Equinor reports USD6.20 billion Q4 operating income, sets USD1.5 billion buy-back
Equinor reported Q4 2025 adjusted operating income of USD6.20 billion, after-tax net income of USD1.55 billion, 6% production growth and targets to cut 2026 operating costs by 10% and lower organic capex outlook by USD4 billion. The board proposed a USD0.39 Q4 dividend and will begin USD375 million of its USD1.5 billion 2026 share buy-back programme.
1. Strong Q4 and Full-Year 2025 Financial Performance
Equinor reported adjusted operating income of USD 6.20 billion and adjusted net income of USD 2.04 billion in Q4 2025, compared with USD 8.74 billion net operating income a year earlier. Production grew 6% in the quarter to 2,198 mboe/d and 3.4% for the full year to 2,137 mboe/d, driven by new fields on the Norwegian Continental Shelf (Johan Castberg, Halten East) and higher output from the US onshore segment. Realized European gas prices averaged USD 10.6/mmbtu and liquids USD 58.6/barrel. Cash flow from operations before working capital and taxes reached USD 9.55 billion in Q4, funding USD 3.29 billion of organic capex and USD 5.96 billion of tax instalments on the Norwegian shelf. Net debt to capital employed adjusted rose to 17.8% from 12.2% in Q3.
2. Portfolio High-Grading and Asset Sale in Argentina
Equinor agreed to sell its onshore Vaca Muerta assets in Argentina to Vista Energy for USD 1.1 billion, exiting lower-margin upstream positions while retaining offshore exposure. The transaction strengthens free cash flow and aligns with management’s strategy of focusing capital on higher-return opportunities on the Norwegian Continental Shelf and selective international projects. The divestment follows earlier exits from Nigeria and Azerbaijan and the sale of a 40% Peregrino interest in Brazil, generating over USD 2 billion in proceeds during 2025.
3. Five-Year Gas Supply Agreement with Eneco
Norwegian producer signed a five-year contract to deliver gas volumes to Netherlands-based Eneco, securing steady European demand from 2026 through 2030. While price terms were not disclosed, the deal complements existing long-term arrangements and underpins the company’s strategy to monetize production through a mix of spot and contract sales, following a January spot-market sale of roughly 30% of US onshore gas volumes during a winter price spike.
4. Enhanced Capital Return via Dividends and Buy-Back
Equinor’s board has proposed a Q4 cash dividend increase of USD 0.39 per share and announced a USD 1.5 billion share buy-back program for 2026. The first tranche, up to USD 375 million (including USD 123.75 million in open-market purchases), commenced on 5 February and runs through 30 March. These actions reflect the company’s commitment to deliver returns above its 13% ROACE target for 2026/27, while maintaining a net debt to capital employed ratio below 20%.