logo
Plus   Neg
Share
Email

Equinor Plans To Cut Capex Due To COVID-19 Impact And Lower Commodity Prices

Equinor (EQNR) announced an around $3 billion action, amid the COVID-19 impact and lower commodity prices.

The company plans to reduce organic capex for 2020 to around $8.5 billion from the prior estimate of $10 billion - $11 billion. It represents a reduction of around 20%.

The company intends to reduce 2020 exploration activity to around $1 billion from the previous outlook of $1.4 billion.

It will reduce annual operating costs by around $700 million compared to original estimates.

The cost reductions come in addition to the already announced suspension of share buy-back.

Upon the implementation of the reduction measures, Equinor can be organic cash flow neutral before capital distribution in 2020 with an average oil price around $25 per barrel for the remaining part of the year.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Apotex Corp. recalled all lots of type 2 diabetes medication Metformin hydrochloride in the form of oral film-coated tablets for the potential presence of nitrosamine impurity, N-Nitrosodimethylamine (NDMA), above levels of the Acceptable Daily Intake Limit (ADI), the U.S. Food and Drug Administration or FDA said in a statement. Groupe Renault plans to cut about 14,600 jobs across the world and lower its production capacity. The plan includes almost 4,600 jobs reduction in France, through voluntary retirement and retraining. Amazon said it will convert 125,000 of the 175,000 temporary workers it hired in March amid the coronavirus pandemic, to permanent full-time employees in June. The e-commerce giant had hired the temporary employees in March to meet strong consumer demand amid the lockdown. The job openings were in Amazon's fulfillment centers and its delivery network.
Follow RTT