BAKU, Azerbaijan, May 7
By Leman Zeynalova – Trend:
Natural gas sales volumes amounted to 16.4 billion standard cubic meters (bcm) in the first quarter of 2020, unchanged compared to the first quarter of 2019, Trend reports with reference to the company.
Of the total gas sales in the first quarter of 2020, entitlement gas was 13.4 bcm, down 0.9 bcm from the first quarter of 2019, reads the report released by Equinor. The company said that decrease was mainly due to lower Norwegian continental shelf (NCS) entitlement volumes.
Liquids sales volumes amounted to 195.9 million barrels (mmbl) in the first quarter of 2020, up 13.7 mmbl compared to the first quarter of 2019 mainly due to increased volumes from the NCS.
Average invoiced European natural gas sales price was 41 percent lower in the first quarter of 2020 compared to the first quarter of 2019. Average invoiced North American piped gas sales price decreased by 41 percent in the same period due to the decreased Henry Hub price. Net operating income was a $322 million loss in the first quarter of 2020 compared to positive $1,184 million in the first quarter of 2019.
The decrease was mainly due to negative results from weak refinery margins and liquids trading. In addition, unrealized derivatives losses and inventory hedging effects of $18 million compared to gains of $706 million in the first quarter of 2019 contributed to the decrease.
In the first quarter of 2020, negative effects from operational storage amounted to 343 million due to change in market prices, compared to positive 130 million in the same period last year. In addition, increased transportation costs and impairment related to a refinery asset added to the decrease. Adjusted purchases decreased mainly due to lower prices for all products, partially offset by increased volumes for liquids. Adjusted operating and administrative expenses increased mainly due to increased transportation costs for liquids. Adjusted depreciation, amortisation and net impairment losses were stable.
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