The adjusted earnings before interest and tax (EBIT) of Norwegian oil and gas company Equinor fell by 89% to $350 million in the April-June quarter of this year, compared to $3.15 billion in the same quarter of 2019, the company announced on Friday.
Equinor said that the second quarter was characterized by financial results that were mainly impacted by the Covid-19 pandemic and very low commodity prices.
"Our financial results for the second quarter were impacted by very low realized oil and gas prices due to the Covid-19 pandemic, but also by a strong trading performance in volatile markets. We now see gradual reopening of society in some parts of the world, while other regions are still heavily impacted by the pandemic," said Eldar Saetre, president and CEO of Equinor.
Saetre said that Equinor has taken forceful action to protect the safety of its personnel and to contribute positively to mitigate the spread of the virus.
"We have also been able to maintain stable operations and implemented several measures to safeguard our financial strength," he said.
The company's organic capital expenditures are estimated to be around $8.5 billion for 2020, around $10 billion for 2021, and average $12 billion annually between 2022 and 2023.
By Murat Temizer