Norwegian energy major Equinor saw a 4% year-on-year decline in its second quarter (Q2) profits, reporting an adjusted operating income of $7.48bn in its Q2 financial results released on Wednesday (24 July).

Although Equinor’s profits for April-June in 2023 were higher at $7.8bn, the latest results beat the $6.96bn figure predicted by 22 analysts that Equinor polled.

In a press release, president and CEO of Equinor Anders Opedal said: “Our operational performance continued to be strong through the quarter, and we delivered 3% production growth. This secured solid financial results. We maintain a competitive capital distribution, expecting to deliver a total of $14 billion to our shareholders in 2024.”

Equinor attributed the fall in profit to milder temperatures which led to a drop in European gas prices, higher inventory levels and reduced demand. Europe’s benchmark for gas prices, the Dutch TTF front-month gas contract, averaged $10.02 per metric million British thermal units (mmbtu) in Q2 2024, down from $11.13 per mmbtu in Q2 last year.

Equinor revised its renewable power production forecast to 70% for 2024, having previously expected it to double, as delays at its Dogger Bank A wind farm project continue to restrict output.

The next phases of the project, initially expected to come online in 2024 and 2025, are now set to enter commercial operation in 2025 and 2026 respectively.

Meanwhile, the company kept its forecasted capital expenditure of $13bn for 2024 as well as its estimate for oil and gas production in 2024, after reporting strong Q2 2024 oil and gas output at 2.05m barrels of oil equivalent per day (boepd), up from 1.99m boepd the same period last year.

According to Reuters, Equinor overtook Russian state-owned company Gazprom to become Europe’s biggest supplier of natural gas following Russia’s invasion of Ukraine in 2022, and the subsequent ending of energy relationships.

So far this year, Equinor’s share price has fallen by 10.4%.