LONDON (Nettavisen): During the presentation of the quarterly report for the fourth quarter, CEO Anders Opedal in Equinor says that everyone must reduce their consumption in order to be able to fill up the stocks again for next winter.
– We have come through an unusually warm winter, which keeps the level of stocks high, he says during the presentation.
The reason people are concerned about stock levels is that the gas from Russia has disappeared from the market. Nor does it have the infrastructure or the capacity to extract and transport all the gas Europe needs at the moment.
Opedal says the Russian gas will be less available this year, compared to last year. He adds that we will be able to fill the stocks again by next winter, but it will require an effort from everyone:
– The demand for gas must be reduced. This applies to both consumers and business.
In addition to reducing demand, energy must also be imported, says the CEO.
– Energy imports will be one of the critical factors in order to fill the warehouses again for the winter, says Opedal.
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– Several unknown factors
The CEO further says that the oil market is quite volatile going forward. That means large fluctuations. He adds that there is “very little extra capacity”.
– There are several unknown factors. Now the economy in China is opening again after the pandemic, we do not know how the development with Russia and sanctions will be.
Opedal also highlights the weather in Asia and Europe, and disruptions in supply will have an impact on the market.
Equinor jacked up expectations for energy prices. This is how they think it will look in the years leading up to 2025:
- The company expects that oil and gas production will increase by three percent in 2023.
- Expect oil price of 75 dollars a barrel in 2025, adjusted upwards from 70 dollars a barrel.
- The estimates for European gas prices also increase from 7.3 dollars to 20 dollars per MMBtu.
- Increased electricity prices in Germany, they now expect 115 euros per megawatt hour, up from 65.
– We see a tight and volatile market going forward, and that is our basis for the price estimate going forward.
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Record result
Oil giant Equinor presents its results for last year’s fourth quarter on Wednesday. There, the summary shows a profit before tax of 15.1 billion dollars.
The annual result ended at 74.94 billion dollars in 2022. This corresponds to 772.4 billion kroner.
In 2021, the result was 33.49 billion dollars.
– In 2022, we responded to the energy crisis and contributed to energy security, says CEO Anders Opedal in the stock exchange announcement.
The results for Equinor have been at record levels in recent quarters. The results have reached new heights in line with gas prices and higher oil prices.
Expert on gas: – We have approximately two years left “in the bank”
The company will distribute $17 billion to shareholders in 2023.
Beat expectations
In advance expected analysts that the oil giant would collect large amounts of money, but still lower than the record from the previous quarter. They expected Equinor to post an adjusted profit of $14.4 billion. This corresponds to NOK 144 billion.
Instead, the result for the fourth quarter ended up at 15 billion dollars, as in the corresponding period in 2021.
The third quarter of last year was a clear record for the oil giant. In line with the high oil and gas prices, the stock exchange locomotive Equinor delivered a result of NOK 249 billion.
According to Opedal, the backdrop for the record result was gloomy:
– We present very strong results. Unfortunately with a still gloomy background in Russia’s war against Ukraine. With the sabotage of the gas pipeline and increased drone activity, the war has come closer to us.
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