Europe’s Fuel Squeeze Is Turning Into a Q3 Windfall for Equinor
Equinor expects its marketing, midstream, and processing (MMP) division to have earned more than the company’s guidance of $400 million for the third quarter, thanks to very strong refining margins and high proceeds from oil and LNG trading. The Norwegian major and other energy companies continue to benefit from the high and volatile oil and LNG prices and the global fuel crunch, which has sent…
Equinor anticipates significant earnings for its marketing, midstream, and processing MMP division in Q3, surpassing its guidance of $400 million. This boost is driven by exceptionally strong refining margins and lucrative oil and LNG trading activities. The company expects the third-quarter outcome to surpass expectations, as averaging Brent crude prices at $97 per barrel for the period.
Moreover, "unusually strong European refining margins, combined with optimization of equity and third-party LNG trading, are expected to positively contribute to the result," said Equinor in a recent update ahead of its financial reporting. Equinor anticipates releasing its full Q3 results on October 28. The Norwegian energy company estimated its realized liquids price for the E&P Norway division to be between $97 and $99 per barrel in the third quarter, while the preliminary internal gas transfer price is $18.07 per million British thermal units (MMBtu).
Equinor's Q3 profit from the previous year surged by 93%, thanks to soaring oil and gas prices stemming from the Middle East crisis, resulting in substantial windfall earnings for the world's leading energy firms.
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