“Strong operational efficiency and excessive manufacturing gave strong outcomes and money movement in 1 / 4 with important market volatility. We delivered rising returns for the complete yr and anticipate continued earnings development. Following sturdy enhancements in recent times, the board proposes a rise in quarterly dividend of 13% to $zero.26 per share,” says Eldar Sætre, president and CEO of Equinor ASA.
“Our money movement technology was sturdy throughout the enterprise. At a median oil worth of $71/bbl, we generated an natural free money movement effectively above $6 billion for the complete yr. We have additionally achieved a number of value-enhancing transactions, strengthened our monetary place and decreased our web debt ratio from 29% to 22.2%,” says Sætre.
Adjusted earnings have been $four.four billion within the fourth quarter, up from $four billion in the identical interval in 2017. Adjusted earnings after tax have been $1.5 billion, up from $1.three billion in the identical interval final yr. High manufacturing at greater costs contributed to the rise. Due to gross sales pricing mechanisms out there, the numerous fall in oil costs led to a adverse one-off impact with a better than regular differential between realised liquids costs and Brent Blend common. In addition, greater exploration exercise and decrease refinery and merchandise buying and selling margins impacted adjusted earnings negatively. For the complete yr, adjusted earnings have been $18 billion, up 42% from $12.6 billion in 2017.
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IFRS web working revenue was $6.7 billion within the fourth quarter in comparison with $5.2 billion in the identical interval of 2017. IFRS web revenue was $three.four billion, up from $2.6 billion within the fourth quarter of 2017. For the complete yr, IFRS web revenue was $7.5 billion, up from $four.6 billion in 2017.
“In 2018 we sanctioned seven new initiatives, which can ship greater than 1 Bbbl of assets to Equinor at a median break-even worth of $14 and really low CO2 emissions. In the quarter, we began manufacturing at Aasta Hansteen, Oseberg Vestflanken and Big Foot, and on the Apodi photo voltaic plant in Brazil. We additionally had the successful bid in an offshore wind lease spherical offshore Massachusetts within the U.S.,” says Sætre.
Equinor delivered complete fairness manufacturing of two,170 Mboed within the fourth quarter, a rise from 2,134 Mboed in the identical interval in 2017. The enhance was primarily as a result of portfolio adjustments and new wells particularly within the US onshore. New fields approaching stream added to the rise. Expected pure decline along with decreased gasoline off-take partially offset the rise. Equinor delivered all-time excessive manufacturing in 2018 with an underlying manufacturing development of greater than 2%.
As of year-end 2018, Equinor had accomplished 24 exploration wells with 9 industrial discoveries. Adjusted exploration bills within the quarter have been $417 million, up from $274 million in the identical quarter of 2017, primarily as a result of greater seismic and drilling exercise.
The reserve substitute ratio (RRR) reached an all-time excessive of 213% in 2018, primarily pushed by sanctioning of recent fields, optimistic revisions and acquisitions. The reserves to manufacturing ratio (R/P) elevated from 7.6 to eight.7 years.
Cash flows supplied by working actions earlier than tax amounted to $27.6 billion in 2018 in comparison with $21.zero billion in 2017. Organic capital expenditure was $9.9 billion for the complete yr of 2018. At year-end, web debt to capital employed…