Kris Copeland

Kris Copeland from Bank of America Corporation requested a review of Equinor's net working capital performance over the past nine months, including an outlook. He also asked for an explanation of the significant decline in the Norwegian business's discount to Brent in Q3 and its expected future trend.

Answer

Torgrim Reitan, CFO, reported a $1 billion reduction in working capital for the quarter, bringing the total down by $3 billion year-to-date to $3.7 billion, primarily linked to commodity prices and MMP-related reductions, which he deemed a fair level. He attributed the improved discount to Brent in Norway to Johan Castberg coming on stream, which achieves a $5 premium to Brent, impacting the overall shelf average.

Kris Copeland asked for a review of Equinor's net working capital performance over the past nine months and an outlook for future levels. He also requested a review and outlook for the discount to Brent achieved by Equinor's Norwegian business, which saw a significant decline in Q3.

Answer

CFO Torgrim Reitan reported that net working capital decreased by $1 billion in Q3 and $3 billion year-to-date, now totaling $3.7 billion. He linked the reduction to commodity prices and MMP-related factors, stating the current level is fair given market structures, volatility, and price levels compared to the energy crisis. Regarding the discount to Brent, he attributed the improvement to Johan Castberg coming on stream during the summer, which achieves a $5 premium to Brent, positively impacting the overall Norwegian shelf discount.