Equinor ASA

Worth knowing

• Returning more cash than it generates. Paid out $41.8B vs $31.9B of free cash flow over the 3 fiscal years to 2025.

  Equinor returned $41.8B to shareholders over three years, 131% of the free cash flow it produced. That gap has to be covered by cash reserves or new debt, which can't last indefinitely.

• Investment surge. Capital spending 13% of revenue, up from 5.8% in 2022.

  Equinor is spending 13% of revenue on facilities and equipment, up from 5.8% in 2022. That weighs on free cash flow today; whether it pays off depends on the returns those investments earn.

• Valuation signals disagree. Cheaper than 90% of peers on operating cash profit (EBITDA), but only 41% on free cash flow.Cheaper than 90% of peers on operating cash profit, but only 41% on free cash flow.

  Relative to its operating cash profit (EBITDA), Equinor looks cheaper than 90% of peers; relative to its free cash flow, cheaper than only 41%. The valuation score blends the two, so look at which measure fits this business best.Relative to its operating cash profit, Equinor looks cheaper than 90% of peers; relative to its free cash flow, cheaper than only 41%. The valuation score blends the two, so look at which measure fits this business best.

• Profit below an unusually strong 2022. Since 2022 (an unusually strong year for operating profit): revenue −29%, operating profit −68%.Since 2022: revenue −29%, operating profit −68%.

  Since 2022, Equinor's revenue changed −29% while operating profit fell 68%: costs rose faster than sales.