Equinor ASA

Good morning and welcome to the presentation of the results for the fourth quarter and 2025. In addition, the head of the company will give an update on the company's priorities for the next few years. My name is Sissel Rinde and I am information director at Equinor. As usual, we stand strong with both the head of the board, Anders Oppedal, and the financial director, Tore Grim Reitan. It is also very nice that many of you are following us digitally. For those of you in this room, it is important to know that as soon as the fire alarm goes off, we will go out together the same way you came in. We will follow you, we will go out on the spot, and we will spread out and wait for more information there. After the presentation, there will be an opportunity to ask questions in the plenum. Because Anders and Torgrim will prepare for the analytics conference later, we have limited time. I encourage everyone to ask as many questions as possible in the plenum. We must then prioritize where we have extra time, if we can take one-to-one interviews. And then I remind everyone that you must use the microphones on the desks and press the button when you ask questions, because then also those who follow us digitally can hear the questions. So with that, I would like to welcome Anders up on stage.

Thank you very much, Sissel, and good morning everyone. It's nice to see you again, and welcome to those of you who are watching the video. Today I would like to present our results for the fourth quarter and 2025. It is a year with strong deliveries from Equinor. In addition, as Sissel mentioned, I would like to give an update on our priorities for the coming years. 2025 was a year with increased geopolitical tensions, something that to the highest degree affected the energy markets. Both companies and authorities are now putting more emphasis on energy security and competitiveness, and this is also leading to our investments. Large industrial projects that will produce energy for many years need favorable framework conditions. This has signified the development of the industry in Norway. Stability is also absolutely necessary in the future. And we look forward to the government coming up with a Petroleum report that can set the framework for the next 10 years. At the same time, we see increased political risk in our industry. Last this week at Hammerfest LNG. Snow White Future is an important industrial project for Norway. The project has been given net capacity for several years. And we and our partners have invested billions of dollars on that basis. We think the proposal that is presented is wrong and in conflict with Norwegian law. This creates uncertainty for everyone who works on and with Melkøya, but also for everyone who makes investments based on contracts in Norway and for Europe that needs energy. I remind you that around 5% of Norway's gas exports come from Melkøya. The development around Melkøya creates uncertainty for our investments in the future, also beyond Snowvit Future. Today I have three main objectives for our owners. First, I will show how clear strategic priorities control capital allocation for 2026 and 2027, and position us for increased value creation. Then we will present an updated strategy towards 2030, which we will return to in June. Secondly, We take steps to strengthen free content. It makes us even more robust for low prices, and allows us to maintain a strong balance in restless times. Finally, we have an attractive portfolio that gives production growth both in Norway and internationally. In total, we take action to further strengthen competitiveness and competitiveness. This way, we become more robust in today's market and can then take advantage of market swings. The oil price is supported for some time by the geopolitical uncertainty we see, but we are prepared that a strong supply side and moderate demand growth will put pressure on the oil price in the short term. Both in Europe and the USA, the cold weather has driven up demand for gas and reduced LNG exports from the USA. Lagerfølgingen i Europa er nå rundt 40%. Vi forventer fortsatt markedsvingninger framover, og at mer LNG vil komme inn i markedet. Men før jeg går videre, så ønsker jeg som alltid å si noe om det som er aller viktigast for oss, som er sikkerhet. Even if our safety trend is going in the right direction, we still have serious events, and we have to work to get better. In September, a family lost one of their loved ones, our colleague, during a lift operation in Mongstad. Accidents like this are the worst that can happen. Our security results for 2025 reflect many years of improvement work from all our employees and together with our suppliers. But we are not good enough before we know that everyone comes home safely from work every single day. In 2025, we had record-high production. Never in the history of the company have we produced so much. This is the result of good operation, new burns on existing fields, and the fact that we have put important projects into production. Johan Kasberg opens a new region in Barentshavet, and Bacalao strengthens our position in Brazil. We will deliver a 14.5% discount on capital in 2025, and a cash flow tax of 18 billion dollars. The capital distribution for our investors is in line with what we said last year, 9 billion dollars. In relation to our plans, we invested 13.1 billion dollars last year. For 2035, we will pay over... For 2025, we will pay over 280 billion in tax, exchange and return to the Norwegian state. For the fourth quarter, we will deliver an adjusted operating result before tax of 6.2 billion dollars. The net result will be 1.3 billion dollars, mainly due to lower prices. As I said, we had record-high production in 2025. For the quarter, production increased by 6% compared to the same quarter last year. We produced 5.7 terawatt-hours of power last year, and renewable production increased by 25% throughout the year, 42% in the quarter. In 2025, we received two stop orders for Empire Wind. We believe that both are clearly fair, and the first was lifted in May. The second came just before Christmas, but work could be resumed after a medium-term delay in January. Despite the challenges, the project is still on the road and 60% finished. We have installed all monopiles, transformed the station offshore and almost 300 km with underwater cables. The total investment for Empire Wind is now expected to be around 7.5 billion dollars. The project has a 25-year fixed price contract at 155 dollars per megawatt hour. Tax credits and cash flow from operations in 2027 and 2028 cover remaining investments in the project. We have continued to optimize our international portfolio. Earlier this week, we announced sales of field shares in Argentina, a transaction worth 1.1 billion dollars. A big milestone last year was the establishment of Adura. Together with Shell, we have created a leading operator on British Hockey. The company will be self-financed, cover the investment on Rosebank and is well positioned for growth. The collaboration turns our portfolio in the UK from negative cash flow due to investments to positive cash flow due to exchange from the company. These transactions follow a pattern. We have sold several positions in the fashion field and invested in more long-term gas production in countries in the USA. In 2025, we had 45% higher gas production in the USA and more than 50% higher prices. That gave 1 billion dollars in cash flow after tax. Very good results. Through these approaches, we have built a more future-oriented portfolio internationally. We focus on attractive core areas. higher free cash flow, good production, lower costs, and a portfolio with low carbon intensity. Let's take a look at the future. I want to talk about our strategic priorities for 2026 and 2027. Not least, how they affect how we invest. The world is changing, but the demand for energy continues to increase. And we are well positioned to contribute to energy security, competitiveness and sustainability. First of all, after more than 50 years at Norsk Sokkel, we have a unique starting point for long-term value creation. And we continue to invest. Norsk Sokkel is still the backbone of the company. We expect increased production also in 2026. The ambition is to ensure that we can have the same production in 2035 as we had in 2020. The future will consist of more, but fewer birds. For them to be profitable, we work with partners, suppliers, authorities and trade unions to change the way we work on Sokkel. We will develop the birds faster than today, become more effective and increase the cast, while at the same time så skal vi bli bedre på sikkerhet. Videre forventer vi en sterk produksjon og kontantstrømsvekst internasjonalt. Vi leiter og bygger ut i nøkkelmarkedet for å bringe nye volymer inn i porteføljen. In the business area of power, we combine renewable portfolios with flexible power production to build an integrated power company and become more competitive. We are value-driven and disciplined both in implementation and capital allocation, and the main focus in 2026 and 2027 will be safe operation and delivering on already sanctioned projects. All this, Norwegian oil and gas, international oil and gas and power, is linked together by our trading company, which contributes to increased value creation. We are also well positioned within low carbon solutions, such as transport and storage of CO2. But these markets are developing slower than expected. In addition to the implementation of Northern Lights and Northern Endurance, we will continue to encourage some of the selected opportunities and markets at low cost. We will be ready to invest when the market develops, the customers are in place and the discount is good enough. From record high production in 2017, In 2025, we expect to increase production even more in 2026. We expect a production growth of around 3% from already record high production. We are also filling our portfolio and have a negligible reserve return of 100% in the last three years. 2025 was a good year in Norway. We made 14 commercial funds that will contribute to future production. We have secured attractive new areas in Norway, Brazil and Angola, and expect to sow around 30 seedlings in 2026 together. We will reduce production costs to $6 per share. We will also continue to deliver a carbon-efficient portfolio, with a CO2 output of 6.3 kg per share, down from 8 kg in 2020. We are taking steps to strengthen the cash flow and become even more robust in the face of a more uncertain market. With lower prices, we expect around 16 billion dollars in cash flow for operation and after-tax in 2026. With flat price predictions, this will increase to 18 billion dollars in 2027. We have strengthened our investment program in meeting with market realities. We reduce investment plans for 2026 and 2027 by around 4 billion dollars. And guide on 13 billion dollar investments for 2026. Reduction comes primarily within power production and low-carbon solutions. This also affects our expectations for net reduction of carbon intensity, which is now adjusted to 5-15% in 2030 and 15-30% in 2035. It is important for me to emphasize that this is a consequence of changes in the market and our business opportunities. We continue to maintain the ambition to reduce by 2030. We will, in the current situation for offshore wind, focus on the implementation of existing projects. We will have a high threshold to commit capital to new offshore wind projects. This includes our ownership in Ørsted. We maintain a stable investment level in oil and gas for 10 billion dollars a year. We will continue to be more effective, including the measures we have made in portfolios, and aim for a 10% reduction in operating costs in 2026, even if we increase production. The measures we are now taking to strengthen the cash flow also contribute to competitive capital distribution. We have set a goal of increasing the output by 2 cents per share. We are continuing this, and this represents an increase of more than 5%. Among the best in the industry. We will continue to buy back for 2026 at 1.5 billion dollars, including the state's share. The first tranche is at 375 million dollars, and it starts tomorrow. So, with the guiding behind me, I'll give the floor back to you, Sissel. We'll take questions from the audience, and I'd also like to have Torgrim on stage to answer questions today.

Thank you. Are you going to have Anders? Welcome up, Tor Grimm. You can stand there. Now I can steer as well as I can from here. And then the first man up here, Lars Tarelsen from Energy Watch. Remember to hold down the button, and then we'll move on. Yes, please.