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Equinor’s (NYSE:EQNR) Q2 trading indicators are below expectations, prompting UBS to maintain its Sell rating on the stock while cutting its Q2 net income forecast by 4% to $2.14B, compared with $2.32B analyst consensus estimate.
“Lower realized gas prices and lower marketing, midstream and processing contribution are only partially offset by higher realized oil prices,” according to UBS analyst Henri Patricot.
In its Norway exploration and production, Equinor (EQNR) has flagged production losses, a temporary stop in exports and a gas leakage, while in international E&P, the company expects production will come in lower Q/Q from operational issues, and adjusted earnings in marketing, midstream and processing are forecast at the low end of the usual guidance range of $400M-$800M.
Separately, Equinor (EQNR) said it has started production from the first well in its planned five-well Kristin South project on the Norwegian Continental Shelf.
The company expects production in phase one of the Kristin South project of 58.2M boe.