Equinor publishes Annual and Sustainability reports for 2020:
“We are preparing for a future that will be different from the past”
Published 19 March, 2021
“2020 was an extraordinary year with the pandemic causing human suffering and market turmoil. I am impressed by our employees’ hard work during this year, to keep people safe and operations running. We delivered solid operational performance during this demanding year, but our results were heavily impacted by the low prices for oil and gas.”
Anders Opedal, President and CEO of Equinor ASA.
per day — oil and gas equity production
Renewable energy equity production
Total recordable injury frequency
(TRIF - per million hours worked)
Serious incident frequency
(SIF - per million hours worked)
Always safe, high value, low carbon
for the upstream oil and gas portfolio
(operated 100%, kg CO2 per boe)
There was unprecedented volatility and decline in prices during the year, caused by the Covid-19 pandemic especially during the first half. In March, Equinor launched a 3-billion-dollar action plan to strengthen financial resilience. Delivery on the plan resulted in savings of USD 3.7 billion, including a reduction in fixed operating costs of around USD 1 billion.
Equinor is positioning itself to create value and be a leading company in the energy transition and took major steps in 2020 to shape the future of the company.
“We are preparing for a future that will be different from the past. Equinor aims to be a leading company in the energy transition and to build the energy industry of tomorrow,” says Opedal.
In the Annual report for 2020, a new outline of the report and a table with more information on a country-by-country basis are added to facilitate a better overview of key events and results for 2020.
IFRS net operating income was negative USD 3.42 billion and the IFRS net income was negative USD 5.50 billion. The results are impacted by lower prices and impairments mainly due to reduced future price assumptions.
Equinor delivered adjusted earnings of USD 3.49 billion before tax and USD 0.92 billion after tax, mainly adjusted for net impairments. In 2020, the cash flow from operations after tax amounted to USD 10.9 billion.
For the full year, the serious incident frequency was 0.5, down from 0.6 in 2019. The total recordable injury frequency was at 2.3, down from 2.5 in the previous year.
1. These are non-GAAP figures. See Use and reconciliation of non-GAAP financial measures in the report for more details.
The 2020 Sustainability Report offers an overview of how Equinor works with its most material sustainability impacts. Sustainability is embedded in Equinor’s strategy, and the company is committed to long term value creation inspired and guided by the United Nations’ Sustainable Development Goals.
“Society has to move towards net-zero emissions, and we aim to be a committed partner on that journey. Equinor has set clear ambitions for the future and we are delivering strong progress to achieve them,” says Opedal.
In 2020, Equinor’s (scope 1 & 2) greenhouse gas emissions were 1.4 million tonnes lower than in 2019, due to energy efficiency projects, changes in the portfolio and lower activity level.
The average CO2 intensity of Equinor’s operated portfolio was 8.0 kg CO2 per barrel of oil equivalent (boe), down from 9.5 kg per boe in 2019. Going forward, Equinor expects fluctuations in the upstream carbon intensity from year to year, but the long-term direction towards lower emission intensity is clear.
Renewables and low carbon solutions projects accounted for 4% of Equinor’s gross capex in 2020. The renewable share of all projects sanctioned, and investments committed in 2020 was around 60%.
The company is reporting on new metrics on climate, security, human rights, and diversity & inclusion in the 2020 report. The material topics are also more clearly linked to the UN’s Sustainable Development Goals.
Official opening of the Johan Sverdrup field by the Prime Minister and prolonged life for Statfjord to 2040. Announced ambition to cut absolute emissions in Norway to near zero by 2050.
Launch of global climate roadmap with ambition to reduce net carbon intensity, grow renewable energy capacity tenfold by 2026 and reach carbon neutral global operations by 2030.
Covid-19 Task Force established as corporate project to handle both short-term immediate response and long-term implications. Launch of USD 3 billion action plan to strengthen financial resilience and suspension of the share buy-back programme.
Approval of the PDO for Hywind Tampen and launch of a new organizational unit focusing on improved value creation on late life fields on the NCS. Executed a total of USD 5 billion in the debt capital market.
Divested minority shareholding in Lundin Energy AB. Final investment decision (FID) for the transport and storage of CO2 project Northern Lights. Executed a total of USD 1.5 billion in the debt capital market.
Agreement on way forward for Krafla, Fulla and North of Alvheim on the NCS. Launch of maritime climate ambitions and FID on partially electrification of the Sleipner field.
Plan for the world’s first at-scale clean hydrogen plant with Hydrogen to Humber Saltend in the UK. Discovery of gas and condensate in the Kvitebjørn field.
Anders Opedal announced as new president and CEO of Equinor from 2 November. First logistics operation conducted with a drone to Troll A.
Partnering with bp in US offshore wind to capture value and create platform for growth. Submission of PDO of the Breidablikk field. Fire at Hammerfest LNG causing the plant to be closed for up to a year.
Annual report at a glance
To better facilitate for an overview of the report, Equinor presents key events and results for 2020 and early 2021. For further details please see the reference pages for each item.
Changes to reporting segments, see 2.2
Equinor announced changes to the reporting segments, corporate structure and the Corporate Executive Committee. Also, from 1 June 2021, NES will be renamed to Renewables (REN). Read more about Equinors segments in note 3 Segments in the Consolidated financial statements.
E&P Norway in section 2.3
Production from the Johan Sverdrup field is expected to increase to 535,000 barrels per day by mid-2021.
E&P International in section 2.4
Equinor’s entitlement production outside Norway and US was 14% of Equinor's total entitlement production in 2020.
E&P USA in sections 2.5 and 2.10
On 9 October, Equinor published its report from the review into its US investments. The main objective of the report was to identify learning and improvements, and the work was led by PwC. The report showed that the accumulated net loss, including impairments, for all Equinor’s activities in the USA was USD 21.5 billion up until 2019, which have increased to USD 25 billion at the end of 2020 following the negative results in E&P USA in 2020.
MMP in section 2.6
On 28 September 2020, a fire in the air inlet at a turbine at the LNG plant at Melkøya was reported and on 2 December, a fire at the methanol plant at Tjeldbergodden was reported.
NES in section 2.7
In 2020, Equinor participated in offshore wind and solar assets with a total capacity of 1.3 gigawatts, of which 0.75 gigawatts are operated by Equinor. Equinor equity generation capacity is 0.5 gigawatts. The equity renewable power generation in 2020 was 1.7 terawatt hours.
Operational performance in section 2.9
The 2020 reserves replacement ratio was negative 5% and the corresponding three-year average was 95%.
IFRS net income in section 2.10
The Group’s net income was negative USD 5.5 billion, and were largely affected by the market turbulence for liquid and gas prices. Average liquids prices were down 35% and average invoiced gas prices for Europe and North America were down 38% and 29%, respectively. For further information on prices, see also table Operational data in section 2.9 Operational performance.
Climate and energy transition section 2.13
Equinor sets ambitions to reach carbon neutral global operations by 2030 and to reach net-zero emissions by 2050, including emissions from production and use of energy. Since 2016 we have been testing the resilience of our portfolio against the scenarios from the IEAs World Energy Outlook (WEO) report. Further details about the portfolio sensitivity test are available in our 2020 Sustainability Report.
Impairments in section 4.1
Total impairments in E&P USA in the period 2007 till 2020 is USD 16.5 billion including impairment of goodwill of USD 1.2 billion and exploration assets USD 1.3 billion. For more information about impairments per segment, see Note 10 Property, plant and equipment to the Consolidated financial statements.
Payments to Governments in section 5.4
In 2020, Equinor paid USD 2,623 million in taxes to Norway. For further details on Payments to governments per country related to extractive activities, see section 5.4 Payments to government
These are non-GAAP figures. See Use and reconciliation of non-GAAP financial measures in the report for more details.
Other reports & archive
Annual reports dating back to 1972 are available for download below.
Cautionary Note regarding Forward Looking Statements
This web page contains forward-looking statements. Forward-looking statements reflect current views with respect to future events and are, by their nature, subject to significant risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by the forward-looking statements.
This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.