Equinor has suspended its 2020 oil and gas output guidance amid government-imposed curtailments and a glut of supply, and could take further action to scale back operations this year, the Norwegian energy firm said on Thursday.
With operations from the North Sea to Africa, the Americas and Asia, Equinor had expected 7% output growth this year before Norway, Brazil and others joined OPEC+ in ordering curtailments amid the COVID-19 pandemic.
"We will continue to prioritise value over volume and have already reduced activity, particularly in the U.S. onshore. We will consider further activity reductions and use the flexibility we have in our portfolio as necessary," Chief Executive Eldar Saetre said in a statement.
Equinor maintained, however, its long-term forecast for average output growth of three per cent per year in the period from 2019-2026.
Adjusted earnings before interest and tax (EBIT) fell to $2.05 billion in the first quarter from $4.19 billion in the same period of 2019. A poll of 29 analysts compiled by Equinor had forecast adjusted EBIT of $2.0 billion.
Equinor had already cut its quarterly dividend by two-thirds to $0.09 per share, becoming the first major oil company to do so after oil prices crashed to their lowest in more than two decades.
It had also suspended $5 billion share buy-back program and slashed its capital, exploration spending and operating costs by a total of $3 billion.