Weaker oil and gas prices have led Equinor ASA (EQNR.US) to report fourth-quarter profits that fell short of analyst expectations, prompting the company to scale back its share repurchase program.

Financial results revealed the company's Q4 adjusted earnings after tax dropped to $1.55 billion, missing the average analyst forecast of $1.59 billion.

Net profit declined to $1.31 billion from $2 billion in the same period a year earlier.

The Norwegian energy giant also announced on Wednesday that its share buybacks for the year will be reduced to $1.5 billion, significantly lower than the $5 billion level in 2025.

Following the surge in energy prices after the 2022 Russia-Ukraine conflict, which delivered massive profits to the industry, Equinor was among the many oil and gas producers returning excess cash to shareholders.

Now, with ample market supply and softer prices, some companies are beginning to rein in the scale of their returns.

Chief Financial Officer Torgrim Reitan stated in an interview, "The super-cycle in the gas industry is over; this year marks the first year of normalization for the industry, and we must live within our means, which is the normal development level for the sector."

The company anticipates its total organic capital expenditure for 2026 will reach $13 billion, largely consistent with last year's $13.1 billion but slightly above the $12.9 billion analysts had previously projected.

Additionally, the company plans a significant reduction in capital expenditure to $9 billion by 2027, with cuts focused primarily on its renewables, gas and power, and low-carbon solutions businesses.

As the first major European energy company to release quarterly results, Equinor's performance may set the tone for this earnings season.

International oil prices recorded their largest annual decline since 2020 in 2025, while European gas prices also saw a substantial yearly drop.

However, the company's midstream operations performed strongly in the fourth quarter, with oil and gas production growth both domestically and internationally helping to offset some of the impact from lower oil prices, resulting in record annual production.

Equinor reported that its oil and gas production increased by 3.4% in 2025, reaching a record high of 2.14 million barrels of oil equivalent per day, with Q4 production up 6% year-over-year.

Notably, the newly operational Johan Castberg field and the Bacalhau project in Brazil contributed significantly to this growth, and the company forecasts a production increase of approximately 3% for 2026.

Boosted by higher third-party volumes, adjusted operating profit for the Marketing, Midstream, and Processing (MMP) segment reached $678 million.

It is worth noting that the company had lowered its quarterly guidance for this segment last October, indicating a subsequent target profit of around $400 million.

Equinor's established European peer, Shell plc (SHEL.US), is scheduled to report earnings on Thursday, while the U.S. earnings season is in full swing, with oil majors Exxon Mobil Corp. (XOM.US) and Chevron Corp. (CVX.US) having posted results that exceeded market expectations last week.