Equinor swings to 2Q loss but trading offers relief

Spanish Market: Crude oil, Natural gas
24/07/20

Norway's state-controlled Equinor swung to a loss in the second quarter as the Covid-led slump in oil and gas prices slashed revenue. But "strong trading results" and domestic tax cuts helped soften the blow.

Equinor made a loss of $254mn in April-June, compared with a profit of $1.48bn a year earlier. Net impairment charges of about $370mn, "mainly related to a gas processing plant in Norway and exploration", hit the firm's bottom line. But the company said its earnings were "positively impacted by temporary tax changes in Norway". The changes to Norway's petroleum tax system were introduced to support investment in the domestic oil and gas industry during the current period of low demand.

Equinor also received a boost from its trading operations in the second quarter, which delivered a strong performance in volatile markets, it said. "The marketing, midstream and processing segment delivered a record high result in the quarter, particularly from crude oil and liquids trading where values were extracted from a market in contango and ability to utilise the asset portfolio. In addition, there was positive a contribution from renegotiations of gas contracts," the firm said.

Excluding the impact of oil prices on production-sharing agreements (PSAs), Equinor's oil and gas output averaged just over 2mn b/d of oil equivalent (boe/d) in April-June, unchanged from a year earlier. Including PSA effects, Equinor's output was 3pc higher on the year at 1.9mn boe/d. Strong growth in domestic crude and condensate production, driven by the start-up of the giant Johan Sverdrup field in the North Sea in October last year, was partly offset by lower gas output in Norway. "The flexibility in some gas fields was used to defer significant production into periods with higher expected gas prices," the firm said.

The crude price slump left Equinor having to borrow to meet funding commitments and shareholder distributions in the second quarter. As a result, its net debt gearing rose to 29.3pc at the end of June from 25.8pc three months earlier.

The company is on track to deliver $700mn of cost reductions in 2020 compared with its original plans. Upstream costs are down by almost 20pc compared with the second quarter of 2019, it said. Equinor has reiterated that it expects organic capital expenditure (capex) at $8.5bn this year, down from its original $10bn-11bn plan. Capex is expected to rise to about $10bn in 2021 and about $12bn/yr in 2022-23.

By Konstantin Rozhnov

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19/12/25

Trinidad not part of US blockade of Venezuela: PM

Kingston, 19 December (Argus) — Trinidad and Tobago is not involved in the US blockade of oil tankers entering and leaving from neighboring Venezuela, prime minister Kamla Persad-Bissessar said on Thursday. She rejected a Venezuelan government claim that her country is part of US president Donald Trump's current campaign against Venezuelan president Nicolas Maduro, and that it is supporting "the theft of Venezuelan oil." "We have no intention of engaging in any war with Venezuela," Persad-Bissessar said. But Trinidad's foreign ministry said on 15 December that the US is using the country's two airports for "logistical activities," including resupply for US operations and personnel rotations. Venezuelan vice-president Delcy Rodriguez accused Persad-Bissessar of being "hostile" to Venezuela, saying she "has turned her country into a US aircraft carrier to attack Venezuela, in an unequivocal act of vassalage." The US has stationed a large naval force in the waters near Venezuela since September and has destroyed several small boats in the area it said were carrying drugs, killing more than 80 people. Trump said in November he would order land strikes against Venezuela soon, and the US seized a tanker carrying Venezuelan crude earlier this month. Trinidad's rejection of the Venezuelan claims follow a standoff between the hydrocarbon producers over agreements to develop an offshore natural gas field in Venezuelan waters close to their maritime border that has an estimated 4.3 Tcf in reserves. Trinidad described a Venezuelan decision to terminate all natural gas supply contracts with it as "propaganda". The southwestern tip of gas-short Trinidad is 11 miles from Venezuela's north coast, and the country has been seeking gas from Venezuelan offshore fields to support up declining domestic output. By Canute James Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Mexico central bank cuts target rate to 7pc

19/12/25

Mexico central bank cuts target rate to 7pc

Mexico City, 19 December (Argus) — Mexico's central bank cut its benchmark interest rate by 25 basis points to 7pc, its lowest level since June 2022, maintaining a slower pace in the easing cycle on inflation concerns. The decision marked the eighth rate cut this year and the fourth quarter-point reduction following four consecutive half-point cuts. This year's cuts follow five quarter-point cuts in 2024 from a cyclical peak of 11.25pc in March. The board approved the cut in a 4-1 vote, with deputy governor Jonathan Heath dissenting in favor of holding the rate at 7.25pc. Heath has been the lone dissenter in the past five decisions, consistently urging greater caution. The central bank said the decision reflected "the behavior of the exchange rate, the weakness of economic activity and the possible impact of changes in global trade policies," repeating language used in its last four statements. Gabriela Siller, chief economist at Banco Base, pointed to a "significant change" in the bank's forward guidance, noting a shift toward a less dovish tone. The board said it "will consider when to make further adjustments" to the policy rate, replacing the "will consider cutting" language used in November. Mexican bank Banorte also said the central bank struck a less dovish tone, pointing to a change in its forward guidance. Annual inflation rose to 3.8pc in November from 3.57pc in October, according to statistics agency Inegi. Core inflation, which excludes volatile food and energy prices, accelerated to 4.43pc from 4.28pc. The central bank now sees headline inflation ending 2025 at 3.7pc, up from 3.5pc in its November forecast, while core inflation is projected at 4.3pc, revised from 4.1pc. It also raised its headline and core forecasts for the first two quarters of 2026, while maintaining that both will converge to its 3pc target by the third quarter. The bank said the revisions mainly reflect a "more gradual-than-expected" easing in services inflation, along with a smaller contribution from accelerating consumer goods prices. The board also addressed recent tax reforms, which it expects will have a temporary and not necessarily proportional impact on prices, adding it will update its forecasts as it conducts a comprehensive assessment of the revised tax code's effects. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

W Australia's gas surplus outlook strengthens: Aemo

19/12/25

W Australia's gas surplus outlook strengthens: Aemo

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Energy Transfer halts plans for Lake Charles LNG

18/12/25

Energy Transfer halts plans for Lake Charles LNG

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US House passes bill to expedite permitting

18/12/25

US House passes bill to expedite permitting

Washington, 18 December (Argus) — The US House of Representatives on Thursday approved a bill designed to fast-track permitting for energy projects and reduce related litigation risks. But a last-minute change Republicans made to exclude some offshore wind and solar projects led some Democrats and a major clean energy group to withdraw support, complicating the bill's chances of passage in the Senate. The Republican-controlled House voted 221-196 to pass the SPEED Act, with 11 Democrats crossing the aisle to vote for what would be the most significant changes to federal permitting in years. The bill will now advance to the US Senate, where proponents will likely need to agree to make significant changes if they hope to pick up the votes of at least seven Democrats to avoid a filibuster. The bill "finally brings common sense by cutting red tape that dramatically increases the cost and, in some cases, just makes it economically unfeasible to do projects", House Republican majority leader Steve Scalise (R-Louisiana) said. The SPEED Act focuses on revising project reviews under the National Environmental Policy Act (NEPA), which is a source of delay and litigation risk for pipelines and renewable projects alike. The bill would require federal agencies to narrow those reviews and uphold those decisions even if federal courts find them to be inadequate. The bill would also provide permit "certainty" by limiting the government's ability to rescind prior approvals, averting a repeat of events like the cancellation of the Keystone XL pipeline. "We applaud the House for advancing the SPEED Act, a bipartisan, commonsense step toward fixing a federal permitting system that's long been broken," oil industry group the American Petroleum Institute said. Republican leaders were hoping 30-40 Democrats would join them to support the SPEED Act. The bill had broad bipartisan support when it was drafted because of provisions meant to prevent permitting delays that have plagued both oil and gas pipelines and renewable energy development. But Republican leaders, to satisfy far-right conservatives, made a change to the bill earlier this week that would prevent its expedited permitting procedures from benefiting any project that Trump's administration has blocked or revisited since 20 January. The Trump administration has targeted multiple offshore wind and solar projects this year and has ordered the developer of the nearly complete 704MW Revolution Wind project off the coast of Rhode Island to stop construction. That change fractured a bipartisan coalition that had spent months working on technology-neutral permitting language. The American Clean Power Association, the largest industry group for US renewable energy, on Wednesday withdrew its support of the bill , arguing the "poison pill amendment" that Republicans made eviscerated bipartisan language that gave expedited permitting treatment for all types of energy resources. A number of House Democrats who had backed the bill also withdrew their support. American Clean Power plans to work with both parties in the Senate to make changes. "This is not the final draft," representative Scott Peters (D-California) said during floor debate Thursday, vowing to work with his colleagues in the Senate to address House Democrats' concerns. By Chris Knight and Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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