Equinor Q3 Earnings Miss Estimates, Revenues Increase Y/Y

Equinor ASA EQNR reported third-quarter 2025 adjusted earnings per share (EPS) of 37 cents, which missed the Zacks Consensus Estimate of 57 cents. The bottom line declined 53.2% from the year-ago quarter’s level of 79 cents. The underperformance was due to net impairments resulting from a lower price outlook.Total quarterly revenues of $26 billion increased from $25.4 billion in the prior-year quarter. The top line also beat the Zacks Consensus Estimate of $24.3 billion. The outperformance can be attributed to 7% growth in production with strong performance from Johan Sverdrup and Johan Castberg.Equinor ASA Price, Consensus and EPS Surprise Equinor ASA price-consensus-eps-surprise-chart | Equinor ASA QuoteSegmental Analysis of Q3Exploration & Production Norway (E&P Norway): The segment reported adjusted earnings of $5,618 million, down 4.4% from $5,875 million in the year-ago quarter.The segment was affected by a natural decline in several fields along with lower liquid prices.The company’s average daily production of liquids and gas increased 8.7% to 1,422 thousand barrels of oil equivalent per day (MBoe/d) from 1,308 Mboe/d in the prior-year quarter. The year-over-year increase in production can be attributed to new fields like Johan Castberg and Halten East coming on stream during the quarter.E&P International: The segment’s adjusted operating profit totaled $396 million, down 2.7% from $407 million in the year-ago quarter. The segment was primarily impacted by a drop in production volumes and lower liquids prices.The average daily equity production of liquids and gas declined 20% to 267 MBoe/d from 334 MBoe/d in the year-ago quarter. Equity production decreased year over year due to divestment of assets in Azerbaijan and Nigeria, as well as the production halt at Peregrino from mid-August 2025, following audit requirements. Furthermore, a natural decline in several fields contributed to the overall drop in production levels.E&P USA: Equinor generated an adjusted operating profit of $37 million from this segment. The figure decreased 82% from $207 million in the third quarter of 2024. The segment was affected by lower liquid prices, and higher operating and administrative expenses due to an increase in asset retirement obligations. The segment’s net operating income during the quarter was affected by impairments of $385 million related to two producing assets in the U.S. Offshore, in addition to $36 million in exploration license write-downs.The integrated firm’s average equity production of liquids and gas was 441 MBoe/d, up 29% from 342 MBoe/d in the year-ago period. The rise in production was primarily supported by increased gas production volumes from the Appalachia onshore assets following the acquisition of additional interests in late 2024. Furthermore, additional wells brought into production during the third quarter led to an increase in the U.S. Offshore production.Marketing, Midstream & Processing: The segment reported adjusted earnings of $299 million, a 45% decline from $545 million a year ago.Renewables: The segment reported an adjusted loss of $64 million, narrower than the year-ago quarter’s loss of $115 million. This can be attributed to a reduction in operating and administrative expenses.Equinor’s Net Cash Flow & Capital ExpendituresIn the September-end quarter, Equinor generated a negative net cash flow of $3,565 million, compared with a negative net cash flow of $3,984 million in the year-ago period. Organic capital expenditures amounted to $3.4 billion in the third quarter.Balance SheetAs of Sept. 30, 2025, the company reported $8,114 million in cash and cash equivalents. Its long-term debt was $25,070 million.EQNR’s Outlook for 2025Equinor reiterated its 2025 oil and gas production guidance, expecting it to grow 4% on a year-over-year basis. The company also restated its organic capital spending budget of $13 billion for the year. Additionally, planned maintenance activities are expected to lower equity production by approximately 30 MBoe/d throughout 2025.EQNR currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Important Earnings at a GlanceWhile we have discussed EQNR’s third-quarter results in detail, let us take a look at three other key reports in this space.Canadian Natural Resources Limited CNQ reported third-quarter 2025 adjusted earnings per share of 62 cents, which beat the Zacks Consensus Estimate of 54 cents. However, the bottom line decreased from 71 cents in the year-ago quarter. The underperformance can be attributed to lower realized oil and natural gas liquid prices and rising expenses.Total revenues of $6.9 billion rose from $6.5 billion in the prior-year period, fueled by increased production volumes. Additionally, the figure beat the Zacks Consensus Estimate of $6.7 billion.As of Sept. 30, 2025, CNQ had cash and cash equivalents worth C$113 million and long-term debt of approximately C$16.4 billion, with a debt to capitalization of about 28.9%.Permian Resources Corporation PR reported a third-quarter 2025 adjusted net income per share of 37 cents, which beat the Zacks Consensus Estimate of 30 cents. Additionally, the bottom line increased from the year-ago quarter’s reported figure of 35 cents. This outperformance was driven by a rise in production volumes and an increased natural gas realized price.Meanwhile, Permian Resources’ oil and gas sales of $1.3 billion increased 8.7% from the year-ago quarter but missed the Zacks Consensus Estimate by $16 million.As of Sept. 30, PR had $111.8 million in cash and cash equivalents. The company had a long-term debt of $3.5 billion, reflecting a debt-to-capitalization of 26.1%.The Calgary-based integrated oil and gas company, Imperial Oil Limited IMO, reported third-quarter 2025 adjusted earnings per share of $1.57, which beat the Zacks Consensus Estimate of $1.44. However, the bottom line decreased from the year-ago quarter’s $1.71. This decrease was due to lower upstream price realizations, partly offset by higher production volumes.Revenues of $8.8 billion missed the Zacks Consensus Estimate of $11.1 billion. The top line also decreased from the year-ago quarter’s level of $9.7 billion due to weak performance in both the Upstream and Downstream segments.As of Sept. 30, Imperial Oil had cash and cash equivalents of C$1.9 billion. Total debt of the company amounted to C$4 billion, with a debt-to-capitalization of 14.4%.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. 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Click to get this free report Imperial Oil Limited (IMO): Free Stock Analysis Report Canadian Natural Resources Limited (CNQ): Free Stock Analysis Report Equinor ASA (EQNR): Free Stock Analysis Report Permian Resources Corporation (PR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks