Energy firm Equinor reported a sharp drop in second-quarter operating profit that beat analysts' estimates, as strong performance by its refinery and trading unit countered impact of a coronavirus-led slump in oil and gas prices.
The Norwegian oil and gas explorer posted an 89 per cent slump in its adjusted earnings before interest and tax (EBIT) to $0.35 billion in the April-June quarter, compared with $3.15bn in the year-ago period. A poll of 25 analysts compiled by Equinor had forecast an adjusted operating loss of $0.2bn.
While all three oil exploration and production units, E&P Norway, E&P International and E&P USA, posted losses, its refinery and trading unit saw a rise in profits.
"Our financial results for the second quarter were impacted by very low realised oil and gas prices due to the Covid-19 pandemic, but also by a strong trading performance in volatile markets," chief executive Eldar Saetre said in a statement.
"We have reduced costs, maintained solid operational performance and continued to prioritise value over volume by deferring significant flexible gas production to periods with higher expected prices."
The Norwegian government has imposed limits on oil output from June to December this year, backing efforts by the Opec+ nations and others to support oil prices.
Equinor maintained a quarterly dividend of $0.09 per share, identical to the first quarter but down from $0.27 in October-December.
The company reiterated its goal of increasing output by 3 per cent per year from 2019 to 2026, and kept capital spending plans for this year unchanged at $8.5bn.
Equinor now expects crude oil prices to average $41 a barrel in 2020, up from a previous view of $39 a barrel seen in May, but it kept its long-term price assumptions unchanged, unlike other European majors.
The company has previously said it planned to revise its long-term price outlook, which could impact assets values, in the third-quarter.
Keane on …
Liverpool’s Uefa Champions League bid: “They’re great. With the attacking force they have, for me, they’re certainly one of the favourites. You look at the teams left in it - they’re capable of scoring against anybody at any given time. Defensively they’ve been good, so I don’t see any reason why they couldn’t go on and win it.”
Mohamed Salah’s debut campaign at Anfield: “Unbelievable. He’s been phenomenal. You can name the front three, but for him on a personal level, he’s been unreal. He’s been great to watch and hopefully he can continue now until the end of the season - which I’m sure he will, because he’s been in fine form. He’s been incredible this season.”
Zlatan Ibrahimovic’s instant impact at former club LA Galaxy: “Brilliant. It’s been a great start for him and for the club. They were crying out for another big name there. They were lacking that, for the prestige of LA Galaxy. And now they have one of the finest stars. I hope they can go win something this year.”
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Country-size land deals
US interest in purchasing territory is not as outlandish as it sounds. Here's a look at some big land transactions between nations:
Louisiana Purchase
If Donald Trump is one who aims to broker "a deal of the century", then this was the "deal of the 19th Century". In 1803, the US nearly doubled in size when it bought 2,140,000 square kilometres from France for $15 million.
Florida Purchase Treaty
The US courted Spain for Florida for years. Spain eventually realised its burden in holding on to the territory and in 1819 effectively ceded it to America in a wider border treaty.
Alaska purchase
America's spending spree continued in 1867 when it acquired 1,518,800 km2 of Alaskan land from Russia for $7.2m. Critics panned the government for buying "useless land".
The Philippines
At the end of the Spanish-American War, a provision in the 1898 Treaty of Paris saw Spain surrender the Philippines for a payment of $20 million.
US Virgin Islands
It's not like a US president has never reached a deal with Denmark before. In 1917 the US purchased the Danish West Indies for $25m and renamed them the US Virgin Islands.
Gwadar
The most recent sovereign land purchase was in 1958 when Pakistan bought the southwestern port of Gwadar from Oman for 5.5bn Pakistan rupees.
Jebel Ali Dragons 26 Bahrain 23
Dragons
Tries: Hayes, Richards, Cooper
Cons: Love
Pens: Love 3
Bahrain
Tries: Kenny, Crombie, Tantoh
Cons: Phillips
Pens: Phillips 2
Walls
Louis Tomlinson
3 out of 5 stars
(Syco Music/Arista Records)
Honeymoonish
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Score
Third Test, Day 2
New Zealand 274
Pakistan 139-3 (61 ov)
Pakistan trail by 135 runs with 7 wickets remaining in the innings
