Norway’s major energy company Equinor announced a 32 percent decline in its fourth-quarter revenue, primarily attributed to the decrease in oil prices. As the first large European energy firm to report quarterly earnings this season, Equinor’s results may set the tone for the upcoming financial period. The company’s performance was significantly impacted by lower oil prices, driven by a global increase in oil supply. Equinor’s adjusted post-tax operating profit fell from $2.29 billion in the same period last year to $1.55 billion, missing analysts’ average estimate of $1.59 billion. Additionally, Equinor revealed plans for a $1.5 billion stock buyback in 2026, signaling a positive outlook for investors. Last year saw the largest annual decline in global oil prices since 2020, with experts predicting continued pressure through 2026 due to increased supply. Natural gas prices in Europe also dropped significantly, helped by increased maritime supply routes. To mitigate the impact of falling prices, Equinor increased production, particularly in its domestic and overseas oil fields in Norway. The volatility in global energy markets is forcing companies to adapt their strategies to maintain profitability. Further declines in oil prices or unexpected changes in global supply could profoundly affect the energy market, with clearer trends expected in the coming financial season.
Source: binance
