Norway's Equinor's adjusted earnings after tax decreased by 26% to $4.92 billion in 2019, compared to $6.69 billion in 2018, the company announced on Thursday.
The company's net operating income also decreased by 54% to $9.23 billion last year, compared to $20.14 in 2018.
Equinor said that 54% decrease was primarily driven by lower liquids and gas prices and liquids volumes.
"Going forward, we expect to grow production, returns and cash flow from a world-class project portfolio, representing 6 billion barrels to Equinor with an average break-even oil price below $35 per barrel," said Eldar Saetre, President and CEO of Equinor.
He said that Equinor started production at Johan Sverdrup in October last year, ahead of schedule and more than 30% below the original cost estimate.
"We expect the entire phase 1 investment to be paid back already by the end of this year, less than 15 months after the first well was put in production," Saetre said.
He noted that 2019 was truly a game-changing year for Equinor's renewables business as it made the investment decision for Hywind Tampen in Norway and won the opportunities to develop Empire Wind offshore New York and Dogger Bank, the world’s largest offshore wind development, in the U.K..
Renewables projects in development are expected to add 2.8 gigawatts of electricity capacity to Equinor, more than five-fold it's current capacity.
By Murat Temizer