Equinor’s fourth-quarter earnings lifted by record production

Equinor recorded an adjusted operating income of $6.2 billion for the fourth quarter of 2025 as the company reported record annual production. The firm delivered a net income of $1.31 billion during the period, according to its financial statement released on February 4.

Total equity production reached 2,198 mboe (349,451 cubic metres) per day in the final quarter, which represents a six per cent increase compared to the same period in 2024. For the full year, the company stated that production rose by 3.4 per cent to a record high of 2,137 mboe (339,756 cubic metres) per day.

Equinor stated it is focused on strengthening its financial position by reducing its organic capital expenditure outlook for 2026 and 2027 by $4 billion. The organisation also aims to reduce its operating costs by 10 per cent in 2026.

Production on the Norwegian continental shelf increased by five per cent in the quarter following contributions from new fields including Johan Castberg and Halten East. However, these gains were partially offset by unplanned maintenance at the Johan Castberg vessel, according to the company.

The company reported that oil and gas production is expected to grow by around three per cent in 2026. To support this growth, Equinor stated it plans to maintain annual investments of approximately $10 billion in its oil and gas business.

In its international operations, the firm saw the production start at the Bacalhau field off the coast of Brazil during the fourth quarter. The company also transferred the operatorship of the Peregrino field to PRIO during the same period.

The board of directors proposed a cash dividend of $0.39 per share for the fourth quarter of 2025, which is an increase of $0.02 from the previous quarter. Additionally, the group announced a share buy-back programme of up to $1.5 billion for 2026.

Realised liquids prices were $58.6 per barrel (158.9 litres) while European gas prices averaged $10.6 per mmbtu (1.055 gigajoules) in the fourth quarter. These financial results were affected by lower liquids prices, which the company noted were partially offset by higher production volumes.

Total power generation for the quarter was 1.76 TWh, with the renewable portfolio driving a 42 per cent increase in generation compared to the previous year. This growth was attributed by the company to the ramp-up of the Dogger Bank A offshore wind farm and higher onshore production.

Equinor and Shell launched the Adura joint venture in the United Kingdom, which the companies expect to play a crucial role in securing energy supplies. The venture is fully self-funded and aims to distribute more than 50 per cent of its cash flow from 2026.

The firm reported that its three-year average reserves replacement ratio from 2023 to 2025 was 100 per cent. Furthermore, the twelve-month average serious incident frequency improved to 0.21 in 2025 from 0.3 in the prior year.