BAKU, Azerbaijan, July 27. Equinor company based in Norway reported net operating income of $17.7 billion in the second quarter of 2022, up from $5.30 billion in the same period in 2021, Trend reports citing the company.
Net income was $6.76 billion in the quarter, compared to $1.94 billion in the second quarter of 2021.
Energy prices remained high in the quarter. Compared to last quarter Equinor realised higher prices for liquids, while the averaged invoiced gas price in Europe eased off slightly. Adjusted earnings for the quarter was $17.6 billion, up from $4.64 billion in the same quarter last year. Adjusted earnings after tax was $5.00 billion, up from $1.58 billion in the same period last year. In the quarter the operational and administrative costs increased due to higher environmental costs, electricity prices and field cost, partially offset by currency effects. The MMP segment contributed with strong results, particularly from European gas and power optimization and trading.
Cash flows provided by operating activities before taxes and changes in working capital amounted to $18.1 billion for the second quarter, compared to $6.54 billion for the same period in 2021. Organic capital expenditure was $1.99 billion for the quarter. Free cash flow was $6.96 billion for the second quarter, impacted by the two last NCS tax instalments for 2021 and the increased capital distribution from the fourth quarter in 2021. From the third quarter, the NCS tax instalments will be based on 2022 results and are expected at around NOK 70 billion for third quarter. Strong cash flow and capital discipline resulted in a further reduction of adjusted net debt to capital employed to negative 38.6 percent at the end of the quarter. This is improved from negative 22.2 percent in the first quarter of 2022.
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