Equinor (EQNR NO): Hold: De-risking and de-leveraging

Research evidence excerpt

Equinor (EQNR NO): Hold: De-risking and de-leveraging

ading’s strength, and better LNG trading than expected.

Management reiterated USD400m/quarter as a normal level to expect, though we continue to

expect much higher levels through year-end, given the macro volatility.

◆ Refining: For the first time in a long while, refining was mentioned on Equinor’s conference

call. The Mongstad refinery’s economics were supported by very strong European margins.

Management cited European FCC margins of cUSD25/b. Though it does not disclose

Mongstad’s margins specifically, management said it is significantly above its breakeven and

has remained strong into 3Q-to-date.

◆ Adura: Second quarter receiving a dividend of USD150m from Adura. Guidance remains at

>USD1bn in dividends received from Adura over 2026-27. Adura has already raised

cGBP3bn of debt, described as an “appropriate” gearing level for the company. As a

reminder, Equinor doesn’t report its Adura dividends under CFFO, but within its CFFI.

◆ Bay du Nord: No change to timeline despite BP handing over its stake. Equinor reiterated it

still targets FID in 2027 and is working to bring in a new partner. The deal consideration

was described as “minimal” (vs the project’s size). The project remains fully supported by

the Canadian government.

◆ Peregrino: The remaining 20% stake divestment is held for sale and targeted to close end-

2026 or early-2027. We expect remaining proceeds of cUSD1.1bn (including interest).

◆ Unit costs: The company expects cUSD6/b for 2026 (across whole portfolio) and reiterated

USD6/b on average to 2030, with International targeted at <USD5.5/b. Management

additionally highlighted a 10% reduction target for SG&A vs last year, with underlying costs