | 40.00% | ||||
Dogger Bank Farm A and B [member] | REN (member) | ||||||
Divestments [Line Items] | ||||||
Proportion of ownership interest divested | 10.00% | 10.00% | ||||
Proceeds from divesture/sale | £ 206.4 | $ 285 | ||||
Gain (loss ) on disposal of assets or discontinued operations | £ 202.8 | $ 280 | ||||
Dogger Bank Farm A and B [member] | SSE Renewables [Member] | ||||||
Divestments [Line Items] | ||||||
Ownership interest in joint venture | 40.00% | 40.00% | ||||
Dogger Bank Farm A and B [member] | Eni [Member] | ||||||
Divestments [Line Items] | ||||||
Ownership interest in joint venture | 20.00% | 20.00% | ||||
Empire Wind and Beacon Wind assets on the US east coast [Member] | ||||||
Divestments [Line Items] | ||||||
Proportion of ownership interest divested | 50.00% | |||||
Proceeds from divesture/sale | $ 1,200 | |||||
Proportion of voting rights held in joint operation | 50.00% | |||||
Prepaid | $ 500 | |||||
Empire Wind and Beacon Wind assets on the US east coast [Member] | REN (member) | ||||||
Divestments [Line Items] | ||||||
Gain (loss ) on disposal of assets or discontinued operations | $ 1,100 | |||||
Equinor Refining Denmark A/S (ERD) [member] | ||||||
Divestments [Line Items] | ||||||
Proportion of ownership interest held for sale | 100.00% |
Financial items (Details)
Financial items (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | ||
Financial items [Abstract] | |||||||
Gains (losses) on net foreign exchange | $ (43) | $ 70 | $ (321) | $ 27 | $ (24) | $ (646) | |
Interest income and other financial items | 28 | 45 | 14 | 72 | 238 | 248 | |
Gains (losses) financial investments | 27 | (150) | 248 | (123) | (98) | 506 | |
Gains/(losses) other derivative financial instruments | (101) | (360) | 189 | (462) | 382 | 448 | |
Interest and other financial expenses | (304) | (312) | (379) | (616) | (723) | (1,392) | |
Net financial items | (393) | (707) | (248) | (1,101) | (225) | (836) | |
Payments of lease liabilities, classified as financing activities | 663 | ||||||
Interest paid finance lease liabilities | 54 | ||||||
Down payment of lease liabilities | [1] | 308 | $ 302 | $ 318 | 610 | $ 623 | $ 1,277 |
Commercial Papers Programme | 950 | 950 | |||||
Commercial Paper Program Limit | $ 5,000 | $ 5,000 | |||||
[1] | Repayment of lease liabilities are separated from the line item Repayment of finance debt and 2020 has been reclassified. |
Income taxes (Details)
Income taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Reconciliation of accounting profit multiplied by applicable tax rates [abstract] | ||||||
Income/(loss) before tax | $ 4,905 | $ 4,513 | $ (720) | $ 9,417 | $ (640) | $ (4,259) |
Income tax | $ (2,962) | $ (2,659) | $ 469 | $ (5,620) | $ (316) | $ (1,237) |
Effective tax rate | 60.40% | 58.90% | 65.20% | 59.70% | (49.50%) | (29.00%) |
Property, plant and equipment_3
Property, plant and equipment and intangible assets (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Property, plant and equipment and intangible assets [abstract] | |
Balance, beginning | $ 65,672 |
Additions through business combinations | 4 |
Additions | 3,429 |
Transfers | 1,467 |
Disposals and reclassifications | 45 |
Transferred to assets classified as held for sale | (281) |
Depreciation, amortisation and net impairment losses | (4,890) |
Effect of foreign currency translation adjustments | (73) |
Balance, ending | 65,373 |
Intangible Assets [Abstract] | |
Intangibles beginning | 8,148 |
Additions through business combinations | 106 |
Additions | 166 |
Transfers | (1,467) |
Disposals and reclassifications | (12) |
Transferred to assets classified as held for sale | 0 |
Expensed exploration expenditures and impairment losses | (89) |
Depreciation, amortisation and net impairment losses | (18) |
Effect of foreign currency translation adjustments | (5) |
Intangibles ending | $ 6,829 |
Property, plant and equipment -
Property, plant and equipment -Impairments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Total net impairment losses (reversals) recognised | $ (276) | $ 374 | $ 152 | $ 2,827 |
Goodwill [member] | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Total net impairment losses (reversals) recognised | 0 | 0 | 1 | 1 |
Other intangible assets [member] | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Total net impairment losses (reversals) recognised | 1 | 0 | 1 | 0 |
Acquisition costs related to oil and gas prospects [member] | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Total net impairment losses (reversals) recognised | 113 | 111 | 117 | 170 |
Producing and development assets [Member] | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Total net impairment losses (reversals) recognised | (390) | 263 | 33 | 2,656 |
Property Plant And Equipment [member] | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Total net impairment losses (reversals) recognised | (390) | 263 | 21 | 2,379 |
Property Plant And Equipment [member] | Goodwill [member] | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Total net impairment losses (reversals) recognised | 0 | 0 | 0 | 0 |
Property Plant And Equipment [member] | Other intangible assets [member] | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Total net impairment losses (reversals) recognised | 0 | 0 | 0 | 0 |
Property Plant And Equipment [member] | Acquisition costs related to oil and gas prospects [member] | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Total net impairment losses (reversals) recognised | 0 | 0 | 0 | 0 |
Property Plant And Equipment [member] | Producing and development assets [Member] | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Total net impairment losses (reversals) recognised | (390) | 263 | 21 | 2,379 |
Intangible assets [member] | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Total net impairment losses (reversals) recognised | 114 | 111 | 131 | 448 |
Intangible assets [member] | Goodwill [member] | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Total net impairment losses (reversals) recognised | 0 | 0 | 1 | 1 |
Intangible assets [member] | Other intangible assets [member] | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Total net impairment losses (reversals) recognised | 1 | 0 | 1 | 0 |
Intangible assets [member] | Acquisition costs related to oil and gas prospects [member] | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Total net impairment losses (reversals) recognised | 113 | 111 | 117 | 170 |
Intangible assets [member] | Producing and development assets [Member] | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Total net impairment losses (reversals) recognised | $ 0 | $ 0 | $ 12 | $ 277 |
Property, plant and equipment_4
Property, plant and equipment - Narrative (Details) | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Right of use Assets | $ 3,618,000,000 |
Gross depreciation of right of use (RoU) assets | 636,000,000 |
Additions to RoU assets | 167,000,000 |
Exploration and development assets [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Gross depreciation of right of use (RoU) assets | $ 158,000,000 |
Provisions, commitments, cont_2
Provisions, commitments, contingent liabilities and contingent assets (Details) $ in Millions | 1 Months Ended | 6 Months Ended |
Jun. 30, 2021USD ($) | Jun. 30, 2021USD ($) | |
Asset retirement obligations [member] | ||
Disclosure of other provisions [line items] | ||
Other provisions | $ 16,743 | $ 16,743 |
Increase (decrease) in provisions due to changes in discount rate | (548) | |
ICMS indirect tax - Dispute with Brazilian tax authorities [member] | ||
Disclosure of other provisions [line items] | ||
Estimated exposure | 428 | $ 428 |
Indirect tax rate | 18.00% | |
Redetermination process for Agbami field [member] | ||
Disclosure of other provisions [line items] | ||
Reduction in exposure due to settlement | 822 | |
Redetermination process for Agbami field [member] | E&P International [member] | ||
Disclosure of other provisions [line items] | ||
Other revenues | $ 57 |
Subsequent event (Details)
Subsequent event (Details) $ / shares in Units, $ in Millions | Jul. 27, 2021USD ($)$ / shares |
Dividends declared [Member] | |
Disclosure of non-adjusting events after reporting period [line items] | |
Dividends declared per share | $ / shares | $ 0.18 |
Share transactions [Member] | Share buyback programme [Member] | |
Disclosure of non-adjusting events after reporting period [line items] | |
Treasury shares purchased | $ | $ 300 |