Equinor NYSE:EQNR, a Stavanger-based Norwegian energy company, reported second-quarter earnings above expectations as higher production and stronger European natural gas prices supported its trading business. Adjusted net income after tax increased to $3.44 billion, exceeding the $3.36 billion average analyst estimate. Chief Financial Officer Torgrim Reitan said the company's trading result was almost twice the level of a normal quarter, while strong operations also contributed to the performance. Equinor produced 2.2 million barrels of oil equivalent per day during the quarter, representing a 3% increase from the same period a year earlier.
The company appears to have benefited from intense energy market volatility linked to the Iran war and supply disruptions in the Strait of Hormuz. Equinor avoided the production shutdowns faced by some competitors because it has no direct asset exposure in the Persian Gulf, while its trading operations were positioned to benefit from sharp movements in oil and gas markets. Investors responded positively to the results, with Equinor shares rising as much as 3.3% on Wednesday and trading 3.2% higher at 1:48 p.m. in Oslo, ahead of most industry peers. The company also expects to repurchase $3 billion of shares in 2026, twice the amount it had planned at the beginning of the year.
Norway's role in supplying gas to Europe has become increasingly important since Russia's 2022 invasion of Ukraine reduced most Russian shipments to the region, and the Iran conflict has added further pressure by preventing some liquefied natural gas cargoes from leaving Hormuz. Reitan said the European gas market remains vulnerable and suggested the region will require more LNG as it rebuilds depleted inventories before winter and prepares for the European Union's planned ban on remaining Russian flows next year. Operational challenges remain visible after turbine problems recently kept Equinor's Johan Castberg field in the Barents Sea offline for almost three weeks, although the project returned to full capacity earlier this month. Equinor is also seeking another partner for its Bay du Nord oil project off eastern Canada after acquiring BP NYSE:BP, an international oil and gas company, out of the development earlier this month.