Oil giant Equinor beats earnings expectations despite coronavirus slump
- Ben Geman, author of Axios Generate
Illustration: Sarah Grillo/Axios
Big Oil's second-quarter financials are going to be a rough scene, but this morning brought a surprise when Equinor announced $350 million in adjusted earnings for the quarter.
Why it matters: The Norway-based multinational's profit was far below the $3.15 billion from the same period a year ago, but analysts had been expecting a loss, Reuters reports.
What they're saying: "Our financial results for the second quarter were impacted by very low realized oil and gas prices due to the COVID-19 pandemic, but also by a strong trading performance in volatile markets," CEO Eldar Sætre said in a statement.
Yes, but: The results "could prove to be an outlier in a quarter that’s set to be the most painful yet for the industry since the global pandemic destroyed demand earlier this year," Bloomberg reports.
What's next: Companies including Shell, BP, Exxon and Chevron will report second-quarter earnings over the next week and a half, and they will reflect the collapse in oil prices this year.
- "Oil and gas majors are likely to report 'horrendous' second-quarter results over the next two weeks, energy analysts have told CNBC, with the three-month period through to the end of June widely expected to mark the 'low point' of 2020," CNBC reports.