Despite a decrease in profits, Equinor has reported an “overall solid operational performance.” Credit: Equinor.

Norwegian energy company Equinor has announced its results for the second quarter (Q2) of 2019, reporting “solid operational performance” despite decreased profits.

The company’s adjusted earnings after tax for Q2 2019 were $1.13bn, a 34% decrease from $1.7bn in Q2 2018 and a decrease from $1.5bn in Q1 2019. Net operating income for Q2 2019 was $3.52bn, a decrease from in $4.73bn in Q1 2019 and $3.84bn in Q2 2018.

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Total equity production in Q2 2019 was 2,012 million barrels of oil per day (MMboe/day), a decrease from 2,178 MMboe/day in Q1 2019 and 2,208 MMboe/day in Q2 2018. Equinor attributed these results to expected natural decline, adding that this decline was offset by production from new wells and fields.

According to the company, production was maintained at a high level but a combination of high turnaround activity, lower prices and “quarter-specific items” impacted results. Equinor also stated that underlying operating costs and administrative expenses per barrel increased somewhat from Q2 2018 as a result of new fields coming on stream.

Equinor president and CEO Eldar Sætre said: “We deliver overall solid operational performance and maintain high production in a quarter with lower commodity prices and high maintenance activity.

“I am pleased that we demonstrate continued strong cost focus and capital discipline. Combined with efficient project execution, this enables us to reduce our organic CAPEX guiding for 2019 to 10-11 billion dollars.”

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Adjusted exploration expenses were $235m in Q2 2019, a decrease from Q1 2019’s expenses of $268m but roughly the same as in Q2 2018. As of Q2 2019, Equinor has completed 21 exploration wells with seven commercial discoveries.

Sætre said: “We continue to progress our highly competitive projects delivering production growth towards 2025. Today we announce that we have improved the world-class Johan Sverdrup project even further.

“With a planned start up later this year, and faster ramp up to reach plateau production during summer next year, the project will produce and create substantial value for decades to come.”