The board of directors has decided to announce share buy-back for 2025 of up to USD 5 billion in total to conclude the two-year programme for 2024--2025. The 2025 share buy-back programme will be subject to market outlook and balance sheet strength. The first tranche of up to USD 1.2 billion of the 2025 share buy-back programme will commence on 6 February and end no later than 2 April 2025. Commencement of new share buy-back tranches after the first tranche will be decided by the board of directors on a quarterly basis in line with the company's dividend policy and will be subject to existing and new board authorisations for share buy-back from the company's annual general meeting and agreement with the Norwegian State regarding share buy-back.

All share buy-back amounts include shares to be redeemed by the Norwegian state.

Capital markets update: Firm strategic direction - stronger free cash flow* and growth

Equinor maintains a firm strategic direction and has taken action to strengthen free cash flow* and returns(1). With a profitable project portfolio and strict capital discipline, Equinor expects to deliver high-value production growth in selected markets creating value for shareholders.

Key messages:

   -- Firm strategy -- high returns: Remaining value driven in the execution. 
      Expecting return on average capital employed* above 15% to 2030 
 
   -- Strengthening free cash flow*: Expecting strengthened free cash flow* to 
      USD 23 billion for 2025 - 2027 by reducing capex and addressing costs 
 
   -- Increasing production growth: Expecting above 10% oil and gas production 
      growth driven by developing an attractive project portfolio and value 
      adding transactions, increasing expected 2030 production from 2 to 2.2 
      million boe per day 
 
   -- Building resilient business for the future: Lowering investment outlook 
      for renewables and low-carbon solutions to adapt to market conditions and 
      further strengthen value creation for shareholders. Lowering 2030 
      renewable capacity ambition to 10-12 gigawatt including financial 
      investments, and introducing range for ambition for net carbon intensity 
      reduction. Maintaining strategic direction towards net zero 

Growth in free cash flow*

Equinor has significantly increased the free cash flow* outlook by reducing investments and addressing costs. Expected organic capital expenditure* of USD 13 billion for 2025 and on average for the period 2025--2027. After project financing of Empire Wind I, organic capital expenditure* is expected at USD 11 billion for 2025 and on average USD 12.5 billion for 2026--2027.

Stronger free cash flow provides capacity for Equinor to continue to deliver competitive capital distribution.

Equinor also strengthens its resilience and can be cash flow neutral after all investments at an oil price around 50 dollars per barrel.

Oil and gas - delivering long term value

Equinor expects an oil and gas production growth of above 10% from 2024 to 2027. In 2030 expected production is around 2.2 million boe per day, up from previous expectation of around 2 million. For the NCS, production is expected to maintain at a high level of around 1.2 million boe per day all the way to 2035.

Equinor will continue to develop existing fields and an attractive project portfolio both on the NCS and internationally. Driving increased recovery and exploration near infrastructure is expected to bring high value volumes with short lead time, low cost and low emissions.

From the international upstream portfolio, Equinor expects the annual free cash flow* to grow to more than USD 5 billion in 2030.

A CO2 intensity* around 6 kg per boe is expected by 2030 and the company is on track to deliver on the 2030 ambition of net 50 percent reduction in operated scope 1 and 2 CO2 emissions.

Renewables and low carbon - adjusting ambitions to realities

Equinor has high-graded the project portfolios in renewables and low carbon solutions, and reduced cost and early phase spend to improve the value creation for shareholders.The portfolio is expected to deliver more than 10% life-cycle equity returns. For renewables, the ambition for installed capacity is reduced to 10-12 gigawatt by 2030, including the Ørsted and Scatec ownership positions.

Equinor demonstrates a leading position in carbon capture and storage and has projects with a storage capacity of 2.3 million tonnes CO2 installed or under development. The ambition to store 30-50 million tonnes of CO2 per annum by 2035 is maintained, and Equinor has secured licenses with capacity to store more than 60 million tonnes annually.

To underline that value creation is at the core of decision making, the ambition to allocate 50% of gross capital expenditures to renewables and low carbon solutions by 2030 is retired.

Updated Energy transition plan

The Energy transition plan describes how Equinor creates value, cuts emissions and develops new energy solutions to reach net zero by 2050. The ambition for cutting scope 1 and 2 emissions by 50% within 2030 is upheld.

The pace of transition depends on frame conditions and market opportunities to create value. Adjusting to the market situation and opportunity set, the range for the net carbon intensity $(NCI)$ ambition will be 15-20% in 2030 and 30-40% in 2035.

Updated outlook for 2025:

   -- Organic capex expenditures* are estimated at  USD 13 billion for 2025 
      (2). 
 
   -- Oil & gas production for 2025 is estimated to grow 4% compared to 2024 
      level. 

This press release contains Forward Looking Statements. Please see the Forward Looking Statement disclaimer published on Equinor.com/investors/cmu-2025-forward-looking-statements.

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* For items marked with an asterisk throughout this report, see Use and reconciliation of non-GAAP financial measures in the Supplementary disclosures.

(1) All forward looking financial numbers are based on Brent blend 70 USD/bbl, Henry Hub 3.5 USD/MMBtu and European gas price 2025: 13 USD/MMBtu, 2026: 11 USD/MMBtu and thereafter: 9 USD/MMBtu

(2) USD/NOK exchange rate assumption of 11

- - -

Further information from:

Investor relations

Bård Glad Pedersen, Senior vice president Investor relations,

+47 918 01 791 (mobile)

Press

Sissel Rinde, Vice president Media relations,

+47 412 60 584 (mobile)

This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act

Attachments

   -- Equinor 4Q 2024 Financial Statements and Review 
 
   -- CEO and CFO presentation Equinor Q4 2024 - CMU 2025 

(END) Dow Jones Newswires

February 05, 2025 00:45 ET (05:45 GMT)