Equinor swings to $2.54bn net income on higher liquids and gas prices

Equinor reported net income of $2.54bn for the third quarter of 2026, reversing a net loss of $204m in the same period last year. Basic earnings per share reached $1.07, against a loss of $0.08 per share a year earlier.

Net operating income rose more than 127% to $11.95bn from $5.27bn. Adjusted operating income nearly doubled to $12.35bn, up 99% from $6.22bn in Q3 2025. Adjusted net income climbed 207% to $2.86bn from $932m, while adjusted EPS gained 224% to $1.20 from $0.37.

Higher prices drove the swing, not volumes alone. Equinor said the results reflected increased prices for liquids and European gas, partly offset by international liftings that fell short of its share of production and reduced sales volumes.

How did cash flow perform?

Cash flow from operations after taxes paid rose 53% to $8.14bn from $5.33bn. Net cash flow before capital distribution increased 148% to $5.18bn from $2.09bn a year earlier. In plain terms, the company converted stronger prices into cash at nearly every line of the statement.

What happened to production?

Total equity production reached 2.166 million barrels of oil equivalent per day (boepd), up 2% year-on-year.

• International oil and gas segment: production up 21%, driven by added output from Adura in the UK and Bacalhau in Brazil, alongside reduced turnaround activity, partially offset by divestments and natural decline.
• Norwegian Continental Shelf (NCS): production sustained versus Q3 2025. New fields Halten East and Verdande, plus additional volumes from new wells, compensated for natural decline and unplanned reductions at Johan Castberg and Troll.
• US: production declined year-on-year, with onshore volumes stable but lower offshore output due to planned downtime and natural decline.

What lifted the downstream numbers?

Marketing, midstream and processing delivered strong results, anchored to the Mongstad refinery on Norway's west coast. Equinor recorded a record contribution from Mongstad, supported by high refining margins and LNG trading performance.

CEO Anders Opedal said: "At the Mongstad refinery, our operational performance was strong and we achieved record results."

Where is Equinor adding barrels and acreage?

The quarter brought portfolio moves on three continents, from Canadian frontier acreage to a first entry into Namibia.

• Canada: Equinor finalised the acquisition of bp's interest in Bay du Nord during the quarter, then divested a 30% stake to Shell. The project is progressing towards a final investment decision (FID).
• Namibia: the company secured an exploration licence, gaining access to the basin.
• Angola: Equinor participated in new oil and gas finds.
• US power: the company acquired a stake in the Lackawanna gas-fired power plant, expanding integrated power operations.

Exploration activity covered 13 wells in the quarter. Equinor completed six, three of which resulted in commercially viable discoveries. A commercial discovery was also announced from a well completed in the previous quarter.

What changes in guidance?

Equinor raised its full-year 2026 production growth guidance to approximately 4%, up from 3% previously.

Opedal said: "High production in the third quarter enabled us to capture additional value from higher prices. Based on safe and efficient operations we are increasing our 2026 guiding for oil and gas production growth from 3 to around 4%."

He added that in a period of continued geopolitical tension the company remains committed to safe and reliable operations and to supplying the products its customers need.

The watch items now are the Bay du Nord FID, the trajectory of European gas and liquids prices, and whether refining margins at Mongstad hold near record levels into the fourth quarter.