Equinor, the Norwegian energy giant, announced a 32% decline in its fourth-quarter profits due to falling oil prices. According to Jin10, this makes Equinor the first major European energy company to release its quarterly earnings, potentially setting the tone for the upcoming earnings season. The drop in oil prices occurred amid ample supply, impacting the company's adjusted post-tax operating profit, which fell from $2.29 billion in the same period last year to $1.55 billion, below analysts' average expectation of $1.59 billion.
Equinor also revealed plans for a $1.5 billion stock buyback in 2026. Last year, oil prices experienced their largest annual decline since 2020, and a significant supply surplus is expected to continue putting pressure on prices through 2026. Additionally, European natural gas prices saw a substantial decrease last year due to a surge in maritime supply. Within Equinor, increased production helped mitigate the impact of falling prices, with both domestic and overseas oil fields in Norway ramping up output.