Equinor fourth-quarter profit beats forecast amid oilfield startup

OSLO (Reuters) – Norway’s Equinor (OL:) reported a smaller-than-expected drop in fourth-quarter profits on Thursday as the startup of a major new oilfield partly mitigated the impact from weak European gas markets.

The Oslo-listed company’s adjusted earnings before interest and tax (EBIT) fell to $3.55 billion in the fourth quarter from $4.39 billion in the same period of 2018. A poll of 25 analysts compiled by Equinor had forecast adjusted EBIT of $3.37 billion.

The company’s overall oil and gas output will grow by 7% in 2020, boosted by the start of production from the Johan Sverdrup field in the North Sea, Equinor said, while the average annual growth between 2019 and 2026 is still seen at 3%.

“Johan Sverdrup phase 1 will contribute to strong growth at the Norwegian continental shelf,” Chief Executive Eldar Saetre said in a statement.

The cash payout to owners was increased to $0.27 per share for the fourth quarter from $0.26 in the third, matching a $0.27 predicted by analysts in a Refinitiv poll.

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