Norwegian energy company Equinor (NYSE: EQNR) reaffirmed plans on Wednesday to return $9 billion to shareholders this year through dividends and buybacks, despite missing its first-quarter earnings targets.
The company reported adjusted operating income after tax of $2.25 billion for Q1 2025. This was down from $2.57 billion a year earlier and below the analyst consensus of $2.38 billion. Adjusted earnings per share were $0.66, missing the estimated $0.85.
Equinor faced lower gas sales revenues due to a spike in European natural gas prices in mid-February, followed by a sharp decline for the rest of the quarter. Maintenance work at the Hammerfest LNG facility also reduced gas sales and exports.
The company had already warned investors about weak results in liquids and LNG trading. The Hammerfest LNG and Snøhvit facilities were offline for 20 days in Q1 for planned and unplanned maintenance.
Despite these challenges, Equinor highlighted positive progress, including the start-up of the Johan Castberg oilfield in the Barents Sea. This project is expected to add up to 220,000 barrels of oil per day at peak production.
“We remain committed to a strong capital return and expect to deliver $9 billion to shareholders in 2025,” said Equinor CEO Anders Opedal. “Our focus is on safe, stable, and cost-efficient operations with a resilient balance sheet amid market uncertainties.”
Equinor plans to launch a second tranche of its 2025 share buyback program, valued at up to $1.265 billion, pending shareholder approval. The first tranche, worth $1.2 billion, was completed in March. The total buyback target for 2025 is up to $5 billion.
The Norwegian firm joins Italy’s Eni in maintaining shareholder payouts despite falling oil prices and market volatility. By contrast, UK’s BP cut its quarterly buyback program by $1 billion after reporting weaker earnings, lower cash flow, and rising debt in Q1.