BAKU, Azerbaijan, March 24
By Leman Zeynalova – Trend:
Total revenues and other income of Equinor amounted to $45,818 million in 2020 compared to $64,357 million in 2019, Trend reports with reference to the company.
Revenues are generated from both the sale of lifted crude oil, natural gas and refined products produced and marketed by Equinor, and from the sale of liquids and gas purchased from third parties. In addition, Equinor markets and sells the Norwegian State's share of liquids from the NCS. All purchases and sales of the Norwegian State's production of liquids are recorded as purchases [net of inventory variations] and revenues, respectively, while sales of the Norwegian State's share of gas from the NCS are recorded net.
Revenues were $45,753 million in 2020, down 27 percent compared to 2019. The decrease was mainly due to lower average prices for liquids and gas, partially offset by higher liquid volumes sold and derivative gains in the MMP segment. Net income from equity accounted investments was $53 million in 2020, down from $164 million in 2019 mainly due to expensed exploration costs in KrasGeoNaC related to Sea of Okhotsk in 2020.
Other income was $12 million in 2020 compared to USD 1,283 million in 2019. In 2020, other income was positively impacted by gain on sale of assets mainly related to Kvitebjørn pipeline and minor joint venture assets. In 2019, other income was positively impacted by gain on sale of assets in Lundin Energy AB and Arkona in addition to a swap transaction with Faroe Petroleum. Because of the factors explained above, total revenue and other income was down by 29 percent in 2020. Purchases [net of inventory variation] include the cost of liquids purchased from the Norwegian State, which is pursuant to the Owner's instruction, and the cost of liquids and gas purchased from third parties.
Purchases [net of inventory variation] amounted to $20,986 million in 2020 compared to $29,532 million in 2019. The 29 percent decrease in 2020 was mainly due to lower average prices for liquids and gas, partially offset by higher volumes for liquids.
---
Follow the author on Twitter: @Lyaman_Zeyn