Feb. 4 (oilprice.com) Equinor posted lower earnings in the fourth quarter of 2025 compared with a year earlier, reflecting weaker liquids prices and impairment charges, even as the Norwegian energy major delivered record annual production and outlined measures to reinforce cash flow and competitiveness.
Adjusted operating income for the quarter reached $6.2 billion, down from the same period in 2024, while adjusted net income came in at $2.04 billion, corresponding to adjusted earnings per share of $0.81. Reported net income was $1.31 billion. The results were supported by higher production and stronger U.S. gas prices, partly offsetting the impact of lower oil prices and impairments across international upstream and renewables.
For the full year, Equinor achieved record equity production of 2.14 million barrels of oil equivalent per day, up 3.4% from 2024. Fourth-quarter production rose 6% year-on-year to 2.20 million boepd, driven primarily by strong performance on the Norwegian continental shelf (NCS) and higher output from U.S. onshore gas assets.
On the NCS, quarterly production increased 5% year-on-year, supported by new fields including Johan Castberg, Halten East, and Verdande, as well as additional wells. These gains offset unplanned maintenance at Johan Castberg. Full-year NCS production rose 2% compared with 2024. Equinor also reported a strong exploration year in Norway, with 14 commercial discoveries in 2025, reinforcing its ambition to sustain production levels toward 2035.
International production was shaped by portfolio changes. Higher output from the U.S. and new wells in Argentina and Angola was partly offset by exits from Nigeria and Azerbaijan in 2024 and the sale of a 40% operated interest in Brazil’s Peregrino field late in 2025. The start-up of the Bacalhau field offshore Brazil added new volumes and long-term cash flow potential.
In power and renewables, Equinor generated 5.65 TWh in 2025, up 25% year-on-year, with offshore wind output increasing sharply as Dogger Bank A ramped up. The company also advanced battery storage in the U.S. and hybrid wind-solar projects in Brazil. However, impairment charges in renewables reflected revised assumptions for future offshore wind developments in the U.S.
Equinor generated $18.0 billion in cash flow from operations after tax for the full year, supported by high production levels. Organic capital expenditure totaled $13.1 billion in 2025. The company said it will reduce its organic capex outlook for 2026 and 2027 by $4 billion, primarily within power and low-carbon activities, while maintaining annual oil and gas investments of around $10 billion.
Looking ahead, Equinor expects oil and gas production to grow by around 3% in 2026 and is targeting a reduction in unit production costs to $6 per barrel. Management also updated its net carbon intensity ambitions for 2030 and 2035, citing changing market conditions and fewer value-creating opportunities.
Shareholder distributions remain a priority. The board proposed a fourth-quarter dividend of $0.39 per share, up from $0.37 previously, and announced a share buyback program of up to $1.5 billion for 2026, following $5 billion in buybacks completed in 2025.
CEO Anders Opedal said Equinor is focused on balancing operational performance with capital discipline, emphasizing the company’s ability to deliver strong production and cash flow while remaining resilient to lower commodity prices.
Brazil Energy Insight 
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