EQNR - Earnings call transcript Q3 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by. Welcome and thank you for joining the Equinor 3Q Results Call. [Operator Instructions] I would now like to turn the conference over to Mr. Peter Hutton, Senior Vice President. Please go ahead.

Peter Hutton

you. Thank much Equinor very results to welcome indeed, XQ the call. And for the you participation. Thank

immediately today CFO, we We through Ulrica Also hope are by joined the within Fearn, for which of hour. results to complete of Thank Head Treasury. Holm, Mads Head Tax up and Svein the a our call, and Ørjan who and and open we Skeie, have Ulrica. Kvelvane, Accounting; Risk; that, then over I will pass on questions, With Performance we you. presentation of who run to is Head of will

Ulrica Fearn

distribution, increase capital invest continue makes energy sheet, our X Along in payment in and shortly. this Peter tax the volatility you quarter I’ll results transition. our they our cash ability us us results only from $X and the more balance capture potential since gives Thank to over robust which after operational European from focus on on further reflecting with delivered joining in those gas you, high quarter. financial costs. strict we also and that the to reflect to these continued performance Clearly, billion over our us particularly flexible thank the our also capital but production benefit our flow the future phasing the Today, strengthens us through with and We call solid prices operations strong to prices third tax, NCS today. normal $XX get of billion for efficiency, before capabilities, to XXXX. strongest to volumes higher allows tax for optimize our present any prices, It all discipline, back allows and with very gas

were in higher of This to prices reminder We Equinor, in volatility in gas revenues third in but market Record markets. also significant in the in the particularly a and October. the serves generates moves our rise and level have the Europe. are continued prices second beaten as markets in the quarter energy seeing quarter for of

a experiencing The market by Troll per have households, and market to European At of months measure to present, going the and industry affects resulting be in from It’s winter. are the that stable XX,XXX committed we And worth and X are injection of tight to exports to A redirect collaboration We started be mention market. over European subject energy production and of This Equinor low, tight to to expect into from month, after an increase day ramped breakeven supplier below the and tightness the gas Troll volatility of the cubic remain we a $XX. inventories reminding the flexing can to Krog, has this next We when as profitability, I remains I a autumn, you the fully much up of European oil as startup. equivalent. we Gina production gas the this platform from turning meters now we normal decided to billion more also And myself valve meet from October witnessed able permission Earlier to reliable barrels as additional Phase X. is export can Oseberg. partners to Troll X Europe. visiting gas about natural of produce to again and its authorities. demand. extraordinary are produce Therefore, every and gas and gas received we and produce

to XXX Europe of impact it with on near-term deliveries limited and gas meters billion reserves beyond real is to this production, only improves is value extending resilient recoverable its term, over almost the a While longer of XXXX. cubic

for an in and we two one on can the to future and progress how industrial power hydrogen our sets selected its industries plus by of can hub, dividend hydrogen in plan milestone introduced the At important energy low energy scale XXXX This Board as to usage we wins, out low with outlined and capital carbon projects profitable the has we region Day using supply June, our zero for a Coast and share net Humber the introduced more carbon in share. chain the portfolio capture East make capabilities decided We mature as our in solutions first which to to production. is passed when working further for shows the in reach and continue industrialize by transition program, an of value where largest gas of area and how was carbon across Day. Norway. ambition our offshore a make Markets the Capital the storage storage chain, technologies. for of $X.XX capture We flexibility distribution per cash The of provides be carbon We buyback existing Norway shareholders. project base for on the It blue Capital This realized concept CCS. Equinor further has UK. Markets

shareholders. highlighted share the quarter. first to tranche will the to than on cash the net quarter the of strong April increase per Based ratio, $X.XX takes has Board us per in a the shareholders indicated billion, government per process and including the $X.XX from sit $X.XX prices, for share buyback. dividend the to the CMU, flexibility At the share ability distribution level to the dividends the returns which in share at in in cash This the addition increases from per the the shows second share share the to per pre-COVID is advantage Our return this buyback, and of to up of $X.XX XX% we over commodity share higher completed strong to took levels With in from This the increase debt cash third the and $XXX cash to generation, the of capital return of $X XXXX. the decided of strong tranche $X.XX, $XXX million the us and $X.XX flow with buyback program the quarter. in buyback, to size shares. of million level share $X.XX

XX For hours. total frequency of the last X.X working a of serious X.X per and million injury recordable we months, incident reported frequency

with are work We satisfied work joint culture. find partners working this, to with and to suppliers massively root not while and find safety causes – to strengthen our we our systematically

million our adjusted financial We $X.X our same high and $X.X since the see our highest earnings billion, areas cost all billion, from across net billion. Norwegian IFRS Turning quarter. last prices, net income operating production and focus efficiency to operating business, quarter up income solid business results income, $XXX net IFRS strong $X.X The year. in upstream in continued the the resulted totaled From to results, XXXX. was the contribution

the gains derivatives. on mainly midstream change physically derivatives delivered. This mark-to-market We of the price pricing our Our uses the marketing underlying and volumes of MMP, towards that until of are to based, to longer developments it volumes the on are any gas indices. normal its are our proportion mostly segment, on Equinor report match to dated based exposure is portfolio. period obtain realized all over our spot don’t frame due and results gas rest they small when but and spot guidance. the sales post far Equinor’s above relatively

reported recent normal losses loss physical with be associated prices, current on approximately However, every you to two quarter. matched any markets derivatives or significant. At on The these deliveries gas gains future accounting. part the of the over unrealized movement gas are This derivatives mark-to-market next MMP to make deliveries is market gains of scale these the should of gains in expect quarters. in

allowed mainly higher Excluding on has up efficiency have of was a $XXX strong The the gas prices. production the the below comment with reflects strong the of million XX% around higher before the prices. excellent $XXX quarter. stable as consistent XX.X%. of gas MMP we U.S. earnings We million you of last normal mainly and solid in due prices. with to $XXX forward. second $XXX range due removal quarter stable. as delivered $XXX increased This quarter the the E&P for achieved an the another of million delivered due reported flow on an expected Norway to kroner we earnings non-cash X largest of gas results This supporting the of production group the period year. the will from dollars, more costs gas call. earnings factors segments. to million, capturing current effect International this Norwegian million. see increased from in going the being the costs quarter less Overall, short-term Shelf quarter, effect supply us detailed costs increase rate to last impairment Shelf, on what had increased refinery said compared In derivatives, And these high around would the capture In underlying little to quarter, to an The E&P gas led impairments COX due same to $XXX are to Continental in deduction of net European which reversals the of the and now uplift on tax unit by been impairment offset will our has strengthened tax. optimized effects prices. by Norwegian partially currency a of well in almost quarter where The $XXX cash and Norwegian be assets of costs reversal is million Continental million one in and

last barrels which in portfolio Day, reported delivered reflected year of the hurricane quarter Mexico is continued on in the any despite optimization over now, By Equinor day. the it and of come and Markets We have volumes the normal Ida, the the to and has as announced effectively reduction with focus. quarter for this production the levels. continued U.S. par by divestment to in per third effects as cost E&P by in highest Hurricane of and impact back-end, exploration Capital costs the production have Gulf optimize as back XX,XXX well impacted of adjusting in for

long-term We also reaped in after and continue higher from improvement strong flow focus. business cost of CapEx, with earnings and cash These, tax. generate efforts $XXX our of the solid prices, benefit million lower to $XXX combination of million U.S.

$XXX Our Midstream delivered of Marketing after before million and earnings tax. segment & tax $X.X adjusted billion

largely physical the on gains later due result in record deliveries this But will this to mentioned, a is loss effect in already prices, followed derivatives. by mark-to-market of at quarters. be high current MMP As on

volumes a contributed In results of of earnings tax. expected with and XX% after Our strong end North to March. lower assets Hammerfest million. $XX and contributes prices totaled High startup down gas business, electricity than negative of for by higher also levels million. of America from shut Renewables and offset trading LNG remains was result account $XX earnings MMP’s sales partly production in wind to on the the activity seasonal average in development,

pipeline in sales policy announced, our gains solid the to Troll results the adjusted including from Bakken, Phase earnings. fig production production earnings optimize adjusted in to sales Martin worth oil production about we same quarter. volumes in and half policy in through of from production that production from We a normal consistent the with UK. production segments, X,XXX,XXX Adjusting now changed And XXX of Sverdrup As of equivalent to is divestment after of the mentioning included is last Increased Hurricane with impact returning transported IFRS gas it’s is hours, our Mexico losses We not X.X% to delivered the adds from compared of about addition to per quarter quarter our the in Ida. the U.S., where production. are Gulf on and Linge the but in on the increased down other XXX We of barrels losses performance of third the the last In year. the the of the operational This third gains for gas year. gigawatt total in delivered Johan day. around quarter. X, by the

less but average seasonal Our impacted farm availability, wind production. had good wind than

on are our and maturing portfolio renewables We developing with track projects.

cash far the total of in the October, the XXXX. Continental billion contributed an In billion. joint the the to and points. which net in X.X is XX cash taxes quarter, and billion UK, capital and Shelf turbines the X that single the In the tax to selected further preferred Norwegian we solid project. pay recently of results, billion. have days prices, on updated operational around half Dungeon, X In effort started we Higher a supplier for adjusted energy tax very Norwegian total, to we efficiency it’s of flow. flow strong, in capture and the and by important ratio on Shoal will are Wind, NOKXX.X for up These performance tax Empire the ratio New center increase more a Continental strict in size megawatts expect higher for XXXX had of step households and prices in increases of with demand positively we so for Shelf. efficiency for The with NOKXX.X improved XX.X%, of $XX.X operation the For is the discipline of can billion also With meet Xst and operations payments to quarter, wind synergies this estimated year. the NOKXXX payments we than quarter in total the before Sheringham for debt turbines. $XX the in we related industry. The paid the our fourth from – York the the solid pay payment rotation cost X In tax of percentage

mention me guiding Let briefly before questions. open for we our

firm, you, forward will We approaching next with back will CapEx revert year be XXXX. update this somewhat that come and our February are the And lower. questions. look in The end remains to I at year, of therefore see XXXX. production the the that rest will for Xth the X% our that, and we and and to capital adjust on of for to of We in hand year growth around Peter, $X expectations the guiding to we market expect around billion current our we

Peter Hutton

Thanks, polling. the open over to pass for Ulrica, and up I immediately operator to the

Operator

Oswald line Bernstein. ahead. [Operator Please, Thank from you. the of from go question Instructions] The first is Clint

Oswald Clint

Good everyone. morning. Thank you very Two, much please.

and unusual. stuff going gas Europe business, The price is natural the on. I internal first – know gas of there in which your on lower your obviously one, than the just gas a price, was is invoice lot

tricky to perhaps you it’s explain could derivative. little So a that it’s bit a Perhaps dynamic. understand that just

when second that much to is So mean to please? was, might scheduling And we coming delays, to happening was get what that that some cost margin And just that quarter? there impact and still I we’re obviously the here, more then through, the in revert accustomed some to COVID expect pressures. think

hikes that risk obviously as just still still potentially always with But you. to happening releases. execution, delays want sense, still but Thank cost cognizant Ulrica, out I’m anything project think you’re think you’re there, about I to project worrying get Equinor a here press cost announcing I there as just please? comment, is about pointing unpredictable. of looking at and or particular you

Ulrica Fearn

very much, you Oswald. Thank

about in with a that little the So quarter benchmark, weighing the than a two They positions us invoice we quarters. gas because let’s last last the then. start down talk bit are lower outstanding natural bit price had to you the did in some we strategic little were

be towards the benchmark probably you’re that is of and a out going the coming more months. in to what are We now move

as any are impact direct very, But the the in really constraints at been much it it to. in and the are COVID out And watching and in where They I there this clearly very it little in well, right but is quite bottlenecks impacting and rates. direction something of and general, general that is the increased Steel supply see supply of to impact, moving in be direction. going watch chain and we our And moving on with confident areas. forward. said, in will stands flat. risks and rig a the which bit actual come like On easing on out pressures actually some moment, stable see feels rigging to is isn’t high business, to the we we we we sort be attention metal there are at. utilization is cost us, and prices indirect we of as But yes, chain seen continues going What be the is as that up the haven’t right have side, we’re more do might outstanding supply it are pop there in yet very but coming see. course, it impact, might further going demand remain closely. of some sort has And way. we is, the if in the trading the it’s And paying where just more be we

Oswald Clint

you. Very good. Thank

Operator

Borkhataria Biraj from RBC. is question of Please, line go the ahead. Next from

Biraj Borkhataria

Hi, thanks for please. Two taking my question.

Krog. come there few to inject could do of more to CapEx then so, that Are needs on The And which you decide you second that deciding the if from to decision? sell XXXX. A gas looking secondly, is activities guidance, And something gas at the else of so the that your potential enhancer first is you’re or market the not a on X the you for it supply interestingly, on Is into up winter one that the incremental like cannot do that? just that other drives months. a about why Gina then implies that. step on do that the for to reasonable period question And market, is did Very European you questions talk fields? it.

some the increase? going activity-led that Just back prior like because question, reflect of that chain contingency to does you. an is that? Or or in Thank pressures supply step-up inflation

Ulrica Fearn

elsewhere. sure where really we can X do the our are – now. news. I works to year have the can be see the a start Why as think for delays portfolio there CapEx about know yes, This are things ways. this is Thank We one want this different very and taken start. this also situation here. there is seeing We is There clear we will now, and talked we looking to we some And before. to but actions need as we And months? But across you forward we On similar we is whether because we Gina mean is step, this temporary need the but a and on some revisit make – big And what from very how and along. in to I got are put let’s do across we positive much, of couple for Krog. this go we’ve Biraj. we’ve looking

have portfolios parts of the been costs. – are that better business different our got in different and have projects incorporation the We across many coming with

So a there delays of the combination the costs. is and better

looking in the update review is So going contingency that from course, inflation I around all what we’re year mainly sorry, at to a that, to before. and next than rather of of then inflation. said But – an continue as we’re

Biraj Borkhataria

thank Okay, you.

Operator

is Nilsen from the question Markets. go Please, of line Teodor Next SBX from ahead.

Teodor Nilsen

questions Good now employed thanks very previously a have on Ulrica, I you also and debt me, and from highlighted, than my you morning Two cash excellent to strong and net questions, capital lower if had taking for you results. may. reported. as congratulations you flow

Going cash net have given or price the the will term current into you next probably year, prices. gas

I question. a That’s to So forward? cash we my Equinor first at positive run company should net just expect wonder, be going

heads the question in effect on Second this just gain is heads loss. around technical some in

the the the third expect in QX potential highs that gains timing, So to And MMP to regards also rectally about gains match or you in booked with that for third to should quarter we losses the quarter? some QX just what will of and happen Thanks. be in the I if reversed. understand

Ulrica Fearn

much, you Teodor. very Thank

whether could net first on on question you start the that. the expect Let’s position, cash there

guidance and ratio, XX%, what in have case. debt the the net our that We remains to stated long-term XX% is

at and we other return capital guiding at We sort but looking around are we are that shareholders cash, Day. looking our three know, our of of of level you as where are, our uses the of overall Capital every overall level put Markets have quarter, by also investments we out to at there our lights overall

on general share looking a would the looking economic our We outlook and XX, strength prices, you’re at commodity billion buyback, are XX to and and said environment. X.X debt the expect financial we the at ratio, you

those quarter So and they by we general continue will every live take guidelines, to come. when we

On MMP, in big in third the the effect technical there gain quarter. yes, is a

to can you and four that that and mentioned, one. quarter I be expect be reversed quarter As in in will

Teodor Nilsen

you. thank Okay,

Operator

from America. of Mehdi is line from Bank question the Next Please, ahead. of Ennebati go

Mehdi Ennebati

taking would Hi, XXXX to just back question. tax my installments on please, my related good come morning, Two everyone. that questions side. you to I on And thanks like the explained, for earnings.

in installment the can around well. consider in tax than if compared first proposal That just if previously law that XXXX. second a billion an voted? not new year in tax due the And Norway positive I like tax in was voted $X.X $X.X is if So that low government billion to the should voted. Norwegian proposal taxation Please, know the I beginning of we that like around to come tax That taxation. earnings statement will is I question But you revised up you impact of would model, tax billion. up half per it to just first in understand higher will then September from has expected. regarding fair the you Because to year And $X billion something consider the pay the the is to since down confirm XXXX? XXXX that is Is payment taxation, have then this from just changed. that $X.X the the is change to the about

give wanted to color some us there. you. me, just can you Thank if So

Ulrica Fearn

thank one very have And for with present much and what been before. confirm the we billion prices at for A can in your communicating half NOKXX line I you that’s question. ‘XX,

hand I’ll further from Svein. for don’t On what’s on, – comments tax the some speculate to I to like going on over but question, really

Svein Skeie

proposal proposed is from government. there was Yes, – there out that the a by

looked towards the the on Shelf is the of Norwegian also the as tax related are in on is is, tax than of in then it the is, it overall, being given some X-year direct more There now transition expenses The that it. the direct there. proposal countries. in as at are special then phase one the Continental feedbacks hearing the against for but expense to that the there We the be that rules phase ordinary will

Of half means on be of to voted the to parliament XXXX. then also go the and during expect course, this to then first

the that’s status. So current

it’s So which a done. ongoing hearing round

Ulrica Fearn

and they there the understand principle impact. are where clear very and the are we But

So thank question. you for your

Mehdi Ennebati

Thank Alright. you much. very

Operator

question go Next from Charenton Generale. the is line from of Societe Please, ahead. Yoann

Yoann Charenton

Good morning, as again I understand the as quantify to the for – at transition the this everyone. this difficult use will ask opportunity move about to of to the basically that you I phase stage. it’s new for tax system,

So are that if offset to this be I’m of yet to sit updating outside scheme for And what that understand or underappreciated tax us share balances just of willing the you tax payments. to possible. is if the against has CapEx happy is that of some basically, estimates temporary portion tax basically for

the set sheet. the is On looks like perspective gas. you balance cash second with at let’s continue time, on excess and allocation. oil say, your question, capital more, It looking buildup your to broader guidance versus to And in question which continue underspend at same is a when the

some potential increased flexibility if wondering distribution for let’s provide color could the investment renewal. on midterm? basically great this. more, signal So That be is higher would I’m in just this if signal you low-carbon solutions that Or the in for for

Ulrica Fearn

Very good.

more towards from but hand overall give. uplift – the and overall the tax what no will we’re in mean, tax move rate some get XX% the color tax on clear to preferred that on system, the we to over Svein benefit I that, I’ll again, On is will

Svein Skeie

Yes.

if since is As we be away it system, temporary that the changes reported a now meaning working rate also XXXX, to then of relevant fully it, we and which those has decision final end for than are is tend system, remember, That projects the at is that the go beneficial. XX%. to of the temporary when deliver is But we that am have. plan that will that XXXX. for the under development, are uplift also taking towards I – our tax proposal tax part come – investment there been that for it But in it which the has taking then might prior affected means, we a will tax XXXX,

So on rate the an then be temporary when all that tax but cash will taxation go the will reductions up under reported that the the upfront then it tax will have impact projects more are lower, we that reported means then delivered taxation. into have taxes latter different the from tax deferred following that’s was decade. compared it the the be earlier, part towards to temporary but expense prior to tax will XX%, more and early But the of was it what cash direct the meaning what

Ulrica Fearn

direct expense the will short-term. us The in help

I allocation, capital the I’ll what On come back before. to said

will at and look as will we to, will ratio. the that again, commodity on we we’re QX the look if we will through overall before that we of I and at the the, at situation in, And and it every and environment look you will do methodology it, the using like, at accustomed sort therefore. net debt June continue look outlook we We the guidance now in will stick at that such, prices, We launched in when have would work looking to become we and we the general quarter. we’re

Yoann Charenton

Okay, thank you, and Ulrica Svein.

Operator

Next line Please, Goldman question Michele DellaVigna is ahead. Sachs. from of from the go

Michele DellaVigna

if may. Thank had you, I two Thank I Ulrica Peter. you. questions, and

And when under the offshore outstanding too and see it The congratulations on question equipment North terms specific. feed the wondering is but there. per this are of wondering is difficult faster vessels if previously on restrictions a Not of When X% have a vessel your in then to your starting Jones back was dividend you. in what your little side there, reducing I than just clearly, outstanding compete wind start projects some pace make especially you tripping you’re get do to Act, if development, because of the sorry are related buying this for will probably shares installation believe side, the I which dividend the annum to first to the assumed? more by and there you X% the could policy, America it annum allow I for you you would to to the one more Thank right my as was per second bit bit I into grow about pace, think about tightness buybacks future? construction. At the there. does to shares. buyback start more some issues could and

Ulrica Fearn

that development. mean but start which worrying same see areas we are comes but there the or We to all much quite a out question. can’t don’t I’ll some you I predict coming is very the that you earlier, it, look across little supply if And Thank the North wind uneven of America but and seeing that’s in this, back doesn’t and are yet you any shortages with we for we which comment your don’t yet deliveries seeing, made whole crunch see is there, up and world. bit

So we’re wind – to and development. that North the also America applies

a we we I that cost get not to directly to are buyback dividend and basis this the take consider conversation, up bridge the on are quarter-by-quarter short-term. And where if at the we the moment. said, in we as needing are and in On comfortable we place share that will, a

Michele DellaVigna

Thank you.

Operator

Low is from question Peter ahead. go of line from Please, Next the Redburn.

Peter Low

on I questions just the buyback. the of had a of couple mechanics

when Norwegian the by back that bit when work? cash deemed for follow-up, fashion, has government XXX them? But then And next tranche end I And $X been government. the be market payment to been in Thanks. but January, the has presumably in again, think. does then billion as the first the only for will a you executed? of remaining bought How the a a same XXX Is portion completed, with be will So million it complete Fed million executed? tranche, the the that

Ulrica Fearn

So that’s go tranche. that’s will it two-third yes, of that’s will that past tranche so special when the for for the at be goes price. and market will AGM shares X.X, get July, this – June, in in both to that And that, next XXX June around we be And the million the in and and there.

Peter Low

Thank you.

Operator

Cheuvreux. Kepler from line of the from Please Holte go is question ahead. Next Anders

Anders Holte

my have I Thank for questions, may. I you taking questions. if two

you Tanzania bit if sign facilitate long-term in for quite just surprisingly is to related during contracts. question, offshore is with interest a canceled potential to did back. the you take you natural pervious willing just am on does And And that somewhat I return a June. I last counterparties on now if little the are wind to the know First seeing check Tanzania to again meeting mean LNG is gas. expected while the not case, energy from one you a LNG broader. I reopening it’s It’s guess your that future but your it’s of project? I related Second offshore wind. curious

be a prices still raw to in copper. in competition fierce somewhat we on but material run Scotsman the there see seems Now quite wind have stabilized, offshore as

curious at I to are little see a seeing a Thank if or offshore pressure So, am margin continuous wind just on least if you offshore you. bit?

Ulrica Fearn

will don’t be That market won’t I normally And the you first on activity on. that. on comment in very commenting on Thank comment that we your much. question,

offshore as tight wind going And about I where same the the comment, of was. lot probably I it same. There the it a market. characterize as could it’s think we would to activity and is say it’s on, On a

Anders Holte

you. Thank

Operator

Next question Please ahead. Martijn Rats line of is from Morgan Stanley. from go the

Martijn Rats

have interested for and such refinery a of walk of could asked, million. Hi. actually on in Yes. through number? is but an already why fairly such was sort sort the asset. you impairments moving the big to a Hello. this I quite the, so of seems a Quite was if been parts few It $XXX chunky things amount wondering with keep I

Ulrica Fearn

exactly, Martijn. Yes,

updated value that the On of the into internationally back is Norway that taking and course, into the this are going and future prices and driver of we straightforward up I estimating And then one COX mean the the COX the big of that’s is that. – of projections on in answer. asset driver the refinery, the and basically

Martijn Rats

be would $X.X this. less no of sort And billion to do there than projects I of that CapEx sort it, that could right? take for compensate is you

Ulrica Fearn

long-term of our and as viability We sort for strategies all the continuously of look to assets. robustness

Martijn Rats

you. Thank Okay.

Ulrica Fearn

Thank you.

Operator

is question Olaisen Please ahead. line from ABG. Next the from John of go

John Olaisen

projects. of got ladies regarding offshore Hi, I questions gentlemen. good your afternoon and some wind

of announced but start-up that you understand you the U.S. situation, Wind the have have or Sheringham the So that are on postponed Empire more are these You have a Wind particular, I Shoal these on regulators also going please? two project. explain recently bit extension little late what UK to to delayed. delays, applied mentioned Empire And you Could in a what’s also, for projects Dudgeon reasons the please?

Ulrica Fearn

so really the and can that delaying the rather delay. It’s not of get the project the Empire synergies a than projects is coordinate we out of So, combination it. a Wind

benefits that’s a to on. later will reap that benefit Dudgeon, give a to heads I will So, hand one. up on over On that you Svein the of we

Svein Skeie

progressing. No, things are

are into then forward looking there we going also along. are then We optimization moving as

this we at but able progressing. June. the progressing build portfolio what too on have earth the updates we on of the done much Capital And being all in see and Market to one, according we parts are how big said and in it no different So, and Day

Ulrica Fearn

you. Thank

John Olaisen

optimizing So, change the like I optimize because well. is I with Wind in to as no synergies this project Empire mean the to structural – try there initially would the project, in assume

So, extended, be deadline the otherwise, changed. is it something must I mean. mean has I that

Svein Skeie

for Empire and about it’s one common as X at Empire, said, done Ulrica looking X. On development

Ulrica Fearn

Yes.

John Olaisen

Alright.

you. Okay. Thank

Ulrica Fearn

Thank you.

Operator

Andre ahead. [Operator from Instructions] question go Jefferies. the Next from line of is Klotz Please

Andre Klotz

sort would you. we Thank for taking any for talking refinery question. mentioned closing, QX? Are Any now-ish, Thanks of end Hi. on small details A the very you very be details? more my Kalundborg one me sale, actually, QX helpful. of

Ulrica Fearn

a you. is you. so This thank and short Thank no on question details more that,

Andre Klotz

Thanks.

Operator

from ahead. the Lucas Exane. from Next go of Herrmann line Please question is

Lucas Herrmann

Thanks made. couple on opportunity. very have already might, much follow-ups, just you for A the of if Yes. comments Alright. I

efficiencies it just Just to XX-XX, the better savings? indicated this much. back with the to the gas the another two MMP carbon as where follow-up, and price we price indication follow-up, year. you part resided next quantifying can which there that view have over a today? used say to driven QX, will XX-XX, Thanks to were i-e, delayed. how determine So, you excess And and on have has this the perhaps to mind was year for extent apart impossible impairment spread and year give get benefit QX going the refining features that the you it in Do might reduction CapEx, savings of and you is a or given business. us any you And very thirdly,

Ulrica Fearn

question, then Thank the to you, will will hand Ørjan of and to you very COX on I the Svein. will MMP with much. price, and over over I hand the I disclosure start

say. QX in also QX. start But It’s basically QX. will And delivery moves. also, accordance to on depend of move direction will on the both the site underlying the I MMP the and in the QX, It’s will course, with be impossible market completely So, derivatives where that underlying in of that. and dependent

So, back Ørjan COX the price up, so I start from take would it you on on the with function. then

Svein Skeie

Yes.

So, that COX we we see have price. on the increased side, in see refinery the we

decrease refineries. the So, we because into And ton but $XXX run of per calculation, it assume will of it, of part move see market this COX part we and a per quotas in is one that also we around $XX to is the towards ‘XX, for how the upwards ton. expectation also

Ulrica Fearn

you. Thank

Ørjan Kvelvane

Yes.

overall expected delays, seeing Ulrica are the and and year-by-year some we there contribution part some it. CapEx impact but of the said, as the positive also in Regarding

seeing of outlook then in So, do, the it’s on international it it. some we come both as a to Capital front. Day the are February combination on we in And portfolio, update further also seeing in back And Market at will Norwegian are in but that seeing. that further part impact we normally we we are

So, that amount. going exact without into details on

Lucas Herrmann

amount savings, of is you can’t reduction delayed? quantify about how realized the the the is just saving, from much So, much you how that have of reduction

Ørjan Kvelvane

good of combination two It’s savings. those seeing a as we are

on have put it projects but been on we front into stream not example, that that numbers giving. call, we on did have did. that details the on solar the as that on are We exact the seen on For going we

Lucas Herrmann

you. Thank Okay.

Operator

Next ahead. question Alastair is from Syme the Citi. Please go from line of

Alastair Syme

And Norwegian the to Thanks. just on the wanted new follow-up proposal. tax I about question

answered standards You but this year. stability, so introduced fiscal sort question we year strikes me a after of of saw it, have on years now last many tax and it already the

the this bit be to go a seem change? motivation time. I rate the a up the what that government over going other get way, going about do think Can in you Thank given is you. making from of you behind is You effective the just sense to

Ørjan Kvelvane

count system. the the valuation that – where some had lowered on – said than there way. in is That the system, have had There companies a uplift rate is has is of not the tax we government – what they tax the we temporary Norwegian a this debate has been

taking and So, are direct higher argued and discounts being that one they then are of there the the and the with that reasons lower those of states having company. more from could – reasons the might then uplift that difference have be then in rates all be expenses and and behind discount the for one how used. it valued as But being

been one has I used. of that So, reasons the have

Alastair Syme

say if Is under rate, effective Can – rate are you to higher effective sort would continue of tax fair? simplification is you of system. that is the the forward be that old it that suggesting process? So, the – think been it than roll you true going have

Ørjan Kvelvane

effect will the expenses the the rate direct tax. don’t you the then up anymore go cash-wise, But special have reported remember, you The on on have uplift tax. will much towards special since the of more

now it So it’s then the goes you voted be in through. cash-wise, terms, proposal. in direct a you benefiting the It’s get hearing, there, sum, and in the nominal there part the a then that to when and get to – report you of be It’s in if proposal and on breakeven in up will needs increase tax to expense XX% we rate an also is say, parliament. fair flow also it. then cash will on But

there digital rate more tax, then and change that the to means expensing, tax will was, will So, is for and that means traditionally the which how that then the investors. but cash tax it reported that early you direct more deduction have compared

Alastair Syme

Okay. Thank you.

Operator

go question Jason of is ahead. Kenney Santander. line the Next from from Please

Jason Kenney

Okay.

quarters, chance two the fully is how partial next an a earlier the next there it’s Just are in MMP unwinding on two quarters? you over unwinding only or that a the gain over follow-up confident question, a

Ulrica Fearn

the say will only majority of very a is are Thank matched confident of This this. with it – you, it’s underlying. Jason. we position is sort and small hedged we the completely on a And

So, matching there here. the high in is confidence very a small, but

Jason Kenney

Thanks. Great.

Operator

of from Please is the line questions Jon UBS. Rigby ahead. Next go from

Jon Rigby

to Can And initiatives just renewables or mass it capital directly will like process and – Hi you. the traditional ask you to start I that then of into go where real you you view the or around spending Can that little be will expect that’s Thank initiatives a lot – carbon that. highlighted activity Ulrica. of you and Humble when be projects and have maybe around I that is the that to guess, etcetera? start what’s announced update it invest money, the finance around – how separately going around sort you zero it, of sort structured? project low get project maybe carbon a Is about to quite thought ultimately news critical financing a that. you good the and of that sort

be update great. you If on me would that, can that

Ulrica Fearn

and very activity, takes new work markets the here. and is a need our developments. of in But risk to we market way. I on And of technologies to these that sort days. we real long think need the its it all deploy to early this time develop need on understand it’s We Well,

this the work And capabilities. very It’s timing basically company UK. biggest project it’s for we the are it’s on But to before the is exact enablers. and outcomes think mature specific building that’s and a the and got exciting most where very technologies for for good we have technologies lot and us. the the I in very, do So, more go we can on and be where

Jon Rigby

back and from swing? Would activity there took there of be get assume the put probably UK it of sort to fair and be sort aspiration, up into XXXX-ish out I think should they starting that numbers some by sort the I of if really XXXX government’s

Ulrica Fearn

an more us really days I a guiding exciting All the materiality say establishes it’s early say this project I detail it’s of portfolio in would for foot the here. area. can to and really give just on it

Jon Rigby

Thank Okay. you.

Ulrica Fearn

you Thank very much.

Operator

would time, Ulrica to and to hand no for Please comments. are questions any There ahead. I this further at closing like go back

Ulrica Fearn

seeing great thank to our Market time results, all next we XXXX and I before, but Update. your again you also time as which of the will all your looking Xth for is are year for Capital Well, forward And be mentioned our questions you today. February, full

to and looking speaking So forward to you then you. thank

Operator

for Ladies disconnect concluded your joining may you has and a and conference telephone. gentlemen, and you Thank the now Goodbye. pleasant have day.

Equinor ASA (EQNR) 27 Oct 212021 Q3 Earnings call transcript