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Equinor’s net operating income down in Q1 2019

3 May 2019 14:44 (UTC+04:00)
Equinor’s net operating income down in Q1 2019

By Trend

Net operating income of Norway’s Equinor company was $4,732 million in the first quarter of 2019, compared to $4,960 million in the first quarter of 2018, Trend reports citing the company.

Reportedly, the decrease was mainly impacted by lower average prices for liquids and gas, lower third-party crude oil volumes and higher operating and administrative expenses mainly due to portfolio changes and new fields coming on stream.

“ A one-off provision effect related to earlier periods added to the decrease. The decrease was partially offset by lower depreciation expenses mainly due to increased proved reserves estimates, in addition to the NOK/USD exchange rate development,” reads the report released by Equinor.

The Norwegian company said that in the first quarter of 2019, net operating income was positively impacted by changes in unrealised fair value of derivatives and inventory hedge contracts of $706 million and an impairment reversal of $116 million.

“In addition, net operating income was negatively impacted by an implementation effect of $123 million from a change of accounting policy for lifting imbalances. In the first quarter of 2018, net operating income was positively impacted by an implementation effect of $287 million related to a change of accounting policy for lifting imbalances.”

Equinor is an international energy company present in more than 30 countries worldwide, including several of the world’s most important oil and gas provinces.

It is the leading operator on the Norwegian continental shelf and has substantial international activities. Equinor is engaged in exploration, development and production of oil and gas, as well as wind and solar power. The company sells crude oil and is a major supplier of natural gas, with activities in processing, refining, and trading.

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