Record Equinor profit prompts higher dividend payout

Equinor on Wednesday posted a record profit for the fourth quarter due to booming oil and gas prices, prompting the Norwegian energy major to declare a higher dividend for the year.  

The company reported adjusted earnings of US $15 billion in the fourth quarter, up from $760 million in the same period in 2020. Adjusted earnings after tax for the full year stood at $10 billion for 2021, while the free cash flow stood at $25 billion amid a net debt reduction, Equinor said in a statement.

The company also reported a strong operational performance and increased annual production of oil and gas of 3.2 percent, backed by continued cost focus and capital discipline, it said.

“We are capturing value from high prices for gas and liquids with excellent performance and increased production. This resulted in very strong adjusted earnings after tax for the quarter and the full year. In addition, continued improvements and capital discipline contributes to the strong free cash flow and a significant strengthening of our balance sheet,” Anders Opedal, President and CEO of Equinor ASA, said in a statement.

Equinor said it would pay a quarterly dividend of $0.20 per share, up from $0.18 per share it paid in the third quarter, and will pay an additional extraordinary dividend of $0.20 for a period of four quarters.

The company said it also plans to increase its share buybacks in 2022 to $5 billion from $1.3 billion in 2021, and up from the previous plan of $1.2 billion.