Equinor Q4 Earnings Miss Estimates, Revenues Decline Y/Y

Equinor ASA EQNR reported fourth-quarter 2024 adjusted earnings per share (EPS) of 63 cents, which missed the Zacks Consensus Estimate of 73 cents. The bottom line declined from the year-ago quarter’s 64 cents.Total quarterly revenues of $27,654 million declined from $29,054 million in the prior-year quarter. The top line also missed the Zacks Consensus Estimate of $28,164 million.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The weak quarterly results can be attributed to lower production across all segments and weaker commodity prices. Natural declines and portfolio divestments in Nigeria and Azerbaijan contributed to reduced output.Equinor ASA Price, Consensus and EPS Surprise Equinor ASA price-consensus-eps-surprise-chart | Equinor ASA QuoteSegmental Analysis of EquinorExploration & Production Norway (E&P Norway): The segment reported adjusted earnings of $6,805 million, down 12% from $7,737 million in the year-ago quarter.The segment was affected by increased turnaround activities, natural gas price declines and lower production levels.The company’s average daily production of liquids and gas decreased 4% to 1,398 thousand barrels of oil equivalent per day (MBoe/d) from 1,464 Mboe/d in the prior-year quarter. This decrease in production was due to higher turnaround activity.E&P International: The segment’s adjusted operating profit totaled $1,024 million, up from the year-ago quarter’s $336 million. The segment was aided mainly by a gain in the sale of Equinor’s Nigerian business, partially offset by a loss in the divestment of ACG earlier in 2024.The average daily equity production of liquids and gas declined to 339 MBoe/d from 362 MBoe/d in the year-ago quarter. Equity production decreased year over year due to natural declines in certain fields and divestments in Azerbaijan and Nigeria. However, the reduction was partially offset by contributions from new wells.E&P USA: Equinor generated an adjusted quarterly profit of $184 million from this segment. The figure increased 29% from $143 million in the fourth quarter of 2023. E&P USA was affected by lower liquids' prices, partially mitigated by higher gas prices.The integrated firm’s average equity production of liquids and gas was 335 MBoe/d, down 10% from 372 MBoe/d in the year-ago period. The decline in production was primarily due to the effects of hurricanes in the Gulf of Mexico and production curtailments affecting the Appalachian onshore assets.Marketing, Midstream & Processing: The segment reported adjusted earnings of $983 million, up 34% from $734 million a year ago.Renewables: The segment reported an adjusted loss of $100 million, narrower than the year-ago quarter’s loss of $179 million. This can be attributed to an increase in total revenues and other income and a decrease in adjusted operating expenses.Free Cash Flow of EQNRIn the December-end quarter, Equinor generated a negative free cash flow of $4,570 million compared with a negative free cash flow of $3,262 million in the year-ago period.Equinor’s Balance SheetAs of Dec. 31, 2024, the company reported $8,120 million in cash and cash equivalents. Its long-term debt was $21,622 million.Outlook for EQNRFor 2025, Equinor predicts oil and gas production to grow 4% from the 2024 level. The company also announced its organic capital spending budget of $13 billion for the year.Zacks Rank & Key PicksCurrently, EQNR carries a Zacks Rank #3 (Hold).Investors interested in the energy sector may look at some better-ranked stocks like SM Energy Company SM, Sunoco LP SUN and Range Resources Corporation RRC. While SM Energy and Sunoco presently sport a Zacks Rank #1 (Strong Buy) each, Range Resourcescarries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for shareholders.Sunoco is a leading wholesale motor fuel distributor in the United States, boasting a vast distribution network spanning 40 states. With long-term contracts servicing more than 10,000 convenience stores, it distributes over 10 fuel brands, ensuring a stable revenue stream. Sunoco is poised to benefit from the strategic acquisitions aimed at diversifying its business portfolio.Range Resources is among the top 10 natural gas producers in the United States. Its diversified portfolio is spread between low-risk and long reserve-life Appalachian assets. The company’s extensive inventory of Marcellus resources with low breakeven points is a significant asset. With expanded LPG export capacity, RRC is well-positioned to meet rising global demand, capitalizing on natural gas' role as a cleaner-burning fuel amid a low-carbon shift. 7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Range Resources Corporation (RRC): Free Stock Analysis Report Sunoco LP (SUN): Free Stock Analysis Report SM Energy Company (SM): Free Stock Analysis Report Equinor ASA (EQNR): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks