North Sea focus and tax regimes shape Equinor (EQNR) 2025 Form 20-F
Filing Impact
Filing Sentiment
Form Type
20-F
Equinor ASA filed its 2025 annual report on Form 20-F, detailing a large, tax‑heavy upstream oil and gas business with 2,500,271,030 ordinary shares outstanding as of December 31 2025. The company operates in more than 20 countries, anchored by substantial production on the Norwegian Continental Shelf.
Capitalised oil and gas costs reached USD 192.2 billion, with net capitalised costs of USD 55.2 billion. In 2025, exploration and development expenditures in upstream assets totalled USD 10.6 billion, down from USD 13.5 billion in 2024, as prior-year acquisitions tapered.
Results of operations for oil and gas producing activities generated total revenues of USD 43.8 billion and after‑tax results of USD 5.7 billion, lower than 2024 and 2023 as commodity prices eased. E&P Norway remained the profit engine, with USD 34.4 billion in revenues and 1,410 mboe/day entitlement production, helped by higher liquids volumes but facing rising depreciation and exploration costs.
The report describes extensive regulatory, tax and climate frameworks across Norway, the US, Brazil, the UK and other regions, including Norway’s 78% marginal petroleum tax, the UK’s Energy Profits Levy evolving into a new Oil and Gas Price Mechanism, and forthcoming Brazilian carbon market rules. It also outlines Equinor’s energy transition ambitions, net‑zero goals and growing renewables portfolio, while emphasising significant policy, price and climate‑related uncertainties.
Positive
- None.
Negative
- None.
Insights
Equinor’s 2025 filing shows a robust, tax‑burdened upstream core with moderating earnings.
Equinor reports strong North Sea‑led upstream operations, with E&P Norway generating USD 34.4 billion in revenues and 1,410 mboe/day entitlement production. Segment net operating income of USD 24.1 billion underscores how central Norwegian assets remain to cash generation despite softer liquids prices.
Total oil and gas producing revenues of USD 43.8 billion and after‑tax results of USD 5.7 billion trail 2024 and 2023, reflecting lower commodity prices and higher depreciation. Heavy fiscal regimes matter: Norway’s 78% marginal petroleum tax, UK levies and evolving Brazilian rules all materially shape net returns on sizeable capital employed.
The filing highlights ongoing capital discipline, with 2025 exploration and development expenditures of USD 10.6 billion versus USD 13.5 billion in 2024, and large net capitalised costs of USD 55.2 billion. Future performance will hinge on executing new fields like Johan Castberg and Bacalhau, navigating tightening climate policies, and balancing high‑tax legacy oil and gas with the growth of renewables and low‑carbon projects described in the energy transition sections.
Equinor 2025 Annual Report on Form 20-F 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 20-F
(Mark one)
1934
OR
For the fiscal year ended December 31 , 2025
OR
For the transition period from______ to
OR
Date of event requiring this shell company report
Commission file number 1-15200
(Exact Name of Registrant as Specified in Its Charter)
N/A
(Translation of Registrant’s Name Into English)
(Jurisdiction of Incorporation or Organization)
(Address of Principal Executive Offices)
Chief Financial Officer
Equinor ASA
Telephone No.: 011-47 -5199-0000
Fax No.: 011-47-5199-0050
(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)
Securities registered or to be registered pursuant to Section 12(b) of the Act:
Title of Each Class | Trading Symbol(s) | Name of Each Exchange On Which Registered |
NOK 2.50 each |
*Listed, not for trading, but only in connection with the registration of American Depositary Shares, pursuant to the
requirements of the Securities and Exchange Commission
Securities registered or to be registered pursuant to Section 12(g) of the Act:None
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:None
Equinor 2025 Annual Report on Form 20-F 2
Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the
period covered by the annual report.
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
☒ Yes ☐ No
If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934.
☐ Yes ☒ No
Note – Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934 from their obligations under those Sections.
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing requirements for the past 90 days.
☒ Yes ☐ No
Indicate by check mark whether the registrant has submitted electronically Interactive Data File required to be submitted
pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period
that the registrant was required to submit and post such files)
☒ Yes ☐ No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an
emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” and “emerging growth company”
in Rule 12b-2 of the Exchange Act. (Check one):
☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Emerging growth company |
If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if
the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
standards† provided pursuant to Section 13(a) of the Exchange Act. ☐
† The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards
Board to its Accounting Standards Codification after April 5, 2012.
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the
effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 762(b))
by the registered public accounting firm that prepared or issued its audit report. ☒
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the
registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive
based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to
§240.10D-1(b). ☐
Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this
filing:
U.S. GAAP | ☐ | by the International Accounting Standards Board | ☒ | Other | ☐ |
If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the
registrant has elected to follow.
Item 17 ☐
Item 18 ☐
If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the
Exchange Act).
☐ Yes ☒ No
Equinor 2025 Annual Report on Form 20-F 3
TABLE OF CONTENTS
INTRODUCTION | 5 |
USE AND RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | 6 |
FORWARD-LOOKING STATEMENTS | 7 |
Part I | 9 |
ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS | 9 |
A.Directors and Senior Management | 9 |
B.Advisers | 9 |
C.Auditors | 9 |
ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE | 9 |
A.Offer Statistics | 9 |
B.Method and Expected Timetable | 9 |
ITEM 3. KEY INFORMATION | 9 |
A.[Reserved] | 9 |
B.Capitalization and Indebtedness | 9 |
C.Reason for the Offer and Use of Proceeds | 9 |
D.Risk Factors | 9 |
ITEM 4. INFORMATION ON THE COMPANY | 9 |
A.History and Development of the Company | 9 |
B.Business Overview | 10 |
C.Organizational Structure | 23 |
D.Property, Plant and Equipment | 23 |
ITEM 4A. UNRESOLVED STAFF COMMENTS | 26 |
ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS | 26 |
A.Operating Results | 26 |
B.Liquidity and Capital Resources | 32 |
C.Research and Development, Patents and Licences, etc. | 45 |
D.Trend Information | 45 |
E.Critical Accounting Estimates | 45 |
ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES | 46 |
A.Directors and Senior Management | 46 |
B.Compensation | 53 |
C.Board Practices | 53 |
D.Employees | 54 |
E.Share Ownership | 54 |
F.Disclosure of a Registrant’s Action to Recover Erroneously Awarded Compensation | 55 |
ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS | 55 |
A.Major Shareholders | 55 |
B.Related Party Transactions | 55 |
C.Interests of Experts and Counsel | 55 |
ITEM 8. FINANCIAL INFORMATION | 55 |
A.Consolidated Statements and Other Financial Information | 55 |
B.Significant Changes | 55 |
ITEM 9. THE OFFER AND LISTING | 56 |
A.Offer and Listing Details | 56 |
B.Plan of Distribution | 56 |
C.Markets | 56 |
D.Selling Shareholders | 56 |
E.Dilution | 56 |
F.Expenses of the Issue | 56 |
Equinor 2025 Annual Report on Form 20-F 4
ITEM 10. ADDITIONAL INFORMATION | 56 |
A.Share Capital | 56 |
B.Memorandum and Articles of Association | 56 |
C.Material Contracts | 57 |
D.Exchange Controls | 57 |
E.Taxation | 58 |
F.Dividends and Paying Agents | 62 |
G.Statement by Experts | 62 |
H.Documents on Display | 62 |
I.Subsidiary Information | 63 |
J.Annual Report to Security Holders | 63 |
ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK | 63 |
ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES | 63 |
A.Debt Securities | 63 |
B.Warrants and Rights | 63 |
C.Other Securities | 63 |
D.American Depositary Shares | 63 |
Part II | 65 |
ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES | 65 |
ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS | 65 |
ITEM 15. CONTROLS AND PROCEDURES | 65 |
ITEM 16. [RESERVED] | 66 |
ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT | 66 |
ITEM 16B. CODE OF ETHICS | 66 |
ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES | 66 |
ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES | 66 |
ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS | 66 |
ITEM 16F. CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT | 66 |
ITEM 16G. CORPORATE GOVERNANCE | 66 |
ITEM 16H. MINE SAFETY DISCLOSURE | 68 |
ITEM 16I. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS | 68 |
ITEM 16J. INSIDER TRADING POLICIES | 68 |
ITEM 16K. CYBERSECURITY DISCLOSURE | 68 |
Part III | 70 |
ITEM 17. FINANCIAL STATEMENTS | 70 |
ITEM 18. FINANCIAL STATEMENTS | 70 |
ITEM 19. EXHIBITS | 71 |
CONSOLIDATED FINANCIAL STATEMENTS 77
Equinor 2025 Annual Report on Form 20-F 5
INTRODUCTION
Unless otherwise indicated, all references herein to “we”, “our”, the “company”, the “group” or “Equinor” are references to Equinor ASA
and its consolidated subsidiaries.
This document is our annual report on Form 20-F for the year ended 31 December 2025 (“2025 Form 20-F”). Reference is made to
our Norwegian Annual Report for 2025 which is attached hereto as Exhibit 15.4 (the “2025 Annual Report”), our 2025 Oil And Gas
Reserves Report which is attached hereto as exhibit 15.5 (the “2025 Oil And Gas Reserves Report”), our 2025 Remuneration
Report which is attached hereto as exhibit 15.6 (the “2025 Remuneration Report”), our Remuneration Policy which is attached
hereto as exhibit 15.7 (the “2025 Remuneration Policy”), and our 2025 Board statement on corporate governance which is attached
hereto as exhibit 15.9 (the “2025 Corporate Governance Report”). Only (i) the information included in this 2025 Form 20-F, (ii) the
information in the 2025 Annual Report, the 2025 Oil And Gas Reserves Report, the 2025 Remuneration Report, the 2025
Remuneration Policy and the 2025 Corporate Governance Report that is incorporated by reference in this 2025 Form 20-F (excluding,
in each case, any page or section references incorporated or referenced in the incorporated material), and (iii) the other exhibits to
this 2025 Form 20-F shall be deemed to be filed with the Securities and Exchange Commission (“SEC”) for any purpose, including
incorporation by reference into the Registration Statement on Form F-3 filed on May 4, 2023 (File No. 333-271647), and Registration
Statement on Form S-8 filed on February 9, 2022 (File No. 333-262601) and any other documents filed by us pursuant to the
Securities Act of 1933, as amended, which purport to incorporate by reference the 2025 Form 20-F. Unless otherwise indicated,
references to major headings include all information under such major headings, including subheadings, unless such reference is a
reference to a subheading, in which case such reference includes only the information contained under such subheading. Any other
information shall not be deemed to be so incorporated by reference.
In addition to the information set out below, the information set forth in Section 5.6 Other definitions and abbreviations of the 2025
Annual Report is incorporated herein by reference.
The 2025 Annual Report contains references to our website (https://www.equinor.com). Information on our website or any other
website referenced in the 2025 Annual Report is not incorporated into this document and should not be considered part of this
document.
The SEC maintains an Internet website that contains reports and other information regarding issuers that file electronically with the
SEC. Our filings with the SEC are available to the public through the SEC’s website at http://www.sec.gov.
The information about Equinor’s competitive position in this 2025 Form 20-F (including the information in the 2025 Annual Report that
is incorporated by reference herein) is based on several sources such as investment analyst reports, independent market studies, and
internal assessments of market share based on publicly available information about the financial results and performance of market
players.
Sustainability-related statements
Materiality, as used in the context of sustainability, is distinct from, and should not be confused with, such term as defined for SEC
reporting purposes. Any issues or topics identified as material for purposes of sustainability in the 2025 Annual Report, including the
materiality assessment undertaken by Equinor based on European Sustainability Reporting Standards, are therefore not necessarily
material as defined for SEC reporting purposes.
Equinor 2025 Annual Report on Form 20-F 6
USE AND RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Non-GAAP financial measures are defined as numerical measures that either exclude or include amounts that are not excluded or
included in the comparable measures calculated and presented in accordance with generally accepted accounting principles (i.e,
IFRS Accounting Standards in the case of Equinor). The following financial measures may be considered non-GAAP financial
measures:
a)Net debt to capital employed ratio, Net debt to capital employed ratio adjusted, including lease liabilities and Net debt to capital
employed ratio adjusted
b)Return on average capital employed (ROACE)
c)Organic capital expenditures
d)Cash flow from operations after taxes paid (CFFO after taxes paid)
e)Net cash flow before capital distribution and net cash flow
f)Adjusted operating income and adjusted operating income after tax
g)Adjusted net income
h)Adjusted earnings per share (Adjusted EPS)
For more information on the calculation and reconciliation of these non-GAAP financial measures, see “Item 5. Operating and
Financial Review and Prospects—B. Liquidity and capital resources—Use and reconciliation of non-GAAP financial measures.”
Equinor 2025 Annual Report on Form 20-F 7
FORWARD-LOOKING STATEMENTS
This 2025 Form 20-F (including information incorporated herein from the 2025 Annual Report) contains certain forward-looking
statements that involve risks and uncertainties, in particular in the sections incorporated by reference in Item 4 of this 2025 Form 20-F.
In some cases, we use words such as "aim", "ambition", "anticipate", "believe", "continue", "commit", "could", "estimate", "expect",
"intend", "likely", "objective", "outlook", "may", "plan", "schedule", "seek", "should", "strategy", "target", "will", "goal" and similar
expressions to identify forward-looking statements. All statements other than statements of historical fact, including: the commitment
to develop as a broad energy company and diversify our energy mix; the ambition to be a leading company in the energy transition;
ambition to reach net zero by 2050 and expectations and ambitions regarding progress on our energy transition plan; our ambitions
regarding reduction in operated emissions and net carbon intensity and allocation of investments to renewables and low carbon
solutions; our ambitions and expectations regarding decarbonisation; our ambition to develop the NCS to maximise value, deliver
focused growth in our international oil and gas portfolio and build our integrated power business; aims, expectations and plans for
renewables production capacity and power generation, CO2 transport and storage, allocation of expenditures across the NCS, our
international oil and gas projects and our integrated power business and the balance between oil and gas and renewables production;
our expectations and estimates regarding future operational performance, including oil and gas and renewable power production, net
carbon intensity, operated emissions, annual CO₂ storage, upstream CO₂ intensity and methane intensity and flaring reductions; our
internal carbon price and other financial metrics for investment decisions; break-even considerations and targets; robustness and
longevity of our portfolio; contributions to energy security; aims and expectations regarding building resilience; future levels of, and
expected value creation from, oil and gas production, scale and composition of the oil and gas portfolio, and development of CCS and
hydrogen businesses; plans to develop fields; our intention to optimise and high-grade our portfolio; our ambition to create long-term
value for our shareholders; future worldwide economic trends, market outlook and future economic projections and assumptions,
including commodity price and currency assumptions; expectations and plans regarding capital expenditures; future financial
performance, including earnings, cash flow, liquidity, net debt to capital employed* and return on average capital employed (ROACE)*;
the ambition to grow cash flow and returns; expectations regarding cash flow and returns from our oil and gas portfolio, CCS projects
and renewables and low carbon solutions portfolio; organic capital expenditures* for 2026; ambitions regarding ROACE*;
expectations, plans and estimates regarding capacity, production, development, performance and execution of projects and
businesses; expectations and ambitions regarding costs, including the ambition to keep unit of production cost in the top quartile of
our peer group; scheduled maintenance activity and the effects thereof on equity production; business strategy and competitive
position; sales, trading and market strategies; research and development initiatives and strategy, including ambitions regarding
allocation of research and development capital towards renewables and low carbon-solutions; expectations related to production
levels, unit production cost, investments, exploration activities, discoveries and development in connection with our ongoing
transactions and projects; our expectations and plans regarding diversity and inclusion and employee training; plans and expectations
regarding completion and results of acquisitions, disposals, joint ventures, partnerships and other strategic and contractual
arrangements and delivery commitments; expectations regarding returns from joint ventures; plans, ambitions and expectations
regarding recovery factors and levels, future margins and future levels or development of capacity, reserves or resources; planned
turnarounds and other maintenance activity; estimates related to production and development, forecasts, reporting levels and dates;
operational expectations, estimates, schedules and costs; expectations relating to licences and leases; oil, gas, alternative fuel and
energy prices, volatility, supply and demand; plans and expectations regarding processes related to human rights laws, corporate
structure operating models and organizational policies; expectations and ambitions relating to digitalisation and technological
innovation, including the role and contribution of AI;expectations regarding role and composition of the board and our remuneration
policies; our goal of safe and efficient operations; effectiveness of our internal policies and plans; our ability to manage our risk
exposure, our liquidity levels and management of liquidity reserves; future credit ratings; estimated or future liabilities, obligations or
expenses; expected impact of currency and interest rate fluctuations; projected outcome, impact or timing of HSE regulations; HSE
goals and objectives of management for future operations; ambitions and plans relating to our environmental policy; our ambitions
and plans regarding biodiversity (including our aim to develop a net-positive impact approach for projects), circular economy and
value creation for society; expectations and plans regarding pollution control; expectations related to regulatory trends; impact of PSA
effects; projected impact or timing of administrative or governmental rules, standards, decisions, standards or laws (including taxation
laws); projected impact of legal claims against us; ambitions regarding capital distributions and expected amount and timing of
dividend payments and the implementation of our share buy-back programme.
You should not place undue reliance on these forward- looking statements. Our actual results could differ materially from those
anticipated in the forward- looking statements for many reasons, including the risks factors incorporated in Item 3.D of this 2025 Form
20-F.
Forward-looking statements are not guarantees of future performance. They reflect current views about future events, are based on
management’s current expectations and assumptions and are, by their nature, subject to significant risks and uncertainties because
they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual
results and developments to differ materially from those expressed or implied by these forward-looking statements, including levels of
industry product supply, demand and pricing, in particular in light of significant oil price volatility; unfavourable macroeconomic
conditions and inflationary pressures; exchange rate and interest rate fluctuations; geopolitical, social and/or political instability,
including worsening trade relations and tariffs; levels and calculations of reserves and material differences from reserves estimates;
regulatory stability and access to resources, including attractive low carbon opportunities; changes in market demand and supply and
policy support from governments for renewables; the effects of climate change and changes in stakeholder sentiment and regulatory
requirements regarding climate change; inability to meet strategic objectives; the development and use of new technology; social and/
or political instability, including worsening trade relations; failure to prevent or manage digital and cyber disruptions to our information
Equinor 2025 Annual Report on Form 20-F 8
and operational technology systems and those of third parties on which we rely; operational problems, including cost inflation in
capital and operational expenditures; unsuccessful drilling; availability of adequate infrastructure at commercially viable prices; the
actions of field partners commercial and strategic partners and other third-parties; reputational damage; the actions of competitors;
failure to effectively deploy new technologies or deficiencies in their implementation; the actions of the Norwegian state as majority
shareholder and exercise of ownership by the Norwegian state; changes or uncertainty in or non- compliance with laws and
governmental regulations, conditions or requirements; inability to obtain relevant approvals from governments and other parties for
activities and transactions; adverse changes in tax regimes; the political and economic policies of Norway and other oil-producing
countries; regulations on low-carbon value chains; liquidity, interest rate, equity and credit risks; risk of losses relating to trading and
commercial supply activities; an inability to attract and retain personnel; ineffectiveness of crisis management systems; inadequate
insurance coverage; health, safety and environmental risks; physical security risks to personnel, assets, infrastructure and operations
from hostile or malicious acts; failure to meet our ethical and social standards; actual or perceived non-compliance with legal or
regulatory requirements; and other factors discussed elsewhere in this 2025 Form 20-F.
The achievement of Equinor’s climate ambitions depends, in part, on broader societal shifts in consumer demands and technological
advancements, each of which are beyond Equinor’s control. Should society’s demands and technological innovation not shift in
parallel with Equinor’s pursuit of its energy transition plan, Equinor’s ability to meet its climate ambitions will be impaired. The
calculation of Equinor’s net carbon intensity presented in this report includes an estimate of emissions from the use of sold products
(GHG protocol category 11) as a means to more accurately evaluate the emission lifecycle of what we produce to respond to the
energy transition and potential business opportunities arising from shifting consumer demands. Including these emissions in the
calculations should in no way be construed as an acceptance by Equinor of responsibility for the emissions caused by such use.
The reference to any scenario in this report, including any potential net-zero scenarios, does not imply Equinor views any particular
scenario as likely to occur. Third- party scenarios discussed in this report reflect the modeling assumptions and outputs of their
respective authors, not Equinor, and their use by Equinor is not an endorsement by Equinor of their underlying assumptions,
likelihood or probability. Investment decisions are made on the basis of Equinor’s separate planning process. Any use of the modeling
of a third- party organization within this report does not constitute or imply an endorsement by Equinor of any or all of the positions or
activities of such organization.
Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot assure you that our
future results, level of activity, performance or achievements will meet these expectations. Moreover, neither we nor any other person
assumes responsibility for the accuracy and completeness of the forward-looking statements. Any forward-looking statement speaks
only as of the date on which such statement is made, and, except as required by applicable law, we undertake no obligation to update
any of these statements after the date of this 2025 Form 20-F, either to make them conform to actual results or changes in our
expectations.
Equinor 2025 Annual Report on Form 20-F 9
Part I
ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS
A.Directors and Senior Management
Not applicable.
B.Advisers
Not applicable.
C.Auditors
Not applicable.
ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE
A.Offer Statistics
Not applicable.
B.Method and Expected Timetable
Not applicable.
ITEM 3. KEY INFORMATION
A.[Reserved]
B.Capitalization and Indebtedness
Not applicable.
C.Reason for the Offer and Use of Proceeds
Not applicable.
D.Risk Factors
The information in Section 5.2 Risk factors of Chapter 5 on pages 284 - 291 of the 2025 Annual Report is incorporated herein by
reference.
ITEM 4. INFORMATION ON THE COMPANY
A.History and Development of the Company
Equinor ASA was incorporated on 18 September 1972, is a public limited liability company organised under the laws of Norway
and is subject to the provisions of the Norwegian Public Limited Liability Companies Act. Equinor’s head office is located at Forusbeen
50, 4035 Stavanger, Norway. The telephone number of its principal place of business is +47-5199-00 00.
The information set forth under the following headings of the 2025 Annual Report is incorporated herein by reference:
•Key events in 2025 on page 8;
•Section 1.1 We are Equinor of Chapter 1 on pages 11 - 12;
•Section 1.2 Our history: decades of progress of Chapter 1 on page 13;
•The information under the sub-heading “Project pipeline” under the heading “The future of our oil and gas portfolio”
in Section 2.1 of Chapter 2 on page 43;
•How our operations contributed to our strategic progress in Section 2.1 of Chapter 2 on page 48;
Equinor 2025 Annual Report on Form 20-F 10
•The information under the sub-heading “Investments” under the heading “Strategic Financial Framework” in
Section 2.2 Financial performance of Chapter 2 on page 55; and
•Progress on our Energy transition plan in Section 2.3 of Chapter 2 on pages 72 - 73.
The information set forth in the third and fourth paragraphs of the section entitled “Introduction” of this 2025 Form 20-F is also
incorporated herein by reference. See also notes 5 Segments and 6 Acquisitions and disposals to the Consolidated financial
statements.
B.Business Overview
The information set forth under the following headings of the 2025 Annual Report is incorporated herein by reference:
•The information set forth in the first paragraph under the sub-heading "Strengthening resilience through volatility"
under the heading "A message from the Chair and CEO" on page 7;
•Section 1.1 We are Equinor of Chapter 1 on pages 11 - 12;
•Section 1.3 The world in which we operate of Chapter 1 on page 14;
•Section 1.4 Our strategy and transition ambitions of Chapter 1 on pages 15-16;
•Section 1.5 Our business of Chapter 1 on pages 17 - 23;
•Section 2.1 Operational performance of Chapter 2 on pages 36 - 50;
•The information under the sub-heading “Portfolio composition” under the heading “Financial framework ” in Section
2.2 of Chapter 2 on page 55;
•Our market perspective in Section 2.2 of Chapter 2 on pages 56 - 57;
•The graphic titled “E&P International financial results by country” under the sub-heading “E&P International” under
the heading “Financial performance” in Section 2.2 of Chapter 2 on page 60;
•The graphic titled “REN – Financial information” under the sub-heading “REN” under the heading “Financial
performance” in Section 2.2 of Chapter 2 on page 63;
•Progress on our Energy transition plan in Section 2.3 of Chapter 2 on pages 72 - 73;
•Nature in Section 2.3 of Chapter 2 on page 74;
•Human rights in Section 2.3 of Chapter 2 on page 75;
•Health and safety in Section 2.3 of Chapter 2 on page 76; and
•Security in Section 2.3 of Chapter 2 on page 77.
See also notes 5 Segments and 7 Total revenues and other income to the Consolidated financial statements.
The information about Equinor’s competitive position in the sections of the 2025 Annual Report that are incorporated by
reference herein is based on several sources such as investment analyst reports, independent market studies, and internal
assessments of market share based on publicly available information about the financial results and performance of market players.
Applicable laws and regulations
Equinor operates in more than 20 countries and is committed to compliance with numerous laws and regulations globally. The
first graphic in Section 1.5 Our business on page 17 in Chapter 1 and the risks set forth under the heading “Policies and legislation” in
Section 5.2 Risk factors on page 285 of Chapter 5 of the 2025 Annual Report are also incorporated herein by reference. This section
gives a general description on the legal and regulatory framework in the various jurisdictions where Equinor operates and in particular
in the countries of Equinor’s core activities.
Regulatory framework for upstream oil and gas operations
Currently, Equinor is subject to two main regimes applicable to petroleum activities worldwide:
•Corporate income tax regimes; and
•Production sharing agreements (PSAs)
Equinor 2025 Annual Report on Form 20-F 11
Equinor is also subject to a wide variety of laws and regulations concerning its products, operations and activities, including
without limitation laws and regulations relating to health, safety and environment (HSE). Relevant laws and regulations include inter
alia jurisdiction specific laws and regulations, international regulations, conventions or treaties, as well as EU directives and
regulations.
Concession regimes
Under a concession regime, companies are granted licences by the government to extract petroleum. This is similar to the
Norwegian system described below. Typically, the licences are offered to pre-qualified companies following bidding rounds. The
criteria for the evaluation of bidding offers under these regimes can be the level of offered signature bonus (bid amount), minimum
exploration programme, and local content. In exchange for those commitments, the successful bidder(s) receive a right to explore,
develop and produce petroleum within a specified geographical area for a limited period of time. The terms of the licences are usually
not negotiable. The fiscal regime may entitle the relevant jurisdiction to royalties, profit tax or special petroleum tax.
PSA regimes
PSAs are normally awarded to the contractor parties after bidding rounds announced by the government. Main bid parameters
are often minimum exploration programme and signature bonuses, allocation of profit oil and, in some cases, tax.
Under a PSA, the host government typically retains the right to the hydrocarbons in place. The contractor receives a share of the
production for services performed. Normally, the contractor carries the exploration and development costs and risk prior to a
commercial discovery and is then entitled to recover those costs during the production phase. The remaining share of the production -
the profit share, is split between the government and the contractor according to a mechanism set out in the PSA. The contractor is
usually subject to income tax on its own share of the profit oil. Fiscal provisions in a PSA are to a large extent negotiable and are
unique to each PSA.
Norway
Norway is not a member of the European Union (EU) but is a member of the European Free Trade Association (EFTA). The EU
and the EFTA Member States have entered into the Agreement on the European Economic Area, referred to as the EEA Agreement,
which provides for the inclusion of EU legislation in the national law of the EFTA Member States (except Switzerland). Equinor’s
business activities are subject to both the EFTA Convention and EU laws and regulations adopted pursuant to the EEA Agreement.
The principal laws governing Equinor’s petroleum activities in Norway and on the NCS are the Norwegian Petroleum Act of 29
November 1996 (the Petroleum Act) and the regulations issued thereunder, and the Norwegian Petroleum Taxation Act of 13 June
1975 (the Petroleum Taxation Act).
Under the Petroleum Act, the Norwegian Ministry of Energy (“ME”) is responsible for resource management and for administering
petroleum activities on the NCS. The main task of the ME is to ensure that petroleum activities are conducted in accordance with the
applicable legislation, the policies adopted by the Norwegian Parliament and relevant decisions of the Norwegian State.
The State’s role in relation to major policy issues in the petroleum sector can affect Equinor in two ways: first, when the
Norwegian State acts in its capacity as majority owner of Equinor shares and, second, when the Norwegian State acts in its capacity
as regulator:
•The Norwegian State’s shareholding in Equinor is managed by the Ministry of Trade, Industry and Fisheries. The Ministry will
normally decide how the Norwegian State will vote on proposals submitted to general meetings of the shareholders. However, in
certain exceptional cases, it may be necessary for the Norwegian State to seek approval from the Norwegian Parliament (the
Storting) before voting on a certain proposal. This will normally be the case if Equinor issues additional shares and such issuance
would significantly dilute the Norwegian State’s holding, or if such issuance would require a capital contribution from the
Norwegian State in excess of government mandates. A vote by the Norwegian State against an Equinor proposal to issue
additional shares would prevent Equinor from raising additional capital in this manner and could adversely affect Equinor’s ability
to pursue business opportunities. The information regarding the Norwegian State’s ownership in the information set forth under
the heading “Major shareholders” in Section 5.1 Shareholder information and the risks set forth in “Ownership and actions by the
Norwegian state” in Section 5.2 Risk factors of the 2025 Annual Report are also incorporated herein by reference.
•The Norwegian State exercises important regulatory powers over Equinor, as well as over other companies and corporations on
the NCS. As part of its business, Equinor or the partnerships to which Equinor is a party, frequently need to apply for licences and
other approvals from the Norwegian State. Although Equinor is majority-owned by the Norwegian State, it does not receive
preferential treatment with respect to licences granted by or under any other regulatory rules enforced by the Norwegian State.
The Petroleum Act sets out the principle that the Norwegian State is the owner of all subsea petroleum on the NCS, that the
exclusive right to resource management is vested in the Norwegian State and that the Norwegian State alone is authorised to award
licences for petroleum activities as well as determine their terms. Licensees are required to submit a plan for development and
Equinor 2025 Annual Report on Form 20-F 12
operation (PDO) to the ME for approval. For fields of a certain size, the Storting has to accept the PDO before it is formally approved
by the ME. Equinor is dependent on the Norwegian State for approval of its NCS exploration and development projects and its
applications for production rates for individual fields.
Production licences are the most important type of licence awarded under the Petroleum Act. A production licence grants the
holder an exclusive right to explore for and produce petroleum within a specified geographical area. The licensees become the
owners of the petroleum produced from the field covered by the licence. Production licences are normally awarded for an initial
exploration period, which is typically six years, but which can be shorter. The maximum period is ten years. During this exploration
period, the licensees must meet a specified work obligation set out in the licence. If the licensees fulfil the obligations set out in the
initial licence period, they are entitled to require that the licence be extended for a period specified at the time when the licence is
awarded, typically 30 years.
The terms of the production licences are decided by the ME. Production licences are awarded to groups of companies forming a
joint venture at the ME’s discretion. The members of the joint venture are jointly and severally liable to the Norwegian State for
obligations arising from petroleum operations carried out under the licence. The ME decides the form of the joint operating
agreements and accounting agreements. The ME uses the same standard form of joint operating agreement and accounting
agreement for all licenses.
The governing body of the joint venture is the management committee. In licences awarded since 1996 where the State’s direct
financial interest (SDFI) holds an interest, the Norwegian State, acting through Petoro AS, may veto decisions made by the joint
venture management committee, which, in the opinion of the Norwegian State, would not be in compliance with the obligations set
forth in the licence with respect to the Norwegian State’s exploitation policies or financial interests. This power of veto has never been
used.
Interests in production licences may be transferred directly or indirectly subject to the consent of the ME and the approval of the
tax treatment by the Ministry of Finance. In most licences, there are no pre-emption rights in favour of the other licensees. However,
the SDFI, or the Norwegian State, as appropriate, still hold pre-emption rights in all licences.
The day-to-day management of a field is the responsibility of an operator appointed by the ME. The operator is in practice always
a member of the joint venture holding the production licence, although this is not legally required. The terms of engagement of the
operator are set out in the joint operating agreement.
If important public interests are at stake, the Norwegian State may instruct the operators on the NCS to reduce the production of
petroleum. An example of this occurred in May 2020, when the Norwegian State imposed a reduction in oil production for the rest of
the year, due to the Covid-19 pandemic that led to a lower demand for oil and gas. The reduction in production was distributed
between all fields on a pro rata basis.
A licence from the ME is also required in order to establish facilities for the transportation and utilisation of petroleum. Ownership
of most facilities for the transportation and utilisation of petroleum in Norway and on the NCS is organised in the form of joint
ventures. The participants’ agreements are similar to joint operating agreements for production.
Licensees are required to prepare a decommissioning plan before a production licence or a licence to establish and use facilities
for the transportation and utilisation of petroleum expires or is relinquished, or the use of a facility ceases. On the basis of the
decommissioning plan, the ME makes a decision as to the disposal of the facilities.
The information regarding Equinor’s activities and shares in Equinor’s production licences on the NCS, set forth under the
headings “EPN at a glance” in Section 1.5 of Chapter 1 on page 19, “Liquids and gas production” in Section 2.1 of Chapter 2 on page
41 and “The future of our oil and gas portfolio” in Section 2.1 of Chapter 2 on page 43 “of the 2025 Annual Report and the tables
entitled “E&P Norway Equinor operated fields, average daily entitlement production” and “E&P Norway - Partner fields, average daily
entitlement production” under the heading “Production per field” in Item 4.D of this 2025 Form 20-F are incorporated herein by
reference.
On 1 July 2022, the ME decided that parts of the Norwegian Security Act would apply to Equinor. This enabled Equinor to receive
and handle classified information from the authorities. In 2023, the MTIF and the ME notified that the Security Act will apply in its
entirety to Equinor as an undertaking engaging in activities which are of vital importance to fundamental national functions. The
Security Act entered into force 1 January 2019 and is designed to protect national security interests. The National Security Authority
supervises undertakings which are subject to the act.
Gas sales and transportation from the NCS
Equinor markets gas from the NCS on its own behalf and on the Norwegian State’s behalf. Dry gas is mainly transported through
the Norwegian gas transport system (Gassled) to customers in the UK and mainland Europe, while liquified natural gas is transported
by vessels to worldwide destinations.
Equinor 2025 Annual Report on Form 20-F 13
The Norwegian gas transport system, consisting of the pipelines and terminals through which licensees on the NCS transport
their gas, is owned by a joint venture called Gassled. The Norwegian Petroleum Act of 29 November 1996 and the associated
Petroleum Regulation establish the basis for non- discriminatory third-party access to the Gassled transport system.
The tariffs for the use of capacity in the transport system are determined by applying a formula set out in separate tariff
regulations stipulated by the MPE. The tariffs are paid for booked capacity rather than the volumes actually transported.
The information regarding MMP’s activities set forth under the headings “MMP at a glance” in Section 1.5 of Chapter 1 on page
21, “Midstream, marketing and processing” in Section 2.1 of Chapter 2 on page 39 and “Sold volumes in MMP” in Section 2.1 of
Chapter 2 on page 42 of the 2025 Annual Report is also incorporated herein by reference.
The Norwegian State's participation
In 1985, the Norwegian State established the State’s direct financial interest (SDFI) through which the Norwegian State has
direct participating interests in licences and petroleum facilities on the NCS. As a result, the Norwegian State holds interests in a
number of licences and petroleum facilities in which Equinor also holds interests. Petoro AS, a company wholly owned by the
Norwegian State, was formed in 2001 to manage the SDFI assets.
The Norwegian State has a coordinated ownership strategy aimed at maximising the aggregate value of its ownership interests
in Equinor and the Norwegian State’s oil and gas. This is reflected in the Owner’s Instruction described below, which contains a
general requirement that, Equinor, in its activities on the NCS, take account of these ownership interests in decisions that may affect
the execution of this marketing arrangement.
SDFI oil and gas marketing and sale
Equinor markets and sells the Norwegian State’s oil and gas together with Equinor’s own production. The arrangement has been
implemented by the Norwegian State through a separate instruction (the Owner’s Instruction) adopted by an extraordinary
shareholder meeting in 2001, with the Norwegian State as sole shareholder at the time. The Owner’s Instruction sets out the specific
terms for the marketing and sale of the Norwegian State’s oil and gas.
Equinor is obliged under the Owner’s Instruction to jointly market and sell the Norwegian State’s oil and gas as well as Equinor’s
own oil and gas. The overall objective of the marketing arrangement is to obtain the highest possible total value for Equinor’s oil and
gas and the Norwegian State’s oil and gas, and to ensure an equitable distribution of the total value creation between the Norwegian
State and Equinor.
The Norwegian State may at any time utilise its position as majority shareholder of Equinor to withdraw or amend the Owner’s
Instruction.
US
Petroleum activities in the US are extensively regulated by multiple agencies in the US federal government, and by tribal, state
and local regulation. The US government directly regulates development of hydrocarbons on federal lands, in the US Gulf of America,
and in other offshore areas. Different federal agencies directly regulate portions of the industry, and other general regulations related
to environmental, safety, and physical controls apply to all aspects of the industry. In addition to regulation by the US federal
government, any activities on US tribal lands (indigenous persons’ semi-sovereign territory) are regulated by governments and
agencies in those areas. Significantly for Equinor’s US onshore interests, each individual state has its own regulations of all aspects
of hydrocarbon development within its borders. A recent trend also includes local municipalities adopting their own hydrocarbon
regulations.
In the US, hydrocarbon interests are considered a private property right. In areas owned by the US government, that means that
the government owns the minerals in its capacity as landowner. The federal government, and each tribal and state government,
establishes the terms of its own leases, including the length of time of the lease, the royalty rate, and other terms.
The vast majority of onshore minerals, including hydrocarbons, in every US state in which Equinor has onshore interests, belong
to private individuals.
In order to explore for or develop hydrocarbons, a company must enter into a lease agreement with the applicable governmental
agency for federal, state or tribal land, and for private lands, with each owner of the minerals the company wishes to develop. In each
lease, the lessor retains a royalty interest in the production (if any) from the leased area. The lessee owns a working interest and has
the right to explore and produce oil and gas. The lessee incurs all the costs and liabilities but will share only the portion of the revenue
that is net of costs and expenses and not reserved to the lessor through its royalty interest.
Leases typically have a primary term for a specified number of years (from one to ten years) and a conditional secondary term
that is tied to the production life of the properties. If oil and gas is being produced in paying quantities at the end of the primary term,
Equinor 2025 Annual Report on Form 20-F 14
or the operator satisfies other obligations specified in the agreement, the lease typically continues beyond the primary term (Held by
Production). Leases typically involve paying the lessor both a signing bonus based on the number of leased acres and a royalty
payment based on the production.
Each US state has its own agencies that regulate the development, exploration, and production of oil and gas activities. These
state agencies issue drilling permits and control pipeline transportation within state boundaries. The state agencies particularly
relevant to Equinor’s US onshore activities include: (a) Pennsylvania Department of Environmental Protection’s Office of Oil and Gas
Management, and (b) West Virginia Department of Environmental Protection. In addition, some state utility departments handle
pipeline transportation within state boundaries, and each state also has its own department regulating environmental, health, and
safety issues arising from oil and gas operations.
Brazil
In Brazil, licences are mainly awarded according to a concession regime or a production sharing regime (the latter specifically for
areas within the pre-salt polygon area or strategic areas) by the Federal Government. All state-owned and private oil companies may
participate in the bidding rounds provided they follow the bidding rules and meet the Brazilian National Agency of Petroleum, Natural
Gas and Biofuels (ANP)’s qualification criteria. The tender protocol issued for each bidding round contains the draft of the concession
agreement or the production sharing agreement that the winners must adhere to without the possibility of negotiating its terms, i.e., all
the agreements signed under a certain bidding round contain the same general provisions and only differ in the particular items
presented in the offers. There is no restriction on foreign participation, provided that the foreign investor incorporates a company
under Brazilian law for signing the agreement and complies with the requirements established by the ANP.
Concession Regime
In the concession regime, the concessionary company assumes the risk of investing and finding – or not finding – oil or natural
gas. The winning company has ownership of the oil and gas discovery in the conceded area. Through this model of contract, the
company pays and the government takes, such as the signature bonus, payment for the occupation or retention of the area (in the
case of onshore blocks), royalties and, in the case of fields that produce large volumes, a special participation. The contracts are
signed by the ANP on behalf of the Federal Union. In past bidding rounds the participants also had to offer a local content percentage
as a firm commitment.
Generally, concessions are granted for a total period of 35 years and typically the exploration phase lasts from two to eight years,
while the production phase may last 27 years from the declaration of commerciality. Concessionaires are entitled to request the
extension of each of these phases, subject to ANP approval.
Production Sharing Regime
In bidding rounds involving the production sharing regime, applicable to areas located in the pre-salt polygon and other areas
considered to be strategic, the law grants to the Brazilian government-controlled company Petroleo Brasileiro S.A. – Petrobras, a right
of preference to be the sole operator in such areas, with a minimum 30% of participating interest. If this right is exercised, Petrobras
may still participate in the bidding round and present offers for the remaining 70% under the same conditions applicable to other
participants. As in the concession bidding rounds, companies may bid individually or together with other companies. The winners are
required to form a consortium with Pre-Sal Petroleo S.A. (PPSA), a Brazilian state-owned company, which is responsible for
managing the production sharing agreement and selling the production allocated to the Government under the profit oil. PPSA
appoints 50% of the members of the operating committee, including the chairperson, in addition to certain veto rights and casting
vote.
The current criteria for the evaluation of bidding offers under the production sharing regime is the offered percentage of oil and
natural gas (that is, the largest portion of the exceeding oil). The winner will be the company which offers the highest percentage to
the Government in accordance with the technical and economic parameters established for each block in the tender documents under
a certain bidding round.
Production sharing contracts are signed by the Ministry of Mines and Energy on behalf of the Federal Government. Generally,
the contracts are valid for a period of 35 years which, by law, cannot be extended. Of the two phases of the contract – exploration and
production – the exploration phase may be extended provided that the total period of the contract remains as 35 years.
In order to perform the exploration and exploitation of oil and gas reserves, companies must obtain an environmental license
granted by the Brazilian Institute of Environment and Renewable Natural Resources (IBAMA), which, together with ANP, is
responsible for the safety and environmental regulations regarding upstream activities.
HSE regulation relevant for the Norwegian upstream oil and gas activities in Norway
Equinor’s oil and gas operations in Norway must be conducted in compliance with a reasonable standard of care, taking into
consideration the safety of workers, the environment and the economic values of installations and vessels. The Petroleum Act
Equinor 2025 Annual Report on Form 20-F 15
specifically requires that petroleum operations are carried out in such a manner that a high level of safety is maintained and
developed in step with technological developments. Equinor is also required at all times to have a plan to deal with emergency
situations in Equinor’s petroleum operations. During an emergency, the Norwegian Ministry of Labour and Social Inclusion/Norwegian
Ministry of Transport/Norwegian Coastal Administration may decide that other parties should provide the necessary resources, or
otherwise adopt measures to obtain the necessary resources, to deal with the emergency for the licensees’ account.
Liability for pollution damage
The Norwegian Petroleum Act imposes strict liability for pollution damage regardless of fault. Accordingly, as a holder of
petroleum licences on the NCS,Equinor is subject to statutory strict liability under the Petroleum Act as a result of pollution caused by
spills or discharges of petroleum from petroleum facilities in any of Equinor’s licences.
A claim against the license holders for compensation relating to pollution damage shall initially be directed to the operator, which
in accordance with the terms of the joint operating agreement, will distribute the claim to the other licensees in accordance with their
participating interest in the licences.
Discharge permits
Emissions and discharges from Norwegian petroleum activities are regulated through several acts, including the Petroleum Act,
the CO2 Tax Act, the Sales Tax Act, the Greenhouse Gas Emission Trading Act and the Pollution Control Act. Discharge of oil and
chemicals in relation to exploration, development and production of oil and natural gas are regulated under the Pollution Control Act.
In accordance with the provisions of this Act, an operator must apply for a discharge permit from relevant authorities on behalf of the
licence group in order to discharge any pollutants into water. Further, the Petroleum Act states that burning of gas in flares beyond
what is necessary for safety reasons to ensure normal operations is not permitted without approval from the ME. All operators on the
NCS have an obligation to, and are responsible, for establishing sufficient procedures for the monitoring and reporting of any
discharge into the sea. The Norwegian Environment Agency, the Norwegian Offshore Directorate and Offshore Norge, the Norwegian
industry association, have established a joint database for reporting emissions to air and discharges to sea from petroleum activities,
the Environmental Web (EW). All operators on the NCS report emission and discharge data directly into the database.
Regulations on reduction of carbon emissions and CO2 storage
Equinor’s operations in Norway are subject to emissions taxes as well as emissions allowances granted for Equinor’s larger
European operations under the emissions trading scheme. The agreed strengthening of the EU’s emission trading scheme is
expected to affect energy and industry installations, which include Equinor’s installations at the NCS. The price of emissions
allowances has increased significantly since the reforms to the EU Emission Trading Scheme in 2018 and is expected to increase
further towards 2030.
The Norwegian Climate Act sets legally binding targets for a low-emission society by 2050, including a minimum 55% reduction
in GHG emissions by 2030 compared to 1990 levels and a long-term goal of 90–95% reduction by 2050. The government has also
proposed an interim target of 70–75% by 2035. This act may influence our activities through plans and actions implemented by the
state to achieve these targets. Norway’s Climate Action Plan for 2021–2030 emphasises stronger carbon pricing. For offshore oil and
gas, the carbon tax is expected to rise to about NOK 2,000 per tonne CO₂ by 2030. Norway participates in the EU Emissions Trading
System (ETS), where allowance prices are projected to continue increasing, reinforcing the cost of carbon compliance.
EU directive 2009/31/EC on the geological storage of CO2 is implemented in the Pollution Control regulations, the regulations
related to the Petroleum Act and in a separate Storage regulation adopted under the 1963 Act relating to scientific research and
exploration for and exploitation of subsea natural resources other than petroleum resources. The CO2 capture and storage at
Equinor’s Sleipner and Snøhvit fields are governed by the Petroleum Act and the Pollution Control regulations, and the CO2 storage at
Northern Lights JV DA and Smeaheia projects are governed by the Storage regulations and the Pollution Control regulations.
HSE regulation of upstream oil and gas activities in the US
Equinor’s upstream activities in the US are heavily regulated at multiple levels, including federal, state, and local municipal
regulation. Equinor is subject to those regulations as a part of its activities in the US onshore (including Equinor’s assets in
Pennsylvania and West Virginia), and in the US Gulf of America.
The National Environmental Policy Act of 1969 is an umbrella procedural statute that requires federal agencies to consider the
environmental impacts of their actions. Several substantive US federal statutes specifically cover certain potential environmental
effects of hydrocarbon extraction activities. Those include: the Clean Air Act, which regulates air quality and emissions; the Federal
Water Pollution Control Act (commonly known as the Clean Water Act), which regulates water quality and discharges; the Safe
Drinking Water Act, which establishes drinking water standards for tap water and underground injection rules; the Resource
Conservation and Recovery Act of 1976, which regulates hazardous and solid waste management; the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, which addresses remediation of legacy disposal sites and release
reporting; and the Oil Pollution Act, which provides for oil spill prevention and response.
Equinor 2025 Annual Report on Form 20-F 16
Other US federal statutes are resource-specific. The Endangered Species Act of 1973 protects listed endangered and threatened
species and critical habitat. Other statutes protect certain species, including the Migratory Bird Treaty Act, the Bald and Golden Eagle
Protection Act and the Marine Mammal Protection Act of 1972. Other statutes govern natural resource planning and development on
federal lands onshore and on the Outer Continental Shelf (OCS), including: the Mineral Leasing Act; the Outer Continental Shelf
Lands Act; the Federal Land Policy and Management Act of 1976; the Mining Law of 1872; the National Forest Management Act of
1976; the National Park Service Organic Act; the Wild and Scenic Rivers Act; the National Wildlife Refuge System Administration Act
of 1966; the Rivers and Harbors Appropriation Act; and the Coastal Zone Management Act of 1972.
The federal government regulates offshore exploration and production for the OCS, which extends from the edge of state waters
(either 3 or 9 nautical miles from the coast, depending on the state) out to the edge of national jurisdiction, 200 nautical miles from
shore. The Bureau of Ocean Energy Management (BOEM) manages federal OCS leasing programs, conducts resource
assessments, and licences seismic surveys. The Bureau of Safety and Environmental Enforcement (BSEE) regulates all OCS oil and
gas drilling and production. The Office of Natural Resources Revenue (ONRR) collects and disburses rents and royalties from
offshore and onshore federal and Native American lands.
Additional federal statutes cover certain products or wastes, and focus on human health and safety: the Toxic Substances
Control Act regulates new and existing chemicals and products that contain these chemicals; the Hazardous Materials Transportation
Act regulates transportation of hazardous materials; the Occupational Safety and Health Act of 1970 regulates hazards in the
workplace; the Emergency Planning and Community Right-to-Know Act of 1986 provides emergency planning and notification for
hazardous and toxic chemicals.
The federal and state governments share authority to administer some federal environmental programs (e.g., the Clean Air Act
and Clean Water Act). States also have their own, sometimes more stringent, environmental laws. Counties, cities and other local
government entities may have their own requirements as well.
Equinor continually monitors regulatory and legislative changes at all levels and engages in the stakeholder process through
trade associations and direct comments to suggested regulatory and legislative regimes, to ensure that its operations remain in
compliance with all applicable laws and regulations. In particular, BSEE drilling and production regulations were extensively revised in
response to the 2010 Deepwater Horizon blowout and oil spill. The revised regulatory regime includes requirements for enhanced well
design, improved blowout preventer design, testing and maintenance, and an increased number of trained inspectors. Equinor is
engaged with relevant governmental and industry stakeholders to ensure that Equinor’s operations remain in compliance.
HSE regulation of upstream oil and gas activities in Brazil
Equinor’s oil and gas operations in Brazil must be conducted in compliance with a reasonable standard of care, taking into
consideration the safety and health of workers and the environment. The Brazilian Petroleum Law (Law No. 9,478/97) describes the
government’s policy objectives for the rational use of the country’s energy resources, including the protection of the environment. In
addition to the Brazilian Petroleum Law, Equinor is also subject to many other laws and regulations issued by different authorities,
including ANP, IBAMA, Federal Environmental Council (CONAMA) and Brazilian Navy. All those authorities have the power to impose
fines in case of non-compliance with the respective rules. The concession and production sharing contracts also impose obligations
on operators and consortium members, who are jointly and severally liable. They must, at their own account and risk, assume and
fully respond to all losses and damages caused directly or indirectly by the applicable consortium’s operations and their performance,
irrespective of fault, to the ANP, the Federal Government, third parties and the environment, without prejudice to any recourse rights
which may have been agreed separately among the consortium members (such as in a joint operating agreement).
The exploration, drilling and production of oil and gas depend on environmental licences which define the conditions for the
implementation of the project and compliance measures to mitigate and control environmental impact. Equinor may be subject to fines
and even licence suspension and/or cancellation in case of non-compliance with such conditions.
In Brazil, Equinor is also required to have an emergency response system as per ANP Resolution No. 882/2022 to deal with
emergency situations in its petroleum operations, as well as an oil spill response plan in accordance to CONAMA Resolution No.
398/2008, for each asset to minimise the environmental impact of any environmental unexpected situation that may generate spill of
oil or chemical to sea.
Discharge permits
Discharges from Brazilian petroleum activities are regulated through several acts, including the CONAMA Resolution No.
393/2007 for produced water, CONAMA Resolution No. 357/2005 and CONAMA Resolution No. 430/2011 for effluents (sewage, etc)
and IBAMA technical instructions for drilling waste. According to Environmental Ministry Ordinance No. 422/2011, the discharge of
chemicals in connection with exploration, development and production of oil and natural gas is assessed as part of the environmental
permitting process and the operator must apply for any discharge permit from relevant authorities on behalf of the license group in
order to discharge any pollutants into the water.
Equinor 2025 Annual Report on Form 20-F 17
Natural Gas
In the natural gas midstream and downstream sectors, the Brazilian Government has enacted significant regulatory reforms to
foster competition and attract private investment. The New Gas Law (Law Nº 14,134/2021), further updated by the “Gas for Jobs”
Decree (Decree nº 12,153/2024), was designed to dismantle the former state monopoly and create a more open and competitive
market. These initiatives aim to stimulate private sector participation in infrastructure development and increase domestic natural gas
production. The natural gas value chain—particularly transmission activities—is currently undergoing regulatory updates by the
National Agency of Petroleum, Natural Gas and Biofuels (ANP) to align with the new legal framework. Equinor must comply with these
evolving regulations to operate its natural gas assets in Brazil and commercialize its production.
Aligned with the Brazilian Government’s Green Agenda, the “Fuels of the Future” Law (Law nº 14,993/2024) introduced a
biomethane mandate as a key decarbonization measure for the natural gas sector. This legislation requires gas field operators to fulfill
obligations established by the National Energy Policy Council (CNPE), ensuring that each operator compensates for its share of
commercialized gas targets through the acquisition of biomethane volumes and/or biomethane environmental certificates.
Regulations on reduction of carbon emissions
Although Equinor’s operations in Brazil are not subject to emissions taxes (CO2 limit) yet, a Bill of Law has recently been
approved by the Brazilian congress for the establishment of a carbon market. The mechanisms of the carbon market will be
implemented within a transition period of six years and Equinor’s activities in Brazil will be subject to a cap-and-trade system but the
extent of restrictions and obligations will only be known after further regulation of the law.
The CONAMA Regulation No. 382/06 regulates air emissions limits for pollutant gases (e.g. NOx) from all fixed sources that have
total power consumption higher than 100MW.
Gas flares must be authorised by the ANP under ANP Resolution No. 806/2020, which also sets out cases in which ANP
authorisation is not necessary.
The Brazilian government signed the Paris Agreement in 2015. During COP26, Brazil updated its ambition to reduce its
greenhouse gas emissions by 37% until 2025 and 50% until 2030, compared to 2005 levels. Because of the desire to boost the
economy and an expected growing energy demand, the focus on emissions reduction is on improved control of forests and land use
and for that Brazil continues to adhere to the Forest for Deal agreement, committing to take actions to reduce illegal deforestation until
2030. The country also adheres to the Global Methane Pledge.
Regulatory framework for renewable energy operations
Equinor’s renewables positions currently mainly consist of offshore wind farms in operation and development in the UK, the state
of New York and Poland. In these jurisdictions the legislation is structured around a lease where permission to develop is granted
following a series of approvals relating largely to environmental and social impact assessments. The government separately auctions
a subsidized power purchase price either through renewable offtake certificates or contracts for difference. In both cases, Equinor and
its partners take the risk for developing, constructing and operating the wind farms within a fixed timeframe.
Equinor’s onshore renewables positions currently mainly consist of solar, battery and wind farms in operation and development in
US, UK, Brazil, Poland, Sweden and Denmark. The projects are mainly developed and operated by the following wholly owned
subsidiaries: (i) Rio Energy in Brazil; (ii) East Point in US; (iii) Wento in Poland; and (iv) BeGreen in Denmark.
Other
Equinor entered into agreements with the National Iranian Oil Company (NIOC), namely, a Development Service Contract for
South Pars Gas Phases 6, 7 & 8 (offshore part), an Exploration Service Contract for the Anaran Block and an Exploration Service
Contract for the Khorramabad Block, which are located in Iran. Equinor’s operational obligations under these agreements have
terminated and the licences have been abandoned. The cost recovery programme for these contracts was completed in 2012, except
for the recovery of tax and obligations to the Social Security Organization (SSO). From 2013 to November 2018, after closing
Equinor’s office in Iran, Equinor’s activity was focused on a final settlement with the Iranian tax and SSO authorities relating to the
above-mentioned agreements.
In a letter from the US State Department of 1 November 2010, Equinor was informed that it was not considered to be a company
of concern based on its previous Iran-related activities.
Equinor has an intention to settle historic obligations in Iran while remaining compliant with applicable sanctions and trade
restrictions against Iran. Since November 2018 Equinor has not conducted any activity in Iran, nor has it been able to resolve tax
claims from the Iranian authorities.
No payments were made to Iranian authorities during 2025.
Equinor 2025 Annual Report on Form 20-F 18
Taxation of Equinor
Norway
Equinor’s profits, both from offshore oil and natural gas activities and from onshore activities, are subject to Norwegian corporate
income tax. In addition, a special petroleum tax is levied on profits from petroleum production and pipeline transportation on the NCS.
In June 2022 the parliament enacted a cash-flow based tax system for the special petroleum tax with effect from 1 January 2022.
After the reform, the Norwegian petroleum income is taxable at a tax rate of 71.8% after deducting a calculated 22% corporate tax.
The corporate tax is deductible in the basis for the special petroleum tax, resulting in a 78% marginal tax rate. For further information,
see note 11 Income taxes to the Consolidated financial statements.
Investment costs in the ordinary tax base (22%) will continue to be depreciated over six years. In the special tax base,
investments are written off immediately in line with the cash-flow based tax system. Projects covered by the temporary rules
introduced in 2020 have had a tax uplift of 12.4% in 2025. The temporary rules apply to investments covered by field or infrastructure
plans (PDOs and PIOs) submitted to the MPE after 12 May 2020 and before 1 January 2023 and approved before 1 January 2024.
The temporary rules will continue to apply until (and including) the year of planned production or project start-up according to the
approved plans.
Equinor’s international petroleum activities are subject to tax pursuant to local legislation.
US
Equinor’s operations in the US are subject generally to corporate income, severance and production, ad valorem and transaction
taxes levied by the federal, state and local tax authorities, and to royalties payable to federal, state and local authorities and, in some
cases, private landowners. The federal corporate income tax rate in the US is 21%, and there is an alternative 15% minimum tax on
corporate book income for corporations with profits over USD 1 billion. US companies are also subject to the Base Erosion Anti-abuse
Tax (“BEAT”) which imposes tax at 10% before 2026 and 10.5% thereafter on tax deductible payments to foreign affiliates of US
companies if certain conditions are met.
Brazil
Equinor operations in Brazil are generally subject to corporate income tax and social contribution levied on taxable net income at
a combined rate of 34%. In addition, there are several indirect taxes, but indirect tax rate on exports is currently set to zero.
The concessionary tax regime in Brazil usually includes government takes such as a 10% royalty, and special participation tax
that varies based on time, location and production between 10% and 40%, using a reference price that is established by the Brazilian
petroleum regulator (ANP). The Production Sharing Regime in Brazil usually includes a 15% royalty, an annual 80% cost recovery
ceiling, and a biddable government profit share.
A VAT system was introduced recently, to replace existing indirect taxes, at the maximum aggregated rate of 26.5%. The
implementation of the new VAT will be phased into effect over the next years until 2032. During the transition period existing taxes and
new VAT will coexist. The amendment also includes an excise tax on the extraction, sale or commercialization of goods and services
with a “harmful effect on health or environment” of up to 1% of the market value of extracted production. This excise tax is being
called “selective tax”. and the specific rate for oil & gas of the is 0.25% (zero rate for gas destined to be used as fuel or in the
manufacturing process).
The new tax law in Brazil also preserves suspensions or exemptions from certain indirect taxes for importation of capital goods
into Brazil, such as Repetro-Sped.
Income taxation has also been subject to recent changes.
In November 2025 a Bill of Law was approved by Congress establishing a 10% withholding income taxation on dividends
distributed by local companies to non-residents, with a credit mechanism in case the total CIT payment is higher than 34%, to be
effective as of January 2026.
Brazil enacted a global Global Anti-Base Erosion (GloBE) rules under the scope of Pillar 2 of the Base Erosion for Profit Shifting
(BEPS) in December 2024, which took effect on January 1, 2025. Local entities that fall within the concept of a multinational
enterprise group are now subject to a top-up tax (an additional of the “social contribution on net profits”) on profits arising in Brazil
whenever their effective tax rate is below a minimum limit of 15%.
Finally, the ratification of the new Brazil-Norway Convention to Avoid Double Taxation (DTT) signed in 2022 was finalized in
March 2025. The Decree that internalises the DTT has recently been approved at the House of Representatives and will be sent to
the Senate. The new DTT has a text more aligned with the current OECD model tax convention. In the new DTT, Brazil expressly kept
Equinor 2025 Annual Report on Form 20-F 19
its rights to charge withholding income tax on fees from technical services, with a reduced tax rate of 10% (instead of the domestic
15%). This will impact services acquired from the Brazilian entities from Norwegian entities.
UK
The UK introduced the Energy Profits Levy (EPL) in May 2022 at 25%, increasing to 35% from January 2023. The levy applies to
oil and gas profits from UK and UK Continental Shelf operations, on top of existing profit‑based taxes. From January 2023, the
combined tax rate for oil and gas companies rose to 75%.
Following the UK General Election, the 30 October 2024 Budget increased the EPL rate to 38% from 1 November 2024 and
extended it to 31 March 2030. The 29% Investment Allowance was removed from the same date.
During 2025, the government will consult on a post 2030 regime. The 26 November 2025 Budget announced the Oil and Gas
Price Mechanism (OGPM), replacing the EPL from 2030. The OGPM will apply a 35% tax on revenues above benchmark prices of
$90/bbl (oil) and 90p/therm (gas), with annual uplifts from April 2027. Further details will follow in 2026.
The Electricity Generator Levy (EGL), effective since 1 January 2023, remains unchanged. It imposes a 45% tax on exceptional
electricity receipts above £75/MWh and expires on 31 March 2028.
The impact of the EPL will diminish from 2026 following the creation of Adura, the new joint venture between Equinor and Shell,
which includes selected UK North Sea assets such as Rosebank, Mariner and Buzzard.
Disclosures regarding oil and gas operations
The 2025 Oil And Gas Reserves Report is incorporated herein by reference. See also notes 5 Segments and 7 Total revenues
and other income to the Consolidated financial statements. The information set forth under the headings “Operational data”, “Sales
volumes” and “Sales prices in Section 2.1 Operational performance of the 2025 Annual Report is also incorporated herein by
reference.
Supplementary oil and gas information pursuant to FASB Topic 932
The following information is reported pursuant to FASB Topic 932.
Capitalised cost related to oil and gas producing activities | |||
Consolidated companies | |||
At 31 December | |||
(in USD million) | 2025 | 2024 | 2023 |
Unproved properties | 5,233 | 5,229 | 5,022 |
Proved properties, wells, plants and other equipment | 186,996 | 171,332 | 183,316 |
Total capitalised cost | 192,229 | 176,561 | 188,338 |
Accumulated depreciation, impairment and amortisation | (137,026) | (124,739) | (132,902) |
Net capitalised cost | 55,203 | 51,823 | 55,436 |
Net capitalised cost related to equity accounted investments as of 31 December 2025 was USD 5,574 million; none were recognised
in 2024 or 2023. The reported figures are based on capitalised costs within the upstream segments in Equinor, in line with the
description below for result of operations for oil and gas producing activities.
Equinor 2025 Annual Report on Form 20-F 20
Expenditures incurred in oil and gas property acquisition, exploration and development activities | ||||||
These expenditures include both amounts capitalised and expensed. | ||||||
Consolidated companies | ||||||
(in USD million) | Norway | Eurasia excluding Norway | Africa | USA | Americas excluding USA | Total |
Full year 2025 | ||||||
Exploration expenditures | 861 | 9 | 121 | 21 | 114 | 1,126 |
Development costs | 5,372 | 70 | 351 | 1,138 | 1,967 | 8,898 |
Acquired proved properties | 611 | 0 | 0 | 0 | 0 | 611 |
Acquired unproved properties | 1 | 0 | 0 | 0 | 6 | 7 |
Total | 6,845 | 79 | 472 | 1,159 | 2,087 | 10,642 |
Full year 2024 | ||||||
Exploration expenditures | 715 | 13 | 48 | 150 | 475 | 1,401 |
Development costs | 5,099 | 692 | 490 | 1,232 | 1,721 | 9,234 |
Acquired proved properties | 104 | 5 | 0 | 2,064 | 0 | 2,173 |
Acquired unproved properties | 101 | 0 | 18 | 504 | 32 | 655 |
Total | 6,019 | 710 | 556 | 3,950 | 2,228 | 13,463 |
Full year 2023 | ||||||
Exploration expenditures | 662 | 16 | 35 | 310 | 253 | 1,276 |
Development costs | 4,864 | 470 | 509 | 1,084 | 1,279 | 8,206 |
Acquired proved properties | 0 | 1,271 | 0 | 0 | 0 | 1,271 |
Acquired unproved properties | 352 | 5 | 0 | 6 | 18 | 381 |
Total | 5,878 | 1,762 | 544 | 1,400 | 1,550 | 11,134 |
Expenditures incurred in exploration and development activities related to equity accounted investments was USD 0 million in 2025,
USD 0 million in 2024 and USD 0 million in 2023.
Results of operation for oil and gas producing activities
As required by Topic 932, the revenues and expenses included in the following table reflect only those relating to the oil and gas
producing operations of Equinor.
The results of operations for oil and gas producing activities are included in the three upstream reporting segments Exploration &
Production Norway (E&P Norway), Exploration & Production International (E&P International) and Exploration & Production USA (E&P
USA) as presented in note 5 Segments to the Consolidated financial statements. Production cost is based on operating expenses
related to production of oil and gas. From the operating expenses certain expenses such as; transportation costs, accruals for over/
underlift position and royalty payments costs are excluded. These expenses and mainly upstream business administration are
included as other expenses in the tables below. Other revenues mainly consist of gains and losses from sales of oil and gas interests
and gains and losses from commodity-based derivatives within the upstream segments.
Income tax expense is calculated on the basis of statutory tax rates adjusted for uplift and tax credits. No deductions are made for
interest or other elements not included in the table below.
Equinor 2025 Annual Report on Form 20-F 21
Consolidated companies | ||||||
(in USD million) | Norway | Eurasia excluding Norway | Africa | USA | Americas excluding USA | Total |
Full year 2025 | ||||||
Sales | 97 | 14 | 466 | 94 | 76 | 747 |
Transfers | 33,510 | 728 | 1,538 | 4,001 | 2,191 | 41,968 |
Other revenues | 785 | 54 | 16 | 201 | 21 | 1,077 |
Total revenues | 34,392 | 796 | 2,020 | 4,296 | 2,288 | 43,792 |
Exploration expenses | (567) | (7) | (74) | (83) | (140) | (871) |
Production costs | (3,093) | (295) | (453) | (527) | (764) | (5,132) |
Depreciation, amortisation and net impairment losses | (5,870) | (703) | (516) | (2,090) | (950) | (10,129) |
Other expenses | (741) | (278) | 35 | (973) | (442) | (2,399) |
Total costs | (10,271) | (1,283) | (1,008) | (3,673) | (2,296) | (18,531) |
Results of operations before tax | 24,121 | (487) | 1,012 | 623 | (8) | 25,261 |
Tax expense | (18,522) | (629) | (614) | (187) | 417 | (19,534) |
Results of operations | 5,599 | (1,116) | 398 | 436 | 409 | 5,727 |
Net income/(loss) from equity accounted investments | 0 | 0 | 0 | 0 | 0 | 0 |
Consolidated companies | ||||||
(in USD million) | Norway | Eurasia excluding Norway | Africa | USA | Americas excluding USA | Total |
Full year 2024 | ||||||
Sales | 80 | 14 | 495 | 114 | 73 | 776 |
Transfers | 33,271 | 1,113 | 2,277 | 3,610 | 2,502 | 42,773 |
Other revenues | 291 | 6 | 820 | 233 | 32 | 1,382 |
Total revenues | 33,642 | 1,133 | 3,592 | 3,957 | 2,607 | 44,931 |
Exploration expenses | (513) | (15) | (33) | (219) | (443) | (1,223) |
Production costs | (2,867) | (306) | (455) | (495) | (759) | (4,882) |
Depreciation, amortisation and net impairment losses | (4,954) | (529) | (553) | (1,607) | (983) | (8,626) |
Other expenses | (745) | (185) | 12 | (649) | (303) | (1,870) |
Total costs | (9,079) | (1,035) | (1,029) | (2,970) | (2,488) | (16,601) |
Results of operations before tax | 24,563 | 98 | 2,563 | 987 | 119 | 28,330 |
Tax expense | (19,013) | 469 | (800) | (206) | (1,099) | (20,650) |
Results of operations | 5,550 | 567 | 1,763 | 781 | (980) | 7,680 |
Net income/(loss) from equity accounted investments | 0 | 13 | 0 | 0 | 0 | 13 |
Equinor 2025 Annual Report on Form 20-F 22
Consolidated companies | ||||||
(in USD million) | Norway | Eurasia excluding Norway | Africa | USA | Americas excluding USA | Total |
Full year 2023 | ||||||
Sales | 62 | 107 | 533 | 127 | 92 | 921 |
Transfers | 37,892 | 1,121 | 2,242 | 3,954 | 2,646 | 47,855 |
Other revenues | 387 | 129 | 57 | 238 | 76 | 887 |
Total revenues | 38,341 | 1,357 | 2,832 | 4,319 | 2,814 | 49,663 |
Exploration expenses | (476) | (20) | (37) | (322) | 30 | (825) |
Production costs | (2,898) | (250) | (482) | (494) | (593) | (4,717) |
Depreciation, amortisation and net impairment losses | (5,017) | (840) | (567) | (1,489) | (1,026) | (8,939) |
Other expenses | (862) | (456) | 19 | (691) | (446) | (2,436) |
Total costs | (9,253) | (1,566) | (1,067) | (2,996) | (2,035) | (16,917) |
Results of operations before tax | 29,088 | (209) | 1,765 | 1,323 | 779 | 32,746 |
Tax expense | (22,543) | 34 | (961) | (358) | (106) | (23,934) |
Results of operations | 6,545 | (175) | 804 | 965 | 673 | 8,812 |
Net income/(loss) from equity accounted investments | 0 | (13) | 0 | 0 | 41 | 28 |
Average production cost in USD per boe based on entitlement volumes (consolidated) | Norway | Eurasia excluding Norway | Africa | USA | Americas excluding USA | Total |
2025 | 6 | 28 | 13 | 4 | 20 | 7 |
2024 | 6 | 26 | 13 | 5 | 19 | 7 |
2023 | 6 | 16 | 12 | 4 | 15 | 7 |
Production cost per boe is calculated as the production costs in the result of operations table, divided by the produced entitlement
volumes (mboe) for the corresponding period.
Equinor 2025 Annual Report on Form 20-F 23
C.Organizational Structure
Exhibit 8 to this 2025 Form 20-F is incorporated herein by reference. The table within Exhibit 8 shows significant subsidiaries and
significant equity accounted companies within the Equinor group as of 31 December 2025.
D.Property, Plant and Equipment
Equinor has interests in real estate in many countries throughout the world, including as part of certain developments and
projects of Equinor or in which Equinor participates.
Equinor’s three largest office buildings are (i) its head office located at Forusbeen 50, Stavanger, Norway which comprises
approximately 135,000 square meters of office space, (ii) its office building in Sandslivegen 90, Bergen, Norway which comprises
approximately 105,500 square meters of office space, and (iii) its office located at Fornebu on the outskirts of Oslo, in which Equinor
leases approximately 51,563 square meters of office space. All three office locations are leased by Equinor. The office building in
Bergen is owned by Sandsliveien 90 AS, a subsidiary of Equinor Pensjon.
The information set forth under the following headings of the 2025 Annual Report is incorporated herein by reference:
•Section 1.5 Our business of Chapter 1 on pages 17 - 23;
•Section 2.1 Operational performance of Chapter 2 on pages 36 - 50;
•The information under the sub-heading “Investments” under the heading “Financial Framework” in Section 2.2
Financial performance of Chapter 2 on page 55;
•The information under the sub-heading “Portfolio composition” under the heading “Financial framework ” in Section
2.2 of Chapter 2 on page 55; and
•Progress on our Energy transition plan in Section 2.3 of Chapter 2 on pages 72 - 73.
See also notes 12 Property, plant and equipment and 25 Leases to the Consolidated financial statements.
Production per field
The following tables show the regional production by field.
E&P Norway - Equinor operated fields, average daily entitlement production | ||||||
Field | Geographical area | Equinor's equity interest in % | On stream | Licence expiry date | Average production in 2025 mboe/day | |
Johan Sverdrup | The North Sea | 42.63 | 2019 | 2036-2037 | 310 | |
Troll Phase 1 (Gas) | The North Sea | 30.55 | 1996 | 2030 | 215 | |
Oseberg | The North Sea | 49.30 | 1988 | 2031 | 103 | |
Gullfaks | The North Sea | 51.00 | 1986 | 2036 | 81 | |
Aasta Hansteen | The Norwegian Sea | 51.00 | 2018 | 2041 | 61 | |
Visund | The North Sea | 53.20 | 1999 | 2034 | 57 | |
Johan Castberg | The Barents Sea | 46.30 | 2025 | 2049 | 51 | |
Åsgard | The Norwegian Sea | 35.01 | 1999 | 2027 | 48 | |
Gina Krog | The North Sea | 58.70 | 2017 | 2032 | 33 | |
Snøhvit | The Barents Sea | 36.79 | 2007 | 2035-2047 | 31 | |
Breidablikk | The North Sea | 39.00 | 2023 | 2030 | 30 | |
Snorre | The North Sea | 33.28 | 1992 | 2040 | 29 | |
Tyrihans | The Norwegian Sea | 36.32 | 2009 | 2029 | 24 | |
Heidrun | The Norwegian Sea | 34.44 | 1995 | 2045 | 22 | |
Halten East | The Norwegian Sea | 69.50 | 2025 | 2027-2042 | 22 | |
Martin Linge | The North Sea | 51.00 | 2021 | 2027 | 22 | |
Kvitebjørn | The North Sea | 39.55 | 2004 | 2031 | 20 | |
Kristin | The Norwegian Sea | 54.82 | 2005 | 2033 | 15 | |
Fram | The North Sea | 45.00 | 2003 | 2040 | 14 | |
Grane | The North Sea | 36.61 | 2003 | 2030 | 11 | |
Statfjord Unit | The North Sea | 40.17 | 1979 | 2040 | 10 | |
Mikkel | The Norwegian Sea | 43.97 | 2003 | 2028 | 9 | |
Troll Phase 2 (Oil) | The North Sea | 30.55 | 1) | 1995 | 2030 | 8 |
Equinor 2025 Annual Report on Form 20-F 24
E&P Norway - Equinor operated fields, average daily entitlement production | ||||||
Field | Geographical area | Equinor's equity interest in % | On stream | Licence expiry date | Average production in 2025 mboe/day | |
Gudrun | The North Sea | 36.00 | 2014 | 2032 | 8 | |
Njord | The Norwegian Sea | 27.50 | 1997 | 2034 | 8 | |
Valemon | The North Sea | 66.78 | 2015 | 2031 | 7 | |
Trestakk | The Norwegian Sea | 59.10 | 2019 | 2029 | 7 | |
Vigdis | The North Sea | 41.50 | 1997 | 2040 | 7 | |
Tordis | The North Sea | 41.50 | 1994 | 2040 | 6 | |
Alve | The Norwegian Sea | 53.00 | 2009 | 2029 | 6 | |
Sleipner West | The North Sea | 58.35 | 1996 | 2028-2032 | 6 | |
Svalin | The North Sea | 57.00 | 2014 | 2030 | 4 | |
Hyme | The Norwegian Sea | 42.50 | 2013 | 2029 | 4 | |
Statfjord East | The North Sea | 29.25 | 1994 | 2040 | 3 | |
Norne | The Norwegian Sea | 39.10 | 1997 | 2036 | 2 | |
Verdande | The Norwegian Sea | 59.27 | 2025 | 2036-2043 | 2 | |
Morvin | The Norwegian Sea | 64.00 | 2010 | 2027 | 2 | |
Tune | The North Sea | 50.00 | 2002 | 2031-2032 | 2 | |
Utgard | The North Sea | 38.44 | 2019 | 2028 | 1 | |
Urd | The Norwegian Sea | 63.95 | 2005 | 2036 | 1 | |
Statfjord North | The North Sea | 17.00 | 1995 | 2040 | 1 | |
Sindre | The North Sea | 74.66 | 1) | 2017 | 2026-2034 | 1 |
Sleipner East | The North Sea | 59.60 | 1993 | 2028 | 1 | |
Gungne | The North Sea | 62.00 | 1996 | 2028 | 1 | |
Sigyn | The North Sea | 60.00 | 2002 | 2035 | 1 | |
Brime | The North Sea | 74.66 | 1) | 2006 | 2026-2034 | 0 |
Sygna | The North Sea | 28.03 | 2000 | 2040 | 0 | |
Byrding | The North Sea | 70.00 | 2017 | 2026-2035 | 0 | |
Gimle | The North Sea | 74.66 | 1) | 2006 | 2026-2034 | 0 |
Fram H Nord | The North Sea | 49.20 | 2014 | 2035 | 0 | |
Total Equinor operated fields | 1,306 | |||||
1)Unitization to Brime Unit
E&P Norway - Partner operated fields, average daily entitlement production | ||||||
Field | Geographical area | Equinor's equity interest in % | Operator | On stream | Licence expiry date | Average production in 2025 mboe/day |
Skarv | The Norwegian Sea | 36.17 | Aker BP ASA | 2013 | 2029-2036 | 48 |
Ormen Lange | The Norwegian Sea | 25.35 | A/S Norske Shell | 2007 | 2040-2041 | 35 |
Ivar Aasen | The North Sea | 41.47 | Aker BP ASA | 2016 | 2036 | 8 |
Goliat | The Barents Sea | 35.00 | Vår Energi ASA | 2016 | 2042 | 8 |
Hanz | The North Sea | 50.00 | Aker BP ASA | 2024 | 2036 | 3 |
Marulk | The Norwegian Sea | 33.00 | DNO Norge AS | 2012 | 2030 | 2 |
Ærfugl Nord | The Norwegian Sea | 30.00 | Aker BP ASA | 2021 | 2033 | 0 |
Enoch | The North Sea | 11.78 | Bridge Petroleum Limited | 2007 | 2030 | 0 |
Total partner operated fields | 103 | |||||
Total E&P Norway | 1,410 | |||||
Equinor 2025 Annual Report on Form 20-F 25
E&P International - Average daily equity production | ||||||
Field | Country | Equinor's equity interest in % | Operator | On stream | Licence expiry date | Average daily equity production in 2025 mboe/day |
Americas (excluding US) | 108 | |||||
Peregrino 60%1) | Brazil | 60.00 | Equinor Brasil Energia Ltda. | 2011 | 2040 | 39 |
Peregrino 20%1) | Brazil | 20.00 | Prio Tigris Ltda | 2011 | 2040 | 3 |
Roncador | Brazil | 25.00 | Petróleo Brasileiro S.A. | 1999 | 2052 | 24 |
Bandurria Sur | Argentina | 30.00 | Yacimientos Petrolíferos Fiscales S.A. | 2015 | 2050 | 22 |
Hebron | Canada | 9.01 | ExxonMobil Canada Properties | 2017 | HBP2) | 12 |
Hibernia | Canada | 5.00 | Hibernia Management and Development Company Ltd. | 1997 | HBP2) | 2 |
Hibernia Southern Extension | Canada | 9.49 | ExxonMobil Canada Properties | 2011 | HBP2) | 2 |
Bajo del Toro | Argentina | 50.00 | Yacimientos Petrolíferos Fiscales S.A. | 2022 | 2055 | 2 |
Bacalhau | Brazil | 40.00 | Equinor Brasil Energia Ltda. | 2025 | 2052 | 1 |
Africa | 150 | |||||
Block 17 | Angola | 22.16 | TotalEnergies E&P Angola S.A. | 2001 | 2045 | 71 |
In Salah | Algeria | 31.85 | Sonatrach3) | 2004 | 2027 | 26 |
Eni In Salah Limited | ||||||
Equinor In Salah AS | ||||||
Block 15 | Angola | 12.00 | Esso Exploration Angola Block 15 Limited | 2004 | 2032 | 22 |
In Amenas | Algeria | 45.90 | Sonatrach3) | 2006 | 2027 | 13 |
Eni In Amenas Limited | ||||||
Equinor In Amenas AS | ||||||
Murzuq | Libya | 10.00 | Akakus Oil Operations | 2003 | 2037 | 10 |
Block 31 | Angola | 13.33 | Azule Energy Exploration (Angola) Limited | 2012 | 2031 | 7 |
Mabruk | Libya | 12.50 | Mabruk Oil Operations | 1995 | 2043 | 1 |
Eurasia | 36 | |||||
Mariner4) | UK | 65.11 | Equinor UK Limited | 2019 | HBP2) | 17 |
Buzzard4) | UK | 29.89 | CNOOC Petroleum Europe Limited | 2007 | 2046 | 7 |
Adura Energy Limited4) | UK | 50.00 | Varies | 2025 | Varies | 6 |
Statfjord Unit5) | UK | 14.53 | Equinor Energy AS | 1979 | HBP2) | 4 |
Utgard5) | UK | 38.00 | Equinor Energy AS | 2019 | HBP2) | 1 |
Barnacle6) | UK | 100.00 | Equinor UK Limited | 2019 | HBP2) | — |
Total E&P International | 293 | |||||
1)At the beginning of 2025, Equinor held a 60% operated interest in the Peregrino field. On the 11th November 2025, Equinor closed the sale of the 40%
operated interest to PRIO. As a result, production is presented under both the 60% and 20% equity interests to reflect the respective periods during the year.
The remaining 20% continues to be classified as held for sale.
2)HBP (Held by Production): A leasehold interest that is perpetuated beyond its primary term as long as there is production in paying quantities from well(s) on
the lease or lease(s) pooled therewith.
3)The complete name for Sonatrach is Société nationale de transport et de commercialisation d’hydrocarbures.
4)In December 2025, Equinor completed the divestment of its offshore UK assets, including interests in Rosebank, Mariner and Buzzard, and received a 50%
ownership interest in Adura, a joint venture with Shell.
5)The Utgard and Statfjord Unit fields span the boundary between the Norwegian and UK continental shelves. In this table we report only volumes pertaining to
the Equinor share in UKCS.
6)Actual production for Barnacle was 0.2 mboe/day.
Equinor 2025 Annual Report on Form 20-F 26
E&P USA - Average daily equity production | ||||||
Field | Country | Equinor's equity interest in % | Operator | On stream | Licence expiry date | Average daily equity production in 2025 mboe/day |
Appalachian (APB)1) | US | Varies2) | Others3) | 2008 | HBP5) | 305 |
Caesar Tonga | US | 46.00 | Anadarko U.S. Offshore LLC | 2012 | HBP5) | 32 |
Vito | US | 36.89 | Shell Offshore Inc. | 2023 | HBP5) | 25 |
Tahiti | US | 25.00 | Chevron USA Inc. | 2009 | HBP5) | 21 |
St. Malo | US | 21.50 | Chevron USA Inc. | 2014 | HBP5) | 13 |
Julia | US | 50.00 | ExxonMobil Corporation | 2016 | HBP5) | 12 |
Jack | US | 25.00 | Chevron USA Inc. | 2014 | HBP5) | 10 |
Big Foot | US | 27.50 | Chevron USA Inc. | 2018 | HBP5) | 10 |
Stampede | US | 25.00 | Hess Corporation | 2018 | HBP5) | 7 |
Titan | US | 100.00 | Equinor USA E&P Inc. | 2018 | HBP5) | — |
Heidelberg4) | US | 12.00 | Anadarko U.S. Offshore LLC | 2016 | HBP5) | — |
Total E&P USA | 434 | |||||
1)Appalachian basin contains Marcellus and Utica formations.
2)Equinor’s actual equity interest varies depending on wells and area.
3)Operators are Chesapeake Operating LLC, Southwestern Production Company, Chief Oil & Gas LLC, and several other operators.
4)Actual production for Heidelberg was 0.3 mboe/day.
5)Held by Production (HBP): A leasehold interest that is perpetuated beyond its primary term as long as there is production in paying quantities from well(s) on
the lease(s) pooled therewith.
ITEM 4A. UNRESOLVED STAFF COMMENTS
Not applicable.
ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS
The discussion does not address certain items in respect of 2023. A discussion of such items may be found in the Annual Report
on Form 20-F for the year ended 31 December 2024, filed with the SEC on 20 March 2025.
A.Operating Results
The information set forth under the following headings of the 2025 Annual Report is incorporated herein by reference:
•Section 1.4 Our strategy and transition ambitions of Chapter 1 on pages 15-16;
•Section 1.5 Our business of Chapter 1 on pages 17 - 23;
•Section 2.1 Operational performance of Chapter 2 on pages 36 - 50;
•Financial framework in Section 2.2 of Chapter 2 on pages 54 - 55;
•The information under the sub-heading “Group” under the heading “Financial performance” in Section 2.2 of
Chapter 2 on page 58;
•Capital distribution in Section 2.2 of Chapter 2 on page 65;
•Review of cash flows in Section 2.2 of Chapter 2 on page 66;
•Debt and liquidity management in Section 2.2 of Chapter 2 on page 67,excluding the information in the second and
seventh paragraphs under the sub-heading “Debt and credit rating”;
•Balance sheet and financial indicators in Section 2.2 of Chapter 2 on pages 68 - 70;
•Group outlook in Section 2.2 of Chapter 2 on page 70; and
•Progress on our Energy transition plan in Section 2.3 of Chapter 2 on pages 72 - 73.
Equinor 2025 Annual Report on Form 20-F 27
See also the information set forth under the heading “Applicable Laws and Regulations” in “Item 4―Information on the
Company―B. Business Overview” of this 2025 Form 20-F, and note 3 Climate change and energy transition to the Consolidated
financial statements.
Financial Review
The following tables show the financial performance by reporting segment.
E&P Norway - Financial information | |||
For the year ended 31 December | |||
(in USD million) | 2025 | 2024 | Change |
Total revenues and other income | 34,392 | 33,643 | 2% |
Operating, selling, general and administrative expenses | (3,834) | (3,612) | 6% |
Depreciation, amortisation and net impairment losses | (5,870) | (4,954) | 19% |
Exploration expenses | (567) | (513) | 11% |
Net operating income/(loss) | 24,121 | 24,564 | (2%) |
Additions to PP&E, intangibles and equity accounted investments | 7,366 | 6,285 | 17% |
For the year ended 31 December | |||
Operational information | 2025 | 2024 | Change |
E&P Norway entitlement liquid and gas production (mboe/day) | 1,410 | 1,386 | 2% |
E&P Norway entitlement liquids production (mboe/day) | 671 | 628 | 7% |
E&P Norway entitlement gas production (mboe/day) | 739 | 758 | (2%) |
Average liquids price (USD/bbl) | 66.8 | 77.1 | (13%) |
Average internal gas price (USD/MMBtu) | 10.70 | 9.47 | 13% |
Financial Performance
E&P Norway revenues remained strong for 2025 with higher production compared to 2024, while higher gas prices were offset by
lower liquids prices. Other income in 2025 was positively impacted by gain, from the sale of ownership shares in the swap transaction
with Petoro of USD 491 million.
The change in ownership shares following the Petoro swap transaction, new fields on stream, cancellation costs related to the Halten
electrification project and a one–off transportation cost were the main drivers of the increase in operating, selling, general and
administrative expenses from 2024 to 2025. There was also a negative impact from the weakening of the USD against NOK. The cost
of operations was stable, which is a result of continued cost focus across the organisation. Additionally, a significant decrease in the
Gassled removal obligation was recognised in 2025, reducing the transportation cost.
Ramp–up of new fields, field–specific investments and developments in the USD/NOK exchange rate increased depreciation,
amortisation and net impairments in 2025. In addition, there was a negative impact from impairments of USD 173 million this year,
compared to a less significant impairment in 2024. These effects were partially offset by increased proved reserves for several fields.
Exploration expenses increased in 2025 compared to the previous year, mainly reflecting higher expensing of well costs capitalised in
earlier years and increased field–development cost. The exploration activity this year was higher, with 32 wells completed compared
to 26 wells in 2024. A more successful outcome resulted in higher capitalisation, which partially offset the cost increase.
Additions to PP&E, intangibles and equity accounted investments in 2025 were influenced by the assets acquired in the swap
transaction amounting to USD 1,086 million.
Equinor 2025 Annual Report on Form 20-F 28
E&P International - Financial information | |||
For the year ended 31 December | |||
(in USD million) | 2025 | 2024 | Change |
Total revenues and other income | 5,102 | 7,343 | (31%) |
Purchases [net of inventory] | (25) | 85 | N/A |
Operating, selling, general and administrative expenses | (2,217) | (2,123) | 4% |
Depreciation, amortisation and net impairment losses | (2,169) | (2,064) | 5% |
Exploration expenses | (222) | (496) | (55%) |
Net operating income/(loss) | 470 | 2,746 | (83%) |
Additions to PP&E, intangibles and equity accounted investments | 8,224 | 3,191 | >100% |
For the year ended 31 December | |||
Operational information | 2025 | 2024 | Change |
E&P International equity liquid and gas production (mboe/day) | 293 | 340 | (14%) |
E&P International entitlement liquid and gas production (mboe/day) | 234 | 261 | (10%) |
Production sharing agreements (PSA) effects (mboe/d) | 59 | 79 | (26%) |
Average liquids price (USD/bbl) | 62.0 | 72.0 | (14%) |
Financial Performance
Total revenues and other income, as well as net operating income, decreased in 2025 compared to 2024. This decrease is mainly due
to lower volumes and a decline in liquid commodity prices in 2025, together with the gain on the sale of the Nigerian business in 2024.
Net operating income was further impacted by net impairment losses of USD 851 million in 2025 with no impairment in 2024. The
impairment in 2025 was mainly related to assets held for sale in the UK of USD 650 million and remaining assets held for sale in
Brazil of USD 201 million.
The sale of assets in Azerbaijan and Nigeria in late 2024, along with the sale of the 40% operated interest in the Peregrino field in
mid-November 2025 and variations in the over/underlift position, led to a decrease in operating expenses year–on–year. This
decrease was more than offset by an increase in selling, general and administrative expenses.
The cessation of depreciation for assets classified as held for sale in the UK from late 2024 and in Brazil from the second quarter of
2025 led to a decrease in depreciation in 2025 compared to 2024.
The decrease in exploration expenses in 2025 compared to 2024 includes the effect of higher expensed well costs related to Brazil,
Canada and Argentina in the previous year.
The acquisition of shares in Adura in December 2025 is the main reason for the increase in additions to PP&E, intangibles and
equity–accounted investments in 2025 compared to 2024.
Equinor 2025 Annual Report on Form 20-F 29
E&P USA - Financial information | |||
For the year ended 31 December | |||
(in USD million) | 2025 | 2024 | Change |
Total revenues and other income | 4,296 | 3,957 | 9% |
Operating, selling, general and administrative expenses | (1,477) | (1,142) | 29% |
Depreciation, amortisation and net impairment losses | (2,090) | (1,607) | 30% |
Exploration expenses | (60) | (176) | (66%) |
Net operating income/(loss) | 668 | 1,031 | (35%) |
Additions to PP&E, intangibles and equity accounted investments | 1,199 | 3,862 | (69%) |
For the year ended 31 December | |||
Operational information | 2025 | 2024 | Change |
E&P USA equity liquids and gas production (mboe/day) | 434 | 341 | 27% |
E&P USA entitlement liquid and gas production (mboe/day) | 375 | 295 | 27% |
Royalties (mboe/d) | 59 | 46 | 29% |
Average liquids price (USD/bbl) | 55.7 | 64.5 | (14%) |
Average internal gas price (USD/mmbtu) | 2.60 | 1.70 | 53% |
Financial Performance
E&P USA Entitlement production increased due to higher output from Appalachia, driven by additional ownership interests acquired at
the end of 2024 as well as increased activity levels. US offshore production remained relatively flat in 2025 compared to 2024. Higher
natural gas production combined with stronger gas prices led to an increase in revenue, which was partially offset by lower liquids
prices in 2025.
Operating, selling, general and administrative expenses increased primarily due to higher asset–retirement obligations resulting from
updated cost estimates for a late–life offshore asset that ceased production during the third quarter of 2025. Higher production–
related costs associated with the additional working interest acquired in the Appalachia Basin also contributed to the increase of
operating, selling, general and administrative expenses.
Depreciation and amortisation increased in 2025 compared to 2024, due to an increase from a change in the abandonment estimate
for a late–life asset and higher production from additional working interest in Appalachia Basin. These increases were partially offset
by positive year–end reserve revisions recorded in 2024.
Impairments related to property, plant and equipment amounted to USD 385 million in 2025.
Decreased exploration expenses were driven by lower exploration drilling in US offshore. In 2025, there was no exploration prospect
drilling while in 2024 there was one. The prospect in 2024 was non‑commercial and was expensed accordingly.
Investments in 2025 are driven by the continued development of the Sparta project, additional wells on several US offshore assets
and additional investments in Appalachia. Additions to PPE, intangible and equity accounted investments decreased in 2025 due to
the two transactions with EQT in the Appalachian Basin partner-operated assets completed in 2024.
Equinor 2025 Annual Report on Form 20-F 30
MMP - Financial information | |||
For the year ended 31 December | |||
(in USD million) | 2025 | 2024 | Change |
Total revenues and other income | 104,769 | 101,792 | 3% |
Purchases [net of inventory] | (97,243) | (92,789) | 5% |
Operating, selling, general and administrative expenses | (5,190) | (4,919) | 6% |
Depreciation, amortisation and net impairment losses | (636) | (757) | (16%) |
Net operating income/(loss) | 1,700 | 3,326 | (49%) |
Additions to PP&E, intangibles and equity accounted investments | 1,142 | 953 | 20% |
For the year ended 31 December | |||
Operational information MMP | 2025 | 2024 | Change |
Liquid sales volume (mmbbl) | 1,106.3 | 1,008.8 | 10% |
Natural gas sales Equinor (bcm) | 67.4 | 63.6 | 6% |
Natural gas entitlement sales Equinor (bcm) | 56.6 | 53.2 | 6% |
Power generation (TWh) Equinor share | 1.98 | 1.98 | —% |
Realised piped gas price Europe (USD/MMBtu) | 12.20 | 11.03 | 11% |
Realised piped gas price US (USD/MMBtu) | 3.07 | 2.00 | 54% |
Financial performance
Total revenues and other income slightly increased from 2024 to 2025 due to higher sales of gas and liquids combined with higher
gas prices in Europe and North America, partially offset by lower crude prices.
Purchases [net of inventory] increased from 2024 to 2025 mostly explained by increased liquids and gas sales.
The increase in operating expenses and selling, general and administrative expenses from 2024 to 2025 was mainly due to higher
transportation costs, which was partially offset by lower operating plant cost and reduced activity in low carbon projects.
Current year result is driven by Gas and Power, primarily explained by optimisation of piped gas trading in Europe, LNG trading and a
favourable outcome of a price review. Crude, Products and Liquids contributed mainly through trading of crude and products. Net
operating income includes the net effect of fair–value changes in derivatives and storages, changes in onerous provisions, operational
storage value and net impairments. During 2025, net operating income included losses related to fair–value changes in commodity
derivatives of USD 49 million, in contrast to USD 421 million in gains in the previous year.
Depreciation, amortisation and impairments decreased from 2024 to 2025, driven by impairment reversal of refinery assets during the
current year. The main driver for the increase in additions to PPE from 2024 to 2025 was higher investment in projects related to
onshore plants.
Equinor 2025 Annual Report on Form 20-F 31
REN - Financial information | |||
For the year ended 31 December | |||
(in USD million) | 2025 | 2024 | Change |
Revenues third party, other revenue and other income | 93 | 216 | (57%) |
Net income/(loss) from equity accounted investments | 99 | 100 | (2%) |
Total revenues and other income | 192 | 317 | (39%) |
Operating, selling, general and administrative expenses | (396) | (687) | (42%) |
Depreciation, amortisation and net impairment losses | (1,403) | (306) | >100% |
Net operating income/(loss) | (1,607) | (676) | >(100%) |
Additions to PP&E, intangibles and equity accounted investments | 2,837 | 2,153 | 32% |
For the year ended 31 December | |||
Operational information | 2025 | 2024 | Change |
Renewables power generation (TWh) Equinor share | 3,504 | 2,802 | 25% |
Financial Performance
The decrease in total revenues and other income for the full year of 2025 was due to a fair–value adjustment related to contingent
consideration impacting the 2024 result. Revenues from operated activities, including net income/(loss) from equity–accounted
investments, remained broadly stable.
Operating expenses for the full year of 2025 decreased compared to the previous year, reflecting lower activity levels from ongoing
development projects and decreased business–development expenditures. The decrease reflects a disciplined focus on operational
priorities and cost reduction efforts in accordance with our strategic objectives and current market conditions.
The net operating loss of USD 1.6 billion for the full year of 2025 included the effect of USD 1.4 billion in impairment losses mainly
related to Empire Wind/SBMT and early–phase project rights within onshore markets.
Net operating loss for the full year of 2024 included the effects of an impairment of USD 400 million mainly related to early phase
project rights within onshore markets and related to Equinor’s offshore wind projects in the US.
Offshore wind projects and investments in the US drove the increase in additions to PP&E, intangibles and equity accounted
investments compared to 2024, partially offset by impairment losses mainly related to Empire Wind.
Equinor 2025 Annual Report on Form 20-F 32
B.Liquidity and Capital Resources
The information set forth under the following headings of the 2025 Annual Report is incorporated herein by reference:
•The information under the sub-heading “Investments” under the heading “Financial Framework” in Section 2.2
Financial performance of Chapter 2 on page 55;
•Capital distribution in Section 2.2 of Chapter 2 on page 65;
•Review of cash flows in Section 2.2 of Chapter 2 on page 66;
•Debt and liquidity management in Section 2.2 of Chapter 2 on page 67, excluding the information in the second
and seventh paragraphs under the sub-heading “Debt and credit rating”; and
•Balance sheet and financial indicators in Section 2.2 of Chapter 2 on pages 68 - 70.
Any credit rating referred to in this 2025 Form 20-F is not a recommendation to buy, hold or sell any of our or our subsidiaries’
securities. Credit ratings may be changed, suspended or withdrawn at any time, and each rating should be evaluated independently
of any other rating.
See also notes 16 Financial investments and financial receivables, 18 Trade and other receivables, 19 Cash and cash
equivalents, 21 Finance debt, 23 Provisions and other liabilities, 24 Trade and other payables, 25 Leases, and 26 Other
commitments, contingent liabilities and contingent assets to the Consolidated financial statements.
Principal contractual obligations
The following table summarises principal contractual obligations, excluding derivatives and other hedging instruments, as well as
asset retirement obligations which for the most part are expected to lead to cash disbursements more than five years into the future.
See note 23 Provisions and other liabilities to the Consolidated financial statements for a maturity profile on asset retirement
obligations and other provisions.
Non-current finance debt in the following table represents principal payment obligations, including interest obligations. Obligations
payable by Equinor to entities accounted for in the Equinor group using the equity method are included in the table below with
Equinor’s full proportionate share. For assets that are included in the Equinor accounts through joint operations or similar
arrangements, the amounts in the table include the net commitment payable by Equinor (i.e., Equinor’s proportionate share of the
commitment less Equinor's ownership share in the applicable entity).
Principal contractual obligations | |||||
As at 31 December 2025 | |||||
Payment due by period1) | |||||
(in USD million) | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | Total |
Undiscounted non-current finance debt- principal and interest2) | 3,086 | 7,222 | 4,847 | 19,296 | 34,450 |
Undiscounted leases3) | 1,285 | 1,161 | 447 | 1,140 | 4,033 |
Nominal minimum other long-term commitments4) | 2,609 | 4,581 | 2,341 | 6,513 | 16,044 |
Total contractual obligations | 6,980 | 12,964 | 7,635 | 26,949 | 54,527 |
1)''Less than 1 year'' represents 2026; ''1-3 years'' represents 2027 and 2028, ''3-5 years'' represents 2029 and 2030, while ''More than 5 years'' includes amounts for later periods. 2)See note 21 Finance debt to the Consolidated financial statements. The main differences between the table and the note relate to interest. 3)See note 4 Financial risk and capital management to the Consolidated financial statements. 4)Nominal minimum other long‑term commitments comprise lease commitments not yet commenced, non‑lease components, and other long‑term commitments. Lease commitments and other long‑term commitments are further described in note 26 Other commitments, contingent liabilities and contingent assets to the Consolidated financial statements. | |||||
Equinor had contractual commitments of USD 10,438 million at 31 December 2025. The contractual commitments reflect Equinor's
share and mainly comprise construction and acquisition of property, plant and equipment as well as committed investments/funding or
resources in equity accounted entities.
Equinor’s projected pension benefit obligation was USD 8,204 million, and the fair value of plan assets amounted to USD
5,522 million as of 31 December 2025. The company’s payments regarding these benefit plans are mainly related to employees in
Norway. See note 22 Pensions to the Consolidated financial statements for more information.
Equinor 2025 Annual Report on Form 20-F 33
Off balance sheet arrangements
Equinor is party to various agreements such as transportation and processing capacity contracts, that are not recognised in the
balance sheet. Furthermore, Equinor is lessee in a range of lease contracts, whereas all leases shall be recognised in the balance
sheet. Commitments regarding the non-lease components of lease contracts as well as leases that have not yet commenced are not
recognised in the balance sheet and represent off balance sheet commitments. Equinor is also party to certain guarantees,
commitments and contingencies that, pursuant to IFRS Accounting Standards, are not necessarily recognised in the balance sheet as
liabilities. See note 26 Other commitments, contingent liabilities and contingent assets to the Consolidated financial statements for
more information.
Summarised financial information related to guaranteed debt securities
The following summarised financial information provides financial information of Equinor Energy AS as co-obligor and guarantor as
required by SEC Rule 3-10 and 13-01 of Regulation S-X.
Equinor Energy AS is a 100% owned subsidiary of Equinor ASA. Equinor Energy AS is the co-obligor of certain existing debt
securities of Equinor ASA and has guaranteed certain existing debt securities of Equinor ASA, including in each case debt securities
that are registered under the US Securities Act of 1933 ("US registered debt securities").
As co-obligor, Equinor Energy AS fully, unconditionally and irrevocably assumes and agrees to perform, jointly and severally with
Equinor ASA, the payment and covenant obligations for certain debt held by Equinor ASA. As a guarantor, Equinor Energy AS fully
and unconditionally guarantees the payment obligations for certain debt held by Equinor ASA. Total debt at 31 December 2025 is
USD 23,338 million, all of which is either guaranteed by Equinor Energy AS (USD 21,782 million), or for which Equinor Energy AS is
co-obligor (USD 1,556 million). In the future, Equinor ASA may from time to time issue debt for which Equinor Energy AS will be the
co-obligor or guarantor.
The applicable US registered debt securities and related guarantees of Equinor Energy AS are unsecured and rank equally with all
other unsecured and unsubordinated indebtedness of Equinor ASA and Equinor Energy AS. The guarantees of Equinor Energy AS
are subject to release in limited circumstances upon the occurrence of certain customary conditions. With respect to US registered
debt securities (and certain other debt securities) issued on or after 18 November 2019, Equinor Energy AS will automatically and
unconditionally be released from all obligations under its guarantee and the guarantee shall thereupon terminate and be discharged of
no further force or effect, in the event that at substantially the same time as its guarantee of such debt securities is terminated, the
aggregate amount of indebtedness for borrowed money for which Equinor Energy AS is an co-obligor (as a guarantor, co-issuer or
borrower) does not exceed 10% of the aggregate principal amount of indebtedness for borrowed money of Equinor ASA and its
subsidiaries, on a consolidated basis, as of such time.
In addition, Equinor US Capital LLC is a wholly owned indirect subsidiary of Equinor ASA and a finance subsidiary. Any US registered
debt securities issued by Equinor US Capital LLC will be fully and unconditionally guaranteed by Equinor ASA and Equinor Energy
AS. Equinor Energy AS' guarantees in respect of US registered debt securities issued by Equinor US Capital LLC will be subject to
release in the same circumstances as its guarantees of US registered debt securities issued by Equinor ASA. Equinor US Capital LLC
has not issued any debt securities as of 31 December 2025
Internal dividends, group contributions and repayment of capital from Equinor Energy AS to Equinor ASA are regulated in the
Norwegian Public Limited Liabilities Act §§ 3-1 - 3-5.
The following summarised financial information for the year ended 31 December 2025 provides financial information about Equinor
ASA, as issuer, and Equinor Energy AS, as co-obligor and guarantor on a combined basis after elimination of transactions between
Equinor ASA and Equinor Energy AS. Investments in non-guarantor subsidiaries are eliminated. Currency loss on transactions
between Equinor ASA and Equinor Energy AS of USD 1,624 million is included in financial items in accordance with the IFRS
Accounting Standards group principles and are included in external items in the Condensed profit and loss statement.
Intercompany balances and transactions between the co-obligor group and the non-guarantor subsidiaries are presented on separate
lines. Transactions with related parties are also presented on a separate line item and include transactions with the Norwegian State's
and the Norwegian State’s share of dividend declared but not paid.
The combined summarized financial information is prepared in accordance with Equinor's IFRS Accounting Standards policies as
described in note 2 Accounting policies to the Consolidated financial statements.
Equinor 2025 Annual Report on Form 20-F 34
COMBINED PROFIT AND LOSS STATEMENT FOR EQUINOR ASA AND EQUINOR ENERGY AS | |
(unaudited, in USD millions) | Full year 2025 |
Revenues and other income | 82,073 |
External | 80,439 |
Non-guarantor subsidiaries | 1,461 |
Related parties | 173 |
Operating expenses | (57,620) |
External (incl depreciation) | (34,795) |
Non-guarantor subsidiaries | (12,524) |
Related parties | (10,301) |
Net operating income | 24,453 |
Net financial items | (127) |
External | (853) |
Non-guarantor subsidiaries | 726 |
Related parties | 0 |
Income before tax | 24,326 |
Income tax | (19,283) |
Net income | 5,043 |
COMBINED BALANCE SHEET FOR EQUINOR ASA AND EQUINOR ENERGY AS | |
At 31 December | |
(unaudited, in USD millions) | 2025 |
Non-current assets | 50,131 |
External | 40,562 |
Non-guarantor subsidiaries | 9,517 |
Related parties | 51 |
Current assets | 30,778 |
External | 29,531 |
Non-guarantor subsidiaries | 1,171 |
Related parties | 76 |
Non-current liabilities | 51,616 |
External | 51,121 |
Non-guarantor subsidiaries | 129 |
Related parties | 366 |
Current liabilities | 36,928 |
External | 22,868 |
Non-guarantor subsidiaries | 12,771 |
Related parties | 1,289 |
Equinor 2025 Annual Report on Form 20-F 35
Use and reconciliation of non-GAAP financial measures
Non-GAAP financial measures are defined as numerical measures that either exclude or include amounts that are not excluded or
included in the comparable measures calculated and presented in accordance with generally accepted accounting principles (i.e,
IFRS Accounting Standards in the case of Equinor). The following financial measures may be considered non-GAAP financial
measures:
a)Net debt to capital employed ratio, Net debt to capital employed ratio adjusted, including lease liabilities and Net debt to capital
employed ratio adjusted
b)Return on average capital employed (ROACE)
c)Organic capital expenditures
d)Cash flow from operations after taxes paid (CFFO after taxes paid)
e)Net cash flow before capital distribution and net cash flow
f)Adjusted operating income and adjusted operating income after tax
g)Adjusted net income
h)Adjusted earnings per share (Adjusted EPS)
a) Net debt to capital employed ratio
In Equinor’s view, net debt ratios provide a more informative picture of Equinor’s financial strength than gross interest-bearing
financial debt.
Three different net debt to capital ratios are provided below: 1) net debt to capital employed, 2) net debt to capital employed ratio
adjusted, including lease liabilities, and 3) net debt to capital employed ratio adjusted.
These calculations are based on 1) Equinor’s gross interest-bearing financial liabilities as recorded in the Consolidated balance sheet
2) Net interest-bearing debt before adjustments, which excludes cash, cash equivalents and current financial investments from gross
interest-bearing debt, and 3) net interest-bearing debt adjusted, including lease liabilities which adjusts the above measure for other
interest-bearing elements.
The following adjustments are made in calculating the net debt to capital employed ratio adjusted, including lease liabilities ratio and
the net debt to capital employed adjusted ratio: financial investments held in Equinor Insurance AS (classified as Current financial
investments in the Consolidated balance sheet) are treated as non-cash and excluded from the calculation of these non-GAAP
measures as these investments are not readily available for the group to meet short term commitments. These adjustments result in a
higher net debt figure and in Equinor’s view provides a more prudent measure of the net debt to capital employed ratio than would be
the case without such exclusions. Additionally, lease liabilities are further excluded in calculating the net debt to capital employed ratio
adjusted.
Forward-looking net debt to capital employed ratio adjusted, including lease liabilities and net debt to capital employed ratio adjusted
included in this report are not reconcilable to their most directly comparable IFRS Accounting Standards measures without
unreasonable efforts, because the amounts included or excluded from IFRS Accounting Standards measures used to determine net
debt to capital employed ratio adjusted, including lease liabilities and net debt to capital employed ratio adjusted cannot be predicted
with reasonable certainty.
The accompanying table details the calculations for these non-GAAP measures and reconciles them with the most directly
comparable IFRS Accounting Standards financial measure or measures.
Equinor 2025 Annual Report on Form 20-F 36
Calculation of capital employed and net debt to capital employed ratio | For the year ended 31 December | ||
(in USD million) | 2025 | 2024 | |
Shareholders' equity | 40,424 | 42,342 | |
Non-controlling interests | 74 | 38 | |
Total equity | A | 40,497 | 42,380 |
Current finance debt and lease liabilities | 5,237 | 8,472 | |
Non-current finance debt and lease liabilities | 25,984 | 21,622 | |
Gross interest-bearing debt | B | 31,222 | 30,094 |
Cash and cash equivalents1) | 5,036 | 5,903 | |
Current financial investments | 14,297 | 15,335 | |
Cash and cash equivalents and current financial investment1) | C | 19,333 | 21,238 |
Net interest-bearing debt before adjustments1) | B1 = B-C | 11,888 | 8,856 |
Other interest-bearing elements 1)2) | 288 | 366 | |
Net interest-bearing debt adjusted, including lease liabilities3) | B2 | 12,176 | 9,221 |
Lease liabilities | 3,412 | 3,510 | |
Net interest-bearing debt adjusted3) | B3 | 8,765 | 5,711 |
Calculation of capital employed: | |||
Capital employed1) | A+B1 | 52,386 | 51,235 |
Capital employed adjusted, including lease liabilities | A+B2 | 52,674 | 51,601 |
Capital employed adjusted | A+B3 | 49,262 | 48,091 |
Calculated net debt to capital employed | |||
Net debt to capital employed1) | (B1)/(A+B1) | 22.7% | 17.3% |
Net debt to capital employed ratio adjusted, including lease liabilities | (B2)/(A+B2) | 23.1% | 17.9% |
Net debt to capital employed ratio adjusted | (B3)/(A+B3) | 17.8% | 11.9% |
1) Previously reported numbers for 2024 have been restated due to a change in accounting policy. The impact of the restatement on relevant line items affected are shown below. For more information see Note 2. Accounting policies. 2) Other interest-bearing elements are financial investments in Equinor Insurance AS classified as current financial investments. 3) Under the new tax payment regime in Norway effective from August 2025, tax payments will be more evenly distributed across all four quarters. Therefore, the previous adjustments for tax normalisation have been discontinued with effect from the third quarter of 2025 without restatement of comparative periods. Under the previous tax regime, net interest-bearing debt adjusted including lease liabilities* and net interest-bearing debt adjusted* included adjustments to exclude 50% of the cash build-up ahead of tax payments on 1 April and 1 October. | |||
Line items impacted by change in accounting policy | At 31 December 2024 | |||
(in USD million) | As reported | Restated | Impact | |
Cash and cash equivalents | 8,120 | 5,903 | (2,217) | |
Cash and cash equivalents and current financial investment | C | 23,455 | 21,238 | (2,217) |
Net interest-bearing debt before adjustments | B1 = B - C | 6,638 | 8,856 | 2,217 |
Other interest-bearing elements | 2,583 | 366 | (2,217) | |
Capital employed | A + B1 | 49,018 | 51,235 | 2,217 |
Net debt to capital employed | (B1) / (A+B1) | 13.5% | 17.3% | 3.7% |
Equinor 2025 Annual Report on Form 20-F 37
b) Return on average capital employed (ROACE)
Return on average capital employed (ROACE) is the ratio of adjusted operating income after tax to the average capital employed
adjusted. The reconciliation for adjusted operating income after tax is presented in section f). Average capital employed adjusted
refers to the average of the capital employed adjusted values as of 31 December for both the current and the preceding year, as
presented under the heading Calculation of capital employed in section a).
Equinor uses ROACE to evaluate performance by measuring how effectively the company employs its capital, whether financed
through equity or debt.
An IFRS Accounting Standards measure most directly comparable to ROACE would be calculated as the ratio of net income/(loss) to
average capital employed that is based on Equinor’s gross interest-bearing financial liabilities as recorded in the Consolidated
balance sheet, excluding cash, cash equivalents and current financial investments.
ROACE is used as a supplementary measure and should not be viewed in isolation or as an alternative to measures calculated in
accordance with IFRS Accounting Standards, including income before financial items, income taxes and minority interest, or net
income, or ratios based on these figures.
Forward-looking ROACE included in this report is not reconcilable to its most directly comparable IFRS Accounting Standards
measure without unreasonable efforts, because the amounts included or excluded from IFRS Accounting Standards measures used
to determine ROACE cannot be predicted with reasonable certainty.
Calculated ROACE based on Adjusted operating income after tax and capital employed adjusted | 31 December | ||
(in USD millions, except percentages) | 2025 | 2024 | |
Adjusted operating income/(loss) after tax | A | 7,043 | 9,062 |
Average capital employed adjusted | B | 48,677 | 43,991 |
Calculated ROACE based on Adjusted operating income after tax and capital employed adjusted | A/B | 14.5% | 20.6% |
Calculated ROACE based on IFRS Accounting Standards | 31 December | ||
(in USD millions, except percentages) | 2025 | 2024 | |
Net income/(loss) | A | 5,058 | 8,829 |
Average total equity | 1 | 41,439 | 45,440 |
Average current finance debt and lease liabilities | 6,855 | 7,874 | |
Average non-current finance debt and lease liabilities | 23,803 | 23,071 | |
Average cash and cash equivalents1) | (5,469) | (6,986) | |
Average current financial investments | (14,816) | (22,279) | |
Average net-interest bearing debt | 2 | 10,372 | 1,679 |
Average capital employed1) | B = 1+2 | 51,811 | 47,119 |
Calculated ROACE based on Net income/loss and capital employed | A/B | 9.8% | 18.7% |
1) Previously reported numbers for 2024 have been restated due to a change in accounting policy. The impact of the restatement on relevant line items affected are shown below. For more information see Note 2. Accounting policies. | |||
Equinor 2025 Annual Report on Form 20-F 38
Line items impacted by change in accounting policy | At 31 December 2024 | ||
(in USD million) | As reported | Restated | Impact |
Average cash and cash equivalents | (8,881) | (6,986) | 1,894 |
Average net-interest bearing debt | (215) | 1,679 | 1,894 |
Average capital employed | 45,225 | 47,119 | 1,894 |
Calculated ROACE based on Net income/loss and capital employed | 19.5% | 18.7% | (0.8)% |
c) Organic capital expenditures
Capital expenditures is defined as Additions to PP&E, intangibles and equity accounted investments, which excludes assets held for
sale, as presented in note 5 Segments to the consolidated financial statements. Organic capital expenditures are capital expenditures
excluding expenditures related to acquisitions, leased assets and other investments with significantly different cash flow patterns.
Equinor believes this measure gives stakeholders relevant information to understand the company’s investments in maintaining and
developing its assets.
Forward-looking organic capital expenditures included in this report are not reconcilable to its most directly comparable IFRS
Accounting Standards measure without unreasonable efforts, because the amounts excluded from such IFRS Accounting Standards
measure to determine organic capital expenditures cannot be predicted with reasonable certainty.
Calculation of organic capital expenditures | Total Group | ||
(in USD billions) | 2025 | 2024 | |
Additions to PP&E, intangibles and equity accounted investments | 20.9 | 16.7 | |
Less: | |||
Acquisition-related additions1) | 6.9 | 3.4 | |
Right of use asset additions | 0.9 | 1.2 | |
Organic capital expenditures | 13.1 | 12.1 | |
1) 2025 number includes the addition of Adura as an equity accounted investment (USD 5.6 billion). | |||
d) Cash flows from operations after taxes paid (CFFO after taxes paid)
Cash flows from operations after taxes paid represents, and is used by management to evaluate, cash generated from operating
activities after taxes paid, which is available for investing activities, debt servicing and distribution to shareholders. Cash flows from
operations after taxes paid is not a measure of our liquidity under IFRS Accounting Standards and should not be considered in
isolation or as a substitute for an analysis of our results as reported in this report. Our definition of Cash flows from operations after
taxes paid is limited and does not represent residual cash flows available for discretionary expenditures.
The table below provides a reconciliation of Cash flows from operations after taxes paid to its most directly comparable IFRS
Accounting Standards measure, Cash flows provided by operating activities before taxes paid and working capital items, as of the
specified dates:
Cash flow from operations after taxes paid (CFFO after taxes paid) | ||
(in USD million) | 2025 | 2024 |
Cash flows provided by operating activities before taxes paid and working capital items1) | 38,439 | 37,838 |
Taxes paid | (20,460) | (20,592) |
Cash flow from operations after taxes paid (CFFO after taxes paid)1) | 17,980 | 17,246 |
1) Previously reported numbers for 2024 have been restated due to a change in accounting policy. The impact of the restatement on relevant line items affected are shown below. For more information see Note 2. Accounting policies. | ||
Equinor 2025 Annual Report on Form 20-F 39
Line items impacted by change in accounting policy | Full year 2024 | ||
(in USD million) | As reported | Restated | Impact |
Cash flows provided by operating activities before taxes paid and working capital items | 38,483 | 37,838 | (645) |
Cash flow from operations after taxes paid (CFFO after taxes paid) | 17,892 | 17,246 | (645) |
e) Net cash flow before capital distribution and net cash flow
Net cash flow before capital distribution represents, and is used by management to evaluate, cash generated from operational and
investing activities available for debt servicing and distribution to shareholders. Net cash flow before capital distribution is not a
measure of our liquidity under IFRS Accounting Standards and should not be considered in isolation or as a substitute for an analysis
of our results as reported in this report. Our definition of Net cash flow before capital distribution is limited and does not represent
residual cash flows available for discretionary expenditures. The table below provides a reconciliation of Net cash flow before capital
distribution to its most directly comparable IFRS Accounting Standards measure, Cash flows provided by operating activities before
taxes paid and working capital items, as of the specified dates
Net cash flow represents, and is used by management to evaluate, cash generated from operational and investing activities available
for debt servicing. Net cash flow is not a measure of our liquidity under IFRS Accounting Standards and should not be considered in
isolation or as a substitute for an analysis of our results as reported in this report. Our definition of Net cash flow is limited and does
not represent residual cash flows available for discretionary expenditures.
The table below reconciles Net cash flow before capital distribution and Net cash flow with its most directly comparable IFRS
Accounting Standards measure, Cash flows provided by operating activities before taxes paid and working capital items, as of the
specified dates:
Net cash flow before capital distribution and net cash flow | ||
(in USD million) | 2025 | 2024 |
Cash flows provided by operating activities before taxes paid and working capital items1) | 38,439 | 37,838 |
Taxes paid | (20,460) | (20,592) |
Cash used/received in business combinations | (26) | (1,710) |
Capital expenditures and investments | (13,994) | (12,177) |
Net (increase)/decrease in strategic non-current financial investments2) | (943.6) | (2,468) |
(Increase)/decrease in other interest-bearing items | 114 | (623) |
Proceeds from sale of assets and businesses | 2,456 | 1,470 |
Net cash flow before capital distribution1) | 5,587 | 1,739 |
Dividends paid | (4,791) | (8,578) |
Share buy-back | (5,916) | (6,013) |
Net cash flow1) | (5,120) | (12,851) |
1) Previously reported numbers for 2024 have been restated due to a change in accounting policy. The impact of the restatement on relevant line items affected are shown below. For more information see Note 2. Accounting policies. 2) This line item includes the initial acquisition of 10 per cent of the shares in Ørsted A/S in the fourth quarter 2024, in addition to the rights subscription in the fourth quarter 2025. | ||
Line items impacted by change in accounting policy | Full year 2024 | ||
(in USD million) | As reported | Restated | Impact |
Cash flows provided by operating activities before taxes paid and working capital items | 38,483 | 37,838 | (645) |
Net cash flow before capital distribution | 2,385 | 1,739 | (645) |
Net cash flow | (12,206) | (12,851) | (645) |
Equinor 2025 Annual Report on Form 20-F 40
f) Adjusted operating income and Adjusted operating income after tax
Adjusted operating income is based on net operating income/(loss) and adjusts for certain items affecting the income for the period to
separate out effects that management considers may not be well correlated to Equinor’s underlying operational performance in the
individual reporting period. Management believes adjusted operating income provides an indication of Equinor’s underlying
operational performance and facilitates comparison of operational trends between periods.
Adjusted operating income after tax equals adjusted operating income/(loss) less tax on adjusted operating income. Tax on adjusted
operating income is computed by adjusting the income tax for tax effects of adjustments made in calculating adjusted operating
income. The tax rate applied is the tax rate applicable to each adjusting item and tax regime, adjusted for certain foreign currency
effects as well as effects of specific changes to deferred tax assets. Management believes adjusted operating income after tax
provides an indication of Equinor’s underlying operational performance after tax and facilitates comparisons of operational trends after
tax between periods as it reflects the tax charge associated with operational performance excluding the impact of financing. Tax on
adjusted operating income should not be considered indicative of the amount of current or total tax expense (or taxes payable) for the
period.
Adjusted operating income adjust for the following items:
•Changes in fair value of derivatives: In the ordinary course of business, Equinor enters into commodity derivative contracts to
manage the price risk exposure relating to future sale and purchase contracts. These commodity derivatives are measured at fair
value at each reporting date, with the movements in fair value recognised in the income statement. By contrast, the related sale
and purchase contracts are not recognised until the transaction occurs resulting in timing differences. Therefore the unrealised
movements in the fair value of these commodity derivative contracts are excluded from adjusted operating income and deferred
until the time of the physical delivery to minimise the effect of these timing differences. Further, embedded derivatives within
certain gas contracts and contingent consideration related to historical divestments are carried at fair value. Any accounting
impacts resulting from such changes in fair value are also excluded from adjusted operating income, as these fluctuations are not
indicative of the underlying performance of the business.
•Periodisation of inventory hedging effect:Equinor enters into derivative contracts to manage price risk exposure relating to its
commercial storage. These derivative contracts are carried at fair value while the inventories are accounted for at the lower of cost
or market price. An adjustment is made to align the valuation principles of inventories with related derivative contracts. The
adjusted valuation of inventories is based on the forward price at the expected realisation date. This is so that the valuation
principles between commercial storages and derivative contracts are better aligned.
•The operational storage is not hedged and is not part of the trading portfolio. Cost of goods sold is measured based on the FIFO
(first-in, first-out) method, and includes realised gains or losses that arise due to changes in market prices. These gains or losses
will fluctuate from one period to another and are not considered part of the underlying operations for the period.
•Impairment and reversal of impairment are excluded from adjusted operating income since they affect the economics of an
asset for the lifetime of that asset, not only the period in which it is impaired or the impairment is reversed. Impairment and
reversal of impairment can impact both the exploration expenses and the depreciation, amortisation and net impairments line
items.
•Gain or loss from sales of assets is eliminated from the measure since the gain or loss does not give an indication of future
performance or periodic performance; such a gain or loss is related to the cumulative value creation from the time the asset is
acquired until it is sold.
•Eliminations (internal unrealised profit on inventories): Volumes derived from equity oil inventory vary depending on several
factors and inventory strategies, i.e. level of crude oil in inventory, equity oil used in the refining process and level of in-transit
cargoes. Internal profit related to volumes sold between entities within the group and still in inventory at period end is eliminated
according to IFRS Accounting Standards (write down to production cost). The proportion of realised versus unrealised gain
fluctuates from one period to another due to inventory strategies and consequently impacts net operating income/(loss). Write
down to production cost is not assessed to be a part of the underlying operational performance, and elimination of internal profit
related to equity volumes is excluded in adjusted operating income.
•Other items of income and expense are adjusted when the impacts on income in the period are not reflective of Equinor’s
underlying operational performance in the reporting period. Such items may be unusual or infrequent transactions, but they may
also include transactions that are significant which would not necessarily qualify as either unusual or infrequent. However, other
items adjusted do not constitute normal, recurring income and operating expenses for the company. Other items are carefully
assessed and can include transactions such as provisions related to reorganisation, early retirement, etc.
•Change in accounting policy is adjusted when the impacts on income in the period are unusual or infrequent, and not reflective
of Equinor’s underlying operational performance in the reporting period.
Equinor 2025 Annual Report on Form 20-F 41
Adjustments made to arrive at adjusted operating income and adjusted net income listed below are similarly applied to net income/
(loss) from equity accounted investments when relevant.
Items impacting net operating income/(loss) in the full year of 2025 (in USD million) | Equinor group | E&P Norway | E&P International | E&P USA | MMP | REN | Other |
Net operating income/(loss) | 25,352 | 24,121 | 470 | 668 | 1,700 | (1,614) | 8 |
Total revenues and other income | 106,462 | 34,392 | 5,102 | 4,296 | 104,769 | 192 | (42,290) |
Adjusting items | (426) | (491) | (40) | — | 76 | 29 | — |
Changes in fair value of derivatives | 49 | — | — | — | 49 | — | — |
Gain/loss on sale of assets | (465) | (491) | 9 | — | (1) | 18 | — |
Periodisation of inventory hedging effect | 6 | — | — | — | 6 | — | — |
Provisions | (8) | — | — | — | — | (8) | — |
Adjusted total revenues and other income | 106,036 | 33,901 | 5,062 | 4,296 | 104,845 | 221 | (42,290) |
Purchases [net of inventory variation] | (55,164) | — | (25) | — | (97,243) | (8) | 42,112 |
Adjusting items | (162) | — | — | — | 65 | — | (227) |
Eliminations | (227) | — | — | — | — | — | (227) |
Operational storage effects | 65 | — | — | — | 65 | — | — |
Provisions | — | — | — | — | — | — | — |
Adjusted purchases [net of inventory variation] | (55,326) | — | (25) | — | (97,178) | (8) | 41,885 |
Operating and administrative expenses | (12,778) | (3,834) | (2,217) | (1,477) | (5,190) | (396) | 337 |
Adjusting items | 309 | — | 289 | — | 6 | 14 | — |
Gain/loss on sale of assets | 297 | — | 289 | — | — | 9 | — |
Other adjustments | 6 | — | — | — | — | 6 | — |
Provisions | 6 | — | — | — | 6 | — | — |
Adjusted operating and administrative expenses | (12,469) | (3,834) | (1,928) | (1,477) | (5,184) | (382) | 337 |
Depreciation, amortisation and net impairments | (12,318) | (5,870) | (2,169) | (2,090) | (636) | (1,403) | (151) |
Adjusting items | 2,482 | 173 | 851 | 385 | (283) | 1,356 | — |
Impairment | 2,777 | 173 | 851 | 385 | 15 | 1,354 | — |
Reversal of impairment | (299) | — | — | — | (299) | — | — |
Adjusted depreciation, amortisation and net impairments | (9,837) | (5,697) | (1,318) | (1,705) | (919) | (46) | (151) |
Exploration expenses | (849) | (567) | (222) | (60) | — | — | — |
Adjusting items | 36 | — | — | 36 | — | — | — |
Adjusted exploration expenses | (813) | (567) | (222) | (24) | — | — | — |
Sum of adjusting items | 2,239 | (318) | 1,100 | 421 | (137) | 1,400 | (227) |
Adjusted operating income/(loss) | 27,591 | 23,803 | 1,569 | 1,089 | 1,563 | (214) | (219) |
Tax on adjusted operating income | (20,549) | (18,522) | (821) | (292) | (1,003) | 51 | 38 |
Adjusted operating income/(loss) after tax | 7,043 | 5,280 | 749 | 797 | 561 | (163) | (181) |
Equinor 2025 Annual Report on Form 20-F 42
Items impacting net operating income/(loss) in the full year of 2024 (in USD million) | Equinor group | E&P Norway | E&P International | E&P USA | MMP | REN | Other |
Net operating income/(loss) | 30,927 | 24,564 | 2,746 | 1,031 | 3,326 | (676) | (64) |
Total revenues and other income | 103,774 | 33,643 | 7,343 | 3,957 | 101,792 | 317 | (43,277) |
Adjusting items | (1,512) | — | (805) | — | (583) | (124) | — |
Changes in fair value of derivatives | (421) | — | — | — | (421) | — | — |
Gain/loss on sale of assets | (941) | — | (805) | — | (135) | — | — |
Impairment | — | — | — | — | — | — | — |
Other adjustments | — | — | — | — | — | — | — |
Periodisation of inventory hedging effect | (26) | — | — | — | (26) | — | — |
Adjusted total revenues and other income | 102,262 | 33,643 | 6,538 | 3,957 | 101,209 | 193 | (43,277) |
Purchases [net of inventory variation] | (50,040) | — | 85 | — | (92,789) | — | 42,664 |
Adjusting items | 16 | — | — | — | 12 | — | 4 |
Eliminations | 4 | — | — | — | — | — | 4 |
Operational storage effects | 17 | — | — | — | 17 | — | — |
Provisions | (5) | — | — | — | (5) | — | — |
Adjusted purchases [net of inventory variation] | (50,024) | — | 85 | — | (92,777) | — | 42,668 |
Operating and administrative expenses | (11,786) | (3,612) | (2,123) | (1,142) | (4,919) | (687) | 697 |
Adjusting items | 296 | — | 84 | — | 48 | 163 | — |
Gain/loss on sale of assets | 232 | — | 84 | — | — | 147 | — |
Other adjustments | 16 | — | — | — | — | 16 | — |
Provisions | 48 | — | — | — | 48 | — | — |
Adjusted operating and administrative expenses | (11,491) | (3,612) | (2,038) | (1,142) | (4,871) | (524) | 697 |
Depreciation, amortisation and net impairments | (9,835) | (4,954) | (2,064) | (1,607) | (757) | (306) | (148) |
Adjusting items | 70 | — | — | — | (191) | 261 | — |
Impairment | 261 | — | — | — | — | 261 | — |
Reversal of impairment | (191) | — | — | — | (191) | — | — |
Adjusted depreciation, amortisation and net impairments | (9,765) | (4,954) | (2,064) | (1,607) | (949) | (44) | (148) |
Exploration expenses | (1,185) | (513) | (496) | (176) | — | — | — |
Adjusting items | — | — | — | — | — | — | — |
Impairment | — | — | — | — | — | — | — |
Adjusted exploration expenses | (1,185) | (513) | (496) | (176) | — | — | — |
Sum of adjusting items | (1,130) | — | (721) | — | (714) | 301 | 4 |
Adjusted operating income/(loss) | 29,798 | 24,564 | 2,025 | 1,031 | 2,612 | (375) | (60) |
Tax on adjusted operating income | (20,736) | (19,013) | (425) | (224) | (1,174) | 50 | 50 |
Adjusted operating income/(loss) after tax | 9,062 | 5,551 | 1,600 | 807 | 1,438 | (325) | (10) |
Equinor 2025 Annual Report on Form 20-F 43
g) Adjusted net income
Adjusted net income is based on net income/(loss) and provides additional transparency to Equinor’s underlying financial performance by also
including net financial items and the associated tax effects.This measure includes adjustments made to arrive at adjusted operating income
after tax, in addition to specific adjustments related to net financial items and related tax effects, as well as certain adjustments to income tax,
as described below. Management believes this measure provides an indication of Equinor’s underlying financial performance including the
impact from financing and facilitates comparison of trends between periods.
Adjusted net income incorporates the adjustments from Adjusted operating income, as well as the following items
impacting net financial items and income tax/tax rate:
•Changes in fair value of financial derivatives used to hedge interest-bearing instruments. Equinor enters into financial
derivative contracts to manage interest rate risk on long term interest-bearing liabilities including bonds and financial loans. The
financial derivative contracts (hedging instruments) are measured at fair value at each reporting date, with movements in fair
value recognised in the income statement. The long term interest-bearing liabilities are measured at amortised cost and not
remeasured at fair value at each reporting date. This creates measurement differences and therefore the movements in the fair
value of these financial derivative contracts and associated tax effects are excluded from the calculation of adjusted net income
and deferred until the time the underlying instrument is matured, exercised, or settled. Management believes that this
appropriately reflects the economic effect of these risk management activities in each period and provides an indication of
Equinor’s underlying financial performance.
•Foreign currency gains/losses on positions used to manage currency risk exposure related to future payments in NOK
and foreign currency gains/losses on certain intercompany bank balances. Foreign currency gains/losses on positions used
to manage currency risk exposure (cash equivalents/financial investments and related currency derivatives where applicable), as
well as currency gains/losses on certain intercompany bank balances are eliminated from adjusted net income. The currency
effects on intercompany bank balances are mainly due to a large part of Equinor’s operations having NOK as functional currency,
and the effects are offset within equity as other comprehensive income arising on translation from functional currency to
presentation currency USD. These currency effects increase volatility in financial performance, which does not reflect Equinor’s
underlying financial performance. Management believes that these adjustments remove periodic fluctuations in Equinor’s adjusted
net income.
•Derecognition of deferred tax assets or recognition of previously unrecognised deferred tax assets. These changes are
related to taxable income in future reporting periods and are not reflective of performance in the current reporting period.
•Income tax effects arising only when calculating income tax in the functional currency (USD). Certain group companies
have USD as functional currency, which is different from the currency in which the taxable income is measured (tax currency).
Income tax effects arising only when calculating income tax in the functional currency (USD), that are not part of the tax
calculation in the tax currency are adjusted for. Management believes this better aligns the effective tax rate in functional currency
with the statutory tax rate in the period.
h) Adjusted earnings per share
Adjusted earnings per share is computed by dividing Adjusted net income by the weighted average number of shares outstanding
during the period. Earnings per share is a metric that is frequently used by investors, analysts and other parties to assess a
company's profitability per share. Management believes this measure provides an indication of Equinor’s underlying financial
performance including the impact from financing and facilitates comparison of trends between periods.
The non-GAAP financial measures presented in section g) above and this section h) are supplementary measures and should not be
viewed in isolation or as substitutes for net operating income/(loss), net income/(loss) and earnings per share, which are the most
directly comparable IFRS Accounting Standards measures. The reconciliation tables below reconcile the above non-GAAP measures
to the most directly comparable IFRS Accounting Standards measure or measures. There are material limitations associated with the
above measures compared with the IFRS Accounting Standards measures, as these non-GAAP measures do not include all the
items of revenues/gains or expenses/losses of Equinor that are required to evaluate its profitability on an overall basis. The non-
GAAP measures are only intended to be indicative of the underlying developments in trends of our on-going operations.
For the year ended 31 December | |||
(in USD million) | 2025 | 2024 | |
Net operating income/(loss) | A | 25,352 | 30,927 |
Income tax | B1 | 20,030 | 22,157 |
Tax on net financial items | B2 | (135) | (107) |
Equinor 2025 Annual Report on Form 20-F 44
Income tax less tax on net financial items | B = B1 - B2 | 20,164 | 22,264 |
Net operating income after tax | C = A - B | 5,188 | 8,663 |
Items impacting net operating income/(loss) | D | 2,239 | (1,130) |
Tax on items impacting net operating income/(loss) | E | (384) | 1,529 |
Adjusted operating income after tax | F = C+D+E | 7,043 | 9,062 |
Net financial items | G | (265) | 58 |
Tax on net financial items | H | 135 | 107 |
Net income/(loss) | I = C+G+H | 5,058 | 8,829 |
For the year ended 31 December | |||
in USD millions | 2025 | 2024 | |
Net operating income/(loss) | 25,352 | 30,927 | |
Items impacting net operating income/(loss) | A | 2,239 | (1,130) |
Adjusted operating income | B | 27,591 | 29,798 |
Net financial items | (265) | 58 | |
Adjusting items | C | (533) | 134 |
Changes in fair value of financial derivatives used to hedge interest bearing instruments | (245) | (46) | |
Foreign currency (gains)/losses on certain intercompany bank and cash balances | (288) | 179 | |
Adjusted net financial items | D | (798) | 192 |
Income tax | E | (20,030) | (22,157) |
Tax effect on adjusting items | F | (330) | 1,344 |
Adjusted net income | G = B + D + E + F | 6,434 | 9,177 |
Less: | |||
Adjusting items | H = A + C | 1,706 | (996) |
Tax effect on adjusting items | (330) | 1,344 | |
Net income/(loss) | 5,058 | 8,829 | |
Attributable to shareholders of the company | I | 5,043 | 8,806 |
Attributable to non-controlling interests | J | 15 | 23 |
Adjusted net income attributable to shareholders of the company | K = G - J | 6,418 | 9,154 |
Weighted average number of ordinary shares outstanding (in millions) | L | 2,593 | 2,821 |
Basic earnings per share (in USD) | M = I/L | 1.94 | 3.12 |
Adjusted earnings per share (in USD) | N = K/L | 2.47 | 3.24 |
Equinor 2025 Annual Report on Form 20-F 45
C.Research and Development, Patents and Licences, etc.
The information set forth under the following headings of the 2025 Annual Report is incorporated herein by reference:
•TDI at a glance in Section 1.5 of Chapter 1 on page 23; and
•Section 2.4. Fuelling innovation of Chapter 2 on pages 79 - 80.
See also notes 9 Auditor’s remuneration and Research and development expenditures and 12 Property, plant and equipment to
the Consolidated financial statements.
D.Trend Information
The information set forth in Section 1.3 The world in which we operate of Chapter 1 and under the heading “Our market
perspective” in Section 2.2 Financial performance of Chapter 2 on pages 56 - 57 of the 2025 Annual Report is incorporated herein by
reference. See also “Item 5. Operating and Financial Review―A. Operating Results” of this 2025 Form 20-F.
E.Critical Accounting Estimates
Not Applicable.
Equinor 2025 Annual Report on Form 20-F 46
ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES
A.Directors and Senior Management
Members of Equinor’s board of directors as of 31 December 2025:
Jon Erik Reinhardsen
Position: Chair of the Board and chair of the Compensation and Executive Development Committee
Term of office: Chair of the Board of Equinor ASA since 1 September 2017. Up for election in 2026.
Year of birth: 1956
Independent: Yes
Other directorships:
Listed companies: Member of the Board of Oceaneering International, Inc.
Non-listed companies: Chair of the Board of SmartOcean AS. Member of the board of Fire Security AS and Snowball Software
Group AS.
Number of shares in Equinor ASA: 4,584 (as of 31 December 2025)
Loans from Equinor ASA: None
Experience: Reinhardsen is a part-time senior advisor with BearingPoint Capital, Oxidane Venture AS and Climentum Capitol.
Reinhardsen was the Chief Executive Officer of Petroleum Geo-Services (PGS) from 2008 - August 2017. PGS delivered global
geophysical- and reservoir services. In the period 2005 - 2008 Reinhardsen was President Growth, Primary Products in the
international aluminium company Alcoa Inc. with headquarters in the US, and he was in this period based in New York. From
1983 to 2005, Reinhardsen held various positions in the Aker Kværner group, including Group Executive Vice President of Aker
Kværner ASA, Deputy Chief Executive Officer and Executive Vice President of Aker Kværner Oil & Gas AS in Houston and
Executive Vice President in Aker Maritime ASA.
Education: Master’s degree in Applied Mathematics and Geophysics from the University of Bergen. He has also attended the
International Executive Program at the Institute for Management Development (IMD) in Lausanne, Switzerland.
Family relations: No family relations to other members of the Board, members of the Corporate Executive Committee or the
Corporate Assembly.
Other matters: Reinhardsen is a Norwegian citizen, and resident in Norway.
Anne Drinkwater
Position: Deputy chair of the Board, chair of the board’s Audit Committee and member of the Board’s safety, Sustainability and
Ethics Committee.
Term of office: Deputy chair of the Board of Equinor ASA since 1 July 2022 and board member since 1 July 2018. Up for
election in 2026.
Year of birth: 1956.
Independent: Yes.
Other directorships:
Listed company: Senior Independent Non-executive member of the board of Balfour Beatty plc.
Number of shares in Equinor ASA: 1,100 (as of 31 December 2025)
Loans from Equinor ASA: None.
Experience: Drinkwater was employed with bp in the period 1978-2012, holding a number of different leadership positions in the
company. In the period 2009-2012 she was chief executive officer of bp Canada. She has extensive international experience,
including being responsible for operations in the US, Norway, Indonesia, the Middle East and Africa. Through her career
Drinkwater has acquired a deep understanding of the oil and gas sector, holding both operational roles, and more distinct
business responsibilities.
Education: Bachelor of Science in Applied Mathematics and Statistics, Brunel University London.
Family relations: No family relations to other members of the Board, members of the Corporate Executive Committee or the
Corporate Assembly.
Other matters: Drinkwater is a British citizen, and resident in the United States.
Finn Bjørn Ruyter
Position: Member of the Board, chair of the Board's Safety, Sustainability and Ethics Committee and member of the
Board’sAudit Committee.
Term of office: Member of the Board of Equinor ASA since 1 July 2019. Up for election in 2026.
Year of birth: 1964
Independent: Yes
Other directorships:
Listed companies: Chair of the Board of Sentia ASA
Non-listed companies: Board member of Cegal in addition to several companies fully or partly owned by Hafslund.
Number of shares in Equinor ASA: 620 (as of 31 December 2025)
Loans from Equinor ASA: None
Equinor 2025 Annual Report on Form 20-F 47
Experience: Ruyter has since July 2012 been CEO of Hafslund AS. He was CFO in the company 2010-2011. In 2009-2010 he
worked in the Philippine hydro power company SN Aboitiz Power. In the period 1996-2009 he led the power trading entity and
from 1999 also the energy division in Elkem. From 1991-1996 Ruyter worked with energy trading in Norsk Hydro.
Education: Master’s degree in mechanical engineering from the Norwegian University of Technology (NTNU) and an MBA from
BI Norwegian School of Management.
Family relations: No family relations to other members of the Board, members of the Corporate Executive Committee or the
Corporate Assembly.
Other matters: Ruyter is a Norwegian citizen, and resident in Norway.
Haakon Bruun-Hansen
Position: Member of the Board, the Board's Audit Committee and the Board's Safety, Sustainability and Ethics Committee.
Term of office: Member of the Board of Equinor ASA since 12 December 2022. Up for election in 2026.
Year of birth: 1960
Independent: Yes
Other directorships: None
Number of shares in Equinor ASA: None (as of 31 December 2025)
Loans from Equinor ASA: None
Experience: Bruun-Hanssen held the position as Chief of Norwegian Defence Forces from 2013-2020, previously having held
the position as Chief Norwegian Joint Operational Headquarters from 2011-2013 and Chief Royal Norwegian Navy from 2009-
2011, Chief of staff Royal Norwegian Navy from 2007-2009 and Chief Naval Operations centre from 2003-2007. Prior to this he
has had an extensive career in the Norwegian Military.
Education: Bruun-Hanssen has a broad education through the Norwegian Military; Petty Officer training school, Norwegian
naval Academy, Submarine Commanding officer course and Higher command course, Forsvarets Høyskole. He is also educated
at Military Command and Staff college, Instituut Defensie Leergangen in The Netherlands and has participated in work sessions
relating to board roles and tasks at Insead In-Board Nordic Academy.
Family relations: No family relations to other members of the Board, members of the Corporate Executive Committee or the
Corporate Assembly.
Other matters: Bruun-Hanssen is a Norwegian citizen, and resident in Norway.
Mikael Karlsson
Position: Member of the Board of Equinor ASA , the Board's Compensation and Executive Development Committee and the
Board's Safety, Sustainability and Ethics Committee.
Term of office: Member of the Board of Equinor ASA since 1 April 2024. Up for election in 2026.
Year of birth: 1961
Independent: Yes
Other directorships:
Non-listed companies: Chair of the board of Actis EU Management SARL
Number of shares in Equinor ASA: None (as of 31 December 2025)
Loans from Equinor ASA: None
Experience: Karlsson is partner and Vice Chairman of Actis Capital, a leading global investor in sustainable infrastructure. In the
period 2021-2023 he was Chief Investment Officer in Actis, in 2012 he became partner in Actis and had the role as Head of
Energy and Infrastructure from 2015-2021. From 2009-2015 he was CEO in Globeleq, an Actis portfolio company. Karlsson held
several roles in ABB Energy Ventures before he came to Actis.
Education: Master’s in business administration from the University of Massachusetts in USA and a Master of Science in
Industrial Engineering and Management from Linköping Institute of Technology in Sweden.
Family relations: No family relations to other members of the Board, members of the Corporate Executive Committee or the
Corporate Assembly.
Other matters: Karlsson is a Swedish citizen, and resident in Switzerland.
Fernanda Lopes Larsen
Position: Member of the Board of Equinor ASA and the Board's Audit Committee.
Term of office: Member of the Board of Equinor ASA since 1 July 2024. Up for election in 2026.
Year of birth: 1974
Independent: Yes
Other directorships: None
Number of shares in Equinor ASA: None (as of 31 December 2025)
Loans from Equinor ASA: None
Experience: Fernanda Lopes Larsen has served as Executive Vice President of Yara Africa & Asia Pacific in Yara International
since October 2020. She has held senior positions roles in Yara, including Senior Vice President of Indirect Procurement
between December 2016 and October 2020. She has been with Yara since 2012 and held roles as Head of Logistics
Procurement Europe in Supply Chain and Central Category Manager roles in Production. Prior to joining Yara Ms. Lopes Larsen
held manufacturing and supply chain positions in the fast-moving consumer goods (FMCG) industry with Procter & Gamble
Equinor 2025 Annual Report on Form 20-F 48
(P&G) and within pharmaceutical multinational GSK (GlaxoSmithKline). She has extensive international experience in the
chemical manufacturing industry and broad international experience.
Education: Master of Science in Civil Engineering from the Graz University of Technology, Austria, Master of Business
Administration from IESE Business School, Spain and Professional Certificate in Corporate Innovation from Stanford University,
United States.
Family relations: No family relations to other members of the Board, members of the Corporate Executive Committee or the
Corporate Assembly.
Other matters: Lopes Larsen is a Brazilian and British citizen and resident in Norway.
Dawn Summers
Position: Member of the Board, the Board's Audit Committee and the Board's Safety, Sustainability and Ethics Committee.
Term of office: Member of the Board of Equinor ASA since 1 September 2025. Up for election in 2026.
Year of birth: 1973
Independent: Yes
Other directorships: None
Number of shares in Equinor ASA: None (as of 31 December 2025)
Loans from Equinor ASA: None
Experience: Dawn Summers served as Interim Chief Operating Officer at Harbour Energy from 2024 - 2025. In this position, she
was responsible for ensuring business continuity and smooth operations integration following Harbour Energy’s acquisition of
Wintershall Dea, where she was as Chief Operating Officer and board member from 2020-2024. In this role, she was responsible
for safe business delivery and also led efforts to develop early-stage carbon capture and storage (CCS) and hydrogen projects.
Before this, Summers held COO roles at Beach Energy from 2018-2020 and Origin Energy from 2016-2018. She was executive
Head of HSE, Operations & Developments with General Energy from 2013-2015 and has held several positions with BP plc from
1995-2013. Summers has more than 30 years extensive international experience within the energy industry in safety &
operational leadership as well as corporate transformation, sustainability and crisis management expertise across UK, Europe,
Latin America, Middle East, North Africa, and Asia-Pacific. She is also active in European energy policy. As former Chair of the
European Board of the International Association of Oil & Gas Producers (IOGP), she led strategic engagement with EU
institutions on energy transition policy and energy security. She also served as President of GasNaturally, promoting secure and
pragmatic approaches to climate resilience across the gas value chain. Summers is a strong advocate for diversity and inclusion
in the energy sector and committed to mentoring the next generation of women leaders in STEM fields.
Education: Bachelor of Engineering (with Honours) in Chemical Engineering from Edinburgh University and Executive
Operations Leadership from MIT Sloan School of Management in Massachusetts, USA.
Family relations: No family relations to other members of the Board, members of the Corporate Executive Committee or the
Corporate Assembly.
Other matters: Summers is a British citizen, and resident in Australia.
Jarle Roth
Position: Member of the Board and member of the Compensation and Executive Development Committee
Term of office: Member of the Board of Equinor ASA since 1 December 2025. Up for election in 2026.
Year of birth: 1960
Independent: Yes
Other directorships:
Listed companies: Chair of the Board of Storebrand ASA.
Non-listed companies: Chair of the Board of Hafslund AS, member of the board of Norfund and Umoe
Number of shares in Equinor ASA: 6,700 (as of 31 December 2025)
Loans from Equinor ASA: None
Experience:Jarle Roth is an independent advisor. Roth has held CEO roles in multiple Norwegian companies, including at
Eksportkreditt Norge AS, Arendals Fossekompani ASA, Umoe Group, Schat-Harding and Unitor ASA. His career spans across
industrial investment management, change management, energy transition initiatives, financing of Norwegian export industries
and global shipping services. He has extensive experience from major listed companies. His boardroom experience includes
governance, risk management, strategy, M&A, and sustainability. Internationally, Roth has led and integrated businesses with
activities within Europe, Americas and Asia. Roth has previously served as chair of the Equinor Nomination Committee and
Corporate Assembly.
Education: Roth has a MSc of Finance and Business Administration (“siviløkonom”) from the Norwegian School of Economics
(NHH).
Family relations: No family relations to other members of the Board, members of the Corporate Executive Committee or the
Corporate Assembly.
Other matters: Roth is a Norwegian citizen, and resident in Norway.
Equinor 2025 Annual Report on Form 20-F 49
Hilde Møllerstad
Position: Employee representative member of the Board and member of the Board's Audit Committee.
Term of office: Member of the Board of Directors of Equinor ASA since 1 July 2019. Up for election in 2027.
Year of birth: 1966
Independent: No
Other board directorships: None
Number of shares in Equinor ASA: 5,408 (as of 31 December 2025)
Loans from Equinor ASA: None
Experience: Møllerstad has been employed by Equinor since 1991 and works within petroleum technology discipline in
Exploration & Production International. Møllerstad has been a member of the Corporate Assembly in Equinor from 2013 - 2019
and was a board member of Tekna Private from 2012 - 2017, Tekna Ethics Counsel from 2019 - 2024 and she has had several
trust offices in Tekna Equinor since 1993.
Education: Chartered engineer from NTNU (Norwegian University of Science and Technology) and Project Management
Essential (PME) from BI/NTNU (Norwegian Business School BI/ Norwegian University of Science and Technology).
Family relations: No family relationships to other board members, members of the Corporate Executive Committee or the
Corporate Assembly.
Other matters: Møllerstad is a Norwegian citizen and resident in Norway
Frank Indreland Gundersen
Position: Employee representative member of the Board, member of the Safety, Sustainability and Ethics Committee and
member of the Board's Compensation and Executive Development Committee.
Term of office: Member of the Board of Equinor ASA since 1 July 2025. Up for election in 2027.
Year of birth: 1990
Independent: No
Other directorships: None
Number of shares in Equinor ASA: 379 (as of 31 December 2025)
Loans from Equinor ASA: None
Experience: Gundersen is a full-time employee representative as union leader of Styrke Equinor. He was a member of the
Corporate Assembly from 2023 - 2025. He has previously worked as discipline responsible offshore.
Education: Gundersen has a craft certificate as a process/chemistry worker.
Family relations: No family relations to other members of the Board, members of the Corporate Executive Committee or
members of the Corporate Assembly.
Other matters: Gundersen is a Norwegian citizen, and resident in Norway.
Geir Leon Vadheim
Position: Employee representative member of the Board and member of the Safety, Sustainability and Ethics Committee.
Term of office: Member of the Board of Equinor ASA since 1 July 2025. Up for election in 2027.
Year of birth: 1962
Independent: No
Other directorships: None
Number of shares in Equinor ASA: 4,480 (as of 31 December 2025)
Loans from Equinor ASA: None
Experience: Vadheim has been employed with Equinor since 1989 and works as a Leading Engineer in fiscal metering of oil and
gas. He has previously held various positions in automation and has participated in projects in Norway and internationally.
Vadheim was a member of the board of directors of Equinor pension from 2013 - 2017 and from 2017 - 2025 as a deputy
member. Since 2022 he has been business group leader for NITO Equinor in Bergen and main union representative in EPN.
Vadheim has also been a customer representative in the Gjensidige Foundation since 2017.
Education: Bachelor, Electrical & Automation from Østfold University College (ØHI).
Family relations: No family relations to other members of the Board, members of the Corporate Executive Committee or
members of the Corporate Assembly.
Other matters: Vadheim is a Norwegian citizen, and resident in Norway.
Equinor 2025 Annual Report on Form 20-F 50
Members of Equinor's corporate executive committee as of 31 December 2025:
Anders Opedal
Position: President and Chief Executive Officer (CEO) since 2 November 2020
Year of birth: 1968
External offices: None
Number of shares in Equinor ASA: 73,759 (as of 31 December 2025)
Loans from Equinor ASA: None
Experience: Opedal joined Equinor in 1997. From 2018-2020 he held the position as Executive Vice President Technology,
Projects and Drilling. From August to October 2018, he was Executive Vice President for Development, Production Brazil and
prior to this Senior Vice President for Development, Production International Brazil. He also held the position as Equinor’s Chief
Operating Officer. In 2011 he took on the role as Senior Vice President in Technology, Projects and Drilling; where he was
responsible for Equinor’s NOK 300 billion project portfolio. From 2007-2010 he served as Chief Procurement Officer. He has held
a range of technical, operational and leadership positions in the company and started as a petroleum engineer in the Statfjord
operations. Prior to Equinor, Opedal worked for Schlumberger and Baker Hughes.
Education: MBA from Heriot-Watt University and master's degree in Engineering (sivilingeniør) from the Norwegian Institute of
Technology (NTH) in Trondheim.
Family relations: No family relations to other members of the Corporate Executive Committee, members of the Board or the
Corporate Assembly.
Other matters: Opedal is a Norwegian citizen and resident in Norway.
Torgrim Reitan
Position: Executive Vice President and Chief Financial Officer since 6 October 2022
Year of birth: 1969
External offices: None
Number of shares in Equinor ASA: 24,196 (as of 31 December 2025)
Loans from Equinor ASA: None
Experience: Reitan joined Equinor in 1995. He comes from the position of Senior Vice President for Finance and Control in
Equinor’s Renewables business area, which he held since 2020. From 2018 - 2020 he was Executive Vice President for
Development and production international, and from 2015 - 2018 Reitan held the position as Executive Vice President of
Development and Production USA. Prior to this he held the position as Executive Vice President and Chief Financial Officer from
2010 - 2015. He has held several management positions in Equinor prior to this, including Senior Vice President in trading and
operations in the Natural gas business area in 2009 - 2010, Senior Vice President in Performance management and analysis
from 2007 - 2009, and from 2005 - 2007 he was Senior Vice President in Performance Management, Tax and M&A. From 1995 -
2004 Reitan held various positions in the Natural Gas business area and corporate functions.
Education: Master of science degree from the Norwegian School of Economics (NHH).
Family relations: No family relations to other members of the Corporate Executive Committee, members of the Board or the
Corporate Assembly.
Other matters: Torgrim Reitan is a Norwegian citizen and resident in Norway.
Camilla Salthe
Position: Executive Vice President, Safety, Security & Sustainability (SSU) since 1 January 2026.
Year of birth: 1978
External offices: None
Number of shares in Equinor ASA: 6,121 (as of 1 January 2026)
Loans from Equinor ASA: None
Experience: Salthe joined Equinor in 2003. She has held several management positions in Equinor. She comes from the
position of Senior Vice President UK & Ireland in Exploration & Production International, which she held since September 2024. A
key delivery during this time was establishing Adura on 1 December 2025, the new company owned by Shell and Equinor, while
ensuring safe and efficient operations of the Mariner field. Prior to this, Salthe was Senior Vice President Field Life Extension, an
organisation that develops new ways of working to prolong field lifetime for NCS assets. Between 2003 - 2020 she held a series
of business development and petroleum technology positions.
Education: Master of Science in Petroleum Technology from Norwegian University of Science and Technology (NTNU).
Family relations: No family relations to other members of the Corporate Executive Committee, members of the Board or the
Corporate Assembly.
Other matters: Salthe is a Norwegian citizen and resident in Norway.
Kjetil Hove
Position: Executive Vice President, Exploration & Production Norway (EPN) since 1 January 2021
Year of birth: 1965
External offices: Member of the Board of Offshore Norge and NHO
Number of shares in Equinor ASA: 32,262 (as of 31 December 2025)
Loans from Equinor ASA: None
Equinor 2025 Annual Report on Form 20-F 51
Experience: Hove joined Equinor in 1991. He has held several central management positions in Equinor. He comes from the
position of Senior Vice President Field Life Extension, which he held since January 2020. Prior to this, Hove was Senior Vice
President for Operations Technology in Development & Production Norway. From 2000 - 2012 he worked internationally,
including as Country Manager for Equinor in Brazil for 3.5 years. Hove started his career in 1991 in Norsk Hydro within petroleum
technology holding various positions within exploration, field development and operations in Norway.
Education: Master’s degree in petroleum engineering from Norwegian University of Science and Technology (NTNU).
Family relations: No family relations to other members of the Corporate Executive Committee, members of the Board or the
Corporate Assembly.
Other matters: Hove is a Norwegian citizen and resident in Norway.
Philippe François Mathieu
Position: Executive Vice President, Exploration & Production International (EPI) since 1 January 2023
Year of birth: 1966
External offices: None
Number of shares in Equinor ASA: 15,260 (as of 31 December 2025)
Loans from Equinor ASA: None
Experience: Mathieu joined Equinor in 1995. He comes from the position of Senior Vice President Corporate Strategy, which he
had since October 2019. Mathieu has also held the Senior Vice President position for Joint Operations Support in Exploration &
Production Norway from 2016 – 2019, Corporate Finance from 2014 – 2016, and Business Development Midstream
Infrastructure from 2011 – 2014. Prior to the roles as Senior Vice President, Mathieu held several senior positions within
marketing and supply in commercializing gas contracts in both North Africa and Europe.
Education: Civil Engineer degree from Ecole Nationale des Travaux Publics de l’Etat and a Master’s degree in Economics from
Université Lumière Lyon and from University of California, Berkeley.
Family relations: No family relations to other members of the Corporate Executive Committee, members of the Board or the
Corporate Assembly.
Other matters: Philippe Mathieu is a French citizen and resident in Norway.
Geir Tungesvik
Position: Executive Vice President, Projects, Drilling & Procurement (PDP) since 1 May 2022
Year of birth: 1961
External offices: None
Number of shares in Equinor Energy AS: 27,564 (as of 31 December 2025)
Loans from Equinor Energy AS: None
Experience: Geir Tungesvik joined Equinor in 1985. He comes from the position as Senior Vice President Project Development.
Previously he has held central management positions in the company including the position as Senior Vice President for Drilling
and Well, Vice President for exploration drilling, Vice President for Grane production field and Vice President for health, safety
and environment in Exploration.
Education: Master of Science degree in petroleum from the University of Stavanger (UIS) and Master module in strategic
management from the Norwegian Business School (BI).
Family relations: No family relations to other members of the Corporate Executive Committee, members of the Board or the
Corporate Assembly.
Other matters: Tungesvik is a Norwegian citizen and resident in Norway.
Irene Rummelhoff
Position: Executive Vice President, Marketing, Midstream & Processing (MMP) since 17 August 2018
Year of birth: 1967
External offices: Member of the board of Airbus SE
Number of shares in Equinor Energy AS: 39,589 (as of 31 December 2025)
Loans from Equinor Energy AS: None
Experience: Rummelhoff joined Equinor in 1991. She has held a number of management positions within international business
development, exploration, and the downstream business in Equinor. Her most recent position, which she held from June 2015,
was as Executive Vice President New Energy Solutions (NES).
Education: Master’s degree in Petroleum geosciences from the Norwegian Institute of Technology (NTH)
Family relations: No family relations to other members of the Corporate Executive Committee, members of the Board or the
Corporate Assembly.
Other matters: Rummelhoff is a Norwegian citizen and resident in Norway.
Equinor 2025 Annual Report on Form 20-F 52
Helge Haugane
Position: Executive Vice President, Power (PWR) since 3 November 2025
Year of birth: 1978
External offices: None
Number of shares in Equinor ASA: 12,983 (as of 31 December 2025)
Loans from Equinor ASA: None
Experience: Helge Haugane joined Equinor in 2003 in a four-year corporate trainee program where he worked within oil trading,
the natural gas division, Project Control and the Corporate Planning Unit working with the Statoil/Hydro merger in 2007. After the
merger, he took the role of Leading Advisor for Economic Analysis for upstream before heading the Analysis Unit in the Natural
Gas segment. Helge relocated to London in 2011 to become Head of Business Control in Global Strategy and Business
Development and in 2012 took the position of Vice President of Finance and Control for global strategy and business
development, where he also held the position as the Managing Director for Equinor in the UK. In 2014, Helge relocated to
Houston where held the position of Vice President, Finance and Control for Equinor’s North American business. In 2017 he
moved back to Norway and held the position as Vice President Finance and control for the MMP business area (Marketing,
Midstream and Processing). In 2020 Helge took the position as Senior Vice President for Equinor’s gas and power trading.
Education: Master’s degree in Economics and Finance from the Norwegian School of Economics (NHH).
Family relations: No family relations to other members of the Corporate Executive Committee, members of the Board or the
Corporate Assembly.
Other matters: Haugane is a Norwegian citizen and resident in Norway.
Hege Skryseth
Position: Executive Vice President Technology, Digital & Innovation since 1 September 2022
Year of birth: 1967
External offices: Member of the Board of Tomra
Number of shares in Equinor ASA: 11,716 (as of 31 December 2025)
Loans from Equinor ASA: None
Experience: Skryseth joined Equinor on 1 September 2022. She comes from the position as Executive Vice President of
Kongsberg, and President of Kongsberg Digital, a position which she held since 2013. Prior to Kongsberg, Skryseth held various
leadership positions in international tech companies such as Microsoft and Geodata (ESRI).
Education: Executive MBA from NHH and Bachelor from BI, college graduate from NITH.
Family relations: No family relations to other members of the Corporate Executive Committee, members of the Board or the
Corporate Assembly.
Other matters: Skryseth is a Norwegian citizen and resident in Norway.
Siv Helen Rygh Torstensen
Position: Executive Vice President and General Counsel, Legal & Compliance (LEG) since 1 June 2021.
Year of birth: 1970
External offices: Deputy chair of the Council of Ethics for the Government Pension Fund Global
Number of shares in Equinor ASA: 21,601 (as of 31 December 2025)
Loans from Equinor ASA: None
Experience: Rygh Torstensen joined Equinor in 1998. She comes from the position of Senior Vice President and General
Counsel, which she held since 1 August 2019. Prior to that she held the position as Head of CEO office from July 2016. From
2011 - 2016 she was Vice President Corporate in LEG. From 1998 - 2011 Rygh Torstensen held various positions within LEG,
including as Corporate Compliance Office and Acting General Counsel. Before joining Equinor she worked with the law firm
Cappelen & Krefting DA and as a lawyer for Stavanger municipal council.
Education: Master of Law from the University of Bergen, Norway, and licensed as an Attorney at Law.
Family relations: No family relations to other members of the Corporate Executive Committee, members of the Board or the
Corporate Assembly.
Other matters: Rygh Torstensen is a Norwegian citizen and resident in Norway.
Jannik Lindbæk
Position: Executive Vice President Communication since 1 March 2022
Year of birth: 1965
External offices: None
Number of shares in Equinor ASA: 17,171 (as of 31 December 2025)
Loans from Equinor ASA: None
Experience: Lindbæk joined Equinor in 2010. He was appointed Senior Vice President Communication 1 January 2021. He was
Vice President Corporate Communications Political & Public Affairs Norway from 2019-2021. Prior to this he was Equinor’s Vice
President for communication in Brussels, before that in the CFO Global Business Services, and as Vice President Media
Relations from 2010-2015. Before joining Equinor, Lindbæk was SVP Corporate Communication in Aker Solutions, PR manager
in Microsoft and PR consultant in BWPR and GCI Monsen.
Education: Master’s degree in Comparative Politics from the University of Bergen and London School of Economics.
Equinor 2025 Annual Report on Form 20-F 53
Family relations: No family relations to other members of the Corporate Executive Committee, members of the Board or the
Corporate Assembly.
Other matters: Lindbæk is a Norwegian citizen and resident in Norway.
Aksel Stenerud
Position: Executive Vice President, People & Organisation (PO) since 1 March 2022
Year of birth: 1963
External offices: None
Number of shares in Equinor ASA: 16,939 (as of 31 December 2025)
Loans from Equinor ASA: None
Experience: Stenerud joined Equinor in 2008 and has held various leadership roles across the company. His most recent
position, which he held from November 2021, was Vice President Employee Relations in Corporate PO. From August 2018, he
was Vice President for PO in Exploration & Production International. He has also served as Vice President for Exploration &
Production Norway from 2014-2018. Stenerud has had a long international career within HR and prior to this he served as an
officer in the Norwegian Airforce.
Education: Graduate from the Air Defense academy. Minor and Intermediate in phsycology with the Norwegian university of
science and technology in Trondheim.
Family relations: No family relations to other members of the Corporate Executive Committee, members of the Board or the
Corporate Assembly.
Other matters: Stenerud is a Norwegian citizen and resident in Norway.
The information set forth in the 2025 Corporate Governance Report, Chapter 8, under the heading “Corporate assembly” is also
incorporated herein by reference.
B.Compensation
The information set forth under the following headings of the 2025 Remuneration Policy is incorporated herein by reference:
•Remuneration of the corporate assembly and board of directors; and
•Remuneration of the corporate executive committee.
The information set forth under the following headings of the 2025 Remuneration Report is incorporated herein by reference:
•Notes on roles and remuneration of CEC members in 2025;
•Execution of policy on executive remuneration in 2025;
•Derogations and deviations from remuneration policy;
•Right to reclaim (‘malus and clawback’);
•Remuneration and share ownership of the board of directors and corporate assembly;
•Remuneration of the CEC;
•Shares awarded or due to the CEC in the reported financial year;
•Total number and value of shares held by the CEC; and
•Performance and AVP awarded to the CEC members in the reported financial year.
See also note 22 Pensions to the Consolidated financial statements.
C.Board Practices
The information set forth under the following headings of the of the 2025 Annual Report is incorporated herein by reference:
•Governing bodies in Section 1.7 Governance and risk management on pages 25 - 27; and
•Corporate executive committee in Section 1.7 Governance and risk management on pages 28 - 29.
The information set forth under the following headings of the 2025 Corporate Governance Report is also incorporated herein by
reference:
•Corporate assembly, board of directors and corporate executive committee in Chapter 8; and
•The information set forth under the heading ‘The board of directors’ committees’ in Chapter 9.
See also “Item 6. Directors, Senior Management and Employees—A. Directors and Senior Management” of this 2025 Form 20-F
for more information regarding the expiration date of the current term of office of the members of our board of directors and the period
during which our directors have served in such capacity, and the composition of the board of directors’ committees.
Equinor 2025 Annual Report on Form 20-F 54
D.Employees
Our engagement with unions
We respect our employees’ rights to organise and to voice their opinions, and we have the same clear expectations for our suppliers
and partners. We engage with employee representatives on labour matters through a variety of channels, including meetings with
labour unions on all levels of the organisation, works councils, and health and working environment committees. Union
representatives are invited to collaborate in connection with change initiatives and as part of committees that are established to
further develop the company in line with corporate strategy.
In 2025, several collective agreements were negotiated with relevant unions. The majority of these were interim settlements that
mainly covered the annual wage increase. These were put into effect at different locations and for various types of personnel across
the organisation.
Through 2025, we have had continuous dialogue and collaboration with union representatives and safety delegates on a number of
topics. This includes discussions on changes to the legislative framework, change processes, working time, rotations and shift work,
career development, and retirement age.
Employee Relations oversees union negotiations, and the Vice president for employee relations is accountable for this engagement.
Number of Employees
Total workforce by region and employment type in the Equinor group in 2025 | |||
as of 31 December 2025 | |||
Geographic location | Permanent employees | Consultants | Total workforce1 |
Norway | 21,161 | 784 | 21,945 |
Rest of Europe | 1,440 | 54 | 1,494 |
Africa | 51 | 3 | 54 |
Asia | 103 | 14 | 117 |
North America | 644 | 94 | 738 |
South America | 740 | 48 | 788 |
Australia | 1 | 1 | 2 |
Total | 24,140 | 998 | 25,138 |
Non - OECD | 871 | 64 | 935 |
1Contractor personnel, defined as third-party service provides who work at our onshore and offshore operations, are not included. | |||
Number of Equinor Group employees by employment type | Total |
as of 31 December 2025 | |
Number of all employees (Headcount) | 24,620 |
Number of permanent employees including part time employees (Headcount) | 24,140 |
Number of temporary employees (Headcount) | 480 |
Number of non-guaranteed hours employees (Headcount) | 0 |
Number of permanent, full-time employees (Headcount) | 23,545 |
Number of permanent, part-time employees (Headcount) | 595 |
E.Share Ownership
The information set forth under the following headings of the 2025 Remuneration Report is incorporated herein by reference:
•Total number and value of shares held by the members of the board of directors;
•Shares held by the members of the corporate assembly; and
•Total number and value of shares held by the CEC.
The information set forth under the heading “Equinor's share incentive plans ” in Section 5.1 of Chapter 5 on page 282 of the
2025 Annual Report is also incorporated herein by reference.
Equinor 2025 Annual Report on Form 20-F 55
F.Disclosure of a Registrant’s Action to Recover Erroneously Awarded Compensation
Not applicable.
ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS
A.Major Shareholders
The information set forth under the heading “Major shareholders” in Section 5.1 Shareholder information of the 2025 Annual
Report is incorporated herein by reference.
B.Related Party Transactions
As part of its general loan arrangement for Equinor employees, Equinor has granted loans to Equinor-employed spouses of
certain members of the corporate executive committee. Permanent employees in specified employee categories may take out a car
loan from Equinor in accordance with standardised provisions set by the company. The standard maximum car loan is limited to the
cost of the car, including registration fees, but not exceeding NOK 400,000. Employees remunerated outside the collective labour
area are entitled to a car loan up to NOK 600,000 (for employees remunerated as senior managers) or NOK 700,000 (for employees
remunerated as vice presidents and senior vice presidents). The car loan is interest- free, but the tax value, "interest advantage",
must be reported as salary. Permanent employees of Equinor ASA may also apply for a consumer loan up to NOK 350,000. The
interest rate on consumer loans corresponds to the standard rate in effect at any time for “reasonable loans” from employer as
decided by the Norwegian Ministry of Finance, i.e., the lowest rate an employer may offer without triggering taxation of the benefit for
the employee.
The information set forth under the heading “Equal treatment of shareholders and transactions with close associates” in Chapter
4 on page 8 of the 2025 Corporate Governance Report is also incorporated herein by reference. See also note 27 Related parties to
the Consolidated financial statements.
C.Interests of Experts and Counsel
Not applicable.
ITEM 8. FINANCIAL INFORMATION
A.Consolidated Statements and Other Financial Information
See “Item 18. Financial Statements” of this 2025 Form 20-F.
Dividend policy and dividends
The information set forth under the heading “Capital distribution” in Section 2.2 Financial performance of the 2025 Annual Report
is incorporated herein by reference. The information set forth under the heading “Equity and dividends” in Chapter 3 on page 7 of the
2025 Corporate Governance Report is also incorporated herein by reference.
See also note 20 Shareholders' equity, capital distribution and earnings per share to the Consolidated financial statements.
Legal or arbitration proceedings
Equinor is involved in a number of proceedings globally concerning matters arising in connection with the conduct of its business.
Equinor does not believe such proceedings will, individually or in the aggregate, have a significant effect on Equinor’s financial
position, profitability, results of operations or liquidity. See also note 11 Income taxes and note 26 Other commitments, contingent
liabilities and contingent assets to the Consolidated Financial Statements for a description of certain proceedings, including updated
descriptions of litigation previously reported.
B.Significant Changes
None.
Equinor 2025 Annual Report on Form 20-F 56
ITEM 9. THE OFFER AND LISTING
A.Offer and Listing Details
Equinor's shares have been listed on the Oslo Børs (ticker: EQNR) and the New York Stock Exchange in the form of American
Depositary Shares (ADS) (ticker: EQNR) since our initial public offering on 18 June 2001. The ADSs traded on the New York Stock
Exchange are evidenced by American Depositary Receipts (ADR), and each ADS represents one ordinary share.
B.Plan of Distribution
Not applicable.
C.Markets
See “Item 9.A―The Offer and Listing―Offer and Listing Details” of this 2025 Form 20-F.
D.Selling Shareholders
Not applicable.
E.Dilution
Not applicable.
F.Expenses of the Issue
Not applicable.
ITEM 10. ADDITIONAL INFORMATION
A.Share Capital
Not applicable.
B.Memorandum and Articles of Association
Equinor's current articles of association were adopted at the annual general meeting of shareholders on 14 May 2025. The
articles of association are included as exhibit 1 to this 2025 Form 20-F.
Summary of Equinor’s articles of association:
Name of the company
The registered name is Equinor ASA. Equinor is a Norwegian public limited company.
Registered office
Equinor’s registered office is in Stavanger, Norway, registered with the Norwegian Register of Business Enterprises under
number 923 609 016.
Objective of the company
The objective of Equinor ASA is to develop, produce and market various forms of energy and derived products and services, as
well as other business. The activities may also be carried out through participation in or cooperation with other companies.
Share capital
Equinor’s share capital is NOK 6,392,018,780.00 divided into 2,556,807,512.00 shares.
Nominal value of shares
The nominal value of each ordinary share is NOK 2.50.
Equinor 2025 Annual Report on Form 20-F 57
Board of directors
Equinor’s articles of association provide that the board of directors shall consist of 9 - 11 members. The board of directors,
including the chair and the deputy chair, shall be elected by the corporate assembly for a period of up to two years.
Corporate assembly
Equinor has a corporate assembly consisting 18 members and deputy members. The annual general meeting shall elect 12
members with four deputy members. Six members with deputy members are elected by and among the employees.
General meetings of shareholders
Equinor’s annual general meeting shall be held each year by end of June. The annual general meeting shall address and decide
adoption of the annual report and accounts, including the declaration of dividends and any other matters required by law or the
articles of association.
Documents related to the general meetings do not need to be sent to all shareholders if they are accessible on Equinor’s
website. A shareholder may request that such documents be sent to him/her.
Shareholders may vote in writing, including through electronic communication, during a specified period before the general
meeting.
Marketing of petroleum on behalf of the Norwegian State
Equinor shall be responsible for the marketing and sale of the state’s petroleum which is produced from the state’s direct financial
interest (SDFI) on the Norwegian continental shelf, as well as for the marketing and sale of petroleum paid as royalty in accordance
with the Petroleum Act of 29 November 1996 No 72. The annual general meeting of the company may by simple majority decide on
further instructions concerning the marketing and sale.
Nomination committee
The duties of the nomination committee are to submit a recommendation to:
•The annual general meeting for the election of shareholder-elected members and deputy members of the corporate assembly
and remuneration for members of the corporate assembly.
•The annual general meeting for the election and remuneration of members of the nomination committee.
•The corporate assembly for the election of shareholder-representatives of the board of directors and remuneration for members
of the board of directors
•The corporate assembly for the election of the chair and the deputy chair of the corporate assembly.
The general meeting may adopt instructions for the nomination committee.
Exhibit 2.1 to this 2025 Form 20-F is also incorporated herein by reference.
C.Material Contracts
Equinor is the technical service provider (TSP) for the Kårstø and Kollsnes gas processing plants in accordance with the
technical service agreement, dated as of 24 November 2010, between Equinor Energy AS and Gassco AS. Equinor holds an
ownership interest in Vestprosess (34%), which transports and processes NGL and condensate. Vestprosess is also operated by
Gassco, with Equinor as TSP. As TSP, Equinor is responsible for the daily technical operation and maintenance, repair, replacement,
modification and removal of the relevant transportation systems. The technical services agreement between Gassco AS and Equinor
is included as Exhibit 4(a)(i), along with the amendments thereto in Exhibit 4(a)(ii), to this 2025 Form 20-F.
See also note 27 Related parties to the Consolidated financial statements.
D.Exchange Controls
Under Norwegian foreign exchange controls currently in effect, transfers of capital to and from Norway are not subject to prior
government approval. An exception applies to the physical transfer of payments in currency exceeding certain thresholds, which must
be declared to the Norwegian custom authorities. This means that non-Norwegian resident shareholders may receive dividend
payments without Norwegian exchange control consent as long as the payment is made through a licensed bank or other licensed
payment institution.
Equinor 2025 Annual Report on Form 20-F 58
There are no restrictions affecting the rights of non-Norwegian residents or foreign owners who hold our shares to receive
dividends, interest or other similar payments.
E.Taxation
Norwegian tax consequences
This section describes material Norwegian tax consequences for shareholders in connection with the acquisition, ownership and
disposal of shares and American Depositary Shares (“ADS”) in Equinor. The term “shareholders” refers to both holders of shares and
holders of ADSs, unless otherwise explicitly stated.
The outline does not provide a complete description of all Norwegian tax regulations that might be relevant to individual
shareholders. The outline is based on current laws and practices, but these laws and practices are subject to change, possibly also
on a retroactive basis. Thus, the actual tax consequences for a shareholder may differ from the description set out below.
Shareholders should consult their own professional tax adviser about the specific tax consequences of owning and disposing of
shares or ADSs in Equinor in their particular situation.
Taxation of dividends received by Norwegian shareholders
Corporate shareholders (i.e., limited liability companies and similar entities) that are tax resident in Norway are generally subject
to tax in Norway on dividends received from Equinor in the year the dividend is declared. However, under the participation exemption
method, only 3% of the dividends are subject to tax at the ordinary income tax rate of 22% (the tax rate is 25% for entities subject to
the finance tax). The effective tax rate for dividends received by corporate shareholders is thus 0.66% (3% x 22%) for ordinary
corporations and 0.75% (3% x 25%) for entities subject to the finance tax.
Individual shareholders tax resident in Norway are subject to tax in Norway on dividends received from Equinor exceeding a tax-
free allowance (the tax-free allowance is described below). Dividends exceeding the tax-free allowance are included in the individual’s
ordinary taxable income in the year the dividend is declared. Dividend income exceeding the tax-free allowance is grossed up with a
factor of 1.72 before being included in the ordinary taxable income, resulting in an effective tax rate of 37.84% (22% x 1.72).
The tax-free allowance is computed anually for each individual share or ADS and is allocated to the shareholder holding the
respective share or ADS at the end of the calendar year. The annual tax-free allowance equals the allowance basis multiplied by a
risk-free interest rate set annually by the tax authorities. The allowance basis is equal to the acquisition cost for such share or ADS, as
adjusted with, inter alia, any repayment of capital and any unused allowance. If the calculated allowance for one year exceeds the
dividends distributed on the share or ADS, the excess (the “unused allowance”) may be carried forward and set off against future
dividends received on the same share or ADS (or gains upon the realisation of the same share or ADS, see below). Any unused
allowance will also be added to the allowance basis for such share or ADS and thereby increase the tax-free allowance in subsequent
years.
Individual shareholders that are tax residents in Norway may hold the shares (but not the ADS) in Equinor through a share
savings account. Dividends on shares owned through the share savings account are only taxable when the dividends are withdrawn
from the account. The rules regarding tax-free allowance also apply to shares held through a share savings account. However, for
shares held through a share savings account the tax-free allowance is not calculated on a share-by-share basis, but rather the
allowance basis is set to the smallest account balance over the course of the tax year, plus any unused allowance from prior years.
Taxation of dividends received by foreign shareholders
Non-resident shareholders (both corporate and individual) are, as a starting point, subject to Norwegian withholding tax on
dividends from Equinor at a rate of 25%. Equinor is responsible for deducting the withholding tax upon distribution of dividends to non-
resident shareholders.
The withholding tax rate of 25% is often reduced in tax treaties between Norway and other countries. The reduced withholding
tax rate will generally only apply to dividends paid on shares and ADSs held by shareholders who are able to demonstrate that they
are the beneficial owner and entitled to the benefits of the relevant tax treaty. The procedure for claiming a reduced withholding tax
rate is described below.
Corporate shareholders that carry on business activities in Norway, and whose shares or ADSs are effectively connected with
such activities, are not subject to withholding tax. For such shareholders, 3% of the received dividends are subject to the standard
income tax rate of 22% (25% for companies subject to the finance tax). The effective tax rate for the dividend is thus 0.66% (3% x
22%) if such shareholders are ordinary corporations and 0.75% (3% x 25%) if such shareholders are entities subject to the finance
tax.
Equinor 2025 Annual Report on Form 20-F 59
Furthermore, the dividend withholding tax does not apply to corporate shareholders in the EEA that are comparable to Norwegian
limited liability companies or certain other types of Norwegian entities, provided they are able to demonstrate that they are genuinely
established and carry on genuine economic business activity within the EEA.
Individual shareholders that are tax resident within the EEA are entitled to a tax-free allowance on dividends (as described
above) upon application to the Norwegian tax authorities. However, the application of the tax-free allowance may not be combined
with any applicable reduced withholding tax rate pursuant to a tax treaty. In principle individual shareholders tax resident within the
EEA may upon application be taxed either on the dividend less the tax-free allowance multiplied by the standard withholding tax rate
(currently 25%) or the gross dividend multiplied with the reduced treaty rate (if applicable), whichever is lowest.
Individual shareholders that are tax resident within the EEA may hold the listed shares (but not the ADSs) in Equinor through a
Norwegian share savings account. Dividend on shares owned through the share savings account will only be subject to withholding
tax when withdrawn from the account.
Procedure for claiming a reduced withholding tax rate on dividends
A foreign shareholder that is entitled to an exemption from or reduction of withholding tax on dividends, may request that the
exemption or reduction is applied at source by the distributor. Such request must be accompanied by satisfactory documentation
which supports that the foreign shareholder is entitled to a reduced withholding tax rate. Specific documentation requirements apply.
For holders of shares and ADSs deposited with JPMorgan Chase Bank N.A. (JPMorgan), documentation establishing that the
holder is eligible for the benefits under a tax treaty with Norway, may be provided to JPMorgan. JPMorgan has been granted
permission by the Norwegian tax authorities to receive dividends from Equinor for redistribution to a beneficial owner of shares and
ADSs at the applicable treaty withholding rate.
The statutory 25% withholding tax rate will be levied on dividends paid to shareholders (either directly or through a depositary)
who have not provided the relevant documentation to the relevant party that they are eligible for a reduced rate. Shareholders that
believe they are eligible for a reduced rate will in this case have to apply to Skatteetaten (The Norwegian Tax Administration) for a
refund of the excess amount of tax withheld. Please refer to the tax authorities’ web page for more information and the requirements
of such application: skatteetaten.no (Reduced withholding tax on share dividends for foreign shareholders – The Norwegian Tax
Administration).
Taxation on realisation of shares and ADSs
Corporate shareholders that are tax resident in Norway are not subject to tax in Norway on gains derived from the sale,
redemption or other disposal of shares or ADSs in Equinor. On the other hand, corporate shareholders that are tax resident in Norway
are not allowed any deduction for losses on shares or ADSs in Equinor.
Individual shareholders that are tax resident in Norway are subject to tax in Norway on the sale, redemption, or other disposal of
shares or ADSs. Taxable gains or losses in connection with such realisation are included in the individual's ordinary taxable income in
the year of disposal. The taxable gain or loss on the realised shares or ADSs is grossed up with a factor of 1.72 before it is included in
the ordinary taxable income, resulting in an effective tax rate of 37.84% (22% x 1.72).
The taxable gain or deductible loss (before grossing up) is calculated as the sales price adjusted for transaction expenses minus
the tax basis. A shareholder's tax basis is normally equal to the acquisition cost of the shares or the ADSs (as adjusted with, inter alia,
any repayment of capital). Any unused allowance pertaining to a share or an ADS may be deducted from a taxable gain on the same
share or ADS but may not lead to or increase a deductible loss. Furthermore, any unused allowance may not be set off against gains
from the realisation of other shares or ADSs held by the shareholder.
If a shareholder disposes of shares or ADSs acquired at different times, the shares or ADSs that were first acquired will be
deemed to be first sold (the “FIFO” principle) when calculating the gain or loss for tax purposes.
Individual shareholders that are tax resident in Norway may hold the shares (but not the ADSs) in Equinor through a stock
savings account. Gain on shares owned through the stock savings account will only be taxable when withdrawn from the account
whereas loss on shares will be deductible when the account is terminated.
A corporate or individual shareholder who ceases to be tax resident in Norway due to Norwegian law or relevant tax treaty
provisions may become subject to Norwegian exit taxation on unrealised capital gains related to the shares or the ADSs in Equinor.
Shareholders who are not tax resident in Norway are generally not subject to tax in Norway on capital gains. On the other hand,
losses are not deductible on the sale, redemption, or other disposal of shares or ADSs in Equinor, unless the shareholder carries on
business activities in Norway and such shares or ADSs are or have been effectively connected with those activities.
Equinor 2025 Annual Report on Form 20-F 60
Wealth tax
The shares and the ADSs in Equinor are included in the basis for the computation of wealth tax imposed on individuals who are
tax resident in Norway. Norwegian limited liability companies and certain similar entities are not subject to wealth tax.
For the tax year 2025, the net wealth tax is 1% for net worth above a threshold of NOK 1,760,000, and 1.1% for net worth above
a threshold of NOK 20,700,000. The assessment value of listed shares (including ADSs) is 80% of the listed value of such shares or
ADSs on 1 January 2026 (the tax assessment year).
For the tax year 2026, the thresholds for the net wealth tax are adjusted to NOK 1,790,000 and NOK 21,500,000 respectively.
The assessment value of listed shares (including ADSs) will be 80% of the listed value of such shares or ADSs on 1 January 2027
(the tax assessment year).
Non-resident shareholders are not subject to wealth tax in Norway for shares and ADSs in Equinor unless the shareholder is an
individual and the shareholding is effectively connected with their business activities in Norway.
Inheritance tax and gift tax
No inheritance or gift tax is imposed in Norway.
Transfer tax
No transfer tax is imposed in Norway in connection with the sale or purchase of shares or ADSs.
United States tax matters
This section describes the material United States federal income tax consequences for US holders (as defined below) of the
ownership and disposition of shares or ADSs. It only applies to you if you hold your shares or ADSs as capital assets for United States
federal income tax purposes. This discussion addresses only United States federal income taxation and does not discuss all of the tax
consequences that may be relevant to you in light of your individual circumstances, including foreign, state or local tax consequences,
estate and gift tax consequences, and tax consequences arising under the Medicare contribution tax on net investment income or the
alternative minimum tax. This section does not apply to you if you are a member of a special class of holders subject to special rules,
including dealers in securities, traders in securities that elect to use a mark-to-market method of accounting for securities holdings,
tax-exempt organisations, insurance companies, partnerships or entities or arrangements that are treated as partnerships for United
States federal income tax purposes, persons that actually or constructively own 10% of the combined voting power of voting stock of
Equinor or of the total value of stock of Equinor, persons that hold shares or ADSs as part of a straddle or a hedging or conversion
transaction, persons that purchase or sell shares or ADSs as part of a wash sale for tax purposes, or persons whose functional
currency is not USD.
This section is based on the Internal Revenue Code of 1986, as amended, its legislative history, existing and proposed
regulations, published rulings and court decisions, all as currently in effect, and the Convention between the United States of America
and the Kingdom of Norway for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on
Income and Property (the “Treaty”). These laws are subject to change, possibly on a retroactive basis. In addition, this section is
based in part upon the representations of the depositary and the assumption that each obligation in the deposit agreement and any
related agreement will be performed in accordance with its terms. For United States federal income tax purposes, if you hold ADRs
evidencing ADSs, you will generally be treated as the owner of the shares represented by those ADRs. Exchanges of shares for
ADRs and ADRs for shares will not generally be subject to United States federal income tax.
A “US holder” is a beneficial owner of shares or ADSs that is, for United States federal income tax purposes: (i) a citizen or
resident of the United States; (ii) a United States domestic corporation; (iii) an estate whose income is subject to United States federal
income tax regardless of its source; or (iv) a trust if a United States court can exercise primary supervision over the trust's
administration and one or more United States persons are authorised to control all substantial decisions of the trust.
You should consult your own tax adviser regarding the United States federal, state and local and Norwegian and other tax
consequences of owning and disposing of shares and ADSs in your particular circumstances.
The tax treatment of the shares or ADSs will depend in part on whether or not we are classified as a passive foreign investment
company, or PFIC, for United States federal income tax purposes. Except as discussed below, under “—PFIC rules”, this discussion
assumes that we are not classified as a PFIC for United States federal income tax purposes.
Taxation of distributions
Under the United States federal income tax laws, the gross amount of any distribution (including any Norwegian tax withheld
from the distribution payment) paid by Equinor out of its current or accumulated earnings and profits (as determined for United States
Equinor 2025 Annual Report on Form 20-F 61
federal income tax purposes), other than certain pro-rata distributions of its shares, will be treated as a dividend that is taxable for you
when you, in the case of shares, or the depositary, in the case of ADSs, receive the dividend, actually or constructively. If you are a
non-corporate US holder, dividends that constitute qualified dividend income will be eligible to be taxed at the preferential rates
applicable to longterm capital gains as long as, in the year that you receive the dividend, the shares or ADSs are readily tradable on
an established securities market in the United States or Equinor is eligible for benefits under the Treaty. We believe that Equinor is
currently eligible for the benefits of the Treaty and we therefore expect that dividends on the ordinary shares or ADSs will be qualified
dividend income. To qualify for the preferential rates, you must hold the shares or ADSs for more than 60 days during the 121-day
period beginning 60 days before the ex-dividend date and meet certain other requirements. The dividend will not be eligible for the
dividends-received deduction generally allowed to United States corporations in respect of dividends received from other United
States corporations.
The amount of the dividend distribution that you must include in your income will be the value in USD of the payments made in
NOK determined at the spot NOK/USD rate on the date the dividend is distributed, regardless of whether or not the payment is in fact
converted into USD. Distributions in excess of current and accumulated earnings and profits, as determined for United States federal
income tax purposes, will be treated as a non-taxable return of capital to the extent of your tax basis in the shares or ADSs and, to the
extent in excess of your tax basis, will be treated as capital gain. However, Equinor does not expect to calculate earnings and profits
in accordance with United States federal income tax principles. Accordingly, you should expect to generally treat distributions we
make as dividends.
Subject to certain limitations, the 15% Norwegian tax withheld in accordance with the Treaty and paid to Norway will be
creditable or deductible against your United States federal income tax liability, unless a reduction or refund of the tax withheld is
available to you under Norwegian law. Special rules apply in determining the foreign tax credit limitation with respect to dividends that
are subject to the preferential tax rates.
Dividends will generally be income from sources outside the United States and will generally be “passive” income for purposes of
computing the foreign tax credit allowable to you. Any gain or loss resulting from currency exchange rate fluctuations during the period
from the date you include the dividend payment in income until the date you convert the payment into USD will generally be treated as
US-source ordinary income or loss and will not be eligible for the special tax rate applicable to qualified dividend income.
Taxation of capital gains
If you sell or otherwise dispose of your shares or ADSs, you will generally recognise a capital gain or loss for United States
federal income tax purposes equal to the difference between the value in USD of the amount that you realise and your tax basis,
determined in USD, in your shares or ADSs. Capital gain of a non-corporate US holder is generally taxed at preferential rates if the
property is held for more than one year. The gain or loss will generally be income or loss from sources within the United States for
foreign tax credit limitation purposes. If you receive any foreign currency on the sale of shares or ADSs, you may recognise ordinary
income or loss from sources within the United States as a result of currency fluctuations between the date of the sale of the shares or
ADSs and the date the sales proceeds are converted into USD. You should consult your own tax adviser regarding how to account for
payments made or received in a currency other than USD.
PFIC rules
We believe that the shares and ADSs should not currently be treated as stock of a PFIC for United States federal income tax
purposes and we do not expect to become a PFIC in the foreseeable future. However, this conclusion is a factual determination that is
made annually and thus may be subject to change. It is therefore possible that we could become a PFIC in a future taxable year.
In general, we will be a PFIC in a taxable year if:
•at least 75% of our gross income for the taxable year is passive income or
•at least 50% of the value, determined on the basis of a quarterly average, of our assets in such taxable year is attributable to
assets that produce or are held for the production of passive income.
“Passive income” generally includes dividends, interest, gains from the sale or exchange of investment property rents and
royalties (other than certain rents and royalties derived in the active conduct of a trade or business) and certain other specified
categories of income. If a foreign corporation owns at least 25% by value of the stock of another corporation, the foreign corporation is
treated for purposes of the PFIC tests as owning its proportionate share of the assets of the other corporation, and as receiving
directly its proportionate share of the other corporation's income.
If we were to be treated as a PFIC, you will generally be subject to special rules with respect to:
•any gain you realise on the sale or other disposition of your shares or ADSs and
Equinor 2025 Annual Report on Form 20-F 62
•any excess distribution that we make to you (generally, any distributions to you during a single taxable year, other than the
taxable year in which your holding period in the shares or ADSs begins, that are greater than 125% of the average annual
distributions received by you in respect of the shares or ADSs during the three preceding taxable years or, if shorter, your holding
period for the shares or ADSs that preceded the taxable year in which you receive the distribution).
Under these rules:
•the gain or excess distribution will be allocated ratably over your holding period for the shares or ADSs,
•the amount allocated to the taxable year in which you realized the gain or excess distribution or to prior years before the first year
in which we were a PFIC with respect to you will be taxed as ordinary income,
•the amount allocated to each other prior year will be taxed at the highest tax rate in effect for that year, and
•the interest charge generally applicable to underpayments of tax will be imposed in respect of the tax attributable to each such
year.
Special rules apply for calculating the amount of the foreign tax credit with respect to excess distributions by a PFIC.
Unless you make certain elections, your shares or ADSs will generally be treated as stock in a PFIC if we were a PFIC at any
time during your holding period in your shares or ADSs, even if we are not currently a PFIC.
In addition, notwithstanding any election you make with regard to the shares or ADSs, dividends that you receive from us will not
constitute qualified dividend income to you if we are a PFIC (or are treated as a PFIC with respect to you) either in the taxable year of
the distribution or the preceding taxable year. Dividends that you receive that do not constitute qualified dividend income are not
eligible for taxation at the preferential rates applicable to qualified dividend income. Instead, you must include the gross amount of any
such dividend paid by us out of our accumulated earnings and profits (as determined for United States federal income tax purposes)
in your gross income, and it will be subject to tax at rates applicable to ordinary income.
If you own shares or ADSs during any year that we are a PFIC with respect to you, you may be required to file Internal Revenue
Service (“IRS”) Form 8621.
Foreign Account Tax Compliance Withholding
A 30% withholding tax will be imposed on certain payments to certain non-US financial institutions that fail to comply with
information reporting requirements or certification requirements in respect of their direct and indirect United States shareholders and/
or United States accountholders. To avoid becoming subject to the 30% withholding tax on payments to them, we and other non-US
financial institutions may be required to report information to the IRS regarding the holders of shares or ADSs and to withhold on a
portion of payments under the shares or ADSs to certain holders that fail to comply with the relevant information reporting
requirements (or hold shares or ADSs directly or indirectly through certain non-compliant intermediaries). However, under proposed
Treasury regulations, such withholding will not apply to payments made before the date that is two years after the date on which final
regulations defining the term “foreign passthru payment” are enacted. The rules for the implementation of these requirements have
not yet been fully finalised, so it is impossible to determine at this time what impact, if any, these requirements will have on holders of
the shares and ADSs.
F.Dividends and Paying Agents
Not applicable.
G.Statement by Experts
Not applicable.
H.Documents on Display
Our filings with the SEC are available to the public through the SEC’s website at http://www.sec.gov. We also make available on
our website, free of charge, our annual reports on Form 20-F, as well as certain other SEC filings, as soon as reasonably practicable
after they are electronically filed with or furnished to the SEC. The information on our website is not incorporated by reference in this
document.
Documents related to us that are available to the public (this 2025 Form 20-F, the 2025 Annual Report, our Articles of
Association, our Code of Conduct, financial statements and our historical financial information for each of the three financial years
preceding the publication of this 2025 Form 20-F) can be consulted on our website and at: Equinor ASA, Forusbeen 50, 4035
Stavanger, Norway. Unless stated otherwise, none of these documents form a part of this 2025 Form 20-F.
Equinor 2025 Annual Report on Form 20-F 63
I.Subsidiary Information
Not applicable.
J.Annual Report to Security Holders
Not applicable.
ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
See notes 4 Financial risk and capital management and 28 Financial instruments and fair value measurement to the
Consolidated financial statements.
ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES
A.Debt Securities
Not applicable.
B.Warrants and Rights
Not applicable.
C.Other Securities
Not applicable.
D.American Depositary Shares
Exhibit 2.1 to this 2025 Form 20-F is incorporated herein by reference.
Name of depositary and address of its principal executive office.
JPMorgan Chase Bank N.A. (JPMorgan), serves as the depositary for Equinor’s ADR programme having replaced the Deutsche
Bank Trust Company Americas (Deutsche Bank) pursuant to the Further Amended and Restated Deposit Agreement dated 4
February 2019.
Fees and charges payable by a holder of ADSs
JPMorgan collects its fees for the delivery and surrender of ADSs directly from investors depositing shares or surrendering ADSs
for the purpose of withdrawal, or from intermediaries acting for them. The depositary collects other fees from investors by billing ADR
holders, by deducting such fees and charges from the amounts distributed or by deducting such fees from cash dividends or other
cash distributions. The depositary may refuse to provide fee-attracting services until its fees for those services are paid.
The charges of the depositary payable by investors are as follows:
Equinor 2025 Annual Report on Form 20-F 64
ADR holders, persons depositing or withdrawing shares, and/or persons whom ADSs are issued, must pay: | For: |
USD 5.00 (or less) per 100 ADSs (or portion of 100 ADSs) | Issuance of ADSs, including issuances resulting from a deposit of shares, a distribution of shares or rights or other property, and issuances pursuant to stock dividends, stock splits, mergers, exchanges of securities or any other transactions or events affecting the ADSs or the deposited securities. Cancellation of ADSs for the purpose of withdrawal of deposited securities, including if the deposit agreement terminates, or a cancellation or reduction of ADSs for any other reason |
USD 0.05 (or less) per ADS | Any cash distribution made or elective cash/stock dividend offered pursuant to the Deposit Agreement |
USD 0.05 (or less) per ADS, per calendar year (or portion thereof) | For the operation and maintenance costs in administering the ADR programme |
A fee equivalent to the fee that would be payable if securities distributed to you had been shares and the shares had been deposited for issuance of ADSs | Distribution to registered ADR holders of (i) securities distributed by the company to holders of deposited securities or (ii) cash proceeds from the sale of such securities |
Registration or transfer fees | Transfer and registration of shares on our share register to or from the name of the Depositary or its agent when you deposit or withdraw shares |
Expenses of the Depositary | SWIFT, cable, telex, facsimile transmission and delivery charges (as provided in the deposit agreement). Fees, expenses and other charges of JPMorgan or its agent (which may be a division, branch or affiliate) for converting foreign currency to USD, which shall be deducted out of such foreign currency. |
Taxes and other governmental charges the Depositary or the custodian have to pay, for example, stock transfer taxes, stamp duty or withholding taxes | As necessary |
Any fees, charges and expenses incurred by the Depositary or its agents for the servicing of the deposited securities, the sale of securities, the delivery of deposited securities or in connection with the depositary's or its custodian's compliance with applicable law, rule or regulation, including without limitation expenses incurred on behalf of ADR holders in connection with compliance with foreign exchange control regulations or any law or regulation relating to foreign investment | As necessary |
Direct and indirect payments by the depositary
For the year ended 31 December 2025, J.P. Morgan reimbursed USD 3,368,277 to the company. Other reasonable costs associated
with the administration of the ADR programme are borne by the company. Under certain circumstances, including the removal of J.P.
Morgan as depositary, the company is required to repay to J.P. Morgan certain amounts paid to the company in prior periods.
Equinor 2025 Annual Report on Form 20-F 65
Part II
ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES
Not applicable.
ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS
Not applicable.
ITEM 15. CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
The management of Equinor, with the participation of our chief executive officer and chief financial officer, has evaluated the
effectiveness of the design and operation of our disclosure controls and procedures pursuant to Exchange Act Rule 13a-15(b) as of
31 December 2025. Based on that evaluation, the chief executive officer and chief financial officer have concluded that these
disclosure controls and procedures are effective at a reasonable level of assurance.
In designing and evaluating our disclosure controls and procedures, our management, with the participation of the chief
executive officer and chief financial officer, recognised that any controls and procedures, no matter how well designed and operated,
can only provide reasonable assurance that the desired control objectives will be achieved, and that the management must
necessarily exercise judgment when evaluating possible controls and procedures. Because of the limitations inherent in all control
systems, no evaluation of controls can provide absolute assurance that all control issues and any instances of fraud in the company
have been detected.
Management’s Annual Report on Internal Control Over Financial Reporting
The management of Equinor is responsible for establishing and maintaining adequate internal control over financial reporting.
Our internal control over financial reporting is a process designed, under the supervision of the chief executive officer and chief
financial officer, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of Equinor’s
financial statements for external reporting purposes in accordance with IFRS Accounting Standards as adopted by the European
Union (EU). The accounting policies applied by the group also comply with IFRS Accounting Standards as issued by the International
Accounting Standards Board (IASB).
The management of Equinor has assessed the effectiveness of internal control over financial reporting based on the Internal
Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Based on this assessment, management has concluded that Equinor’s internal control over financial reporting as of 31 December
2025 was effective.
Equinor’s internal control over financial reporting includes policies and procedures that pertain to the maintenance of records
that, in reasonable detail, accurately and fairly reflect transactions and dispositions of assets, provide reasonable assurance that
transactions are recorded in the manner necessary to permit the preparation of financial statements in accordance with IFRS
Accounting Standards, and that receipts and expenditures are only carried out in accordance with the authorisation of the
management and directors of Equinor; and provide reasonable assurance regarding the prevention or timely detection of any
unauthorised acquisition, use or disposition of Equinor’s assets that could have a material effect on our financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect all misstatements. Moreover,
projections of any evaluation of the effectiveness of internal control to future periods are subject to a risk that controls may become
inadequate because of changes in conditions and that the degree of compliance with policies or procedures may deteriorate.
Attestation Report of the Registered Public Accounting Firm
The effectiveness of internal control over financial reporting as of 31 December 2025 has been audited by Ernst & Young AS, an
independent registered accounting firm that also audits Equinor’s Consolidated financial statements. Their audit report on the internal
control over financial reporting is included in the Consolidated financial statements.
Equinor 2025 Annual Report on Form 20-F 66
Changes in Internal Control Over Financial Reporting
There were no significant changes in our internal control over financial reporting during the year ended 31 December 2025 that
have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
ITEM 16. [RESERVED]
ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT
Our board of directors has determined that Anne Drinkwater qualifies as an “audit committee financial expert” as defined in Item
16A of Form 20-F under the Exchange Act and is an independent director under Rule 10A-3 under the Exchange Act.
ITEM 16B. CODE OF ETHICS
We have adopted a Code of Conduct, which is approved by our board of directors, and applies to our board members, all of our
employees (including our principal executive, principal financial and principal accounting officers) and hired personnel. Our Code of
Conduct is filed as Exhibit 11 to this 2025 Form 20-F.
In 2025, certain minor updates were made to our Code of Conduct, consisting of changes in the CEO statement of the Code,
section 1.1 Equinor’s Commitment to bring the Code in alignment with the revised Human Rights Policy and section 5.2 Environment
to reflect the new Environmental Policy.
In 2025, we did not grant any waiver, including any implicit waiver, from any provision of the Code of Conduct to our principal
executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.
ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES
The information set forth under the heading “External auditor” in Chapter 15 of the 2025 Corporate Governance Report is
incorporated herein by reference. See also note 9 Auditor’s remuneration and Research and development expenditures to the
Consolidated financial statements.
ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES
See “Item 16G. Corporate Governance―Board committees” of this 2025 Form 20-F.
ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS
The information set forth under the headings “Equinor’s share incentive plans ”, “Share buy-backs” and “Summary of share buy-
backs” in Section 5.1 Shareholder information of the 2025 Annual Report is also incorporated herein by reference.
ITEM 16F. CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT
Not applicable.
ITEM 16G. CORPORATE GOVERNANCE
Equinor’s primary listing is on Oslo Børs. The American Depositary Receipts (ADRs) are listed on the New York Stock Exchange
(NYSE). In addition, Equinor is a foreign private issuer subject to the reporting requirements of the SEC. ADRs representing the
company’s ordinary shares are listed on the NYSE. While Equinor’s corporate governance practices follow the requirements of
Norwegian law, Equinor is also subject to the NYSE’s listing rules. As a foreign private issuer, Equinor is exempt from most of the
NYSE corporate governance standards that domestic US companies must comply with. However, Equinor is required to disclose any
Equinor 2025 Annual Report on Form 20-F 67
significant ways in which its corporate governance practices differ from those applicable to domestic US companies under the NYSE
rules. A statement of differences is set out below:
Corporate governance guidelines
The NYSE rules require domestic US companies to adopt and disclose corporate governance guidelines. Equinor’s corporate
governance principles are developed by the management and the board of directors, in accordance with the Norwegian Code of
Practice for Corporate Governance and applicable law. Oversight of the board of directors and management is exercised by the
corporate assembly.
Director independence
The NYSE rules require domestic US companies to have a majority of “independent directors”. The NYSE definition of an
“independent director” sets out five specific tests of independence and requires an affirmative determination by the board of directors
that the director has no material relationship with the company.
Pursuant to Norwegian company law, Equinor’s board of directors consists of members elected by the corporate assembly both
for shareholder and employee representatives. Equinor’s board of directors has determined that, in its judgment, all shareholder
representatives are independent. In making its determinations of independence, the board focuses, among other things, on there not
being any conflicts of interest between shareholders, the board of directors and the company’s management. It does not strictly make
its determination based on the NYSE’s five specific tests but takes into consideration all relevant circumstances which may in the
board’s view affect the directors’ independence. The directors elected from among Equinor’s employees would not be considered
independent under the NYSE rules as they are employees of Equinor. None of these employee representatives are executive officers
of the company. For further information about the board of directors, see “Item 6. Directors, Senior Management and Employees—A.
Directors and Senior Management” of this 2025 Form 20-F.
Board committees
Pursuant to Norwegian company law, managing the company is the responsibility of the board of directors. Equinor has an audit
committee, a safety, sustainability and ethics committee and a compensation and executive development committee. The audit
committee and the compensation and executive development committee operate pursuant to instructions that are broadly comparable
to the applicable committee charters required by the NYSE rules. They report on a regular basis to, and are subject to, oversight by
the board of directors.
Equinor complies with the NYSE rule regarding the obligation to have an audit committee that meets the requirements of Rule
10A-3 of the US Securities Exchange Act of 1934. The members of Equinor’s audit committee include an employee representative
director. Equinor relies on the exemption provided in Rule 10A-3(b)(1)(iv)(C) from the independence requirements of the US
Securities Exchange Act of 1934 with respect to the employee representative director. Equinor does not believe that its reliance on
this exemption will materially adversely affect the ability of the audit committee to act independently or to satisfy the other
requirements of Rule 10A-3 relating to audit committees. The other members of the audit committee meet the independence
requirements under Rule 10A-3.
Among other things, the audit committee evaluates the qualifications and independence of the company’s external auditor.
However, in accordance with Norwegian law, the auditor is elected by the annual general meeting of the company’s shareholders.
Equinor does not have a nominating/corporate governance committee formed from its board of directors. Instead, the roles prescribed
under the NYSE rules for such committee are principally carried out by the corporate assembly and the nomination committee. The
nomination committee is elected by the general meeting of shareholders, while the corporate assembly is elected partly by the
general meeting of shareholders and partly by and among the employees.
NYSE rules require the compensation committee of US companies to comprise independent directors, recommend senior
management remuneration and determine the independence of advisors when engaging them. Equinor, as a foreign private issuer, is
exempted from complying with these rules and is permitted to follow its home country regulations. The compensation committee
consists of three shareholder representatives and one employee representative. Equinor’s compensation committee makes
recommendations to the board regarding management remuneration, including that of the CEO. Further, the compensation committee
assesses its own performance and has the authority to hire external advisors.
Nomination committee
The nomination committee, which is elected by the general meeting of shareholders, recommends to the corporate assembly the
candidates and remuneration of the board of directors. The nomination committee also recommends to the general meeting of
shareholders the candidates and remuneration for the nomination committee and the shareholder representative candidates and
remuneration for the corporate assembly.
Equinor 2025 Annual Report on Form 20-F 68
Shareholder approval of equity compensation plans
NYSE rules require that, with limited exemptions, all equity compensation plans must be subject to a shareholder vote. Under
Norwegian company law, although the issuance of shares and authority to buy-back company shares must be approved by Equinor’s
annual general meeting of shareholders, the approval of equity compensation plans is normally reserved for the board of directors.
ITEM 16H. MINE SAFETY DISCLOSURE
Not applicable.
ITEM 16I. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS
Not applicable.
ITEM 16J. INSIDER TRADING POLICIES
We have adopted insider trading policies and procedures governing the purchase, sale, and other dispositions of our securities
by directors, senior management, and employees that are reasonably designed to promote compliance with applicable insider trading
laws, rules and regulations, and listing standards applicable to us. A copy of our insider trading policies and procedures is filed as
Exhibit 16 to this report.
ITEM 16K. CYBERSECURITY DISCLOSURE
Cyber security Risk Management and Strategy
from cyber security threats are interconnected and company-wide, so we seek to ensure shared situational awareness and common
prioritization across different business areas. As described further below under “Cyber security Governance”, we have a cross-
departmental approach to addressing cyber security risk, which includes our employees, management and board of directors.
We use a variety of tools and processes to identify, assess and manage material cyber security risks. We identify cyber security
risks based on an evaluation of various cyber security threat scenarios that may cause disruption to our business or operations.
These scenarios are developed to represent incremental levels of severity of the estimated monetary, reputational, safety, security or
sustainability impact of cyber security threats such as social engineering (phishing), malicious software targeting end-users/network,
unauthorized access by insiders, employee/consultant error and/or unintended errors.
We conduct annual company-wide cyber security assessments to assess the threats posed by external actors to our information
technology and operational technology systems and promote awareness internally of the cyber security threats faced by the company.
We also conduct assessments of cyber security incidents experienced by the company and third parties relevant to the company.
These assessments are conducted in collaboration between the technology, digital and innovation business area, the global
operations technology excellence unit and the corporate security and crisis management unit. The business area risk owners,
regional security managers, country office representatives, political analysis teams, shipping security teams, enterprise data and
cyber security professionals and the emergency response-and-support centre are all involved in and contribute to these assessments.
The results of these assessments are shared regularly with the board of directors, including the safety, sustainability and ethics
committee.
We engage external assessors to conduct maturity testing to evaluate our processes and procedures within specific areas to
ensure continuous development of barriers against cyber security threats. We also seek information from national security authorities
and work closely with IT vendors, external cyber security advisory services and other companies in the industry with the aim of
continuously improving our capabilities to identify, protect, detect, respond to and recover from cyber security threats. We also use
input provided by external auditors as part of independent reviews to improve our cyber security barriers.
Actual and/or potential vulnerabilities in our information systems are continuously monitored by our Cyber Defence Center. We
follow the ISO27001, IEC62443 and National Institute for Standard and Technology (NIST) cyber security frameworks to build
resilience, focusing on capabilities for reducing both the probability and consequences of cyber security incidents. We utilize multiple
Equinor 2025 Annual Report on Form 20-F 69
tools and practices to monitor external developments related to cyber security which may be relevant to the company, such as alerts/
publications from national cyber security centres, advice from security risk consulting firms and reports from information technology
and cyber security companies, and assess their implications for Equinor with a focus on external factors, such as the threat actors’
presence, capability, intent, past targeting and anticipated future targeting, as well as internal factors such as evidence of attacks on
our information systems. All relevant updates and developments are disseminated across the company through the company’s
intranet and e-mails to interested internal stakeholders.
We provide cyber security awareness training to all our employees on an annual basis which is designed to provide guidance for
identifying and avoiding cyber security risks, and require employees in certain roles to complete additional role based, specialized
cyber security trainings.
We have company-wide management systems detailing protocols and response governance for emergency response and
business continuity management. Our management systems reflect industry good practices, internal requirements, national laws and
regulations and ISO/IEC standards to identify, protect, detect, respond and recover from cyber security threats. The corporate security
and crisis management unit is responsible for setting strategic direction and maintaining the company’s corporate framework on crisis
and business continuity management. We have adopted business continuity plans and disaster recovery plans which are designed
with the goal of minimizing the consequences of cyber security incidents, and are reviewed on a regular basis. We also have a
dedicated global cyber security incident response team, comprised of specially trained personnel, that provides assistance and
support in dealing with any actual and/or potential cyber security incidents.
cyber security risks are identified and assessed in the early stages of negotiating contracts and addressed accordingly based on the
nature of services provided. Cyber security risks associated with third parties are monitored through the life cycle of the relationships.
In 2025, as in previous years, we experienced several cyber security incidents and other disruptions to our information systems.
risks.
Cyber security Governance
audit committee, reviews and monitors the effectiveness of the ERM framework, which has identified cyber security as one of the top
enterprise risks. The board and audit committee discuss the company’s ERM framework, and three-lines of control model and
learnings from risk-adjusting actions and assurance activities on a bi-annual basis.
least annually the developments, implementation, effectiveness and practice of the company’s cyber security policies, programmes
and strategies, and the effectiveness of internal controls for cyber security matters, including applicable management systems,
policies, practices, processes, leadership, and culture, and summarizes its assessments in an annual report to the board of directors.
The SSEC also receives regular briefings and updates from the Executive Vice President for Safety, Security & Sustainability (EVP
SSU) relating to material risks from cyber security threats and management of cyber security-related risks.
together to contribute to the creation and protection of value. As the first line-of-control, cyber security risk is managed in the business
areas as an integral part of employee and manager tasks. Technical experts in each business area are responsible for monitoring the
relevant business area’s cyber security risks and performance, conducting assessments and ensuring a suitable and effective
management system that reflects the relevant business area’s business scope and context, risks and external regulatory
requirements. The first line shares its experiences and findings in a systematic way with the second line. The responsibility for
reporting material risks from cyber security threats, regularly and systematically, follows the accountability of the business areas up to
their respective executive vice presidents. The executive vice presidents of the business areas meet with the EVP SSU bi-annually to
review top enterprise risk from cyber security threats.
and support to the first line in identifying and executing assurance activities and monitors, supports and challenges the first line in
relation to performance and management of cyber security risks. The EVP SSU leads the second line-of-control for cyber security-
related matters and oversees cyber security risks across the company and reports to the Corporate Executive Committee (CEC) and
the SSEC. The Chief Information Security Officer (CISO) reports to the Chief Security Officer (CSO), who reports to the EVP SSU.The
responsible for reviewing and approving the strategy and resourcing of cyber security risk management. The CISO holds a master’s
degree in information systems from the Norwegian University of Science and Technology (NTNU). He joined the company in 2010
Equinor 2025 Annual Report on Form 20-F 70
and has held several leadership and professional roles within information technology and information security, including serving as
senior manager and IT disaster recovery officer, prior to his appointment as vice president cyber security within SSU..
Our third line-of-control is the corporate audit unit which performs independent audits across business areas and management
roles, including cyber security audits, and reports to the board of directors on a periodic basis.
Part III
ITEM 17. FINANCIAL STATEMENTS
The Company has responded to Item 18 in lieu of this item.
ITEM 18. FINANCIAL STATEMENTS
The audited consolidated financial statements as required under Item 18 are attached hereto starting on page 77 of this 2025
Form 20-F. The audit report of Ernst & Young AS, an independent registered accounting firm, is included herein preceding the audited
Consolidated Financial Statements.
Equinor 2025 Annual Report on Form 20-F 71
ITEM 19. EXHIBITS
Exhibit no | Description |
Exhibit 1 | Articles of Association of Equinor ASA, as amended, effective from 14 May 2025 |
Exhibit 2.1 | Description of Securities registered under Section 12 of the Exchange Act. |
Exhibit 2.2 | Form of Indenture among Equinor ASA (formerly known as Statoil ASA and StatoilHydro ASA), Equinor Energy AS (formerly known as Statoil Petroleum AS and StatoilHydro Petroleum AS) and Deutsche Bank Trust Company Americas (incorporated by reference to Exhibit 4.1 of Equinor ASA's (formerly known as Statoil ASA) and Equinor Energy AS's (formerly known as Statoil Petroleum AS) Post - Effective Amendment No.1 to their Registration Statement on Form F-3 (File No. 333-143339) filed with the Commission on 2 April 2009). |
Exhibit 2.3 | Supplemental Indenture No. 3 (incorporated by reference to Exhibit 4.1 of Equinor ASA’s Report on Form 6-K (File No. 001-15200) filed with the Commission on 10 September 2018) |
Exhibit 2.4 | Form of Supplemental Indenture No. 4 (incorporated by reference to Exhibit 4.1 of Equinor ASA’s Report on Form 6-K (File No. 001-15200) filed with the Commission on 13 November 2019) |
Exhibit 2.5 | Amended and Restated Agency Agreement, dated as of 30 April 2024, by and among Equinor ASA, as Issuer, Equinor Energy AS, as Guarantor, the Bank of New York Mellon, London Branch, as Agent and the Bank of New York Mellon SA/NV, Luxembourg Branch, as Paying Agent in respect of a €20,000,000 Euro Medium Term Note Programme. (incorporated by reference to Exhibit 2.5 of Equinor ASA’s 2024 Form 20-F (File no. 001-15200) filed with the Commission on March 20, 2025) |
Exhibit 2.6 | Deed of Covenant, dated as of 13 May 2020, of Equinor ASA in respect of a €20,000,000 Euro Medium Term Notes Programme. (incorporated by reference to Exhibit 2.6 of Equinor ASA’s 2020 Form 20-F (File no. 001-15200) filed with the Commission on March 19, 2021) |
Exhibit 2.7 | Deed of Guarantee, dated as of 13 May 2020, of Equinor Energy AS in respect of a €20,000,000 Euro Medium Term Notes Programme (incorporated by reference to Exhibit 2.7 of Equinor ASA’s 2020 Form 20-F (File no. 001-15200) filed with the Commission on March 19, 2021). |
Exhibit 4(a)(i) | Technical Services Agreement between Gassco AS and Equinor Energy AS (formerly known as Statoil Petroleum AS), dated November 24, 2010 (incorporated by reference to Exhibit 4(a)(i) of Equinor's (formerly known as Statoil) 2016 Form 20-F (File no. 001-15200) filed with the Commission on March 17, 2017). |
Exhibit 4(a)(ii) | Amendment no. 1, 2, 3, 4, 5 and 6, dated 17 October 2010, 19 February 2013, 15 December 2012, 17 September 2014, 15 December 2017 and 22 December 2017, respectively, to Technical Services Agreement between Gassco AS and Equinor Energy AS (formerly known as Statoil Petroleum AS), dated November 24, 2010 (incorporated by reference to Exhibit 4(a)(ii) of Equinor's (formerly known as Statoil) 2017 Form 20-F (File no. 001-15200) filed with the Commission on March 23, 2018). |
Exhibit 4(c) | Employment agreement with Anders Opedal as of 9 August 2020 (incorporated by reference to Exhibit 4(c) of Equinor ASA’s 2020 Form 20-F (File no. 001-15200) filed with the Commission on March 19, 2021). |
Exhibit 8 | List of subsidiaries |
Exhibit 11 | Code of Conduct |
Exhibit 12.1 | Rule 13a-14(a) Certification of the Chief Executive Officer |
Exhibit 12.2 | Rule 13a-14(a) Certification of Chief Financial Officer |
Exhibit 13.1 | Rule 13a-14(b) Certification of the Chief Executive Officer1) |
Exhibit 13.2 | Rule 13a-14(b) Certification of the Chief Financial Officer1) |
Exhibit 15.1 | Consent of EY AS |
Exhibit 15.2 | Consent of DeGolyer and MacNaughton |
Exhibit 15.3 | Report of DeGolyer and MacNaughton |
Exhibit 15.4 | Equinor 2025 Annual Report |
Exhibit 15.5 | Oil and gas reserves report |
Exhibit 15.6 | Remuneration report |
Exhibit 15.7 | Remuneration policy (incorporated by reference to Exhibit 15.7 of Equinor ASA’s 2024 Form 20-F (File no. 001-15200) filed with the Commission on March 20, 2025) |
Exhibit 15.8 | Clawback policy (incorporated by reference to Exhibit 15.8 of Equinor ASA’s 2024 Form 20-F (File no. 001-15200) filed with the Commission on March 20, 2025) |
Exhibit 15.9 | Board statement on corporate governance |
Exhibit 16 | Insider trading policies |
Exhibit 17 | List of guarantor subsidiaries |
Exhibit 101 | Interactive Data Files (formatted in Inline XBRL (Extensible Business Reporting Language)). Submitted electronically with the 2025 Form 20-F. |
Exhibit 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
1)Furnished only. | |
The total amount of long term debt securities of Equinor ASA and its subsidiaries authorised under instruments other than those
listed above does not exceed 10% of the total assets of Equinor ASA and its subsidiaries on a consolidated basis. The company
agrees to furnish copies of any such instruments to the Commission upon request.
Equinor 2025 Annual Report on Form 20-F 72
SIGNATURES
The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and
authorised the undersigned to sign this annual report on its behalf.
EQUINOR ASA
(Registrant)
By: /s/ TORGRIM REITAN
Name: Torgrim Reitan
Title: Executive Vice President and Chief Financial Officer
Dated: 19 March 2026
Equinor 2025 Annual Report on Form 20-F 73
The reports set out below are provided in accordance with standards of the Public Company Accounting Oversight Board (United
States). Ernst & Young AS (PCAOB ID: 1572 ) has also issued a report in accordance with law, regulations, and auditing standards
and practices generally accepted in Norway, including International Standards on Auditing (ISAs), which includes opinions on the
Consolidated financial statements and the parent company financial statements of Equinor ASA, and on other required matters. That
report is not included in this 2025 Form 20-F, but only in the 2025 Annual Report.
Report of Independent Registered Public Accounting Firm
To the Shareholders and the Board of Directors of Equinor ASA.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Equinor ASA (the Company) as of 31 December 2025 and 2024,
the related consolidated statements of income, comprehensive income, changes in equity and cash flows for each of the three years
in the period ended 31 December 2025, and the related notes (collectively referred to as the “Consolidated Financial Statements”). In
our opinion, the Consolidated Financial Statements present fairly, in all material respects, the financial position of the Company as of
31 December 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended 31
December 2025, in conformity with IFRS Accounting Standards as issued by the International Accounting Standards Board (IASB)
and in conformity with IFRS Accounting Standards as adopted by the European Union.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)
(PCAOB), the Company's internal control over financial reporting as of 31 December 2025, based on criteria established in Internal
Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework),
and our report dated 9 March 2026 expressed an unqualified opinion thereon.
Change in Accounting Policy
As discussed in Note 2, the Company has changed the policy for classification of cash collaterals for commodity derivative
transactions in 2025 which included the disclosure of the 1 January 2024 consolidated balance sheet.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the
Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to
be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and
regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error
or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether
due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis,
evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting
principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial
statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were
communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and
(2) involved our especially challenging, subjective or complex judgments. The communication of critical audit matters does not alter in
any way our opinion on the Consolidated Financial Statements, taken as a whole, and we are not, by communicating the critical audit
matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.
Equinor 2025 Annual Report on Form 20-F 74
Recoverable amounts of production plants and oil and gas assets, assets under development, assets classified as held for sale, and equity accounted investments | |
Description of the Matter | As of 31 December 2025, the Company has recognised production plants and oil and gas assets and assets under development, of USD 41,227 million and USD 14,374 million, respectively, within Property, plant and equipment, assets classified as held for sale of USD 906 million and equity accounted investments of USD 8,504 million. Refer to Note 14 to the Consolidated Financial Statements for the related disclosures. As described in Note 14, determining the recoverable amount of an asset involves an estimate of future cash flows, which is dependent upon management’s best estimate of the economic conditions that will exist over the assessed asset’s useful life. The asset’s operational performance and external factors have a significant impact on the estimated future cash flows and therefore, the recoverable amount of the asset. |
Auditing management’s estimate of the recoverable amount of these assets is complex and involves a high degree of judgement. Significant assumptions used in forecasting future cash flows are future commodity prices, currency exchange rates, expected reserves, capital expenditures, and the discount rate. | |
These significant assumptions are forward-looking and can be affected by future economic and market conditions, including matters related to climate change and energy transition. As described in Note 3 to the Consolidated Financial Statements, the effects of the initiatives to limit climate change and the potential impact of the energy transition are relevant to some of the economic assumptions in the Company’s estimation of future cash flows. Climate considerations are included directly in the impairment assessments by estimating the carbon costs in the cash flows, and indirectly as the expected effects of the climate change are included in the estimated commodity prices. As also described in Note 3, commodity price assumptions applied in value-in-use impairment testing are based on management’s best estimate, which differs from the price-set required to achieve the goals of the Paris Agreement as described in the International Energy Agency (IEA) World Energy Outlook’s Net Zero Emissions by 2050 Scenario. The impact of the energy transition and potential restrictions by regulators, market and strategic considerations may also have an effect on the estimated production profiles and the economic lifetime of the Company’s assets and projects. | |
Additionally, the treatment of tax in the estimation of the recoverable amount is challenging, as the Company is subject to different tax structures that are inherently complex, particularly in Norway. | |
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design, and tested the operating effectiveness of controls over the Company’s process for evaluating the recoverability of production plants and oil and gas assets, assets under development, assets classified as held for sale, and equity accounted investments. This included testing controls over management’s review of assumptions and inputs to the assessments of impairment and impairment reversals. |
Our audit procedures performed over the significant assumptions and inputs included, among others, evaluation of the methods and models used in the calculation of the recoverable amount. We also evaluated the relevant tax effects based on the local legislation of the relevant jurisdictions, particularly in Norway, and tested the clerical accuracy of the models through independently recalculating the value in use. We involved valuation specialists to assist us with these procedures. In addition, we compared projected capital expenditures to approved operator budgets or management forecasts. For those assets previously impaired, we compared actual results to the forecasts used in historical impairment analyses. Where applicable, we also compared expected reserve volumes with internal production forecasts and external evaluations of expected reserves and we compared the historical production and other external information with management’s previous production forecasts or its expected reserve volumes, with the involvement of our reserves specialists. | |
To test price assumptions, we evaluated management’s methodology to determine future commodity prices and compared such assumptions to external benchmarks, among other procedures. We involved valuation specialists to assist in evaluating the reasonableness of the Company’s assessment of currency exchange rates and the discount rate, by assessing the Company’s methodologies and key assumptions used to calculate the rates and by comparing those rates with external information. We also evaluated management’s methodology to factor climate-related matters into their determination of future commodity price assumptions. | |
To test carbon cost assumptions, with the involvement of climate change and sustainability specialists, we evaluated management’s methodology to determine future carbon costs, including assessing the impact from climate-related matters, and compared management’s assumptions with the current legislation in place in the relevant jurisdictions and the jurisdictions’ announced pledges regarding escalation of carbon costs. | |
Equinor 2025 Annual Report on Form 20-F 75
We evaluated management’s sensitivity analyses over its future commodity prices and carbon cost assumptions by taking into consideration, among other sources, the Net Zero Emissions by 2050 Scenario estimated by the International Energy Agency (IEA). We have also evaluated management’s disclosures related to the consequences of initiatives to limit climate change, including the effects of the Company’s climate change strategy on the Consolidated Financial Statements and the energy transition’s effects on estimation uncertainty, discussed in more detail in Notes 3 and 14. | |
Estimation of the asset retirement obligations | |
Description of the Matter | As of 31 December 2025, the Company has recognised a provision for decommissioning and removal activities of USD 13,598 million classified within Provisions and other liabilities. Refer to Note 23 to the Consolidated Financial Statements for the related disclosures. As described in Note 23, the appropriate estimates for such obligations are based on historical knowledge combined with knowledge of ongoing technological developments, expectations about future regulatory and technological development and involve the application of judgement and an inherent risk of significant adjustments. The estimated costs of decommissioning and removal activities require revisions due to changes in current regulations and technology while considering relevant risks and uncertainties. |
Auditing management’s estimate of the decommissioning and removal of offshore installations at the end of the production period is complex and involves a high degree of judgement. Determining the provision for such obligations involves application of considerable judgement related to the assumptions used in the estimate, the inherent complexity and uncertainty in estimating future costs, and the limited historical experience against which to benchmark estimates of future costs. Significant assumptions used in the estimate are the discount rates and the expected future costs, which include the underlying assumptions norms and rates, and time required to decommission and can vary considerably depending on the expected removal complexity. | |
These significant assumptions are forward-looking and can be affected by future economic and market conditions, including matters related to climate change and energy transition. As described in Note 3 to the Consolidated Financial Statements, the effects of the initiatives to limit climate change and the potential impact of the energy transition are relevant to some of the economic assumptions in the Company’s estimation of future cash flows. The impact of the energy transition and potential restrictions by regulators, market and strategic considerations may also have an effect on the estimated economic lifetime of the Company’s assets and projects. If the Company’s business cases for the oil and gas producing assets in the future should change materially due to governmental initiatives to limit climate change, it could affect the timing of cessation of the assets and the asset retirement obligations (ARO). | |
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design, and tested the operating effectiveness of controls over the Company’s process to calculate the present value of the estimated future decommissioning and removal expenditures determined in accordance with local conditions and requirements. This included testing controls over management’s review of assumptions described above, used in the calculation of the ARO. |
To test management’s estimation of the provision for decommissioning and removal activities, our audit procedures included, among others, evaluating the completeness of the provision by comparing significant additions to property, plant and equipment to management’s assessment of new ARO obligations recognized in the period. | |
To assess the expected future costs, among other procedures, we compared day rates for rigs, marine operations and heavy lift vessels to external market data or existing contracts. For time required to decommission, we compared the assumptions against historical data. We compared discount rates to external market data. With the support of our valuation specialists, we evaluated the methodology and models used by management to estimate the ARO and performed a sensitivity analysis on the significant assumptions. In addition, we recalculated the formulas in the models. | |
We evaluated management’s sensitivity analyses over the effect of performing removal five years earlier than currently scheduled due to potential governmental initiatives to limit climate change. We have also evaluated management’s disclosures related to the consequences of initiatives to limit climate change, including the effects of the Company’s climate change strategy on the Consolidated Financial Statements and the energy transition’s effects on estimation uncertainty, discussed in more detail in Notes 3 and 23. | |
/s/ Ernst & Young AS
We have served as the Company’s auditor since 2019.
9 March 2026
Equinor 2025 Annual Report on Form 20-F 76
Report of Independent Registered Public Accounting Firm
To the Shareholders and the Board of Directors of Equinor ASA
Opinion on Internal Control over Financial Reporting
We have audited Equinor ASA (the Company) internal control over financial reporting as at 31 December 2025, based on criteria
established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway
Commission (2013 framework) (the COSO criteria). In our opinion, the Company maintained, in all material respects, effective internal
control over financial reporting as at 31 December 2025, based on the COSO criteria.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)
(PCAOB), the 2025 Consolidated Financial Statements of the Company, and our report dated 9 March 2026 expressed an unqualified
opinion thereon.
Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of
the effectiveness of internal control over financial reporting included in the accompanying Management's Report on Internal Control
over Financial Reporting as set out in Item 15. Controls and Procedures. Our responsibility is to express an opinion on the Company’s
internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are
required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules
and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material
respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material
weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and
performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable
basis for our opinion.
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the
company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements
in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only
in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material
effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections
of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes
in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
/s/ Ernst & Young AS
Stavanger, Norway
9 March 2026
Equinor 2025 Annual Report on Form 20-F 77
Consolidated financial statements
Consolidated statement of income | 78 |
Consolidated statement of comprehensive income | 79 |
Consolidated balance sheet | 80 |
Consolidated statement of changes in equity | 81 |
Consolidated statement of cash flows | 82 |
Notes to the consolidated financial statements | 83 |
Notes to the consolidated financial statements | 83 |
Note 1. Organisation | 83 |
Note 2. Accounting policies | 83 |
Note 3. Climate change and energy transition | 86 |
Note 4. Financial risk and capital management | 90 |
Note 5. Segments | 95 |
Note 6. Acquisitions and disposals | 99 |
Note 7. Total revenues and other income | 102 |
Note 8. Salaries and personnel expenses | 104 |
Note 9. Auditor’s remuneration and Research and development expenditures | 105 |
Note 10. Financial items | 105 |
Note 11. Income taxes | 106 |
Note 12. Property, plant and equipment | 110 |
Note 13. Intangible assets | 114 |
Note 14. Impairments | 117 |
Note 15. Joint arrangements and associates | 122 |
Note 16. Financial investments and financial receivables | 124 |
Note 17. Inventories | 125 |
Note 18. Trade and other receivables | 126 |
Note 19. Cash and cash equivalents | 126 |
Note 20. Shareholders' equity, capital distribution and earnings per share | 127 |
Note 21. Finance debt | 130 |
Note 22. Pensions | 134 |
Note 23. Provisions and other liabilities | 137 |
Note 24. Trade and other payables | 140 |
Note 25. Leases | 141 |
Note 26. Other commitments, contingent liabilities and contingent assets | 143 |
Note 27. Related parties | 145 |
Note 28. Financial instruments and fair value measurement | 147 |
Note 29. Subsequent events | 151 |
Equinor 2025 Annual Report on Form 20-F 78
Consolidated statement of income
Full year | ||||
(in USD million) | Note | 2025 | 2024 | 2023 |
Revenues | 7 | |||
Net income/(loss) from equity accounted investments | 15 | ( | ||
Other income | 6 | |||
Total revenues and other income | 7 | |||
Purchases [net of inventory variation] | ( | ( | ( | |
Operating expenses | ( | ( | ( | |
Selling, general and administrative expenses | ( | ( | ( | |
Depreciation, amortisation and net impairment | 12, 13, 14 | ( | ( | ( |
Exploration expenses | 13 | ( | ( | ( |
Total operating expenses | ( | ( | ( | |
Net operating income/(loss) | 5 | |||
Full year | ||||
(in USD million) | Note | 2025 | 2024 | 2023 |
Interest income and other financial income | 10 | |||
Interest expenses and other financial expenses | 10 | ( | ( | ( |
Other financial items | 10 | ( | ( | |
Net financial items | ( | |||
Income/(loss) before tax | ||||
Income tax | 11 | ( | ( | ( |
Net income/(loss) | ||||
Attributable to shareholders of the company | 20 | |||
Attributable to non-controlling interests | ||||
Basic earnings per share (in USD) | 20 | |||
Diluted earnings per share (in USD) | 20 | |||
Equinor 2025 Annual Report on Form 20-F 79
Consolidated statement of comprehensive income
Full year | ||||
(in USD million) | Note | 2025 | 2024 | 2023 |
Net income/(loss) | ||||
Actuarial gains/(losses) on defined benefit pension plans | ( | |||
Income tax effect on income and expenses recognised in OCI1) | ( | ( | ||
Items that will not be reclassified to the Consolidated statement of income | ( | |||
Foreign currency translation effects | ( | ( | ||
Share of OCI from equity accounted investments | ( | ( | ||
Items that may subsequently be reclassified to the Consolidated statement of income | ( | ( | ||
Other comprehensive income/(loss) | ( | ( | ||
Total comprehensive income/(loss) | ||||
Attributable to the shareholders of the company | ||||
Attributable to non-controlling interests | ||||
1) Other Comprehensive Income (OCI). | ||||
Equinor 2025 Annual Report on Form 20-F 80
Consolidated balance sheet
At 31 December | At 1 January | ||||
(in USD million) | Note | 2025 | 2024 | 2024 | |
ASSETS | |||||
Property, plant and equipment | 12 | ||||
Intangible assets | 13 | ||||
Equity accounted investments | 15 | ||||
Deferred tax assets | 11 | ||||
Pension assets | 22 | ||||
Derivative financial instruments | 28 | ||||
Financial investments | 16 | ||||
Non-current prepayments and financial receivables | 16 | ||||
Total non-current assets | |||||
Inventories | 17 | ||||
Trade and other receivables | 18 | ||||
Current prepayment and financial receivables1) | 16 | ||||
Derivative financial instruments | 28 | ||||
Financial investments | 16 | ||||
Cash and cash equivalents1) | 19 | ||||
Total current assets | |||||
Assets classified as held for sale | 6 | ||||
Total assets | |||||
1) Amounts as at 1 January 2024 and 31 December 2024 have been restated due to a change in classification of cash collaterals for commodity derivative transactions. For more information see note 2 Accounting policies. | |||||
At 31 December | At 1 January | |||
(in USD million) | Note | 2025 | 2024 | 2024 |
EQUITY AND LIABILITIES | ||||
Shareholders’ equity | ||||
Non-controlling interests | ||||
Total equity | 20 | |||
Finance debt | 21 | |||
Lease liabilities | 25 | |||
Deferred tax liabilities | 11 | |||
Pension liabilities | 22 | |||
Non-current provisions and other liabilities | 23 | |||
Derivative financial instruments | 28 | |||
Total non-current liabilities | ||||
Trade and other payables | 24 | |||
Current provisions and other liabilities | 23 | |||
Current tax payable | ||||
Finance debt | 21 | |||
Lease liabilities | 25 | |||
Dividends payable | 20 | |||
Derivative financial instruments | 28 | |||
Total current liabilities | ||||
Liabilities directly associated with the assets classified as held for sale | 6 | |||
Total liabilities | ||||
Total equity and liabilities | ||||
Equinor 2025 Annual Report on Form 20-F 81
Consolidated statement of changes in equity
(in USD million) | Share capital | Additional paid-in capital | Retained earnings | Foreign currency translation reserve | OCI from equity accounted investments1) | Shareholders' equity | Non-controlling interests | Total equity |
At 1 January 2023 | ( | |||||||
Net income/(loss) | ||||||||
Other comprehensive income/(loss) | ( | ( | ( | ( | ( | |||
Total comprehensive income/(loss) | ( | ( | ||||||
Dividends | ( | ( | ( | |||||
Share buy-back | ( | ( | ( | ( | ( | |||
Other equity transactions | ( | — | ( | ( | ( | |||
At 31 December 2023 | ( | |||||||
Net income/(loss) | ||||||||
Other comprehensive income/(loss) | ( | ( | ( | ( | ||||
Total comprehensive income/(loss) | ( | ( | ||||||
Dividends | ( | ( | ( | |||||
Share buy-back | ( | — | ( | ( | ( | |||
Other equity transactions | — | ( | ( | ( | ||||
At 31 December 2024 | ( | |||||||
Net income/(loss) | ||||||||
Other comprehensive income/(loss) | ||||||||
Total comprehensive income/(loss) | ||||||||
Dividends | ( | ( | ( | |||||
Share buy-back | ( | — | ( | ( | ( | |||
Other equity transactions | — | ( | ( | ( | ||||
At 31 December 2025 | ( | |||||||
1) OCI items from equity accounted investments that may subsequently be reclassified to the Consolidated statement of income, are presented as part of OCI from equity accounted investments. OCI items that will not be reclassified to the Consolidated statements of income will be included in retained earnings. | ||||||||
Please refer to note 20 Shareholders’ equity, capital distribution and earnings per share for more details | ||||||||
Equinor 2025 Annual Report on Form 20-F 82
Consolidated statement of cash flows
Full year | ||||
(in USD million) | Note | 2025 | 2024 | 2023 |
Income/(loss) before tax | ||||
Depreciation, amortisation and net impairments, including exploration write-offs | 12, 13, 14 | |||
(Gains)/losses on foreign currency transactions and balances | ( | ( | ||
(Gains)/losses on sale of assets and businesses | 6 | ( | ( | |
(Increase)/decrease in other items related to operating activities | ( | ( | ( | |
(Increase)/decrease in net derivative financial instruments | 28 | ( | ( | |
Cash collaterals for commodity derivative transactions1) | ( | |||
Interest received | ||||
Interest paid3) | ( | ( | ( | |
Cash flows provided by operating activities before taxes paid and working capital items | ||||
Taxes paid | ( | ( | ( | |
(Increase)/decrease in working capital | ||||
Cash flows provided by operating activities | ||||
Cash used in business combinations | 6 | ( | ( | ( |
Capital expenditures and investments3) | 6 | ( | ( | ( |
(Increase)/decrease in financial investments2) | ||||
(Increase)/decrease in derivative financial instruments | ( | |||
(Increase)/decrease in other interest-bearing items | ( | ( | ||
Proceeds from sale of assets and businesses | 6 | |||
Cash flows provided by/(used in) investing activities | ( | ( | ( | |
Full year | ||||
(in USD million) | Note | 2025 | 2024 | 2023 |
New finance debt | 21 | |||
Repayment of finance debt | 21 | ( | ( | ( |
Repayment of lease liabilities | 25 | ( | ( | ( |
Dividends paid | 20 | ( | ( | ( |
Share buy-back | 20 | ( | ( | ( |
Net current finance debt and other financing activities | ( | |||
Cash flows provided by/(used in) financing activities | 21 | ( | ( | ( |
Net increase/(decrease) in cash and cash equivalents | ( | ( | ( | |
Foreign currency translation effects | ( | ( | ||
Cash and cash equivalents at the beginning of the period (net of overdraft)1) | 19 | |||
Cash and cash equivalents at the end of the period (net of overdraft)1) | 19 | |||
1) As from 2025, cash flows related to collaterals for commodity derivative transactions are presented on a separate line within operating activities, Cash collaterals for commodity derivative transactions. In previous periods, these were included as part of Cash and cash equivalents. Comparative figures have been restated accordingly. See the restatement table in note 2 Accounting policies. | ||||
2) This line item includes the initial acquisition of as an additional investment of USD | ||||
3) Interest paid in cash flows provided by operating activities excludes capitalised interest of USD USD interest is included in Capital expenditures and investments in cash flows used in investing activities. Total interest paid amounts to USD | ||||
Equinor 2025 Annual Report on Form 20-F 83
Notes to the consolidated financial statements
Note 1. Organisation
The Equinor group (Equinor) consists of Equinor ASA
and its subsidiaries. Equinor ASA is incorporated and
domiciled in Norway and listed on the Oslo Børs
(Norway) and the New York Stock Exchange (USA).
The address of its registered office is Forusbeen 50,
NO-4035 Stavanger, Norway.
Equinor’s objective is to develop, produce and market
various forms of energy and derived products and
services, as well as other businesses. The activities
may also be carried out through participation in or
cooperation with other companies. Equinor Energy AS,
a 100 % owned operating subsidiary of Equinor ASA and
owner of all of Equinor's oil and gas activities and net
assets on the Norwegian continental shelf, is co-obligor
or guarantor for certain debt obligations of Equinor ASA.
The Consolidated financial statements of Equinor for
the full year 2025 were approved for issuance by the
board of directors on 09 March 2026 and is subject to
approval by the annual general meeting on 12 May
2026.
Note 2. Accounting policies
The Consolidated financial statements of Equinor ASA
and its subsidiaries (Equinor) have been prepared in
accordance with IFRS Accounting Standards as
adopted by the European Union (EU) and with IFRS
Accounting Standards as issued by the International
Accounting Standards Board (IASB), IFRIC®
Interpretations issued by IASB and the additional
requirements of the Norwegian Accounting Act, effective
The Consolidated financial statements are prepared on
the historical cost basis with some exceptions where fair
value measurement is applied. These exceptions are
specifically disclosed in the accounting policies sections
in relevant notes. The material accounting policies
described in these Consolidated financial statements
have been applied consistently to all periods presented.
Certain amounts in the comparable years have been
reclassified or re-presented to conform to current year
presentation. Unless otherwise noted, all amounts in the
Consolidated financial statements are denominated in
USD millions. Due to rounding the subtotals and totals
in some of the tables in the notes may not equal the
sum of the amounts shown in the primary financial
statements.
The line items included in Total operating expenses in
the Consolidated statement of income are presented as
a combination of function and nature in conformity with
industry practice. Purchases [net of inventory variation]
and Depreciation, amortisation and net impairments are
presented on separate lines based on their nature,
while Operating expenses and Selling, general and
administrative expenses as well as
Exploration expenses are presented on a functional
basis. Significant expenses such as salaries, pensions,
etc. are presented by their nature in the notes to the
Consolidated financial statements.
The Consolidated financial statements include the
accounts of Equinor ASA and its subsidiaries as well as
Equinor’s interests in joint operations and equity
accounted investments. All intercompany balances and
transactions, including unrealised profits and losses
arising from Equinor's internal transactions, have been
Foreign exchange differences arising on translation of
transactions, assets and liabilities to the functional
currency of individual entities in Equinor are recognised
as foreign exchange gains or losses in the Consolidated
statement of income within Net financial items. Foreign
exchange differences arising from the translation of
estimate-based provisions are generally accounted for
as part of the change in the underlying estimate.
When preparing the Consolidated financial statements,
the financial statements of entities with functional
currencies other than the Group’s presentation currency
(USD) are translated into USD, with the foreign
exchange differences recognised separately in Other
comprehensive income (OCI). The cumulative
translation differences relating to an entity are
reclassified to the Consolidated statement of income
and reflected as a part of the gain or loss upon disposal
of that entity.
Loans from Equinor ASA to subsidiaries and equity
accounted investments with other functional currencies
than the parent company, and where settlement is
neither planned nor likely in the foreseeable future, are
considered part of the parent company’s net investment
in these entities. Foreign exchange differences arising
from these loans are recognised in OCI in the
In the statement of cash flows, operating activities are
presented using the indirect method. Income/(loss)
before tax is adjusted for changes in inventories and
operating receivables and payables, the effects of non
cash items such as depreciations, amortisations and
impairments, provisions, unrealised gains and losses
and undistributed profits from associates, and items of
income or expense for which the cash effects are
investing or financing cash flows. Increase/decrease in
financial investments, derivative financial instruments,
and other interest-bearing items are all presented net as
part of Investing activities. This presentation is normally
due to the nature of the transactions which often involve
large amounts,quick turnover, and short
amendments to IFRS Accounting Standards and
IFRIC Interpretations
No new IFRS Accounting Standards, amendments to
IFRS Accounting Standards or IFRIC Interpretations
that became effective and were adopted by Equinor as
of 1 January 2025 have had significant impact on
Equinor’s Consolidated financial statements.
Equinor 2025 Annual Report on Form 20-F 84
IFRS Accounting Standards, amendments to
IFRS Accounting Standards, and IFRIC
Interpretations issued, but not yet effective:
There are no new IFRS Accounting Standards,
amendments to IFRS Accounting Standards, or IFRIC
Interpretations issued but not yet effective that are
expected to have a material impact on Equinor’s
consolidated financial statements, apart from IFRS 18
Presentation and Disclosure in Financial Statements.
Equinor has not early adopted any IFRS Accounting
Standard, amendments to IFRS Accounting Standards,
or IFRIC Interpretations issued, but not yet effective.
IFRS 18 Presentation and Disclosure in
Financial Statements
In April 2024, the IASB issued IFRS 18, which will
replace IAS 1 effective from 1 January 2027. The new
standard introduces several key new requirements:
•Entities are required to classify all income and
expenses into five categories in the Consolidated
statement of income: operating, investing, financing,
income taxes, and discontinued operations.
•Additionally, entities are required to present a newly-
defined operating profit subtotal.
•Management-defined performance measures
(MPMs) shall be disclosed in a single note to the
financial statements.
•Enhanced guidance for aggregating and
disaggregating information in financial statements.
In addition, entities are required to use the operating
profit subtotal as the starting point for the Consolidated
statement of cash flows when presenting cash flows
provided by operating activities under the indirect
method.
IFRS 18 applies retrospectively and allows for earlier
application if disclosed.
Equinor is currently assessing the impact of IFRS 18 on
our financial statements. While recognition and
measurement of items will remain unchanged, the
presentation in the Consolidated statement of income
will be affected. Among other impacts, net income/(loss)
from equity accounted companies, as well gains/
(losses) on disposal of interests in such companies, will
be excluded from the new operating profit subtotal and
classified in the investing category. Foreign currency
exchange gains/(losses) not related to the financing
category will be reclassified into the operating and
investing categories. Interest income and other financial
income, and gains/(losses) on financial investments will
be classified in the investing category.
The cash flow statement will also be affected. The new
operating profit subtotal will be the starting point for the
Consolidated statement of cash flows. Interest paid will
be reclassified from cash flows provided by operating
activities to cash flows provided by/(used in) financing
activities. Interest received and dividends received will
be included in cash flows provided by/(used in)
investing activities.
Equinor does not intend to early adopt IFRS 18. Upon
adoption, Equinor will retrospectively apply the new
presentation and disclosure requirements and provide
the required reconciliation between the previous and
new income statement for the comparative period.
Equinor will ensure full compliance by the effective date,
including restating comparative information and
preparing for new disclosures.
Change in accounting policy
With effect from 2025, Equinor has changed the
classification of cash collaterals for commodity
derivative transactions in the Consolidated balance
sheet from Cash and cash equivalents to Prepayments
and financial receivables (current), with no impact on
Total current assets. These collateral deposits are
related to certain requirements set out by exchanges
where Equinor is participating and have previously been
referred to as restricted cash and cash equivalents. The
reclassification is intended to better reflect the nature
and purpose of the collateral deposits and to provide
more relevant information to stakeholders.
The change also affects the presentation in the
Consolidated statement of cash flows. With effect from
2025, the cash flows related to these collateral deposits
are included within Cash flows provided by operating
activities on a new line-item named Cash collaterals for
commodity derivative transactions.
Consolidated balance sheet | At 31 December 2024 | At 31 December 2023/ 1 January 2024 | ||
(in USD million) | As reported | Restated | As reported | Restated |
Cash and cash equivalents | ||||
Prepayments and financial receivables | ||||
Sum | ||||
Consolidated Statement of Cash Flows | Full year 2024 | Full year 2023 | ||
(in USD million) | As reported | Restated | As reported | Restated |
Cash collaterals for commodity derivative transactions | ( | |||
Cash flow provided by operating activities before taxes paid and working capital items | ||||
Cash flows provided by operating activities | ||||
Cash and cash equivalents at the beginning of the period (net of overdraft) | ||||
Cash and cash equivalents at the end of the period (net of overdraft) | ||||
The change has been retrospectively applied to
comparative periods for consistency and comparability.
Restated comparative figures are presented in the
tables below.
Equinor 2025 Annual Report on Form 20-F 85
estimation uncertainty
The preparation of the Consolidated financial
statements requires management to make
accounting judgements, estimates and assumptions.
Information about judgements made in applying the
accounting policies that have the most significant
effects on the amounts recognised in the
Consolidated financial statements is described in the
following notes:
Note 6 – Acquisitions and disposals
Note 7 – Total revenues and other income
Note 15 - Joint arrangements and associates
Note 25 – Leases
Estimates used in the preparation of these
Consolidated financial statements are prepared
based on customised models. The assumptions
applied in these estimates are derived from historical
experience, external sources of information and
various other factors that management assesses to
be reasonable under the current conditions and
circumstances. These estimates and assumptions
form the basis of making the judgements about
carrying values of assets and liabilities when these
are not readily apparent from other sources. Actual
results may differ from these estimates. The
estimates and underlying assumptions are
continuously reviewed, taking into account the
current and expected future set of conditions.
Equinor is exposed to several underlying economic
factors affecting the overall results, such as
commodity prices, foreign currency exchange rates,
market risk premiums and interest rates as well as
financial instruments with fair values derived from
changes in these factors. The effects of the initiatives
to limit climate changes and the transition to a lower
carbon economy are relevant to several of these
economic assumptions. In addition, Equinor's results
are influenced by the level of production, which in the
short term may be impacted by, for instance,
maintenance programmes, among other factors. In
the long-term, the results are impacted by the
success of exploration, field developments, operating
activities, and progress within renewables and low
carbon solutions.
The most important matters in understanding the key
sources of estimation uncertainty are described in
each of the following notes:
Note 3 – Climate change and energy transition
Note 11 – Income taxes
Note 12 – Property, plant and equipment
Note 13 – Intangible assets
Note 14 – Impairments
Note 23 – Provisions and other liabilities
Note 26 – Other commitments, contingent liabilities
and contingent assets
Equinor 2025 Annual Report on Form 20-F 86
Note 3. Climate change and energy
transition
Risks arising from climate change and the
transition to a lower carbon economy
Developments in laws and regulations, policies,
technology, and markets—including stakeholder
sentiment towards climate change—can affect
Equinor’s financial performance and business plans. In
parallel, shifts in stakeholder focus between energy
security, energy affordability, and sustainability present
challenges for the energy sector.
Equinor’s risk assessment and management process
incorporates short-, medium- and long-term
perspectives. Climate-related risks are classified as
either transition risks, which relate to the financial
robustness of the company’s business model and
portfolio under various decarbonisation scenarios, or
physical climate risks, which relate to the exposure and
potential vulnerability of Equinor’s assets to climate-
related hazards.
Equinor’s double materiality assessment for 2025
identified transition risks as a material sustainability
matter. The table to the right summarises the relevant
climate-related risks with potential financial effects.
Equinor’s Energy transition plan and climate-related
ambitions are responses to the challenges and
opportunities presented by climate change and the
energy transition.
Transition risks | Impact | Description | Risk adjusting actions |
Policy, legal, and regulatory developments | Downside | Changes in climate laws, regulations, and adverse litigation outcomes can adversely impact Equinor's financial results and outlook, including the value of its assets. These impacts may be direct, or indirect through changes in consumer behaviour or technological developments. | Equinor monitors trends in relevant policies and regulations, and addresses regulatory and policy risks in capital investment processes and through enterprise risk management within the business line. |
Market developments and stakeholder expectations | Upside / Downside | Multiple factors in the energy transition contribute to uncertainty in future energy price assumptions, and changes in investor and societal sentiment can affect Equinor’s access to capital markets and financing costs. Strong competition for assets, varying commercial and contractual models, and changing levels of policy support may lead to diminishing returns within the renewable and low-carbon industries, and may hinder Equinor’s ambitions. These investments may also be exposed to interest rate risk and inflation risk. | Equinor includes actual or default minimum carbon pricing across investments, applies price robustness criteria, and routinely stress- tests the portfolio for different future commodity price scenarios on the path towards net zero. Hurdle rates and other financial sensitivity tests are included in decision-making. Equinor has developed its corporate strategy and Energy transition plan (ETP) to demonstrate its commitment to a low-carbon business transformation that balances investor and societal expectations. This includes an ambitious abatement plan to reduce both absolute emissions and emissions intensity from Equinor’s activities. |
Technology developments | Upside / Downside | Changing demand and more cost-competitive solutions for renewable energy and low-carbon technologies represent both threats and opportunities for Equinor’s future value creation and the value of its assets. Equinor sees opportunities for value creation in the energy transition through optimisation of its oil and gas business, and by utilising its competitive capabilities across new areas of the energy system. In a decarbonising world with a broad energy mix, policymakers and stakeholders may place a premium on oil and gas produced in a responsible and increasingly carbon-efficient manner. | Equinor assesses climate-related risks associated with external technology development trends and invests in research, innovation, and technology ventures that support positive value creation for its portfolio. Examples of relevant technologies within Equinor’s portfolio include carbon capture and storage (CCS), battery technology, solar and wind renewable energy, low CO₂ intensity solutions, improvements in methane emissions, and the application of renewables in oil and gas production. |
Physical climate risks: Changes in physical climate parameters could impact Equinor's operations, resulting in operational disruption, increased costs, or incidents. With assistance from leading expert consultants and climate scenario models, Equinor continues to assess the potential vulnerability of its assets to modelled climate-related changes in the physical environment. However, there is inherent uncertainty regarding the magnitude and timing of such physical climate change impacts, which could affect the potential impact on Equinor. Based on the current assessment of physical climate exposure in regions where Equinor’s assets are located, Equinor has not identified any material physical climate risks to its asset portfolio in the current year. | |||
Equinor 2025 Annual Report on Form 20-F 87
Impact on Equinor’s financial statements
In preparing the 2025 financial statements, Equinor has conducted a range of sensitivity analyses and other assessments
in relation to climate-related matters, as outlined in this note to the financial statements. The following information
provides further detail on the specific climate-related risks and sensitivities considered, and how these have been
evaluated in the context of our financial reporting. Based on these assessments, no climate-related effects have been
identified that would have a significant impact on the 2025 financial statements.
CO₂-cost and EU ETS carbon credits
Equinor’s oil and gas operations in Europe are part of the EU Emissions Trading System (EU ETS). Currently, Equinor
receives a share of free quotas according to EU ETS regulations. This share of free quotas is expected to be significantly
reduced in the future. Equinor purchases additional EU ETS allowances (quotas or carbon credits) when its oil and gas
production and processing emissions exceed its free EU ETS quota allocation.
Total expensed CO₂ costs attributable to Equinor’s share of operated licences and land-based facilities amounted to USD
The table below presents the number and associated value of EU ETS and UK ETS quotas that have been received,
purchased, and utilised by Equinor on an operated basis. Allocated free quotas consists of actual free quotas received
under the ETS during the calendar year. In 2024, Equinor received allocated free quotas for both 2024 and 2023, due to a
delay in the allocation schedule. The year-end quota balance consists mainly of free and purchased quotas remaining
after the settlement of quotas against current and prior year emissions. The closing balance in USD consists of the value
of the remaining quotas after a preliminary settlement allocation for the current year.
Number of EU ETS quotas in thousands | Value of EU ETS quotas (in USD million) | |||
2025 | 2024 | 2025 | 2024 | |
Opening balance at 1 January | ||||
Allocated free quotas | ||||
Purchased quotas on the ETS market | ||||
Sold quotas on the ETS market | ||||
Returned or transferred excess quotas | ( | ( | ||
Settled quotas (offset against emissions) | ( | ( | ( | ( |
Closing balance at 31 December | ||||
Numbers in the table are presented gross (100%) for Equinor operated licences and include EU ETS and UK ETS quotas, as received or settled during the calendar year. | ||||
Accounting policies
Cost of CO₂ quotas
Purchased CO₂ quotas under the EU Emissions Trading System (EU ETS) are reflected at cost in Operating
expenses as incurred in line with emissions. Accruals for CO₂ quotas required to cover emissions to date are valued
at market price and reflected as current liabilities within Trade and other payables. Quotas owned, but exceeding the
emissions incurred to date, are carried in the balance sheet at cost price, classified as Other current receivables, as
long as such purchased quotas are acquired in order to cover own emissions and may be kept to cover subsequent
years’ emissions.
Obligations resulting from current year emissions and the corresponding amounts for quotas that have been bought,
paid, and expensed, but which have not yet been surrendered to the relevant authorities, are reflected net in the
balance sheet.
Investments in renewables and low-carbon solutions
Equinor’s ambition is to build a focused, carbon efficient oil and gas portfolio complemented by an integrated power
portfolio and commercial opportunities in low carbon solutions. This diversified approach aims to maintain long-term value
creation while supplying reliable energy, with progressively lower emissions, to our customers.
Equinor’s investments in renewables are included as Additions to PP&E, intangibles and equity accounted investments in
the REN segment (refer to note 5 Segments). During 2025, the REN segment invested USD 2.1 billion in the Empire Wind
project, USD 195 million to acquire the onshore Lyngsåsa wind farm in Sweden, and USD 258 million as contributions to
equity accounted investments in Bałtyk 2 & 3.
(in USD million) | 2025 | 2024 |
Offshore renewables | ||
Onshore renewables | ||
Total Additions to PP&E, intangibles and equity accounted investments - REN | ||
Low carbon solutions (within MMP) | ||
Total Additions to PP&E, intangibles and equity accounted investments - REN and LCS | ||
Additions to PP&E, intangibles and equity accounted investments exclude changes to ARO, in alignment with note 5 Segments. | ||
Equinor 2025 Annual Report on Form 20-F 88
Equinor continues to take steps to industrialise carbon
capture and storage (CCS). During 2025, the Northern
Lights project received its first CO2 for storage, and a
final investment decision was made to commence the
project’s second phase. In addition, Equinor is
developing the Net Zero Teesside and Northern
Endurance Partnership projects to provide thermal
power with applied CCS to local industries in the UK.
Equinor contributed USD 16 million to equity accounted
investments undertaking CCS projects in 2025 (USD 76
million in 2024).
Investments in electrification of oil and gas assets
During 2025, Equinor invested USD 168 million in
electrification (USD 180 million in 2024). Equinor’s
abatement projects primarily include full and partial
electrification of offshore assets in Norway at key fields
and plants, including Troll, Oseberg, Njord, and the
Hammerfest LNG plant, mainly by power from shore.
Research and development activities (R&D)
Equinor is involved in several projects aimed at
optimising oil and gas activities, reducing emissions,
and developing new business opportunities in
renewable energy generation and low carbon solutions.
Equinor’s R&D expenditure is disclosed in note 9
Auditor’s remuneration and Research and development
expenditures. The accounting policy for R&D is detailed
in note 12 Property, plant and equipment.
Power Purchase Agreements (PPAs)
Equinor holds various long-term PPAs for power
sourced from wind and solar parks, with expiry dates up
until 2040. The agreements imply balancing activities,
whereby Equinor assumes the long-term balancing risk
related to production. The majority of
these agreements are settled at the appropriate market
price, less a balancing fee, and expire by the end of
2027. The agreements include pay-as-produced
elements; however, as most of the power purchase
agreements are linked to the applicable market prices,
and the power purchased is mainly sold on power
exchanges at market price, Equinor only holds a limited
long-term price risk related to these agreements. For
accounting policies related to power sales and related
purchases, refer to note 7 Total revenues and other
income.
Effects on estimation uncertainty
Initiatives to limit climate change, as well as the
potential impact of the energy transition, are relevant to
certain economic assumptions and future cash flow
estimates used by Equinor. The resulting effects, and
Equinor's exposure to them, are sources of uncertainty.
Estimating global energy demand and commodity prices
towards 2050 is challenging due to various complex
factors, including technological capabilities, regulatory
policies, taxation, and production limits, all of which
evolve over time. These uncertainties could result in
significant changes to accounting estimates over time.
Relevant accounting estimates include depreciation and
asset retirement obligations (useful life of assets),
impairment assessments, and deferred tax assets (see
note 11 Income taxes for the expected utilisation period
of tax losses carried forward and recognised as
deferred tax assets).
Commodity prices
Significant changes in oil and gas prices outside
planning assumptions could impact our financial
performance. Equinor’s commodity price assumptions,
applied in its value-in-use calculations, are based on
management’s best estimate of future market trends.
These price assumptions deviate from the price set out
to achieve net zero emissions by 2050 and limit global
warming to 1.5 °C, in alignment with the Paris
Agreement and as outlined in the International Energy
Agency’s World Energy Outlook (IEA’s WEO) Net Zero
Emissions (NZE) Scenario.
Changes in how the world acts with regards to
achieving the goals of the Paris Agreement could have
a negative impact on the valuation of Equinor’s assets.
An illustrative impairment effect to Equinor’s upstream
production assets and certain intangible assets, using
published price assumptions from the NZE Scenario, is
provided in the Sensitivity table sub-section.
When computing this illustrative impairment,
management’s price assumptions are applied until
2035. A linear interpolation is applied between the
published NZE Scenario prices (2035-2050), after which
prices are maintained at the 2050 level. This approach
is consistent with prior year, where management’s price
assumptions were applied until the first published price
point in the relevant IEA’s WEO scenario (in 2024, this
was 2030) before a linear interpolation was performed.
To be comparable to Equinor’s management’s price
assumptions, the crude oil prices in the NZE Scenario
are adjusted for transportation costs, and all prices are
adjusted for inflation and presented in real 2025 terms.
The illustrative impairment sensitivity calculation is
based on a simplified model with limitations, as
described in note 14 Impairments.
Cost of CO2
Climate-related considerations are included in the
impairment assessments through CO₂ tax estimations in
the forecasted cash flows, and indirectly through
estimated commodity prices relating to supply and
demand. The CO₂ prices also influence the estimated
production profiles and economic cut-off of the assets.
Carbon price assumptions are applied to all Equinor
assets, including assets in countries outside the EU
where CO2 is not already subject to taxation or where
Equinor has not established specific estimates. Our
default assumption, in real 2025 terms, is a price of
USD 100 per tonne starting in 2027, increasing to USD
The EU ETS price has increased over time and had an
average cost of 74 EUR/tonne in 2025 (66 EUR/tonne
in 2024). Equinor’s commodity price assumptions
include an EU ETS price of 81 EUR/tonne for the next
two years and assumes an increase to EU ETS prices
over time. See note 14. Impairments for management’s
forecasted EU ETS price assumptions for the years
2030, 2040, and 2050.
Equinor expects greenhouse gas emission costs to
increase from current levels and to have a wider
geographical range than today. Equinor recognizes
CO₂-related costs in Norway, the UK and Germany for
its own operated assets, as well as in Canada for
partner-operated assets.
The CO₂ tax assumptions used in the impairment
assessments of Norwegian upstream assets are based
on Norway’s Climate Action Plan for the period
2021-2030 (Meld. St 13 (2020-2021)), assuming a
gradual increase to the CO₂-related cost in Norway to
2,000 NOK/tonne (real 2020) in 2030 (the total of EU
ETS + Norwegian CO₂).
Equinor 2025 Annual Report on Form 20-F 89
Sensitivity table
The table below compares management’s price assumptions to the NZE Scenario price set and presents an illustrative
impairment amount from applying the NZE Scenario prices to Equinor’s portfolio. Refer to section 3.2 E1 Climate change
in the 2025 Annual Report for more details about the scenarios presented in the IEA’s WEO 2025.
An increase in systemic climate risk may result in higher discount rates used in impairment calculations. Refer to note 14
Impairments for general sensitivity analysis on discount rates and commodity prices.
Management's price assumptions1) | Net Zero Emissions (NZE) by 2050 Scenario4) | ||||
Brent blend, 2035 | USD/bbl | USD/bbl | |||
Brent blend, 2050 | USD/bbl | USD/bbl | |||
TTF, 2035 | USD/MMBtu | USD/MMBtu | |||
TTF, 2050 | USD/MMBtu | USD/MMBtu | |||
EU ETS2), 3), 2035 | USD/tCO2 | USD/tCO2 | |||
EU ETS2), 3), 2050 | USD/tCO2 | USD/tCO2 | |||
Illustrative potential impairment (USD) | ~ | billion | |||
1) | Management’s future commodity price assumptions applied when estimating value in use, see note 14 Impairments for additional years disclosed. | ||||
2) | Scenario: Price of CO₂ quotas in advanced economies with net zero pledges, not including any other CO₂ taxes. | ||||
3) | Management’s EU ETS price assumptions have been translated from EUR to USD using Equinor’s assumptions for currency rates, EUR/USD = | ||||
4) | An IEA WEO scenario where the world follows a potential path towards limiting global warming to 1.5 °C relative to pre-industrial levels. Values are adjusted for inflation and presented in 2025 real terms. | ||||
The illustrative potential impairment from applying the NZE Scenario price set, excludes MMP’s trading and refinery
activities, as well as Equinor’s renewable assets and low-carbon projects. This is because the IEA’s WEO scenarios
primarily stress oil and gas prices, with limited consideration of the potential impact these prices have on trading and
refinery margins. For most MMP assets, margin movements are not directly correlated to oil and gas price fluctuations,
and for many of Equinor’s renewable assets, prices are fixed in offtake contracts and therefore not directly sensitive to
power prices. Furthermore, the MMP and REN segments represent around 15 % of Equinor’s total non-current segment
assets and equity accounted investments, as disclosed in note 5 Segments. Based on this, these assets would not have a
material effect on the illustrative potential impairment calculation, if included.
Robustness of Equinor’s portfolio and risk of stranded assets
The transition to renewable energy, technological development, and the expected reduction in global demand for carbon-
based energy may impact the future profitability of certain upstream oil and gas assets. Equinor uses scenario analysis to
outline different possible energy futures, some of which imply lower oil and natural gas prices and higher CO₂ costs. If this
materialises, it could lead to a decrease in cash flow from oil and gas, and potentially reduce the economic useful life of
certain assets. Equinor seeks to mitigate this risk by improving the resilience of its existing upstream portfolio, maximising
the efficiency of its infrastructure on the Norwegian Continental Shelf (NCS), and optimising its international portfolio.
Equinor’s project portfolio is expected to remain robust to low oil and gas prices, and actions are in place to maintain cost
discipline across the company. Equinor continues to pursue high-value barrels to enhance its portfolio through exploration
and increased recovery, in addition to acquisitions and divestments, with the expectation of strong oil and gas cash flow
from operations. Equinor aims to maintain capex flexibility in its current portfolio, with non-sanctioned projects
representing a substantial part of the expected capex, particularly for 2027 and beyond. This approach enables capex
optimisation and reprioritisation in future periods, ensuring sustained, long-term value generation.
Based on the current production profiles, approximately 78 % of Equinor’s proved oil and gas reserves, as defined by the
SEC, are planned to be produced in the period 2026-2035, and more than 99 % in the period 2026-2050. This implies a
low exposure of Equinor’s reserves value to early cessation, particularly after 2035, and provides flexibility in adapting to
changing market conditions or a shift in global energy demand. Refer to note 12 Property, plant and equipment for the
definition of proved and expected oil and gas reserves.
Continued exploration for hydrocarbons is important for maintaining long-term energy deliveries. Equinor will continue to
supply oil and gas beyond 2035 but anticipate that it will form an increasingly smaller proportion of its portfolio over time.
Achieving Equinor’s 2030 net 50 % reduction ambition for operated scope 1 and 2 emissions will require a company-wide,
co-ordinated effort to improve energy efficiency and to execute and mature abatement projects. Equinor aims to achieve a
(category 11 & 15). Equinor’s climate-related ambitions have not resulted in impairment triggers for 2025.
Equinor 2025 Annual Report on Form 20-F 90
Future exploration may be restricted by policies,
regulations, market conditions, and strategic
considerations that have not yet occurred. Should the
economic assumptions deteriorate to such an extent
that undeveloped assets controlled by Equinor do not
materialise, the assets at risk would mainly comprise
intangible assets: oil and gas prospects, signature
bonuses, and capitalised exploration costs. The total
carrying value is USD 3.8 billion in 2025, of which USD
E&P International (USD 3.6 billion in 2024, with USD
International). See note 13 Intangible assets for further
information regarding Equinor’s intangible assets.
Timing of Asset Retirement Obligations (ARO)
No assets to date have ceased operations early as a
result of Equinor’s climate-related ambitions. However,
should the business case for Equinor’s producing oil
and gas assets change materially, this could affect the
timing of asset retirement. A shorter production timeline
would increase the carrying value of the ARO liability.
Undertaking removal five years earlier than currently
scheduled would increase the liability by approximately
USD 1.5 billion before tax and excluding assets held for
sale (approximately USD 1.1 billion in 2024), which is
mainly related to E&P Norway. See note 23 Provisions
and other liabilities for more information regarding
Equinor’s ARO, including discount rate sensitivity and
the expected timing of cash outflows for recognised
Note 4. Financial risk and capital
management
General information and financial risks
Equinor's business activities naturally expose Equinor to
financial risks such as market risk (including commodity
price risk, currency risk, interest rate risk and equity
price risk), liquidity risk and credit risk. Equinor’s
approach to risk management includes assessing and
managing risk in activities using a holistic risk approach,
by considering relevant correlations at portfolio level
between the most important market risks and the
natural hedges inherent in Equinor’s portfolio. This
approach allows Equinor to reduce the number of risk
management transactions and avoid sub-optimisation.
The corporate risk committee, which is an advisory
body in Enterprise Risk Management, is responsible for
proposing appropriate measures to adjust risk at the
corporate level. This includes assessing Equinor’s
financial risk policies.
Market risk
Equinor operates in the worldwide crude oil, refined
products, natural gas, and electricity markets and is
exposed to market risks including fluctuations in
hydrocarbon prices, foreign currency rates, interest
rates, and electricity prices that can affect the revenues
and costs of operating, investing, and financing. Long
term exposures are managed at the corporate level,
whereas short term exposures are managed through
trading strategies and mandates that focus on achieving
the highest risk-adjusted returns for Equinor within the
defined mandate.
Mandates in the trading organisations within crude oil,
refined products, natural gas, and electricity are
relatively restricted compared to the total market risk of
Equinor.
Commodity price risk
Equinor’s most important long-term commodity risk
(crude oil and natural gas) is related to future market
prices as Equinor generally is to be exposed to both
upside and downside price movements. In the longer
term, also power price risk is to a large extent expected
to contribute to Equinor’s commodity price risk portfolio.
To manage short-term commodity risk, Equinor enters
into commodity-based derivative contracts, including
futures, options, over-the-counter (OTC) forward
contracts, market swaps and contracts for differences
related to crude oil, petroleum products, natural gas,
power and emissions. Equinor’s bilateral gas sales
portfolio is exposed to various price indices with a
combination of gas price markers. The term of crude oil
and refined oil products derivatives are usually less than
one year, and they are traded mainly on the Inter-
Commodity price sensitivity | At 31 December | |||
2025 | 2024 | |||
(in USD million) | - | + | - | + |
Crude oil and refined products net gains/(losses) | ( | ( | ||
Natural gas, electricity and CO₂ net gains/(losses) | ( | ( | ||
Continental Exchange (ICE), the CME group, the OTC
Brent market, and crude and refined products swap
markets. The term of natural gas, power, and emission
derivatives is usually three years or less, and they are
mainly OTC physical forwards and options, NASDAQ
OMX Oslo forwards, and futures traded on the
European Energy Exchange (EEX), NYMEX and ICE.
sensitivities of Equinor's commodity-based derivative
contracts. Equinor's assets and liabilities resulting from
commodity-based derivative contracts consist of both
exchange traded and non-exchange traded instruments,
including embedded derivatives that have been
bifurcated and recognised at fair value in the
Consolidated balance sheet.
Price risk sensitivities at the end of 2025 and 2024 at
change based on the duration of the derivatives. Since
none of the derivative financial instruments included in
the table below are part of hedging relationships, any
changes in the fair value would be recognised in the
Equinor 2025 Annual Report on Form 20-F 91
Currency risk
Equinor’s cash flows from operating activities deriving predominantly from oil and gas sales, operating expenses and
capital expenditures are mainly in USD, but taxes, dividends to shareholders on the Oslo Børs and a share of our
operating expenses and capital expenditures are in NOK. Accordingly, Equinor’s currency management is primarily linked
to mitigate currency risk related to payments in NOK. This means that Equinor regularly purchases NOK, primarily spot,
but also on a forward basis using conventional derivative instruments.
possible change in the most relevant foreign currency exchange rates that impact Equinor’s financial accounts. Also as of
31 December 2024, a change of 10 % in the most relevant foreign currency exchange rates was viewed as a reasonable
possible change. The below sensitivity information is calculated by reference to carrying amounts of assets and liabilities
as of 31 December. The impact on Shareholders equity through Profit and Loss arises from monetary balances
denominated in currencies other than an entity's functional currency, whereas the impact on Shareholders equity through
Other comprehensive income arises principally from the translation of assets and liabilities of entities whose functional
currency is not USD. A negative figure represents a negative equity impact/loss, while a positive figure represents a
positive equity impact/gain.
Currency risk sensitivity | At 31 December 2025 | ||
(in USD million) | NOK | EUR | GBP |
Impact from a | |||
Shareholders equity through Other comprehensive income | |||
Shareholders equity through Profit and loss | ( | ( | ( |
Impact from a | |||
Shareholders equity through Other comprehensive income | ( | ( | ( |
Shareholders equity through Profit and loss | |||
Currency risk sensitivity | At 31 December 2024 | ||
(in USD million) | NOK | EUR | GBP |
Impact from a | |||
Shareholders equity through Other comprehensive income | |||
Shareholders equity through Profit and loss | ( | ( | |
Impact from a | |||
Shareholders equity through Other comprehensive income | ( | ( | ( |
Shareholders equity through Profit and loss | ( | ||
Interest rate risk
Bonds are normally issued at fixed rates in a variety of currencies (among others USD, EUR and GBP) and some of these
bonds are converted to floating USD bonds by using interest rate and currency swaps. Equinor manages its interest rates
exposure on its bond portfolio based on risk and reward considerations from an enterprise risk management perspective.
This means that the fixed/floating mix on interest rate exposure may vary from time to time. For more detailed information
about Equinor’s long-term debt portfolio see note 21 Finance debt.
possible change in interest rates at the end of 2025 and 2024. A decrease in interest rates will have an estimated positive
impact on net financial items in the Consolidated statement of income, while an increase in interest rates will have an
estimated negative impact on net financial items in the Consolidated statement of income.
Interest risk sensitivity | At 31 December | |||
2025 | 2024 | |||
(in USD million) | - points | + points | - points | + points |
Positive/(negative) impact on net financial items | ( | ( | ||
Equinor 2025 Annual Report on Form 20-F 92
Equity price risk
Equinor’s captive insurance company holds listed equity securities as part of its portfolio. In addition, Equinor holds some
other listed and non-listed equities, mainly for long-term strategic purposes. By holding these assets, Equinor is exposed
to equity price risk, defined as the risk of declining equity prices, which can result in a decline in the carrying value on
certain of Equinor’s assets recognised in the balance sheet. The equity price risk in the portfolio held by Equinor’s captive
insurance company is managed, with the aim of maintaining a moderate risk profile, through geographical diversification
and the use of broad benchmark indexes.
prices that impact Equinor’s financial accounts, based on balances at 31 December 2025. At 31 December 2024, a
change of 35 % in equity prices was viewed as a reasonable possible change.
The estimated gains and the estimated losses following from a change in equity prices would impact the Consolidated
statement of income.
Equity price sensitivity | At 31 December | |||
2025 | 2024 | |||
(in USD million) | - | - | ||
Net gains/(losses) | ( | ( | ||
Liquidity risk
Liquidity risk is the risk that Equinor will not be able to meet obligations of financial liabilities when they become due. The
purpose of liquidity management is to ensure that Equinor always has sufficient funds available to cover its financial
obligations.
The main cash outflows include the quarterly dividend payments and Norwegian petroleum tax payments made ten times
per year. Trading in collateralised commodities and financial contracts also exposes Equinor to liquidity risk related to
potential collateral calls from counterparties.
If the cash flow forecasts indicate that the liquid assets will fall below target levels, new long-term funding will be
considered. Equinor raises debt in all major capital markets (USA, Europe and Asia) for long-term funding purposes. The
policy is to have a maturity profile with repayments not exceeding 5 % of capital employed in any year for the nearest five
years. Equinor’s non- current financial liabilities have a weighted average maturity of approximately 8 years. For more
information about Equinor’s non-current financial liabilities, see note 21 Finance debt.
Short-term funding needs will normally be covered by the USD 5.0 billion US Commercial paper programme (CP) which is
backed by a revolving credit facility of USD 5.0 billion, supported by 19 core banks, maturing in 2030. The facility supports
secure access to funding, supported by the best available short-term rating. As at 31 December 2025 the facility has not
been drawn upon.
At 31 December | ||||||
2025 | 2024 | |||||
(in USD million) | Non- derivative financial liabilities | Lease liabilities | Derivative financial liabilities | Non- derivative financial liabilities | Lease liabilities | Derivative financial liabilities |
Year 1 | ||||||
Year 2 and 3 | ||||||
Year 4 and 5 | ||||||
Year 6 to 10 | ||||||
After 10 years | ||||||
Total specified | ||||||
Equinor 2025 Annual Report on Form 20-F 93
Credit risk
Credit risk is the risk that Equinor’s customers or counterparties will cause Equinor financial loss by failing to honour their
obligations. Credit risk arises from credit exposures with customer accounts receivables as well as from financial
investments, derivative financial instruments and deposits with financial institutions. Equinor uses risk mitigation tools to
reduce or control credit risk both on a counterparty and portfolio level. The main tools include bank and parental
guarantees, prepayments, and cash collateral.
Prior to entering into transactions with new counterparties, Equinor’s credit policy requires all counterparties where
Equinor has material credit exposure to be formally identified and assigned internal credit ratings. The internal credit
ratings reflect Equinor’s assessment of the counterparties' credit risk and are based on a quantitative and qualitative
analysis of recent financial statements and other relevant business information. All counterparties are re-assessed
regularly.
Equinor has pre-defined limits for the absolute credit risk level allowed at any given time on Equinor’s portfolio as well as
maximum credit exposures for individual counterparties. Equinor monitors the portfolio on a regular basis and individual,
material exposures against limits on a daily basis. Equinor’s total credit exposure is geographically diversified among a
number of counterparties within the oil and energy sector, as well as larger oil and gas consumers and financial
counterparties. The majority of Equinor’s credit exposure is with investment- grade counterparties.
split by Equinor’s assessment of the counterparty's credit risk. Receivables that are overdue with more than 30 days
represents less than 1 % of the total reported trade and other receivables. A provision has been recognised for expected
credit losses of trade and other receivables using the expected credit loss model. Only non-exchange traded instruments
are included in derivative financial instruments.
(in USD million) | Non-current financial receivables | Current financial receivables1) | Trade and other receivables2) | Non-current derivative financial instruments | Current derivative financial instruments |
At 31 December 2025 | |||||
Investment grade, rated A or above | |||||
Other investment grade | |||||
Non-investment grade or not rated | |||||
Total financial assets | |||||
At 31 December 2024 | |||||
Investment grade, rated A or above | |||||
Other investment grade | |||||
Non-investment grade or not rated | |||||
Total financial assets | |||||
1) Previously reported number for 2024 has been restated due to a change in classification of cash collaterals for commodity derivative transactions. Reference is made to note 2 Accounting Policies for more information. | |||||
2) For more information about Trade and other receivables, see note 18 Trade and other receivables. | |||||
Equinor 2025 Annual Report on Form 20-F 94
liabilities. These agreements are mainly entered into to manage the credit risks associated with over-the-counter
commodity trading as well as regular commodity purchases and sales and enable Equinor and their counterparties to set
off financial liabilities against financial assets in the ordinary course of business as well as in case of default. In addition,
exchange-traded commodity derivatives are offset towards collateral receipts/payments as a result of day-to-day cash
settlements based on change in fair value of open derivative positions. Amounts not qualifying for offsetting consists of
collateral receipts or payments which usually is settled on a gross basis. Normally these amounts will offset in a potential
default situation. There exist no restrictions on collaterals received.
(in USD million) | Gross amounts of recognised financial assets/ liabilities | Gross amounts offset in the balance sheet | Net amounts presented in the balance sheet | Amounts of remaining rights to set-off not qualifying for offsetting | Net amount | (in USD million) | Gross amounts of recognised financial assets/ liabilities | Gross amounts offset in the balance sheet | Net amounts presented in the balance sheet | Amounts of remaining rights to set-off not qualifying for offsetting | Net amount | |
At 31 December 2025 | At 31 December 2024 | |||||||||||
Financial assets | Financial assets | |||||||||||
Trade and other receivables | Trade and other receivables | |||||||||||
Current interest-bearing financial receivables and accrued interest | Current interest-bearing financial receivables and accrued interest | |||||||||||
Collateral receivables | Collateral receivables1) | |||||||||||
Derivative financial instruments | Derivative financial instruments | |||||||||||
Total financial assets | Total financial assets | |||||||||||
Financial liabilities | Financial liabilities | |||||||||||
Trade payables | Trade payables | |||||||||||
Accrued expenses and other current financial liabilities | Accrued expenses and other current financial liabilities | |||||||||||
Collateral liabilities | Collateral liabilities | |||||||||||
Derivative financial instruments | Derivative financial instruments | |||||||||||
Total financial liabilities | Total financial liabilities | |||||||||||
1) Previously reported number for 2024 has been restated due to a change in classification of cash collaterals for commodity derivative transactions. Reference is made to note 2 Accounting Policies for more information. | ||||||||||||
Equinor 2025 Annual Report on Form 20-F 95
Capital management
The main objectives of Equinor's capital management policy are to maintain a strong overall financial position and to
ensure sufficient financial flexibility. Equinor’s primary focus is on maintaining its credit rating in the A category on a stand
alone basis (excluding uplifts for Norwegian Government ownership). Equinor’s current long-term ratings are AA- with a
stable outlook (including one notch uplift) and Aa2 with a stable outlook (including two notch uplift) from S&P and Moody’s,
respectively. In order to monitor financial robustness, a key ratio utilised by Equinor is the non- GAAP metric of “Net
interest-bearing debt adjusted (ND2) to Capital employed adjusted (CE2)”
ND1 is defined as Equinor's interest-bearing financial liabilities less cash and cash equivalents and current financial
investments, adjusted for balances held by Equinor's captive insurance company (amounting to USD 288 million and
USD 366 million for 2025 and 2024, respectively). CE1 is defined as Equinor's total equity (including non- controlling
interests) and ND1. ND2 is defined as ND1 adjusted for lease liabilities (amounting to USD 3,412 million and USD 3,510
million for 2025 and 2024, respectively). CE2 is defined as Equinor's total equity (including non-controlling interests) and
ND2.
At 31 December | ||
(in USD million) | 2025 | 2024 |
Net interest-bearing debt adjusted, including lease liabilities (ND1) | ||
Net interest-bearing debt adjusted (ND2) | ||
Capital employed adjusted, including lease liabilities (CE1) | ||
Capital employed adjusted (CE2) | ||
Net debt to capital employed adjusted, including lease liabilities (ND1/CE1) | ||
Net debt to capital employed adjusted (ND2/CE2) | ||
Note 5. Segments
Accounting policies
effectively manage and execute our strategy, including the ability to measure the progress of the business against
its strategic goals. The operating segments are defined based on the components of Equinor that undergo regular
review by the chief operating decision maker, Equinor's Chief Executive Officer (CEO). The following reportable
segments correspond to the operating segments: Exploration & Production Norway (E&P Norway), Exploration &
Production International (E&P International), Exploration & Production USA (E&P USA), Marketing, Midstream &
Processing (MMP) and Renewables (REN). Based on materiality considerations, the remaining business areas
Projects, Drilling & Procurement (PDP), Technology, Digital & Innovation (TDI) as well as Corporate staff and
functions, are aggregated into the reportable segment Other. The majority of the costs in PDP and TDI is allocated
to the three Exploration & Production segments, MMP and REN.
The accounting policies of the reporting segments are consistent with those described in these Consolidated
financial statements, except for the following: movements related to changes in asset retirement obligations are
excluded from the line-item Additions to PP&E, intangibles and Equity accounted investments, and provisions for
onerous contracts reflect only obligations towards group external parties. The measurement basis of segment profit
is net operating income/(loss). Deferred tax assets, pension assets, non-current financial assets, total current
assets and total liabilities are not allocated to the segments. Transactions between the segments, mainly from the
sale of crude oil, gas, and related products, are performed at defined internal prices which have been derived from
market prices. The transactions are eliminated upon consolidation.
The Exploration & Production operating segments are responsible for the discovery and appraisal of new resources,
commercial development and safe and efficient operation of the oil and gas portfolios within their respective geographical
areas: E&P Norway on the Norwegian continental shelf, E&P USA in USA and E&P International worldwide outside of
E&P Norway and E&P USA.
PDP is responsible for oil and gas field development, well deliveries, and sourcing across Equinor.
TDI encompasses research, technology development, specialist advisory services, digitalisation, IT, improvement,
innovation, and ventures and future business.
MMP is responsible for the marketing, trading, processing and transportation of crude oil and condensate, natural gas,
NGL and refined products, and includes refinery, terminals, and processing plant operation. MMP is also managing power
and emissions trading and the development of transportation solutions for natural gas, liquids, and crude oil, including
pipelines, shipping, trucking and rail. In addition, MMP is in charge of low carbon solutions in Equinor.
Equinor 2025 Annual Report on Form 20-F 96
REN is developing, exploring, investing in, and
operating areas within renewable energy such as
offshore wind, green hydrogen, storage solutions and
solar power.
During the fourth quarter of 2025, Equinor made
changes to its organisational structure by establishing
the new Power business area (PWR). With effect from 1
January 2026, the operating results of PWR will
undergo regular review by the chief operating decision
maker for the purpose of resource allocation, and PWR
will be presented as a reportable segment in Equinor’s
financial statements from the first quarter of 2026.
Comparable segment information will be restated. The
PWR business area is responsible for all power
activities, including Renewables (REN) and flexible
power assets from the business area Marketing,
Midstream and Processing (MMP), as well as Danske
Commodities’ power trading business.
31 December 2025, 2024, and 2023 are presented
note 7 Total revenues and other income. For further
information on the following items affecting the
segments, please refer to the related notes: note 6
Acquisitions and disposals, note 14 Impairments, and
note 26 Other commitments, contingent liabilities, and
contingent assets.
2025 (in USD million) | E&P Norway | E&P International | E&P USA | MMP | REN | Other | Eliminations | Total group |
Revenues third party | ||||||||
Revenues and other income inter-segment | ( | — | ||||||
Net income/(loss) from equity accounted investments | ( | ( | ||||||
Other income | ( | |||||||
Total revenues and other income | ( | |||||||
Purchases [net of inventory variation] | ( | ( | ( | ( | ( | |||
Operating, selling, general and administrative expenses | ( | ( | ( | ( | ( | ( | ( | |
Depreciation and amortisation | ( | ( | ( | ( | ( | ( | ( | |
Net impairment (losses)/reversals | ( | ( | ( | ( | ( | |||
Exploration expenses | ( | ( | ( | ( | ||||
Total operating expenses | ( | ( | ( | ( | ( | ( | ( | |
Net operating income/(loss) | ( | ( | ||||||
Additions to PP&E, intangibles and equity accounted investments | ||||||||
Balance sheet information | ||||||||
Equity accounted investments | ||||||||
Non-current segment assets | ||||||||
Non-current assets not allocated to segments | ||||||||
Total non-current assets (excl. assets classified as held for sale) |
Equinor 2025 Annual Report on Form 20-F 97
2024 (in USD million) | E&P Norway | E&P International | E&P USA | MMP | REN | Other | Eliminations | Total group |
Revenues third party | ( | |||||||
Revenues and other income inter-segment | ( | - | ||||||
Net income/(loss) from equity accounted investments | ( | ( | ||||||
Other income | ||||||||
Total revenues and other income | ( | |||||||
Purchases [net of inventory variation] | ( | ( | ||||||
Operating, selling, general and administrative expenses | ( | ( | ( | ( | ( | ( | ( | |
Depreciation and amortisation | ( | ( | ( | ( | ( | ( | ( | |
Net impairment (losses)/reversals | ( | ( | ( | ( | ||||
Exploration expenses | ( | ( | ( | ( | ||||
Total operating expenses | ( | ( | ( | ( | ( | ( | ( | |
Net operating income/(loss) | ( | ( | ( | |||||
Additions to PP&E, intangibles and equity accounted investments | ||||||||
Balance sheet information | ||||||||
Equity accounted investments | ||||||||
Non-current segment assets | ||||||||
Non-current assets not allocated to segments | ||||||||
Total non-current assets (excl. assets classified as held for sale) |
Equinor 2025 Annual Report on Form 20-F 98
2023 (in USD million) | E&P Norway | E&P International | E&P USA | MMP | REN | Other | Eliminations | Total group |
Revenues third party | ||||||||
Revenues and other income inter-segment | ( | — | ||||||
Net income/(loss) from equity accounted investments | ( | ( | ( | |||||
Other income | ||||||||
Total revenues and other income | ( | |||||||
Purchases [net of inventory variation] | ( | ( | ( | ( | ||||
Operating, selling, general and administrative expenses | ( | ( | ( | ( | ( | ( | ( | |
Depreciation and amortisation | ( | ( | ( | ( | ( | ( | ( | |
Net impairment (losses)/reversals | ( | ( | ( | ( | ( | ( | ||
Exploration expenses | ( | ( | ( | ( | ||||
Total operating expenses | ( | ( | ( | ( | ( | ( | ( | |
Net operating income/(loss) | ( | ( | ( | |||||
Additions to PP&E, intangibles and equity accounted investments | ||||||||
Balance sheet information | ||||||||
Equity accounted investments | ||||||||
Non-current segment assets | ||||||||
Non-current assets not allocated to segments | ||||||||
Total non-current assets (excl. assets classified as held for sale) |
Equinor 2025 Annual Report on Form 20-F 99
Non-current assets by country | ||
At 31 December | ||
(in USD million) | 2025 | 2024 |
Norway1) | ||
USA | ||
Brazil | ||
UK2) | ||
Angola | ||
Poland | ||
Canada | ||
Argentina | ||
Denmark | ||
Germany | ||
Other | ||
Total non-current assets3) | ||
1) Increase is mainly due to weakening of USD versus NOK. 2) This increase mainly relates to the Adura transaction, for more information please see note 6. 3) Excluding deferred tax assets, pension assets and non-current financial assets (non-current assets that are not allocated to segments). Non-current assets are attributed to the country of operations and do not include assets classified as held for sale. | ||
Note 6. Acquisitions and disposals
Accounting policies
Business combinations, except for transactions between entities under common control, are accounted for using the
acquisition method when control is transferred to the Group. The acquired identifiable assets, liabilities and
contingent liabilities are measured at fair value at the date of acquisition. Acquisition costs incurred are expensed
under Selling, general and administrative expenses. The total consideration transferred includes contingent
consideration at fair value and changes in fair value resulting from events after the acquisition date are recognised
in the Consolidated statement of income under Other income.
When Equinor loses control over a subsidiary, the assets and liabilities of the subsidiary are derecognised together
with related Non-controlling interests (NCI) and other components of equity. Any retained interest in the former
subsidiary is measured at fair value at the time control is lost, and resulting gain or loss is recognised in the
Consolidated statement of income under Other income or Operating expenses, accordingly. Partial divestments are
addressed in detail in the accounting judgement section below.
On the NCS, all disposals of assets are performed including the tax base (after-tax). Any gain includes the release
of previously recognised tax liabilities related to the assets in question and is fully recognised in Other income in the
Consolidated statement of income.
Non-current assets or disposal groups are classified separately as held for sale in the Consolidated balance sheet if
it is highly probable that they will be recovered primarily through sale rather than through continuing use. This
condition is met when such assets or disposal groups are available for immediate sale in their present condition,
Equinor’s management is committed to the sale, and the sale is expected to be completed within one year from the
date of classification as held for sale. In Equinor, these requirements are normally met when management has
approved a negotiated letter of intent with the counterparties. Liabilities directly associated with the assets classified
as held for sale and expected to be included as part of the sales transaction, are also classified separately.
Determining whether an acquisition meets the definition of a business combination or an asset acquisition requires
judgement on a case-by-case basis. The conclusion may materially affect the financial statements both in the
transaction period and subsequent periods. Similar assessments are performed upon the acquisition of an interest
in a joint operation. Depending on the specific facts, acquisitions of oil and gas exploration and evaluation licences
where a development decision has not yet been made have generally been accounted for as asset purchases.
Equinor 2025 Annual Report on Form 20-F 100
divestments
The accounting policy for partial divestments of
subsidiaries is based on careful consideration of
the requirements and scope of IFRS 10
Consolidated Financial Statements and IAS 28
Investments in Associates and Joint Ventures. The
assessment requires judgement on a case-by-case
basis, considering the substance of the
transactions and the nature of the retained interest.
In evaluating the IFRS Accounting Standards’
requirements, Equinor notes considerations related
to several relevant and similar issues that are under
review by the IASB.
As a general policy, when Equinor loses control
over a subsidiary that does not constitute a
business, Equinor recognises only the gain or loss
attributable to the divested portion. When the
subsidiary constitutes a business, Equinor
recognises the full gain or loss. Since IFRS does
not explicitly address the accounting for partial
disposals of subsidiaries that do not constitute a
business, the policy is considered to provide more
relevant and reliable information by reflecting the
economic substance of transactions. This approach
is applied consistently across similar transactions
and will be reassessed in light of any future IASB
developments.
2025
Acquisitions and disposals
Swap with Petoro in the Haltenbanken area
On 1 January 2025, Equinor closed a transaction with
Petoro to swap ownership interests in the Haltenbanken
area. Equinor increased its ownership interests primarily
in the Heidrun field (from 13.0 % to 34.4 %) and reduced
its interests primarily in the Tyrihans field (from 58.8 % to
purpose of the transaction was to align ownership
interests in the licenses to maximise resource
utilisation. The assets acquired and liabilities assumed
were recognised in accordance with the principles in
IFRS 3 Business Combinations within the E&P Norway
segment, mainly as property, plant, and equipment
(USD 610 million), goodwill (USD 476 million) and
deferred tax liability (USD 381 million). The swap
resulted in a gain of USD 491 million, reported as Other
Income in the Consolidated statement of income.
Joint venture agreement with Shell in the UK
On 1 December 2025, Equinor closed an agreement
with Shell to merge their UK upstream businesses and
establish a joint venture, named Adura. The parties hold
a 50 % equity interest each. Selected UK North Sea
upstream fields, associated licences and infrastructure
have been transferred by both parties to Adura,
including Equinor’s interests in Rosebank, Mariner and
Buzzard. The joint venture is accounted for under the
equity method from the date of transaction completion.
Adura is recognised at fair value of USD 5,574 million.
The estimated fair value of performance based
contingent consideration and interim period
settlement have been included in the loss of USD 174
million recognised within the E&P International segment
in the fourth quarter 2025 and presented in the line-item
Operating expenses in the Consolidated statement of
income. An impairment loss of USD 650 million was
recognised in third quarter 2025, presented within the
line-item Depreciation, amortisation and net
impairments in the Consolidated statement of income.
The valuation of the notional Purchase Price Allocation
and the final interim period settlement have not been
completed by the date the report was approved for
issuance by the Board of Directors.
Divestment of 40 % interest in the Peregrino field in
Brazil
On 11 November 2025, Equinor closed a transaction
with Prio Tigris Ltda., a subsidiary of PRIO SA, to sell its
part of the ongoing optimisation of Equinor’s
international upstream portfolio. Following this
transaction, PRIO assumed full operatorship of the field.
The total cash consideration net of interim period
adjustments amounted to USD 1,795 million, of which
USD 1,555 million was received at closing. A loss of
USD 75 million has been recognised within the E&P
International segment in the fourth quarter as Operating
expenses in the Consolidated statement of income.
Held for sale
Sale of remaining interests in the Peregrino field in
Brazil
Equinor has also agreed to sell its remaining 20 %
interest in the Peregrino field. The sale is expected to
be completed within 2026, subject to regulatory and
legal approvals. The net assets classified as held for
sale were measured at fair value at the end of the fourth
quarter, leading to an impairment of USD 200
million. This is mainly due to earnings during a longer
than anticipated interim period, that will be deducted
from the agreed consideration at closing. As of 31
December 2025, assets held for sale amounted to USD
assets held for sale amounted to USD 179 million.
Peregrino is part of the E&P International segment.
2024
Acquisitions
Swap of onshore oil & gas assets in the US
On 31 May 2024, Equinor and EQT Corporation closed
the swap transaction in which Equinor sold 100 % of its
interest in the Marcellus and Utica shale formations in
the Appalachian Basin, located in southeastern Ohio,
and transferred the operatorship to EQT. In exchange,
Equinor acquired 40 % of EQT’s non-operated working
interest in the Northern Marcellus shale formation in
Pennsylvania. Following the transaction, Equinor
increased its average working interest from 15.7 % to
Marcellus gas units. Equinor paid a cash consideration
of USD 467 million (net of interim period settlement) to
EQT to balance the overall transaction. With this
transaction, Equinor continues to high-grade the US
portfolio and work to strengthen the profitability of the
onshore gas position in the Appalachian Basin. The
assets acquired and liabilities assumed were
recognised in accordance with the principles in IFRS 3
Business Combinations within the E&P USA segment,
mainly as property, plant, and equipment (USD 750
million) and intangible assets (USD 505 million).
Acquisition of additional working interests in
onshore oil & gas assets in the US
On 31 December 2024, Equinor closed a transaction to
acquire an additional non-operated interest in the
Northern Marcellus shale formation in Pennsylvania in
Equinor 2025 Annual Report on Form 20-F 101
the US from EQT Corporation (EQT). Following the
transaction, Equinor increased its average working
interest from 25.7 % to 40.7 % in certain Expand Energy-
operated Northern Marcellus gas units continuing high-
grading the US portfolio. Equinor paid a cash
consideration of USD 1,242 million to EQT. The assets
acquired and liabilities assumed were recognised in
accordance with the principles in IFRS 3 Business
Combinations within the E&P USA segment, mainly as
property, plant, and equipment (USD 1365 million).
Swap of US Offshore Wind assets
On 24 January 2024, Equinor entered into a swap
agreement with bp to acquire bp’s 50 % share and take
full ownership of Empire Offshore Wind Holdings LLC,
including the Empire Wind lease and projects (Empire
Wind), in exchange for its 50 % share in Beacon Wind
Holdings LLC, including the Beacon Wind lease and
projects (Beacon Wind). Equinor also agreed to acquire
bp's 50 % interest in the South Brooklyn Marine Terminal
(SBMT) lease. Based on the agreement, Equinor
controls and has consolidated Empire Wind and SBMT
from the first quarter of 2024 and has divested its 50 %
share of Beacon Wind. The swap of Empire Wind and
Beacon Wind was formally
closed on 4 April and SBMT was formally closed on 30
December. The acquisitions were accounted for as
asset acquisitions, and previous holdings were not
revalued. The swap resulted in a combined loss of USD
REN segment and presented in the line item Operating
expenses in the Consolidated statement of income.
Disposals
Divestment of interest in Nigeria
On 6 December 2024, Equinor closed a transaction with
Chappal Energies for the sale of Equinor Nigeria
Energy Company (ENEC), which holds a 53.85 %
ownership in the oil and gas lease OML 128, including
the unitised 20.21 % stake in the Agbami oil field. Total
consideration received amounts to USD 682 million,
including USD 482 million in cash. In addition, the
estimated fair value of deferred and contingent
consideration has been included in the gain of USD 795
million recognised in the fourth quarter within the E&P
International segment, and reported as Other Income in
the Consolidated statement of income. Prior to closing,
Equinor received USD 300 million in extraordinary
dividends.
Divestment of interests in Azerbaijan
On 29 November 2024, Equinor closed a transaction
with the State Oil Company of the Republic of
Azerbaijan (SOCAR) and ONGC Videsh Limited
(ONGC) to sell its interests in its Azerbaijan assets. The
assets comprise a 7.27 % non-operated interest in the
Azeri Chirag Gunashli (ACG) oil fields in the Azerbaijan
sector of the Caspian Sea and 8.71 % interest in the
Baku-Tbilisi-Ceyhan (BTC) pipeline.
The total consideration for Equinor's Azerbaijan assets
amounted to USD 713 million in cash. A loss of USD 84
million has been recognised within the E&P
International segment in the fourth quarter 2024 and
presented in the line item Operating expenses in the
Consolidated statement of income. An impairment loss
of USD 310 million was recognised in fourth quarter
2023, upon classification as held for sale, presented
within the line item Depreciation, amortisation and net
impairments in the Consolidated statement of income.
Equinor 2025 Annual Report on Form 20-F 102
Note 7. Total revenues and other income
Accounting policies
Equinor presents Revenue from contracts with
customers and Other revenue as a single caption,
Revenues, in the Consolidated statement of income.
Revenue from contracts with customers
Revenue from the sale of crude oil, natural gas,
petroleum products, power and other merchandise is
recognised when a customer obtains control of those
products, which for tangible products normally is
when title passes at point of delivery, based on the
contractual terms of the agreements. Each such sale
normally represents a single performance obligation.
In the case of natural gas as well as power, which is
delivered on a continuous basis through pipelines and
grid, sales are completed over time in line with the
delivery of the actual physical quantities.
Sales and purchases of physical commodity and
power volumes are presented on a gross basis as
Revenues from contracts with customers and
Purchases [net of inventory variation] respectively in
the Consolidated statement of income. When the
contracts are deemed financial instruments or part of
Equinor’s trading activities, they are settled and
presented on a net basis as Other revenue.
Reference is made to note 28 Financial instruments
and fair value measurement for a description of
accounting policies regarding derivatives. Sales of
Equinor’s own produced oil and gas volumes are
always reflected gross as Revenue from contracts with
customers.
Revenues from the production of oil and gas in which
Equinor shares an interest with other companies are
recognised on the basis of volumes lifted and sold to
customers during the period (the sales method). Where
Equinor has lifted and sold more than the ownership
interest, an accrual is recognised for the cost of the
overlift. Where Equinor has lifted and sold less than the
ownership interest, costs are deferred for the underlift.
Other revenue
Items that represent a form of revenue, or are related to
revenue from contracts with customers, are presented
as other revenue if they do not meet the criteria for
classification as revenue from contracts with customers.
These other revenue items include taxes paid in-kind
under certain production sharing agreements (PSAs)
and the net impact of commodity trading and
commodity-based derivative instruments related to
sales contracts or revenue-related risk management.
Transactions with the Norwegian state
Equinor markets and sells the Norwegian state's share
of oil and gas production from the Norwegian
continental shelf (NCS). The Norwegian state's
participation in petroleum activities is organised through
the Norwegian State’s Direct Financial Interests (SDFI).
Purchases and sales of the SDFI's share of crude oil
and natural gas liquids (NGL) production, as well as the
majority of the SDFI’s share of liquefied natural gas
(LNG) production, are presented as purchases [net of
inventory variation] and revenues from contracts with
customers, respectively.
Equinor sells, in its own name, but for the SDFI’s
account and risk, the SDFI’s share of natural gas
volumes. These sales and related expenditures
refunded by the SDFI are presented net in the
Consolidated financial statements. However, if such
sales are made in the name of Equinor’s subsidiaries,
the related balance sheet items are reflected gross in
the Consolidated balance sheet.
Accounting judgement related to transactions with the
Norwegian state
Whether to account for the transactions gross or net
involves the use of significant accounting judgement. In
making the judgement, Equinor has considered whether
it controls the SDFI's share of the volumes prior to
onwards sales to third party customers, taking into
account the pricing mechanisms and the flow of benefits
to Equinor and the SDFI. The assessment is also
impacted by the geographical area in which the sale
takes place.
With regard to the sales of crude oil, natural gas
liquids (NGL), and a major part of liquefied natural
gas (LNG), Equinor directs the use of the volumes
and, although certain benefits from the sales
subsequently flow to the SDFI, Equinor purchases
the volumes from the SDFI and obtains substantially
all the remaining benefits. On this basis, Equinor has
concluded that it acts as principal in these sales.
Regarding sales of natural gas, Equinor has
concluded that control of the volumes does not
transfer from the SDFI to Equinor. Although Equinor
has been granted the ability to direct the use of the
volumes, all the benefits from the sales of these
volumes flow to the SDFI. On this basis, Equinor is
not considered the principal in these sales.
Reference is made to note 27 Related parties for more
details regarding transactions performed between
Equinor 2025 Annual Report on Form 20-F 103
Revenues from contracts with customers by
geographical areas
Equinor has business operations in more than 20 countries.
When attributing the line-item Revenues from contracts with
customers in 2025 to the country of the legal entity executing
the sale, Norway and the USA accounted for 77 % and 19 %
respectively (79 % and 18 % respectively in 2024, and 79 %
and 18 % respectively in 2023). Revenues from contracts with
customers are mainly reflecting such revenues from the
reporting segment MMP.
Revenues from contracts with customers and other revenues | ||||
(in USD million) | Note | 2025 | 2024 | 2023 |
Crude oil | ||||
Natural gas | ||||
- European gas | ||||
- North American gas | ||||
- Other incl LNG | ||||
Refined products | ||||
Natural gas liquids | ||||
Power | ||||
Transportation | ||||
Other sales | ||||
Total revenues from contracts with customers | ||||
Taxes paid in-kind | ||||
Physically settled commodity derivatives | ( | |||
Gain/(loss) on commodity derivatives | ( | |||
Change in fair value of trading inventory | ( | ( | ||
Other revenues | ||||
Total other revenues | ||||
Revenues | ||||
Net income/(loss) from equity accounted investments | 15 | ( | ||
Other income | 6 | |||
Total revenues and other income | ||||
Equinor 2025 Annual Report on Form 20-F 104
Note 8. Salaries and personnel expenses
(in USD millions, except average number of employees) | 2025 | 2024 | 2023 |
Salaries1) | |||
Pension costs2) | |||
Payroll tax | |||
Other compensations and social costs | |||
Total payroll expenses | |||
Average number of employees3) | |||
1) Salaries include bonuses and expatriate costs in addition to base pay. | |||
2) See note 22 Pensions. | |||
3) Part time employees amount to |
Total payroll expenses are accumulated in cost-pools and partially charged to partners of Equinor operated licences on an
hours incurred basis.
Compensation to the board of directors (BoD) and the corporate executive committee (CEC) | |||
Full year | |||
(in USD million)1) | 2025 | 2024 | 2023 |
Current employee benefits | |||
Post-employment benefits | |||
Other non-current benefits | |||
Share-based payment benefits | |||
Total benefits | |||
1) All figures in the table are presented on accrual basis. | |||
At 31 December 2025, 2024, and 2023 there are no
Share-based compensation
Equinor's share saving plan provides employees with the opportunity to purchase Equinor shares through monthly salary
deductions and a contribution by Equinor. If the shares are kept for two full calendar years of continued employment
following the year of purchase, the employees will be allocated one bonus share for each share they have purchased.
Estimated compensation expense including the contribution by Equinor for purchased shares, amounts vested for bonus
shares granted and related social security tax was USD 82 million, USD 83 million, and USD 78 million related to the
2025, 2024 and 2023 programmes, respectively. For the 2026 programme (granted in 2025), the estimated compensation
expense is USD 94 million. At 31 December 2025 the amount of compensation cost yet to be expensed throughout the
vesting period is USD 190 million.
See note 20 Shareholders’ equity, capital distribution and earnings per share for more information about share-based
compensation.
Equinor 2025 Annual Report on Form 20-F 105
Note 9. Auditor’s remuneration and Research and development expenditures
Auditor’s remuneration | |||
Full year | |||
(in USD millions, excluding VAT) | 2025 | 2024 | 2023 |
Audit fee | |||
Audit related fee | |||
Tax fee | |||
Other service fee | |||
Total remuneration | |||
In addition to the figures in the table above, the audit fees and audit related fees related to Equinor operated licences
amount to USD 0.6 million, USD 0.5 million and USD 0.5 million for 2025, 2024 and 2023, respectively.
Research and development expenditures (R&D)
Equinor has R&D activities within exploration, subsurface, drilling and well, facilities, low carbon and renewables. R&D
activities contribute to maximising and developing long-term value from Equinor’s assets. R&D expenditures are partially
financed by partners of Equinor operated licences.
R&D expenditures including amounts charged to partners were USD 352 million, USD 348 million and USD 311 million in
2025, 2024 and 2023, respectively. Equinor's share of the expenditures has been recognised within Total operating
Note 10. Financial items
Full year | |||
(in USD million) | 2025 | 2024 | 2023 |
Dividends received | |||
Interest income financial investments, including cash and cash equivalents | |||
Interest income non-current financial receivables | |||
Interest income other current financial assets and other financial items | |||
Interest income and other financial income | |||
Interest expense bonds and bank loans and net interest on related derivatives | ( | ( | ( |
Interest expense lease liabilities | ( | ( | ( |
Capitalised borrowing costs | |||
Accretion expense asset retirement obligations | ( | ( | ( |
Interest expense current financial liabilities and other financial expense | ( | ( | ( |
Interest expenses and other financial expenses | ( | ( | ( |
Foreign currency exchange gains/(losses) derivative financial instruments | ( | ||
Other foreign currency exchange gains/(losses) | ( | ( | |
Net foreign currency exchange gains/(losses) | ( | ||
Gains/(losses) financial investments | ( | ( | |
Gains/(losses) other derivative financial instruments | |||
Net financial items | ( | ||
Equinor 2025 Annual Report on Form 20-F 106
Equinor's main financial items relate to assets and
liabilities in the fair value through profit or loss and the
amortised cost categories. For more information about
financial instruments by category see note 28 Financial
instruments and fair value measurement.
Interest income financial investments, including cash
and cash equivalents includes interest income related to
balances at amortised cost of USD 671 million ,
USD 1,132 million, and USD 1,410 million for 2025,
2024 and 2023, respectively.
Interest expense bonds and bank loans and net interest
on related derivatives includes interest expenses of
USD 917 million, USD 787 million and USD 857 million
for 2025, 2024 and 2023, respectively, on financial
liabilities at amortised cost. It also includes net interest
on related derivatives at fair value through profit or loss,
amounting to a net interest expense of USD 306
million , USD 425 million and USD 405 million for 2025,
2024 and 2023 respectively.
Foreign currency exchange gains/(losses) derivative
financial instruments include fair value changes of
currency derivatives related to liquidity and currency
risk. Other foreign currency exchange gains/(losses)
includes a fair value gain from derivatives related to
non-current debt of USD 883 million in 2025, a loss of
USD 412 million in 2024 and a gain of USD 292 million
in 2023.
Gains/(losses) financial investments primarily include
fair value change from shares in other companies, with
a loss of USD 99 million in 2025, a loss of USD 496
million in 2024 and a gain of USD 124 million in 2023.
Gains/(losses) other derivative financial instruments
primarily include fair value changes from interest rate
related derivatives, with a gain of USD 232 million,
USD 33 million and USD 332 million in 2025, 2024 and
2023 respectively.
Note 11. Income taxes
Accounting policies
Income tax in the Consolidated statement of income
comprises current income tax and effects of changes
in deferred tax positions. Income tax is recognised in
the Consolidated statement of income except when it
relates to items recognised in other comprehensive
income (OCI).
Current tax consists of the expected tax payable for
the year and any adjustment to tax payable for
previous years. Uncertain tax positions and potential
tax exposures are analysed individually. The
outcomes of tax disputes are mostly binary in nature,
and in each case the most likely amount for probable
liabilities to be paid (including penalties) or assets to
be received (disputed tax positions for which
payment has already been made) is recognised
within Current tax or Deferred tax as appropriate.
Deferred tax assets and liabilities are recognised for
the future tax consequences attributable to
differences between the carrying amounts of existing
assets and liabilities and their respective tax bases,
and on unused tax losses and credits carried
forward, subject to the initial recognition exemption. A
deferred tax asset is recognised only to the extent
that it is probable that future taxable income will be
available against which the asset can be utilised. For
a deferred tax asset to be recognised based on
future taxable income,
convincing evidence is required, considering the
existence of contracts, production of oil or gas in the
future based on volumes of expected reserves,
observable prices in active markets, expected volatility
of trading profits, expected foreign currency rate
movements and similar facts and circumstances.
When an asset retirement obligation or a lease contract
is initially reflected in the accounts, a deferred tax
liability and a corresponding deferred tax asset are
recognised simultaneously and accounted for in line
with other deferred tax items.
Estimation uncertainty regarding income tax
Equinor incurs significant amounts of income taxes
payable to various jurisdictions and may recognise
significant changes to deferred tax assets and deferred
tax liabilities. There may be uncertainties related to
interpretations of applicable tax laws and regulations
regarding amounts in Equinor’s tax returns, which are
filed in a number of tax regimes. For cases of uncertain
tax treatments, it may take several years to complete
the discussions with relevant tax authorities or to reach
resolutions of the appropriate tax positions through
litigation.
The carrying values of income tax related assets and
liabilities are based on Equinor's interpretations of
applicable laws, regulations and relevant court
decisions. The quality of these estimates, including
the most likely outcomes of uncertain tax treatments,
is dependent upon
proper application of at times very complex sets of
rules, the recognition of changes in applicable rules
and, in the case of deferred tax assets,
management's ability to project future earnings from
activities that may apply loss carry forward positions
against future income taxes. Climate-related matters
and the transition to carbon-neutral energy-
consumption globally have increased the uncertainty
in determining key business assumptions used to
assess the recoverability of deferred tax assets
through sufficient future taxable income before tax
losses expire.
Equinor 2025 Annual Report on Form 20-F 107
Significant components of income tax expense | |||
Full year | |||
(in USD million) | 2025 | 2024 | 2023 |
Current income tax expense in respect of current year | ( | ( | ( |
Prior period adjustments | ( | ( | |
Current income tax expense | ( | ( | ( |
Origination and reversal of temporary differences | ( | ( | |
Recognition/Derecognition of previously (un)recognised deferred tax assets | ( | ( | |
Change in tax regulations | ( | ( | |
Prior period adjustments | ( | ( | |
Deferred tax income/(expense) | ( | ( | |
Income tax | ( | ( | ( |
Changes to tax regimes
UK
The UK introduced the Energy Profits Levy (EPL) in
May 2022 at 25%, increasing to 35% from
January 2023. The levy applies to oil and gas profits
from UK and UK Continental Shelf operations, on top of
existing profit‑based taxes. From January 2023, the
combined tax rate for oil and gas companies was 75%.
Following the UK General Election, the EPL rate
increased to 38% from 1 November 2024 and was
extended to 31 March 2030. The 29% investment
allowance was removed from the same date.
On 26 November 2025 British authorities announced
the Oil and Gas Price Mechanism (OGPM), replacing
the EPL from 2030. The OGPM will apply a 35% tax on
revenues above benchmark prices of $90/bbl for oil and
90p/therm for gas, with annual uplifts from April 2027.
Further details will follow in 2026.
Equinor 2025 Annual Report on Form 20-F 108
Reconciliation of statutory tax rate to effective tax rate | |||
Full year | |||
(in USD million) | 2025 | 2024 | 2023 |
Income/(loss) before tax | |||
Calculated income tax at statutory rate1) | ( | ( | ( |
Calculated Norwegian Petroleum tax2) | ( | ( | ( |
Tax effect uplift3) | |||
Tax effect of permanent differences regarding divestments4) | ( | ||
Tax effect of permanent differences caused by functional currency different from tax currency | ( | ||
Tax effect of other permanent differences | ( | ||
Recognition/Derecognition of previously (un)recognised deferred tax assets5) | ( | ( | |
Change in unrecognised deferred tax assets | ( | ( | ( |
Change in tax regulations | ( | ( | |
Prior period adjustments | ( | ( | |
Other items including foreign currency effects | ( | ( | |
Income tax | ( | ( | ( |
Effective tax rate | |||
1)The weighted average of statutory tax rates was 21.7 % in 2025, 24.8 % in 2024 and 23.3 % in 2023. The rates are
influenced by earnings composition between tax regimes with lower statutory tax rates and tax regimes with higher
statutory tax rates.
2)The Norwegian petroleum income is taxable at a tax rate of 71.8 % after deducting a calculated 22 % corporate tax.
3)As from 2023 the uplift deduction for investments on NCS has been abolished except for asset investments that fall
under the temporary rules enacted under the Covid-19 pandemic. For investments with PUD submitted to the
authorities before 31 December 2022 the rules allow a direct deduction of the whole uplift in the year the capital
expenditure is incurred. In 2024 the rate was 12.4
4)Impairment of USD 650 million is included in the amount
5)Equinor performs its assessment on DTA recognition based on sources of income such as the reversal pattern of
taxable timing differences and projections of taxable income and recognises the amount of deferred tax assets that is
probable to be realised. In 2025 USD 454 million was derecognised mainly related to the UK, compared to a
recognition of USD 60 million in 2024 mainly related to updated cash flow forecast for Angola,
Equinor 2025 Annual Report on Form 20-F 109
Deferred tax assets and liabilities comprise | ||||||||
(in USD million) | Tax losses carried forward | Property, plant and equipment and intangible assets | Asset retirement obligations | Lease liabilities | Pensions | Derivatives | Other | Total |
Deferred tax assets | ||||||||
Deferred tax liabilities | ( | ( | ( | ( | ( | ( | ( | |
Net asset/(liability) at 31 December 2025 | ( | ( | ||||||
Deferred tax assets | ||||||||
Deferred tax liabilities | ( | ( | ( | ( | ( | ( | ||
Net asset/(liability) at 31 December 2024 | ( | ( |
Changes in net deferred tax liability during the year were as follows: | |||
(in USD million) | 2025 | 2024 | 2023 |
Net deferred tax liability at 1 January | |||
Charged/(credited) to the Consolidated statement of income | ( | ||
Charged/(credited) to Other comprehensive income | ( | ||
Acquisitions and disposals1) | ( | ||
Foreign currency translation effects and other effects | ( | ( | |
Net deferred tax liability at 31 December |
1) Changes in 2025 are mainly due to the joint venture agreement with Shell in the UK.
Deferred tax assets and liabilities are offset to the extent that the deferred taxes relate to the same fiscal authority, and
there is a legally enforceable right to offset current tax assets against current tax liabilities.
are presented on the Consolidated balance sheet as follows:
At 31 December | ||
(in USD million) | 2025 | 2024 |
Deferred tax assets | ||
Deferred tax liabilities | ||
Net deferred tax asset/(liability) classified as held for sale | ||
Equinor 2025 Annual Report on Form 20-F 110
Deferred tax assets are recognised based on the expectation that sufficient taxable income will be available through
reversal of taxable temporary differences or future taxable income. At year-end 2025, the deferred tax assets of
USD 5,053 million were primarily recognised in the US, Norway, Angola, Canada and Brazil. Of this amount, USD 1,833
million was recognised in entities which have suffered a tax loss in either the current or the preceding period. The
corresponding amounts for 2024, were USD 6,850 million and USD 3,553 million, respectively. The tax losses will be
utilised through reversal of taxable temporary differences and future taxable income, mainly from production of oil and
gas. Around 90 % of the tax losses carried forward and recognised as deferred tax assets are expected to be fully utilised
within 10 years.
Unrecognised deferred tax assets | ||||
At 31 December | ||||
2025 | 2024 | |||
(in USD million) | Basis | Tax | Basis | Tax |
Deductible temporary differences | ||||
Unused tax credits | ||||
Tax losses carried forward | ||||
Total unrecognised deferred tax assets | ||||
Approximately 93 % of the unrecognised carry forward tax losses can be carried forward indefinitely. The majority of the
unrecognised tax losses that cannot be carried forward indefinitely expire after 2027. The unrecognised tax credits expire
mainly from 2030, while the unrecognised deductible temporary differences do not expire under the current tax legislation.
Deferred tax assets have not been recognised in respect of these items because currently there is insufficient evidence to
support that future taxable profits will be available to secure utilisation of the benefits.
At year-end 2025, unrecognised deferred tax assets in Angola, the UK and Canada represents USD 681 million, USD 526
million and USD 456 million, respectively, of the total unrecognised deferred tax assets of USD 2,823 million. Similar
amounts for 2024 were USD 650 million in Angola, USD 117 million in the UK and USD 401 million in Canada of a total of
USD 2,164 million. The remaining unrecognised deferred tax assets originate from several different tax jurisdictions.
Note 12. Property, plant and equipment
Accounting policies
Property, plant and equipment is measured at cost, less accumulated depreciation and impairment. The initial cost of
an asset comprises its purchase price or construction cost, any costs directly attributable to bringing the asset into
operation, the initial estimate of an asset retirement obligation, exploration costs transferred from intangible assets
and, for qualifying assets, borrowing costs. Contingent consideration included in the acquisition of an asset or group
of similar assets is initially measured at its fair value, with later changes in fair value other than due to the passage of
time reflected in the book value of the asset or group of assets, unless the asset is impaired. Property, plant and
equipment include costs relating to expenditures incurred under the terms of production sharing agreements (PSAs)
in certain countries, and which qualify for recognition as assets of Equinor. State- owned entities in the respective
countries, however, normally hold the legal title to such PSA-based property, plant and equipment.
Expenditure on major maintenance refits or repairs comprises the cost of replacement assets or parts of assets,
inspection costs and overhaul costs. Inspection and overhaul costs, associated with regularly scheduled major
maintenance programmes planned and carried out at recurring intervals exceeding one year, are capitalised and
amortised over the period to the next scheduled inspection and overhaul. All other maintenance costs are expensed
as incurred.
Capitalised exploration and evaluation expenditures, development expenditure on the construction, installation or
completion of infrastructure facilities such as platforms, pipelines and the drilling of production wells, and field-
dedicated transport systems for oil and gas are capitalised as Producing oil and gas properties within Property, plant
and equipment. Such capitalised costs, when designed for significantly larger volumes than the reserves from
already developed and producing wells, are depreciated using the unit of production method (UoP) based on proved
reserves expected to be recovered from the area during the concession or contract period. Depreciation of
production wells uses the UoP method based on proved developed reserves, and capitalised acquisition costs of
proved properties are depreciated using the UoP method based on total proved reserves. In the rare circumstances
where the use of proved reserves fails to provide an appropriate basis reflecting the pattern in which the asset’s
future economic benefits are expected to be consumed, a more appropriate reserve estimate is used. Depreciation of
other assets and transport systems used by several fields is calculated on the basis of their estimated useful lives,
normally using the straight-line method. Each part of an item of property, plant and equipment with a cost that is
significant in relation to the total cost of the item is depreciated separately. For exploration and production assets,
Equinor has established separate depreciation categories which as a minimum distinguish between platforms,
pipelines and wells.
Equinor 2025 Annual Report on Form 20-F 111
The estimated useful lives of property, plant and
equipment are reviewed on an annual basis, and
changes in useful lives are accounted for prospectively.
An item of property, plant and equipment is
derecognised upon disposal. Any gain or loss arising on
derecognition of the asset is included in Other income
or Operating expenses, respectively, in the period the
item is derecognised.
Monetary or non-monetary grants from governments,
when related to property, plant and equipment and
considered reasonably certain, are recognised in the
Consolidated balance sheet as a deduction to the
carrying value of the asset and subsequently
recognised in the Consolidated statement of income
over the life of the depreciable asset as a reduced
depreciation expense.
Equinor undertakes research and development both on
a funded basis for licence holders and on an unfunded
basis for projects at its own risk, developing innovative
technologies to create opportunities and enhance the
value of current and future assets. Expenses relate both
to in-house resources and the use of
suppliers.Equinor's own share of the licence holders'
funding and the total costs of the unfunded projects are
considered for capitalisation under the applicable IFRS
Accounting Standard requirements. Subsequent to
initial recognition, any capitalised development costs
are accounted for in the same manner as Property,
plant and equipment. Costs not qualifying for
capitalisation are expensed as incurred, see note 9
Auditor’s remuneration and Research and development
expenditures for more details.
reserves
Reserves quantities are, by definition, discovered,
remaining, recoverable and economic. Recoverable oil
and gas quantities are always uncertain. Estimating
reserves is complex and based on a high degree of
professional judgement involving geological and
engineering assessments of in-place hydrocarbon
volumes, the production, historical recovery and
processing yield factors and installed plant operating
capacity. The reliability of these estimates depends on
both the quality and availability of the technical and
economic data and the efficiency of extracting and
processing the hydrocarbons.
Estimation uncertainty; Proved oil and gas reserves
Proved oil and gas reserves may impact the carrying
amounts of oil and gas producing assets, as changes in
the proved reserves, will impact the unit of production
rates used for depreciation and amortisation. Proved oil
and gas reserves are those quantities of oil and gas,
which, by analysis of geoscience and engineering data,
can be estimated with reasonable certainty to be
economically producible from a given date forward, from
known reservoirs, and under existing economic
conditions, operating methods, and government
regulations. Unless evidence indicates that renewal is
reasonably certain, estimates of proved reserves only
reflect the period before the contracts providing the right
to operate expire. For future development projects,
proved reserves estimates are included only where
there is a significant commitment to project funding and
execution and when relevant governmental and
regulatory approvals have been secured or are
reasonably certain to be secured.
Proved reserves are divided into proved developed and
proved undeveloped reserves. Proved developed
reserves are to be recovered through existing wells with
existing equipment and operating methods, or where
the cost of the required equipment is relatively minor
compared to the cost of a new well. Proved
undeveloped reserves are to be recovered from new
wells on undrilled acreage, or from existing wells where
a relatively major capital expenditure is required.
Undrilled well locations can be classified as having
proved undeveloped reserves if a development plan is
in place indicating that they are scheduled to be drilled
within five years unless specific circumstances justify a
longer time horizon. Specific circumstances are for
instance fields which have large up-front investments in
offshore infrastructure, such as many fields on the NCS,
where drilling of wells is scheduled to continue for much
longer than five years. For unconventional reservoirs
where continued drilling of new wells is a major part of
the investments, such as the US onshore assets, the
proved reserves are always limited to proved well
locations scheduled to be drilled within five years.
Proved oil and gas reserves have been estimated by
internal qualified professionals based on industry
standards and are governed by the oil and gas rules
and disclosure requirements in the U.S. Securities and
Exchange Commission (SEC) regulations S-K and S-X,
and the Financial Accounting Standards Board (FASB)
requirements for supplemental oil and gas disclosures.
The estimates have been based on a 12-month average
product price and on existing economic conditions and
operating methods as required, and recovery of the
estimated quantities have a high degree of certainty (at
least a 90%
probability). An independent third party has evaluated
Equinor's proved reserves estimates, and the results of
this evaluation do not differ materially from Equinor's
estimates.
Estimation uncertainty; Expected oil and gas reserves
Changes in the expected oil and gas reserves may
materially impact the amounts of asset retirement
obligations, as a consequence of timing of the removal
activities. It will also impact value-in-use calculations for
oil and gas assets, possibly affecting impairment testing
and the recognition of deferred tax assets. Expected oil
and gas reserves are the estimated remaining,
commercially recoverable quantities, based on Equinor's
judgement of future economic conditions, from projects
in operation or decided for development. As per
Equinor’s internal guidelines, expected reserves are
defined as the ‘forward looking mean reserves’ when
based on a stochastic prediction approach. In some
cases, a deterministic prediction method is used, in
which case the expected reserves are the deterministic
base case or best estimate. Expected reserves are
therefore typically larger than proved reserves as
defined by the SEC, which are high confidence
estimates with at least a 90% probability of recovery
when a probabilistic approach is used. Expected oil and
gas reserves have been estimated by internal qualified
professionals based on industry standards and classified
in accordance with the Norwegian resource
classification system issued by the Norwegian Offshore
Directorate.
Equinor 2025 Annual Report on Form 20-F 112
(in USD million) | Machinery, equipment and transportation equipment | Production plants and oil and gas assets | Refining and manufacturing plants | Buildings and land | Assets under development | Right of use assets4) | Total |
Cost at 1 January 2025 | |||||||
Additions through business acquisition7) | |||||||
Additions and transfers6) | ( | ||||||
Changes in asset retirement obligations | |||||||
Disposals at cost | ( | ( | ( | ( | ( | ( | |
Assets reclassified to held for sale7) | ( | ( | |||||
Foreign currency translation effects | |||||||
Cost at 31 December 2025 | |||||||
Accumulated depreciation and impairment at 1 January 2025 | ( | ( | ( | ( | ( | ( | ( |
Depreciation | ( | ( | ( | ( | ( | ( | |
Impairment5) | ( | ( | ( | ( | ( | ||
Reversal of impairment5) | |||||||
Transfers6) | ( | ( | ( | ( | ( | ||
Accumulated depreciation and impairment on disposed assets | |||||||
Accumulated depreciation and impairment on assets classified as held for sale7) | ( | ||||||
Foreign currency translation effects | ( | ( | ( | ( | ( | ( | ( |
Accumulated depreciation and impairment at 31 December 2025 | ( | ( | ( | ( | ( | ( | ( |
Carrying amount at 31 December 2025 | |||||||
Estimated useful lives (years) | UoP1) |
Equinor 2025 Annual Report on Form 20-F 113
(in USD million) | Machinery, equipment and transportation equipment | Production plants and oil and gas assets | Refining and manufacturing plants | Buildings and land | Assets under development | Right of use assets | Total |
Cost at 1 January 2024 | |||||||
Additions through business acquisition7) | |||||||
Additions and transfers6) | |||||||
Changes in asset retirement obligations | ( | ( | |||||
Disposals at cost | ( | ( | ( | ( | ( | ( | ( |
Assets reclassified to held for sale7) | ( | ( | ( | ( | ( | ( | |
Foreign currency translation effects | ( | ( | ( | ( | ( | ( | ( |
Cost at 31 December 2024 | |||||||
Accumulated depreciation and impairment at 1 January 2024 | ( | ( | ( | ( | ( | ( | ( |
Depreciation | ( | ( | ( | ( | ( | ( | |
Impairment5) | ( | ( | ( | ||||
Reversal of impairment5) | |||||||
Transfers6) | ( | ||||||
Accumulated depreciation and impairment on disposed assets | |||||||
Accumulated depreciation and impairment on assets classified as held for sale7) | |||||||
Foreign currency translation effects | |||||||
Accumulated depreciation and impairment at 31 December 2024 | ( | ( | ( | ( | ( | ( | ( |
Carrying amount at 31 December 2024 | |||||||
Estimated useful lives (years) | UoP1) | ||||||
1) Depreciation according to unit of production method. | |||||||
2) Land is not depreciated. Buildings include leasehold improvements. | |||||||
3) For depreciation method, see note 25 Leases. | |||||||
4) Right of use assets at 31 December 2025 mainly consist of Land and buildings USD | |||||||
5) See note 14 Impairments. | |||||||
6) The carrying amount of assets transferred to Property plant and equipment from Intangible assets in 2025 and 2024 amounted to USD | |||||||
7) For additions through business acquisition and assets reclassified to held for sale, see note 6 Acquisitions and disposals. | |||||||
Equinor 2025 Annual Report on Form 20-F 114
Note 13. Intangible assets
Accounting policies
Intangible assets are measured at cost, less
accumulated amortisation and impairment. Intangible
assets include acquisition cost for oil and gas
prospects, expenditures on the exploration for and
evaluation of oil and natural gas resources, goodwill,
and other intangible assets. Intangible assets relating to
expenditures on the exploration for and evaluation of oil
and natural gas resources are not amortised. When the
decision to develop a particular area is made, related
intangible exploration and evaluation assets are
reclassified to Property, plant and equipment.
Goodwill acquired in a business combination is
allocated to each cash generating unit (CGU), or group
of units, expected to benefit from the combination’s
synergies. Following initial recognition, goodwill is
measured at cost less any accumulated impairment. In
acquisitions made on a post-tax basis according to the
rules on the NCS, a provision for deferred tax is
reflected in the accounts based on the difference
between the acquisition cost and the tax depreciation
basis transferred from the seller. The offsetting entry to
such deferred tax amounts is reflected as goodwill,
which is allocated to the CGU or group of CGUs on
whose tax depreciation basis the deferred tax has been
computed.
Other intangible assets with a finite useful life, are
depreciated over their useful life using the straight- line
method.
development expenditures
Equinor uses the successful efforts method of
accounting for oil and gas exploration costs.
Expenditures to acquire mineral interests in oil and gas
properties, including signature bonuses, expenditures to
drill and equip exploratory wells and evaluation
expenditures are capitalised within Intangible assets as
Exploration expenditures and Acquisition costs - oil and
gas prospects. Geological and geophysical costs and
other exploration and evaluation expenditures are
expensed as incurred.
Exploration wells that discover potentially economic
quantities of oil and natural gas remain capitalised as
intangible assets during the evaluation phase of the
discovery. This evaluation is normally finalised within
one year after well completion. If, following the
evaluation, the exploratory well has not found potentially
commercial quantities of hydrocarbons, the previously
capitalised costs are evaluated for derecognition or
tested for impairment. Any derecognition or impairment
is classified as Exploration expenses in the
Consolidated statement of income.
Capitalised exploration and evaluation expenditures
related to offshore wells that find hydrocarbon
resources, are transferred to Property, plant and
equipment at the time of sanctioning of the development
project. The timing from evaluation of a discovery until a
project is sanctioned could take several years
depending on the location and maturity,
including existing infrastructure, of the area of
discovery, whether a host government agreement is in
place, the complexity of the project and the financial
robustness of the project. For onshore wells where no
sanction is required, the transfer to Property, plant and
equipment occurs at the time when a well is ready for
production.
For exploration and evaluation asset acquisitions (farm-
in arrangements) in which Equinor has decided to fund
a portion of the selling partner's exploration and/or
future development expenditures (carried interests),
these expenditures are reflected in the Consolidated
financial statements as and when the exploration and
development work progresses.
Equinor reflects exploration and evaluation asset
disposals (farm-out arrangements) on a historical cost
basis with no gain or loss recognition. Consideration
from the sale of an undeveloped part of an asset
reduces the carrying amount of the asset. If the
consideration exceeds the carrying amount of the asset,
the excess amount is reflected in the Consolidated
statement of income under
Other income. Equal-valued exchanges (swaps) of
exploration and evaluation assets with only immaterial
cash considerations are accounted for at the carrying
amounts of the assets given up with no gain or loss
recognition.
Estimation uncertainty regarding exploration activities
Exploratory wells that have found hydrocarbon
resources, but where classification of those resources
as reserves depends on whether a major capital
expenditure can be justified, will remain capitalised
during the evaluation phase for the findings on the
exploration wells. Thereafter it will be considered a
trigger for impairment evaluation of the well if no
development decision is planned for the near future,
and there moreover are no concrete plans for future
drilling in the licence. Judgements as to whether these
expenditures should remain capitalised, be
derecognised or impaired in the period may materially
affect the carrying values of these assets and
Equinor 2025 Annual Report on Form 20-F 115
(in USD million) | Exploration expenses | Acquisition costs - oil and gas prospects | Goodwill2) | Other | Total |
Cost at 1 January 2025 | |||||
Additions through business acquisition3) | |||||
Additions | |||||
Disposals at cost | ( | ( | ( | ( | ( |
Transfers | ( | ( | ( | ||
Assets reclassified to held for sale3) | ( | ( | |||
Expensed exploration expenditures previously capitalised | ( | ( | ( | ||
Impairment of goodwill | ( | ( | |||
Foreign currency translation effects | |||||
Cost at 31 December 2025 | |||||
Accumulated amortisation and impairment at 31 December 2025¹⁾ | ( | ( | |||
Carrying amount at 31 December 2025 |
Equinor 2025 Annual Report on Form 20-F 116
(in USD million) | Exploration expenses | Acquisition costs - oil and gas prospects | Goodwill | Other | Total |
Cost at 1 January 2024 | |||||
Additions through business acquisition3) | |||||
Additions | |||||
Disposals at cost | ( | ( | ( | ( | |
Transfers | ( | ( | ( | ( | |
Assets reclassified to held for sale3) | ( | ( | ( | ||
Expensed exploration expenditures previously capitalised | ( | ( | |||
Foreign currency translation effects | ( | ( | ( | ( | ( |
Cost at 31 December 2024 | |||||
Accumulated amortisation and impairment at 31 December 2024¹⁾ | ( | ( | |||
Carrying amount at 31 December 2024 | |||||
1) The increase from 2024 to 2025 mainly relates to impairment, see note 14 Impairments. | |||||
2) Carrying amount goodwill at 31 December 2025 mainly consists of technical goodwill related to business acquisitions in 2019, of which USD and USD | |||||
3) For additions through business acquisition and assets reclassified to held for sale, see note 6 Acquisitions and disposals. | |||||
Equinor 2025 Annual Report on Form 20-F 117
(in USD million) | 2025 | 2024 |
Less than one year | ||
Between one and five years | ||
More than five years | ||
Total capitalised exploration expenditures |
Full year | |||
(in USD million) | 2025 | 2024 | 2023 |
Exploration expenditures | |||
Expensed exploration expenditures previously capitalised | ( | ||
Capitalised exploration | ( | ( | ( |
Exploration expenses | |||
Note 14. Impairments
Accounting policies
right-of-use assets, intangible assets including
goodwill and equity accounted investments
Equinor assesses individual assets or groups of
assets for impairment when events or changes in
circumstances indicate that the carrying value may
not be recoverable. Assets are grouped into cash
generating units (CGUs), typically individual oil and
gas fields, plants, or equity accounted investments.
Each unconventional asset play is considered a
single CGU when no cash inflows from parts of the
play can be readily identified as being largely
independent of the cash inflows from other parts of
the play. In impairment assessments, the carrying
amounts of CGUs are determined on a basis
consistent with that of the recoverable amount.
Properties that are not yet classified as reserves are
assessed for impairment when facts and
circumstances suggest that the carrying amount of
the asset or CGU to which the unproved properties
belong may exceed its recoverable amount, and at
least once a year. Exploratory wells that have found
hydrocarbon resources, but where classification of
those resources as reserves depends on whether
major capital expenditure can be justified or where
the economic viability of that major capital
expenditure depends on the successful completion of
further exploration work, will remain capitalised during
the evaluation phase for the exploratory finds. If,
following evaluation, an
exploratory well has not found hydrocarbon
resources, the previously capitalised costs are tested
for impairment. After the initial evaluation phase for a
well, it will be considered a trigger for impairment
testing of a well if no development decision is
planned for the near future and there is no firm plan
for future drilling in the licence.
Goodwill is reviewed for impairment annually or more
frequently if events or changes in circumstances
indicate that the carrying value might be impaired.
Impairment is determined by assessing the
recoverable amount of the CGU, or group of units, to
which the goodwill relates. When conducting
impairment testing of goodwill initially recognised as
an offsetting item to the computed deferred tax
provision in a post-tax transaction on the NCS, the
remaining amount of the deferred tax provision will
factor into the impairment valuation.
Impairment and reversals of impairment are
presented in the Consolidated statement of income
as either Exploration expenses or Depreciation,
amortisation and net impairment losses. This
classification depends on the nature of the impaired
assets, whether they are as exploration assets
(intangible exploration assets) or development and
producing assets (property, plant and equipment and
other intangible assets), respectively.
Equinor 2025 Annual Report on Form 20-F 118
Measurement
The recoverable amount applied in Equinor’s
impairment assessments is normally estimated value in
use. Equinor may also apply the assets’ fair value less
cost of disposal as the recoverable amount when such
a value is available, reasonably reliable, and based on a
recent and comparable transactions.
Value in use is determined using a discounted cash flow
model. The estimated future cash flows are based on
Equinor’s most recently approved forecasts by
management, which are based on reasonable and
supportable assumptions and represent management’s
best estimates of the range of economic conditions that
will exist over the remaining useful life of the assets.
Assumptions and economic conditions in establishing
the forecasts are reviewed by management on a regular
basis and updated at least annually. For assets and
CGUs with an expected useful life or timeline for
production of expected oil and natural gas reserves
extending beyond five years, including planned onshore
production from shale assets with a long development
and production horizon, the forecasts reflect expected
production volumes, and the related cash flows include
project or asset specific estimates reflecting the relevant
period. Such estimates are established based on
Equinor's principles and assumptions and are
consistently applied.
The estimated future cash flows are adjusted for risks
specific to the asset or CGU and discounted using a
real post-tax discount rate based on Equinor's post-tax
weighted average cost of capital (WACC). Country risk
specific to a project is included as a monetary
adjustment to the projects’ cashflow. Equinor considers
country risk primarily as an unsystematic risk. The cash
flow is adjusted for risk that influences the expected
cash flow of a project and which is not part of the
project itself. The use of post-tax discount rates in
determining value in use does not result in a materially
different determination of the need for, or the amount of,
impairment that would be required if pre-tax discount
rates had been used.
Impairment reversals
A previously recognised impairment is reversed only if
there has been a change in the estimates used to
determine the asset’s recoverable amount. Impairments
of goodwill are not reversed in future periods.
Estimation uncertainty regarding impairment Evaluating
whether an asset is impaired or if an impairment should
be reversed requires a high degree of judgement and
may largely depend on the selection of key assumptions
about future conditions. In Equinor's business context,
judgement is necessary
in determining what constitutes a CGU. Development in
production, infrastructure solutions, markets, product
pricing, management actions and other factors may
over time lead to changes in CGUs such as splitting one
original CGU into multiple CGUs.
The key assumptions used are subject to change due to
the inherently volatile nature of macro- economic factors
such as future commodity prices and discount rates, as
well as uncertainty in asset specific factors like reserve
estimates and operational decisions impacting the
production profile or activity levels. Fluctuations in
foreign currency exchange rates will also affect value in
use, especially for assets on the NCS, where the
functional currency is NOK. When estimating the
recoverable amount, the expected cash flow approach
is applied to reflect uncertainties in timing and amounts
inherent in the assumptions used in the estimated future
cash flows. For example, climate-related matters (see
also Note 3 Climate change and energy transition) are
expected to have a pervasive impact on the energy
industry, affecting not only supply, demand and
commodity prices, but also technology changes,
increased emission-related levies, and other matters
with mainly mid-term and long-term effects. These
effects have been factored into the price assumptions
used for estimating future cash flows through
probability-weighted scenario analyses.
Estimating future cash flows involves complexity, as it
requires considering assumptions from Equinor’s,
market participants’ and other external sources’
assumptions about the future and discounting them to
present value. In order to establish relevant future cash
flows, impairment testing requires long-term
assumptions to be made concerning a number of
economic factors such as future market prices, refinery
margins, foreign currency exchange rates, future output,
discount rates, impact of the timing of tax incentive
regulations, and political and country risk among others.
These long-term assumptions for major economic
factors are made at a group level, and involve a high
degree of reasoned judgement. This judgement is also
required, in determining other relevant factors such as
forward price curves, in estimating production outputs,
and in determining the ultimate terminal value of an
Equinor 2025 Annual Report on Form 20-F 119
Net impairments/(reversal of impairments) | |||
Full year | |||
(in USD million) | 2025 | 2024 | 2023 |
Property, plant and equipment | ( | ||
Intangible assets | |||
Assets classified as held for sale | |||
Equity accounted investments | |||
Other | |||
Total net impairments/(reversals) excluding exploration expenses | |||
The intangible assets line includes Goodwill and amortisable intangible assets. Impairments classified as Exploration
expenses in the Consolidated statement of income are excluded.
For impairment purposes, the asset’s carrying amount is compared to its recoverable amount. The recoverable amount is
established based on a value in use approach unless otherwise stated below the table. The table below describes, per
area, the Producing and development assets being impaired/(reversed), net impairment/(reversal), and the carrying
amount after impairment.
At 31 December 2025 | At 31 December 2024 | At 31 December 2023 | ||||
(in USD million) | Carrying amount after impairment | Net impairment loss/ (reversal) | Carrying amount after impairment | Net impairment/ (reversal) | Carrying amount after impairment | Net impairment/ (reversal) |
Exploration & Production Norway | ||||||
Exploration & Production Brazil | ||||||
Exploration & Production USA - offshore | ( | |||||
Europe and Asia | ||||||
Marketing, Midstream & Processing | ( | ( | ||||
Renewables USA - offshore | ||||||
Renewables - other | ||||||
Other | ( | |||||
Total | ||||||
Equinor 2025 Annual Report on Form 20-F 120
Exploration & Production Norway
In 2023, the impairment mainly related to reduced expected reserves on a producing asset on the Norwegian Continental
Shelf.
Exploration & Production USA - offshore
In 2025, the impairments related to producing assets in the Gulf of America following reduced production estimates,
increased cost estimates and lower price assumptions. In 2023, the impairment reversal mainly related to increased
expected reserves on a producing asset.
Exploration & Production International - Europe and Asia
In 2025 the impairment related to assets in the UK classified as held for sale and measured at fair value, due to an update
of expected future commodity price assumptions. See note 6 Acquisitions and disposal. In 2023, the impairment related to
the held for sale reclassification of Azerbaijan assets.
Marketing, Midstream & Processing
In 2025, the net impairment reversal mainly related to increased refinery margin assumptions combined with extended
economic lifetime of the relevant asset. In 2023, the impairment mainly related to expectations of stabilizing refinery
margins at a lower level than the margins consumed in recent periods.
Renewables USA – Offshore
In 2025, impairments mainly related to Equinor’s offshore wind projects on the US North East Coast. Regulatory changes
leading to reduced expected synergies from future offshore wind projects and increased exposure to tariffs impacted the
project economics for the combined cash generating unit encompassing Empire Wind 1 (EW1) and South Brooklyn
Marine Terminal (SBMT) negatively, as well as the undeveloped Empire Wind 2 project. A discount rate of 3 % real post-
tax was applied.
There is an increased risk associated with offshore wind projects in the U.S., including the development of the Empire
Wind project. The Bureau of Ocean Energy Management issued a second stop work order on 22 December 2025 (the
Order), ordering the suspension of ongoing activities on the Outer Continental Shelf citing national security concerns.
Empire Offshore Wind LLC has filed a lawsuit challenging the validity of the Order. Furthermore, on 15 January 2026, the
U.S. District Court for the District of Columbia granted a preliminary injunction allowing construction to resume while the
underlying case is considered. The injunction enables work to continue without significant delays or adverse financial
consequences for the project. The case is still ongoing. On 31 December 2025, the gross book value of Equinor’s assets
related to the Empire Wind project was around USD 3.7 billion, including SBMT. In addition, the total amount drawn under
the project finance term loan facility per 31 December 2025 was USD 2.7 billion.
In 2023, Equinor’s offshore wind projects on the US North East Coast were facing increased costs and in October 2023,
the New York State Public Service Commission (PSC) rejected price increase petitions related to the offtake agreement
with Equinor’s equity accounted joint ventures. As a consequence, an impairment of USD 300 million was recognised
applying a fair value approach.
Accounting assumptions
Management’s future commodity price assumptions and currency assumptions are used for value in use impairment
testing. While there are inherent uncertainties in the assumptions, the commodity price assumptions as well as currency
assumptions reflect management’s best estimate of the price and currency development over the life of the Group’s
assets based on its view of relevant current circumstances and the likely future development of such circumstances,
including energy demand development, energy and climate change policies, as well as the speed of the energy transition
population and economic growth, geopolitical risks, technology, and cost development among other factors.
Management’s best estimate also takes into consideration a range of external forecasts.
Equinor has performed a thorough and broad analysis of the expected development in drivers for the different commodity
markets and exchange rates. Significant uncertainty exists regarding future commodity price development due to the
transition to a lower carbon economy, future supply actions by OPEC+, and other factors. Such analysis resulted in
changes in the long- term price assumptions with effect from the third quarter of 2025. The main price assumptions
applied in impairment and impairment reversal assessments are disclosed in the table below as price-points on price
curves. Previous price-points applied from the second quarter of 2024 and up to and including the second quarter of 2025
are provided in brackets.
Year | ||||||
Prices in real terms1) | 2030 | 2040 | 2050 | |||
Brent Blend (USD/bbl) | ( | ( | ( | |||
European gas (USD/MMBtu) - TTF | ( | ( | ( | |||
Henry Hub (USD/MMBtu) | ( | ( | ( | |||
Electricity Germany (EUR/MWh) | ( | ( | ( | |||
EU ETS (EUR/tonne) | ( | ( | ( | |||
1) Basis year 2025. The prices in the table are price-points on price-curves. | ||||||
Equinor 2025 Annual Report on Form 20-F 121
The long-term NOK currency exchange rates are
expected to remain unchanged compared to previous
long-term assumptions. The NOK/USD rate from 2028
and onwards is kept at 10.0 , the NOK/EUR rate at 11.5 ,
and the USD/GBP rate at 1.30 .
Climate considerations are included in the impairment
calculations directly by estimating the CO₂ taxes in the
cash flows. Indirectly, the expected effect of climate
change is also included in the estimated commodity
prices where supply and demand are considered. The
prices also have an effect on the estimated production
profiles and economic cut-off of the projects.
Furthermore, climate considerations are a part of the
investment decisions following Equinor’s strategy and
commitments to the energy transition.
The CO₂-tax assumptions used for impairment
calculations of Norwegian upstream assets are based
on Norway’s Climate Action Plan for the period
2021-2030 (Meld. St 13 (2020-2021)), assuming a
gradually increased CO₂ tax (the total of EU ETS +
Norwegian CO₂ tax) in Norway to 2,000 NOK/tonne
(real 2025) in 2030.
We apply carbon price assumptions for all Equinor’s
assets, also for assets in countries outside EU where
CO2 is not already subject to taxation or where Equinor
has not established specific estimates.
The base discount rate applied in value in use
calculations is 5.5 % real after tax. The discount rate is
derived from Equinor’s weighted average cost of capital.
For projects, mainly within the REN segment in periods
with fixed low risk income, a lower discount rate will be
considered on a case-by-case basis. A pre-tax discount
rate is derived based on the asset’s characteristics,
such as specific tax treatments, cash flow profiles, and
economic life. The pre-tax rates for 2025 were 6 % for
E&P USA, 4 % for Renewables USA - Offshore and 7 %
for MMP.
Sensitivities
Significant downward adjustments in Equinor's
commodity price assumptions would result in
impairment losses on certain producing and
development assets, including intangible assets subject
to impairment assessment, while an opposite
adjustment could lead to impairment-reversals.
Assuming a reasonably possible 30 % decline in
commodity price forecasts over the assets' lifetime
could result in an illustrative impairment recognition of
approximately USD 6 billion before tax effects. See note
3 Climate change and energy transition for possible
effect of using the prices in a 1.5ºC compatible Net Zero
Emission by 2050 scenario.
Similarly, for illustrative purposes, Equinor assessed the
sensitivity of the discount rate used in the value in use
calculations for upstream producing assets and
certain related intangible assets. An increase in the
discount rate from 5.5 % to 6.5 % real after tax, in
isolation, would have no material impact on the
recognised impairment amount before tax effects.
The illustrative impairment sensitivities above are based
on a simplified method, which assumes no changes to
other input factors. However, Equinor notes that a price
reduction of 30 % or those representing Net Zero
Emission scenario would likely impact business plans
and other factors used in estimating an asset’s
recoverable amount. The correlated changes reduce
the stand-alone impact of the price sensitivities.
Changes in such input factors would likely include a
reduction in the cost level in the oil and gas industry and
offsetting foreign currency effects, which have
historically occurred following significant changes in
commodity prices.
Equinor 2025 Annual Report on Form 20-F 122
Note 15. Joint arrangements and associates
Accounting policies
ventures and associates
A joint arrangement is a contractual arrangement
whereby Equinor and other parties undertake an
activity subject to joint control, i.e. when decisions
about the relevant activities require the unanimous
consent of the parties sharing control. Such joint
arrangements are classified as either joint operations
or joint ventures. In determining the appropriate
classification, Equinor considers the the substance of
the arrangements and whether the parties involved
have rights to substantially all the arrangement's
assets and obligations for the liabilities, or whether
the parties involved have rights to the net assets of
the arrangement. Equinor accounts for its share of
assets, liabilities, revenues and expenses in joint
operations in accordance with the principles
applicable to those particular assets, liabilities,
revenues and expenses.
Those of Equinor's exploration and production
licence activities that are within the scope of IFRS 11
Joint Arrangements have been classified as joint
operations. A considerable number of Equinor's
unincorporated joint exploration and production
activities are conducted through arrangements that
are not jointly controlled, either because unanimous
consent is not required among all parties involved, or
no single group of parties has joint control over the
activity. Licence activities where control can be
achieved through agreement between more than one
combination of involved parties are considered to be
outside the scope of IFRS 11, and these activities
are accounted for on a pro-rata basis using Equinor's
ownership share. Currently, Equinor uses IFRS 11 by
analogy for all such unincorporated licence
arrangements whether these are in scope of IFRS 11
or not
Reference is made to note 5 Segments for financial
information related to Equinor’s participation in joint
operations within upstream activities.
Joint ventures, in which Equinor has rights to the net
assets currently include the majority of Equinor’s
investments in the Renewables (REN) operating and
reporting segment. Equinor’s participation in joint
arrangements that are joint ventures and investments in
companies in which Equinor has neither control nor joint
control but has the ability to exercise significant
influence over operating and financial policies, are
classified and accounted for as equity accounted
investments.
Under the equity method, the investment is carried on
the Consolidated balance sheet at cost plus post-
acquisition changes in Equinor’s share of net assets of
the entity, less distributions received and less any
impairment in value of the investment. Equinor also
reflects its share of the investment’s other
comprehensive income (OCI) arisen after the
acquisition. If a dividend distribution from an equity-
accounted investment exceeds its carrying amount, and
Equinor has no obligation to fund the equity accounted
investment, the excess amount is recognised as income
from the equity accounted investments. In subsequent
periods, income from the investee would only be
recognised if it exceeds the dividend already recognised
as income. If Equinor does have an obligation to fund
the equity accounted investment, Equinor recognises a
provision for the excess amount in the balance sheet.
The Consolidated statement of income reflects
Equinor’s share of the results after tax of an equity
accounted entity, adjusted to account for depreciation,
amortisation and any impairment of the equity
accounted entity’s assets based on their fair values at
the date of acquisition. In case of material differences in
accounting policies, adjustments are made in order to
bring the accounts of the equity accounted investment
in line with Equinor’s accounting policies. Net income/
loss from equity accounted investments is presented on
a separate line as part of Total revenues and other
income, as investments in and participation with
significant influence in other companies engaged in
energy-related business activities is considered to be
part of Equinor’s main operating activities.
Acquisition of ownership shares in joint ventures and
other equity accounted investments in which the activity
constitutes a business, are accounted for in accordance
with the requirements applicable to business
combinations. Please refer to note 6 Acquisitions and
disposals for more details on acquisitions.
Equinor as operator of joint operations and similar
arrangements
Indirect operating expenses such as personnel
expenses are accumulated in cost pools. These
costs are allocated on an hours’ incurred basis to
business areas and Equinor-operated joint
operations under IFRS 11 and to similar
arrangements (licences) outside the scope of IFRS
11. Costs allocated to the other partners' share of
operated joint operations and similar arrangements
are reimbursed and only Equinor's share of the
statement of income and balance sheet items related
to Equinor-operated joint operations and similar
arrangements are reflected in the Consolidated
statement of income and the Consolidated balance
sheet.
Accounting judgement regarding classification of
joint arrangements
The classification of a joint arrangement as either a
joint operation or a joint venture requires significant
judgement of the facts and circumstances of the
arrangement. The assessment focuses on the rights
and obligations arising from the contractual terms
and the legal form of the arrangement. Judgement is
particularly required when the arrangement’s output
is provided to the parties and whether the liabilities of
the arrangement are, in substance, settled through
cash flows received from the parties’ purchase of the
output. These factors help determine whether the
parties have rights to the assets and obligations for
the liabilities (joint operation) or rights to the net
assets (joint venture).
Accounting judgement in assessing whether
Equinor has significant influence
Determining whether Equinor has significant
influence over an investee involves judgement,
particularly when ownership is below 20% of the
voting rights. While IAS 28 presumes no significant
influence below this threshold, the presence of
qualitative indicators – such as board representation,
participation in policymaking, material transactions
between the parties, or potential voting rights – may
support a different conclusion.
Equinor evaluates the substance of the relationship,
considering both contractual rights and governance
arrangements. This assessment is made on a case-
by-case basis
Equinor 2025 Annual Report on Form 20-F 123
Joint ventures and other equity accounted investments | ||
(in USD million) | 2025 | 2024 |
Net investments at 1 January | ||
Net income/(loss) from equity accounted investments | ||
Impairment | ( | ( |
Acquisitions and increase in capital | ||
Dividend and other distributions | ( | ( |
Other comprehensive income/(loss) | ( | |
Divestments, derecognition and decrease in paid in capital1) | ( | ( |
Other | ||
Net investments at 31 December | ||
of which investment in Adura | ||
1) For 2024 this is mainly related to swap of US Offshore Wind assets, see also note 6 Acquisitions and disposals. | ||
Equity accounted investments consist of several investments, Adura is considered to be significant on individual basis.
None of the other investments are above USD 0.9 billion and none of the other investments are significant on an
individual basis. Voting rights correspond to ownership share.
Significant joint venture
Adura is a joint venture with Shell where both parties hold a 50 % equity interest each. The transaction was closed on 1
December 2025 and includes Equinor’s and Shell’s UK upstream businesses. The head office is located in Aberdeen,
Scotland. Adura will recognise assets and liabilities at fair value, except for deferred tax that will be recognised at nominal
value. In Equinor’s Annual Report, Equinor's 50 % share in Adura is recognised at fair value, including fair value of
deferred tax at initial recognition. Due to the short time from closing the transaction, the Purchase Price Allocation for
Adura has not yet been established. The fair value in Equinor’s Annual Report of USD 5,574 million consists of the net of:
Property, Plant and Equipment post deferred tax and Asset Retirement Obligation of USD 3,728 million, fair value of tax
loss carry forward USD 1,515 million, synergies efficiencies and other USD 331 million. Net income from Adura is not
material and is included in Net income/(loss) from equity accounted investments. See also note 6 Acquisitions and
disposals.
For information on Net investments per 1 January and 31 December as well as Net income/(loss) from equity accounted
investments per segment, please see note 5 Segments. For information on committed investments or funding of equity
accounted entities, please see note 26 Other commitments, contingent liabilities and contingent assets. For transactions
with, receivables from and payables to equity accounted investments, see note 27 Related parties.
Equinor 2025 Annual Report on Form 20-F 124
Note 16. Financial investments and financial receivables
Non-current financial investments | ||
At 31 December | ||
(in USD million) | 2025 | 2024 |
Bonds | ||
Listed equity securities | ||
Non-listed equity securities | ||
Financial investments | ||
Bonds and equity securities relate to investment portfolios held by Equinor’s captive insurance company and other listed
and non-listed equities held for long-term strategic purposes, mainly accounted for using fair value through profit or loss.
Included in listed equity securities are shares in Ørsted A/S of USD 2.5 billion and USD 1.9 billion for 2025 and 2024,
respectively. In October 2025, Equinor ASA participated in Ørsted’s DKK 60 billion rights issue to maintain the 10 %
ownership stake in Ørsted. The subscription of additional shares for USD 0.9 billion was settled in October 2025.
Non-current prepayments and financial receivables | ||
At 31 December | ||
(in USD million) | 2025 | 2024 |
Interest-bearing receivables | ||
Prepayments and other non-interest-bearing receivables | ||
Assets classified as held for sale1) | ( | |
Prepayments and financial receivables | ||
1) For assets reclassified to held for sale, see note 6 Acquisitions and disposals | ||
Interest-bearing receivables primarily relate to loans to equity accounted companies and employees. Prepayments and
other non-interest-bearing receivables mainly relate to sales of licenses and lease prepayments.
Equinor 2025 Annual Report on Form 20-F 125
Current financial investments | ||
At 31 December | ||
(in USD million) | 2025 | 2024 |
Time deposits | ||
Interest-bearing securities | ||
Financial investments | ||
Financial investments mainly relate to investments held by Equinor ASA as part of liquidity management. At 31 December
2025, USD 288 million relates to investment portfolios held by Equinor’s captive insurance company. The corresponding
balance at 31 December 2024 was USD 366 million. For information about financial instruments by category, see note 28
Financial instruments and fair value measurement.
Current prepayments and financial receivables | ||
At 31 December | ||
(in USD million) | 2025 | 2024 |
Interest-bearing financial receivables and accrued interest | ||
Collateral receivables1, 2) | ||
Total current financial receivables | ||
Prepayments and other non-financial receivables | ||
Prepayments and financial receivables | ||
1) Collateral receivables are mainly related to cash paid as security for counterparties credit exposure towards Equinor. 2) Previously reported number for 2024 has been restated due to a change in classification of cash collaterals for commodity derivative transactions. Reference is made to note 2 Accounting Policies for more information. | ||
Note 17. Inventories
Accounting policies
Commodity inventories not held for trading purposes are measured at the lower of cost and net realisable value. The
cost of inventories is based on the first-in first-out allocation method and comprises direct purchase costs, cost of
production, transportation, and manufacturing expenses.
Commodity inventories held for trading purposes are measured at fair value less cost to sell (FVLCS), with
subsequent changes in fair value recognised in the Consolidated statement of income as part of Revenues. These
inventories are categorised within level 2 of the fair value hierarchy.
At 31 December | ||
(in USD million) | 2025 | 2024 |
Crude oil | ||
Petroleum products | ||
Natural gas | ||
Commodity inventories at the lower of cost and net realisable value | ||
Natural gas held for trading purposes measured at fair value | ||
Spare parts and operational materials | ||
Other | ||
Total inventories | ||
Inventories held for trading purposes consist mainly of natural gas storages held by Danske Commodities. | ||
Equinor 2025 Annual Report on Form 20-F 126
Note 18. Trade and other receivables
At 31 December | ||
(in USD million) | 2025 | 2024 |
Trade receivables from contracts with customers1) | ||
Other current trade receivables | ||
Receivables from participation in joint operations and similar arrangements | ||
Receivables from equity accounted companies and other related parties | ||
Trade and other receivables | ||
1) Trade receivables from contracts with customers are shown net of an immaterial provision for expected losses. | ||
For currency sensitivities and more information about the credit quality of Equinor's counterparties, see note 4 Financial
risk and capital management. For further information on receivables from equity accounted companies and other related
parties, see note 27 Related parties.
Note 19. Cash and cash equivalents
Cash and cash equivalents include cash in hand, bank deposits, and short-term highly liquid investments with
original maturity of three months or less. These are readily convertible to known amounts of cash and subject to
insignificant risk of changes in fair value. Cash and cash equivalent items are mainly accounted for at amortised
cost except for money market funds that are accounted for at fair value.
At 31 December | ||
(in USD million) | 2025 | 2024 |
Cash at bank available | ||
Time deposits | ||
Money market funds | ||
Interest-bearing securities | ||
Cash and cash equivalents | ||
Previously reported number for 2024 has been restated due to a change in classification of cash collaterals for commodity
derivative transactions. Reference is made to note 2 Accounting Policies for more information.
Equinor 2025 Annual Report on Form 20-F 127
Note 20. Shareholders' equity, capital distribution and earnings per share
Number of shares | NOK per value | NOK | USD | |
Share capital at 1 January 2025 | ||||
Capital reduction | ( | ( | ( | |
Share capital at 31 December 2025 |
Number of shares | NOK per value | Common stock | ||
Authorised and issued | ||||
Treasury shares | ||||
Share buy-back programme | ( | ( | ||
Employees share saving plan | ( | ( | ||
Total outstanding shares |
Equinor ASA has only one class of shares and all shares have voting rights. The holders of shares are entitled to receive
dividends as and when declared and are entitled to one vote per share at the annual general
meeting of the company.
Dividend
During 2025, dividend for the third and for the fourth quarter of 2024 and dividend for the first and second quarter of 2025
were settled. Dividend declared but not yet settled is presented as dividends payable in the Consolidated balance sheet.
The Consolidated statement of changes in equity shows declared dividend in the period (retained earnings). Dividend
declared in 2025 relates to the fourth quarter of 2024 and to the first three quarters of 2025.
On 3 February 2026, the board of directors proposed to the annual general meeting on 12 May 2026 a cash dividend for
the fourth quarter of 2025 of USD 0.39 per share. The Equinor share will trade ex-dividend 13 May 2026 on the Oslo Børs
and 15 May 2026 for ADR holders on the New York Stock Exchange. Record date will be 15 May 2026 and payment date
will be 27 May 2026.
At 31 December | ||
(in USD million) | 2025 | 2024 |
Dividends declared | ||
USD per share or ADS | ||
Dividends paid | ||
USD per share or ADS | ||
NOK per share | ||
Equinor 2025 Annual Report on Form 20-F 128
Accounting policies
Where Equinor has either acquired own shares
under a share buy-back programme or has placed
an irrevocable order with a third party for Equinor
shares to be acquired in the market, such shares
are reflected as a reduction in equity as treasury
shares. The amount exceeding nominal share
capital is recognised as reduction in additional
paid-in capital until nil and thereafter as reduction
in retained earnings. Treasury shares are not
included in the weighted average number of
ordinary shares outstanding in the calculation of
Earnings per share. The remaining outstanding
part of an irrevocable order to acquire shares is
accrued for and classified as Trade and other
payables.
Share buy-back programme
The purpose of the share buy-back programme is to
reduce the issued share capital of the company. All
shares repurchased as part of the programme will be
cancelled. According to an agreement between Equinor
and the Norwegian state, the state will participate in
share buy-backs on a proportionate basis, ensuring that
its ownership interest in Equinor remains unchanged at
On 3 February 2026, the board of directors decided to
announce share buy-back for 2026 of up to USD 1.5
billion, subject to market outlook and balance sheet
strength.
The first tranche of up to USD 375 million of the 2026
share buy-back programme will commence on 5
February and end no later than 30 March 2026. This
tranche is based on the authorisation from the annual
general meeting in May 2025, valid until the next annual
general meeting, but no later than 30 June 2026.
Commencement of new share buy-back tranches after
the first tranche in 2026 will be decided by the board of
directors on a quarterly basis in line with the company’s
dividend policy and will be subject to board
authorisations for share buy-back from the company’s
annual general meeting and agreement with the
Norwegian state regarding share buy-back.
Number of shares | 2025 | 2024 |
Share buy-back programme at 1 January | ||
Purchase | ||
Cancellation | ( | ( |
Share buy-back programme at 31 December | ||
Equity impact of share buy-back programmes | ||
(in USD million) | 2025 | 2024 |
First tranche | ||
Second tranche | ||
Third tranche | ||
Fourth tranche | ||
Total open market share | ||
Norwegian state share1) | ||
Total | ||
1) Relates to second to fourth tranche of previous year programme and first tranche of current year programme. | ||
Equinor 2025 Annual Report on Form 20-F 129
Based on the authorisation from the annual general meeting on 14 May 2025, the board of directors has, on a quarterly
basis, decided on share buy-back tranches. The 2025 programme was up to USD 5 billion, including shares to be
redeemed from the Norwegian state.
During 2025, four tranches of in total USD 5 billion were launched, including shares to be redeemed from the Norwegian
state. The market execution of the fourth tranche was completed in January 2026. As of 31 December 2025, USD 285
million of the fourth tranche had been purchased in the market, of which USD 271 million had been settled.
Due to an irrevocable agreement with a third party, the total market execution of the fourth tranche of USD 418 million has
been recognised as reduction in equity.
In order to maintain the Norwegian state’s ownership share in Equinor, a proportionate share of the second, third and
fourth tranche of the 2024 programme as well as the first tranche of the 2025 programme was redeemed and cancelled
through a capital reduction by the annual general meeting on 14 May 2025. The Norwegian state’s share of USD 4,141
million (NOK 42.7 billion) following the capital reduction was settled in July 2025. A proportionate share of the second,
third and fourth tranche of the 2025 programme as well as the first tranche of the 2026 programme will be redeemed and
cancelled at the annual general meeting in May 2026.
Employees' share saving plan | ||
Number of shares | 2025 | 2024 |
Share saving plan at 1 January | ||
Purchase | ||
Allocated to employees | ( | ( |
Share saving plan at 31 December |
In 2025 and 2024 treasury shares were purchased to employees participating in the share saving plan for USD 99 million
and USD 85 million, respectively. For further information, see note 8 Salaries and personnel expenses.
Earnings per share | ||
Number of shares | 2025 | 2024 |
Basic earnings per share | ||
Net income (loss) attributable to shareholders of the company | ||
Weighted average number of ordinary shares outstanding | ||
Basic earnings per share (in USD) | ||
Diluted earnings per share | ||
Net income (loss) attributable to shareholders of the company | ||
Weighted average number of ordinary shares outstanding, diluted | ||
Diluted earnings per share (in USD) |
Basic and diluted earnings per share amounts are calculated by dividing the Net income (loss) for the year attributable to
shareholders by relevant weighted average number of ordinary shares outstanding during the year. Shares purchased to
employees participating in the share saving plan is the only diluting element.
Equinor 2025 Annual Report on Form 20-F 130
Note 21. Finance debt
Unsecured bonds amounting to USD 15,028 million are
denominated in USD and unsecured bonds
denominated in other currencies amounting to
USD 7,366 million are swapped into USD. One bond
denominated in EUR amounting to USD 881 million is
not swapped. The table does not include the effects of
agreements entered into to swap the various currencies
into USD. For further information see note 28 Financial
instruments and fair value measurement.
Equinor's unsecured bonds issued prior to 2019,
contain provisions restricting future pledging of assets
to secure borrowings (negative pledge) without granting
a similar secured status to the existing bondholders and
lenders. Bonds issued thereafter do not contain similar
restrictions.
Non-current finance debt | ||||||
Finance debt measured at amortised cost | ||||||
Weighted average interest rates in %1) | Carrying amount in USD millions at 31 December | Fair value in USD millions at 31 December²⁾ | ||||
2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |
Unsecured bonds | ||||||
United States Dollar (USD) | ||||||
Euro (EUR) | ||||||
Great Britain Pound (GBP) | ||||||
Norwegian Kroner (NOK) | ||||||
Total unsecured bonds | ||||||
Unsecured loans | ||||||
Brazilian real (BRL) | ||||||
Japanese Yen (JPY) | ||||||
Total unsecured loans | ||||||
Secured loans | ||||||
United States Dollar (USD) | ||||||
Euro (EUR) | ||||||
Total secured loans | ||||||
Total | ||||||
Non-current finance debt due within one year | ||||||
Non-current finance debt | ||||||
1) Weighted average interest rates are calculated based on the contractual rates on the loans per currency at 31 December and do not include the effect of swap agreements | ||||||
2) Fair values are determined from external calculation models based on market observations from various sources, classified at level 2 in the fair value hierarchy. For more information regarding fair value hierarchy, see note 28 Financial instruments and fair value measurement | ||||||
Equinor 2025 Annual Report on Form 20-F 131
In 2025 Equinor issued the following bonds | ||||
Issuance bonds | Currency | Amount in million | Interest rate in % | Maturity date |
3 June 2025 | USD | June 2028 | ||
3 June 2025 | USD | September 2030 | ||
3 June 2025 | USD | June 2035 | ||
14 November 2025 | USD | June 2028 | ||
14 November 2025 | USD | September 2030 | ||
14 November 2025 | USD | November 2035 | ||
The 2028 Notes and the 2030 Notes issued on 14 November 2025 constituted a further issuance of, and are consolidated
and forms a single series with, Equinor’s outstanding USD 550 million 4.25 % Notes due 2 June 2028 and USD 400 million
Out of Equinor's total outstanding unsecured bond portfolio, 32 bond agreements contain provisions allowing Equinor to
call the debt prior to its final redemption at par or at certain specified premiums if there are changes to the Norwegian tax
laws. The carrying amount of these agreements is USD 23,175 million at the 31 December 2025 closing currency
exchange rate.
Out of Equinor’s non-current secured loans, project financing for a total of USD 2.7 billion relates to financing of Empire
Wind project, which is currently under construction. The stop work order received 22 December 2025, as further described
in note 14 Impairments, triggered a potential default with a contractually embedded cure period. The cure period ensured
that no event of default existed at 31 December 2025. The preliminary injunction on 15 January 2026 lifted the suspension
within the contractual cure period, confirming management’s year end assessment. The case is still ongoing, and there is
a risk that developments in 2026 could cause the project financing to become repayable within twelve months from that
date, which would affect the classification of the related loans.
For more information about the revolving credit facility, maturity profile for undiscounted cash flows and interest rate risk
management, see note 4 Financial risk and capital management.
Non-current finance debt maturity profile | ||
At 31 December | ||
(in USD million) | 2025 | 2024 |
Year 2 and 3 | ||
Year 4 and 5 | ||
After 5 years | ||
Total repayment of non-current finance debt | ||
Weighted average maturity (years - including current portion) | ||
Weighted average annual interest rate (% - including current portion) | ||
Current finance debt | ||
At 31 December | ||
(in USD million) | 2025 | 2024 |
Collateral liabilities | ||
Non-current finance debt due within one year | ||
Other including US Commercial paper programme and bank overdraft | ||
Total current finance debt | ||
Weighted average interest rate (%) | ||
Collateral liabilities mainly relate to cash received as security for a portion of Equinor's credit exposure. Outstanding
amounts on Equinor's US Commercial paper (CP) programme amounted to USD 224 million as of 31 December 2025 and
USD 4,115 million as of 31 December 2024.
Equinor 2025 Annual Report on Form 20-F 132
Reconciliation of cash flows from financing activities to finance line items in balance sheet | ||||||||
(in USD million) | Non-current finance debt | Current finance debt | Dividend payable | Lease liabilities1) | Accrued trade expenses and other payables2) | Collateral receivables3) | Other balance sheet items | Total |
At 1 January 2025 | ( | |||||||
New finance debt | ||||||||
Repayment of finance debt | ( | ( | ||||||
Repayment of lease liabilities | ( | ( | ||||||
Dividend paid | ( | ( | ||||||
Share buy-back | ( | ( | ( | |||||
Net current finance debt and other finance activities | ( | ( | ( | |||||
Net cash flow from financing activities | ( | ( | ( | ( | ( | ( | ||
Transfer to current portion | ( | |||||||
Dividend declared | ||||||||
Share buy back committed | ||||||||
Debt in other entities | ||||||||
New leases | ||||||||
Effect of exchange rate changes | ( | |||||||
Other changes | ( | ( | 962 | |||||
Net other changes | ||||||||
At 31 December 2025 | ( |
Equinor 2025 Annual Report on Form 20-F 133
(in USD million) | Non-current finance debt | Current finance debt | Dividend payable | Lease liabilities1) | Accrued trade expenses and other payables2) | Collateral receivables3) | Other balance sheet items | Total |
At 1 January 2024 | ( | |||||||
Repayment of finance debt | ( | ( | ||||||
Repayment of lease liabilities | ( | ( | ||||||
Dividend paid | ( | ( | ||||||
Share buy-back | ( | ( | ( | |||||
Net current finance debt and other finance activities | ( | |||||||
Net cash flow from financing activities | ( | ( | ( | ( | ( | ( | ( | |
Transfer to current portion | ( | |||||||
Dividends declared | ||||||||
Share buy back committed | ||||||||
Debt in other entities | ||||||||
New leases | ||||||||
Effect of exchange rate changes | ( | ( | ( | ( | ||||
Other changes | ( | ( | (652) | |||||
Net other changes | ( | ( | ||||||
At 31 December 2024 | ( |
1)See note 25 Leases for more information.
2)Accrued trade expenses and other payables are included in Trade and other payables in the Consolidated balance sheet. See note 24 Trade and other payables for more information.
3)Financial receivable collaterals are included in Current prepayments and financial receivables in the Consolidated balance sheet. See note 16 Financial investments and financial receivables for more information. Previously reported number for 2024
has been restated due to a change in classification of cash collaterals for commodity derivative transactions. Reference is made to note 2 Accounting Policies for more information.
Equinor 2025 Annual Report on Form 20-F 134
Note 22. Pensions
Accounting policies
defined benefit upon retirement or a pension based
on defined contributions and returns. A portion of the
contributions are provided for as notional
contributions, for which the liability increases with a
promised notional return, set equal to the actual
return of assets invested through the ordinary
defined contribution plan. For defined benefit plans,
the benefit to be received by employees generally
depends on many factors including length of service,
retirement date and future salary levels.
Equinor's proportionate share of multi-employer
defined benefit plans is recognised as liabilities in the
Consolidated balance sheet as sufficient information
is considered available, and a reliable estimate of the
obligation can be made.
The cost of pension benefit plans is expensed over
the period that the employees render services and
become eligible to receive benefits. The calculation
is performed by an external actuary. Equinor's net
obligation from defined benefit pension plans is
calculated separately for each plan by estimating the
amount of future benefit that employees have earned
in return for their services in the current and prior
periods. That benefit is discounted to determine its
present value, and the fair value of any plan assets is
deducted.
The recognition of a net surplus for the funded plan is
based on the assumption that the net assets represent
a future value for Equinor, either as a possible
distribution to premium fund which can be used for
future funding of new liabilities, or as disbursement of
equity in the pension fund.
Contributions to defined contribution schemes are
recognised in the Consolidated statement of income
as pension costs in the period in which the
contribution amounts are earned by the employees.
Notional contribution plans, reported in the parent
company Equinor ASA, are recognised as Pension
liabilities with the actual value of the notional
contributions and promised return at reporting date.
Notional contributions are recognised in the
Consolidated statement of income as periodic
pension cost, while changes in fair value of the
employees’ notional assets are reflected in the
Consolidated statement of income under Net
financial items.
Periodic pension cost is accumulated in cost pools
and allocated to business areas and Equinor’s
operated joint operations (licences) on an hours’
incurred basis and recognised in the Consolidated
statement of income based on the function of the
cost.
Pension plans in Equinor
The main pension plans for Equinor ASA and its most
significant subsidiaries are defined contribution plans
which includes certain unfunded elements (notional
contribution plans). In addition, several employees and
former employees of the Equinor group is a member of
certain defined benefit plans. The benefit plan in
Equinor ASA was closed in 2015 for new employees
and for employees with more than 15 years to regular
retirement age. Equinor's defined benefit plans are
generally based on a minimum of 30 years of service
and 66 % of the final salary level, including an assumed
benefit from the Norwegian National Insurance Scheme.
The Norwegian companies in the group are subject to,
and complies with, the requirements of the Norwegian
Mandatory Company Pensions Act.
The defined benefit plans in Norway are managed and
financed through Equinor Pensjon (Equinor's pension
fund - hereafter Equinor Pension). Equinor Pension is
an independent pension fund that covers the employees
in Equinor's Norwegian companies. The pension fund's
assets are kept separate from the company's and group
companies' assets. Equinor Pension is supervised by
the Financial Supervisory Authority of Norway
("Finanstilsynet") and is licenced to operate as a
pension fund.
Equinor has more than one defined benefit plan, but the
disclosure is made in total since the plans are not
subject to materially different risks. Pension plans
outside Norway are not material and as such not
disclosed separately. In this note pension costs are
presented on a gross basis before allocation to licence
partners. In the Consolidated statement of income, the
pension costs in Equinor ASA are presented net of
costs allocated to licence partners.
Equinor is also a member of a Norwegian national
agreement-based early retirement plan (“AFP”), and the
premium is calculated based on the employees' income
but limited to 7.1 times the basic amount in the National
Insurance scheme (7.1 G). The premium is payable for
all employees until age 62 . Pension from the AFP
scheme will be paid from the AFP plan administrator to
employees for their full lifetime.
Net pension cost
Total pension costs amount to USD 487 million in 2025,
USD 495 million in 2024 and USD 441 million in 2023.
In addition, interest cost and interest income related to
defined benefit plans are included in the Consolidated
statement of income within Net financial items.
Equinor 2025 Annual Report on Form 20-F 135
Changes in pension liabilities and plan assets during the year | ||
(in USD million) | 2025 | 2024 |
Pension liabilities at 1 January | ||
Current service cost | ||
Interest cost | ||
Actuarial (gains)/losses | ( | ( |
Foreign currency translation effects | ( | |
Other changes in notional contribution liability and other effects | ||
Benefits paid | ( | ( |
Losses/(gains) from curtailment, settlement or plan amendment | ( | |
Pension liabilities at 31 December | ||
Fair value of plan assets at 1 January | ||
Interest income | ||
Return on plan assets (excluding interest income) | ||
Company contributions | ||
Benefits paid | ( | ( |
Other effects | ( | |
Foreign currency translation effects | ( | |
Asset ceiling | ( | |
Fair value of plan assets at 31 December | ||
Net pension liability at 31 December | ||
Represented by: | ||
Asset recognised as non-current pension assets (funded plan) | ||
Liability recognised as non-current pension liabilities (unfunded plans) | ||
Pension liabilities specified by funded and unfunded pension plans | ||
Funded | ||
Unfunded |
Equinor recognised an actuarial gain from changes in financial assumptions in 2025. The interest rate increased by 25
basis points compared to year end 2024. An actuarial gain was recognised in 2024.
Actuarial assumptions | ||
Assumptions used to determine benefit obligations in % | ||
Rounded to the nearest quartile | 2025 | 2024 |
Discount rate | ||
Rate of compensation increase | ||
Expected rate of pension increase | ||
Expected increase of social security base amount (G-amount) | ||
Weighted-average duration of the defined benefit obligation | ||
The assumptions presented are for the Norwegian companies in Equinor which are members of Equinor's pension fund.
The defined benefit plans of other subsidiaries are immaterial to the consolidated pension assets and liabilities.
Equinor 2025 Annual Report on Form 20-F 136
Sensitivity analysis
increase for the defined benefit plans. The following estimates are based on facts and circumstances as of 31 December
2025.
Discount rate | Expected rate of pension increase | |||
(in USD million) | ( | ( | ||
Effect on: | ||||
Defined benefit obligation at 31 December 2025 | ( | ( | ||
The sensitivity of the financial results to each of the key assumptions has been estimated based on the assumption that
all other factors would remain unchanged. The estimated effects on the financial result would differ from those that would
actually appear in the Consolidated financial statements because the Consolidated financial statements would also reflect
the relationship between these assumptions.
Pension assets
The plan assets related to the defined benefit plans were measured at fair value. Equinor Pension invests in both financial
assets and real estate.
In 2025, 98 % of the equity securities and 21 % of bonds had quoted market prices in an active market. 2 % of the equity
securities, 79 % of bonds and 100 % of money market instruments had market prices based on inputs other than quoted
prices. If quoted market prices are not available, fair values are determined from external calculation models based on
market observations from various sources.
In 2024, 98 % of the equity securities and 6 % of bonds had quoted market prices in an active market. 2 % of the equity
securities, 94 % of bonds and 100 % of money market instruments had market prices based on inputs other than quoted
prices.
For definition of the various levels, see note 28 Financial instruments and fair value measurement.
Estimated company contributions to be made to Equinor Pension in 2026 is approximately USD 85 million.
The table below presents the portfolio weighting as approved by the board of Equinor Pension for 2025. The portfolio
weight during a year will depend on the risk capacity.
(in %) | 2025 | 2024 | Target portfolio weight |
Equity securities | |||
Interest bearing investments | |||
Real estate | |||
Total |
Equinor 2025 Annual Report on Form 20-F 137
Note 23. Provisions and other liabilities
Accounting policies
Provisions for asset retirement obligations (ARO) are
recognised when Equinor has an obligation (legal or
constructive) to dismantle and remove a facility or an
item of property, plant and equipment and to restore
the site on which it is located, and when a reliable
estimate of that liability can be made. Normally an
obligation arises for a new facility, such as an oil and
natural gas production or transportation facility, upon
construction or installation. An obligation may also
arise during the period of operation of a facility
through a change in legislation or through a decision
to terminate operations or be based on commitments
associated with Equinor's ongoing use of pipeline
transport systems where removal obligations rest
with the volume shippers.
The amount recognised is the present value of the
estimated future expenditures determined in
accordance with local conditions and requirements.
The cost is estimated based on current regulations
and technology, considering relevant risks and
uncertainties. The discount rate used in the
calculation of the ARO is a market-based risk-free
rate based on the applicable currency (mainly USD)
and time horizon of the underlying cash flows. The
provisions are classified under Provisions in the
Consolidated balance sheet.
When a provision for ARO is recognised, a
corresponding amount is recognised as an increase of
the related asset within property, plant and equipment
and is subsequently depreciated over the useful life of
the asset. Any change in the present value of the
estimated expenditure is reflected as an adjustment to
the provision and the corresponding adjustment to the
carrying value of the property, plant and equipment.
When a decrease in the ARO related to a producing
asset exceeds the carrying amount of the asset, the
excess is recognised as a reduction of Depreciation,
amortisation and net impairment in the Consolidated
statement of income. When an asset has reached the
end of its useful life, all subsequent changes to the ARO
are recognised as they occur in Operating expenses in
the Consolidated statement of income.
Removal provisions associated with Equinor's role as
shipper of volumes through third party transport
systems are expensed as incurred.
Estimation uncertainty regarding asset retirement
obligations
Establishing the appropriate estimates for such
obligations are based on historical knowledge combined
with knowledge of ongoing technological developments,
expectations about future regulatory and technological
development and involve the application of judgement
and an inherent risk of significant adjustments. The
costs of decommissioning
and removal activities require revisions due to changes
in current regulations and technology while considering
relevant risks and uncertainties. Most of the removal
activities are many years into the future, and the
removal technology and costs are constantly changing.
The speed of the transition to renewable energy
sources may also influence the production period,
hence the timing of the removal activities. The
estimates include assumptions of norms, rates and time
required which can vary considerably depending on the
assumed removal complexity. Moreover, changes in the
discount rate and foreign currency exchange rates may
impact the estimates significantly. As a result, the initial
recognition of ARO and subsequent adjustments involve
the application of significant judgement.
Equinor 2025 Annual Report on Form 20-F 138
(in USD million) | Asset retirement obligations | Other provisions and liabilities | Total |
Non-current portion at 31 December 2024 | |||
Current portion at 31 December 2024¹⁾ | |||
Provisions and other liabilities at 31 December 2024 | |||
New or increased provisions and other liabilities | |||
Change in estimates | ( | ||
Amounts charged against provisions and other liabilities | ( | ( | ( |
Effects of change in the discount rate | ( | ( | |
Reduction due to divestments | ( | ( | ( |
Accretion expenses | |||
Reclassification, transfer and other | ( | ||
Foreign currency translation effects | |||
Provisions and other liabilities at 31 December 2025 | |||
Non-current portion at 31 December 2025 | |||
Current portion at 31 December 2025¹⁾ | |||
1) Included in the line item Current provisions and other liabilities in the Consolidated Balance sheet, further detailed below. | |||
Equinor's estimated asset retirement obligations (ARO)
have increased by USD 2,669 million to USD 13,598
million at 31 December 2025 compared to year-end
2024.
In certain production sharing agreements (PSA),
Equinor’s estimated share of asset retirement obligation
(ARO) is paid into an escrow account over the
producing life of the field. These payments are
considered down-payments of the liabilities and
included in the line item Amounts charged against
provisions and other liabilities.
Claims and litigations mainly relate to expected
payments for unresolved claims. The timing and
amounts of potential settlements in respect of these
claims are uncertain and dependent on various factors
that are outside management's control. For further
information on provisions and contingent liabilities, see
note 26 Other commitments, contingent liabilities and
contingent assets.
Equinor 2025 Annual Report on Form 20-F 139
The timing of cash outflows of asset retirement obligations depends on the expected cease of production at the various
facilities.
The undiscounted value of the total ARO amounts to USD 20,114 million at year end.
Sensitivities with regards to discount rate on the total ARO portfolio
The discount rate sensitivity has been calculated by assuming a reasonably possible change of 1.0 percentage points.
An increase in the discount rate of 1.0 percentage points would reduce the ARO liability by USD 1.4 billion. A
corresponding reduction would increase the liability by USD 2.1 billion.
See note 3 Climate change and energy transition for sensitivity with regards to change in the removal year.
The interest rates used to calculate the net present value (NPV) of ARO are shown in the “USD Risk free rate table.
Expected timing of cash outflows | |||
(in USD million) | Asset retirement obligations | Other provisions and liabilities | Total |
2026 - 2030 | |||
2031 - 2035 | |||
2036 - 2040 | |||
2041 - 2045 | ( | ||
Thereafter | |||
At 31 December 2025 |
USD Risk free rate | 31 December 2025 |
2 years | |
5 years | |
10 years | |
20 years | |
30 years |
Current provisions and other liabilities | ||
At 31 December | ||
(in USD million) | 2025 | 2024 |
Accrued expenses and other financial liabilities | ||
Provisions | ||
Other non-financial liabilities | ||
Current provisions and other liabilities | ||
Equinor 2025 Annual Report on Form 20-F 140
Note 24. Trade and other payables
At 31 December | ||
(in USD million) | 2025 | 2024 |
Trade payables | ||
Payables due to participation in joint operations and similar arrangements | ||
Payables to equity accounted companies and other related parties | ||
Accrued trade expenses and other payables | ||
Trade and other payables | ||
For information regarding currency sensitivities, see note 4 Financial risk and capital management. For further information
on payables to equity accounted companies and other related parties, see note 27 Related parties.
Equinor 2025 Annual Report on Form 20-F 141
Accounting policies
A lease is defined as a contract that conveys the right
to control the use of an identified asset for a period of
time in exchange for consideration. At the date at
which the underlying asset is made available for
Equinor, the present value of future lease payments
(including extension options considered reasonably
certain to be exercised) is recognised as a lease
liability. The present value is calculated using
Equinor’s incremental borrowing rate. A corresponding
right-of-use (RoU) asset is recognised, including lease
payments and direct costs incurred at the
commencement date. Lease payments are reflected
as interest expense and a reduction of lease liabilities.
The RoU assets are depreciated on a systematic
basis, over the shorter of each contract’s term and the
assets’ useful life, and in line with Equinor’s policy for
depreciation of similar or other relevant underlying
assets.
Short-term leases (12 months or less) and leases of
low-value assets are expensed or (if appropriate)
capitalised as incurred, depending on the activity in
which the leased asset is used.
Many of Equinor’s lease contracts, such as rig and
vessel leases, involve several additional services and
components, including personnel cost, maintenance,
drilling related activities, and other items. For a
number of these contracts, the additional services
represent a not inconsiderable portion of the total
contract value. Non-lease components within lease
contracts are accounted for separately for all underlying
classes of assets and reflected in the relevant expense
category or (if appropriate) capitalised as incurred,
depending on the activity involved.
Accounting judgement regarding leases
In the oil and gas industry, where activity frequently is
carried out through joint arrangements or similar
arrangements, the application of IFRS 16 Leases
requires evaluations of whether the joint arrangement or
its operator is the lessee in each lease agreement and
consequently whether such contracts should be reflected
gross (100%) in the operator’s financial statements, or
according to each joint operation partner’s proportionate
share of the lease.
In many cases where an operator is the sole signatory to
a lease contract of an asset to be used in the activities of
a specific joint operation, the operator does so implicitly
or explicitly on behalf of the joint arrangement. In certain
jurisdictions, and importantly for Equinor as this includes
the Norwegian continental shelf (NCS), the concessions
granted by the authorities establish both a right and an
obligation for the operator to enter into necessary
agreements in the name of the joint operations (licences).
As is the customary norm in upstream activities operated
through joint arrangements, the operator will manage the
lease, pay the lessor, and subsequently re-bill the
partners for their share of the lease costs.
In each such instance, it is necessary to determine
whether the operator is the sole lessee in the external
lease arrangement, and if so, whether the billings to
partners may represent sub-leases, or whether it is in fact
the joint arrangement which is the lessee, with each
participant accounting for its proportionate share of the
lease. Where all partners in a licence are considered to
share the primary responsibility for lease payments under
a contract, Equinor’s proportionate share of the related
lease liability and RoU asset will be recognised net by
Equinor. When Equinor is considered to have the primary
responsibility for the full external lease payments, the
lease liability is recognised gross (100%).
Equinor 2025 Annual Report on Form 20-F 142
Equinor leases certain assets, notably drilling rigs,
transportation vessels, storages and office facilities for
operational activities. Equinor has the primary
responsibility for the full external lease payments in the
majority of the lease contracts, and the use of leases
serves operational purposes rather than as a tool for
financing.
Equinor recognised revenues of USD 294 million in
2025 and USD 269 million in 2024 related to lease
costs recovered from licence partners related to lease
contracts being recognised gross by Equinor.
Commitments relating to lease contracts which had not
yet commenced at year-end are included within note 26
Other commitments, contingent liabilities and contingent
assets.
A maturity profile based on undiscounted contractual
cash flows for lease liabilities is disclosed in note 4
Financial risk and capital management.
Information related to lease payments and lease liabilities | ||||
(in USD million) | 2025 | 2024 | ||
Lease liabilities at 1 January | ||||
New leases, including remeasurements and cancellations | ||||
Gross lease payments | ( | ( | ||
Lease interest | ||||
Lease repayments | ( | ( | ( | ( |
Foreign currency translation effects | ( | |||
Lease liabilities at 31 December | ||||
Current lease liabilities | ||||
Non-current lease liabilities |
Non-current lease liabilities maturity profile | ||
At 31 December | ||
(in USD million) | 2025 | 2024 |
Year 2 and 3 | ||
Year 4 and 5 | ||
After 5 years | ||
Total repayment of non-current lease liabilities | ||
The Right of use assets are included within the line item
Property, plant and equipment in the Consolidated
balance sheet. See also note 12 Property, plant and
equipment.
Equinor 2025 Annual Report on Form 20-F 143
Note 26. Other commitments, contingent liabilities and contingent assets
Accounting policies
Equinor’s global business activities are subject
to different indirect taxes (levies) in various
jurisdictions around the world. In these
jurisdictions, governments can respond to global
or local development, including climate related
matters and public fiscal balances, by issuing
new laws or other regulations stipulating
changes in value added tax, tax on emissions,
customs duties or other levies which may affect
profitability and even the viability of Equinor’s
business in that jurisdiction. Equinor mitigates
this risk by using local legal representatives and
staying up to date with the legislation in the
jurisdictions where activities are carried out.
Occasionally, legal disputes arise from
difference in interpretations. Equinor’s legal
department, together with local legal
representatives, estimate the outcome from
such legal disputes based on first-hand
knowledge. Such estimates may differ from the
actual results.
Contractual commitments to construct or invest
Equinor had contractual commitments of USD 10,438
million as of 31 December 2025. The contractual
commitments reflect Equinor's proportional share and
mainly comprise construction and acquisition of
property, plant and equipment as well as committed
investments or funding to equity accounted entities of
USD 1,540 million.
Lease commitments
Equinor has entered into lease commitments for which
the lease had not commenced as of year-end. These
agreements include future leases for vessels, drilling
rigs and other assets for operational activities. Total
nominal minimum lease commitments for leases not yet
commenced amounted to USD 2,118 million as of 31
December 2025. For commenced leases, please refer
to note 25 Leases.
Other long-term commitments
As part of normal operation, Equinor has entered into
various long-term agreements for pipeline transportation
as well as terminal use, processing, storage and entry/
exit capacity commitments and commitments related to
specific purchase agreements.
The agreements ensure the rights to the capacity or
volumes in question, but also impose on Equinor the
obligation to pay for the agreed-upon service or
commodity, irrespective of actual use. The contracts'
terms vary, with durations of up to 2061. Total nominal
minimum other long-term commitments as of 31
December 2025 amounted to USD 12,196 million.
Contingent liabilities and contingent assets
Claim from Petrofac regarding multiple variation
order requests performed in Algeria (In Salah)
Petrofac International (UAE) LLC (“PIUL”) was awarded
the EPC Contract to execute the ISSF Project (the In
Salah Southern Fields Project in central Algeria).
Following a suspension of activity in 2013, PIUL issued
multiple Variation Order Requests (“VoRs”) related to
the costs incurred for stand-by and remobilization costs.
Several VoRs have been paid, but the settlement of the
remaining has been unsuccessful. PIUL initiated
arbitration in August 2020 claiming an estimated
amount of USD 532 million, of which Equinor holds a
2024, and four of the five claims have received a ruling
in 2025. Both the final liability for these four claims and
the remaining exposure are deemed immaterial.
Equinor has provided for its best estimate in the matter.
Withholding tax dispute regarding remittances from
Brazil to Norway
Remittances made from Brazil for services are normally
subject to withholding income tax. In 2012, Equinor’s
subsidiaries in Brazil filed a lawsuit to avoid paying this
tax on remittances made to Equinor ASA and Equinor
Energy AS under the previous Brazil-Norway Double
Tax Treaty. The lawsuit relates to services without
transfer of technology on fields where Equinor is
operator. Withholding tax has not been paid between
2014 and 2025 based on court rulings. Equinor's share
of maximum exposure in the case at year end 2025 is
estimated at approximately USD 134 million. Although
Equinor continues to be of the view that all applicable
tax regulations have been applied in the case,
developments in similar litigation in Brazil led to an
updated evaluation of the likelihood of loss, and Equinor
has provided for the best estimate in the case as
income tax expense. The lawsuit is suspended and
shall resume after the Superior Court of Justice decides
on three leading cases involving other taxpayers.
Equinor 2025 Annual Report on Form 20-F 144
Suit for an annulment of Petrobras’ sale of the
interest in BM-S-8 to Equinor
In March 2017, an individual connected to the Union of
Oil Workers of Sergipe (Sindipetro) filed a class action
suit against Petrobras, Equinor, and ANP - the Brazilian
Regulatory Agency - to seek annulment of Petrobras’
sale of the interest and operatorship in BM-S-8 to
Equinor, which was closed in November 2016 after
approval by the partners and authorities. During the last
years, court decisions that confirm Equinor’s position
have been issued at the first and second court instance
levels. The plaintiff still has the possibility of a narrower
scope appeal. At the end of 2025, the acquired interest
remains on Equinor’s balance sheet, where the assets
related to phase 1 have been reclassified to property,
plant and equipment and the assets related to phase 2
are presented as intangible assets, all of which are part
of the Exploration & Production International (E&P
International) segment.
Brazilian law creating uncertainty regarding certain
tax incentives
Equinor is currently part in legal matters in the state of
Rio de Janeiro in Brazil related to a law requiring
taxpayers that benefit from ICMS tax incentives (i.e.
Repetro) to deposit 10 % of the savings made from such
benefits into a state fund. Equinor is of the opinion that
specific incentives so far relevant for the Roncador and
Peregrino fields are not in scope of the law, while the
state of Rio de Janeiro requires deposits to be paid with
the addition of fines and
interest. While legal developments in 2023 included
clarification from the Supreme Court that the law is
constitutional, with a final ruling in 2025, Equinor’s
litigation in the matter continues, mainly related to the
law’s impact specifically for Repetro and other state tax
incentives. Equinor believes that our view in the matter
will ultimately be upheld by the courts, and no amounts
have consequently been provided for in the financial
statements. At year-end 2025, the maximum exposure
for Equinor in the matter has been estimated to be a
total of USD 88 million.
KKD oil sands partnership
Canadian tax authorities have issued a notice of
reassessment for 2014 for Equinor's Canadian
subsidiary, which was party to Equinor's divestment of
reassessment adjusts the allocation of the proceeds of
disposition of certain Canadian resource properties from
the partnership. Maximum exposure is estimated to be
approximately USD 368 million. Following an
administrative appeal process with Canadian tax
authorities, Equinor commenced court proceedings in
the matter in 2023. While the court process may take
several years, the reassessment will impact Equinor’s
tax paying position while the proceedings are ongoing.
Equinor is of the view that all applicable tax regulations
have been applied in the case and that Equinor has a
strong position. No amounts have consequently been
provided for in the financial statements.
Other claims
During the normal course of its business, Equinor is
involved in legal proceedings, and several other
unresolved claims are currently outstanding. The
ultimate liability or asset, in respect of such litigation
and claims cannot be determined at this time. Equinor
has provided in its Consolidated financial statements for
probable liabilities related to litigation and claims based
on its best estimate. Equinor does not expect that its
financial position, results of operations or cash flows will
be materially affected by the resolution of these legal
proceedings. Equinor is actively pursuing the above
disputes through the contractual and legal means
available in each case, but the timing of the ultimate
resolutions and related cash flows, if any, cannot at
present be determined with sufficient reliability.
Provisions related to claims other than those related to
income tax are reflected within note 23 Provisions and
other liabilities. Uncertain income tax related liabilities
are reflected as current tax payables or deferred tax
liabilities as appropriate, while uncertain tax assets are
reflected as current or deferred tax assets.
Equinor 2025 Annual Report on Form 20-F 145
Note 27. Related parties
Transactions with the Norwegian state
The Norwegian state is the majority shareholder of
Equinor and also holds major investments in other
Norwegian companies. As of 31 December 2025, the
Norwegian state had an ownership interest in Equinor of
national insurance fund, of 3.1 %). This ownership
structure means that Equinor participates in
transactions with many parties that are under a
common ownership structure and therefore meet the
definition of a related party.
Equinor markets and sells the Norwegian state's share
of oil and gas production from the Norwegian
continental shelf (NCS). The Norwegian state's
participation in petroleum activities is organised through
the Norwegian State’s Direct Financial Interests (SDFI).
For accounting policies and accounting judgement
related to transactions with the SDFI, see note 7 Total
revenues and other income. Total purchases of crude
oil, natural gas liquids (NGL), and liquified natural gas
(LNG) from the Norwegian state amounted to
USD 8.9 billion, USD 10.2 billion and USD 10.1 billion in
2025, 2024 and 2023, respectively. Payables to equity
accounted companies and other related parties
specified in note 24 Trade and other payables are
mostly related to these purchases, and is included in
the below table within Trade and other payables.
In addition, Equinor sells in its own name, but for the
SDFI’s account and risk, the SDFI’s share of natural gas
volumes.
Transactions with the Norwegian state related to
Equinor’s share buy-back programme are presented in
note 20 Shareholders’ equity, capital distribution and
earnings per share.
Other transactions
In its ordinary business operations, Equinor enters into
contracts such as pipeline transport, gas storage and
processing of petroleum products, with companies in
which Equinor has ownership interests.
Gassled and certain other infrastructure assets are
operated by Gassco AS, which is an entity under
common control by the Norwegian Ministry of Energy.
Gassco’s activities are performed on behalf of and for
the risk and reward of pipeline and terminal owners, and
capacity payments flow through Gassco to the
respective owners. Equinor payments that flowed
through Gassco in this respect amounted to
USD 1.3 billion in 2025, USD 0.9 billion and
USD 1.0 billion in 2024 and 2023 respectively. The
stated amounts represent Equinor’s capacity payment
net of Equinor’s own ownership interests in Gassco
operated infrastructure. In addition, Equinor manages,
in its own name, but for the Norwegian state’s account
and risk, the Norwegian state’s share of the Gassco
costs. These transactions are presented net.
Adura, jointly owned by Shell (50 %) and Equinor (50 %),
became a related party on 1 December 2025. Equinor
has entered into commercial agreements with Adura,
including agreements for the purchase and offtake of
lifted volumes. The owners will market Adura's oil and
gas volumes and also provide transitional services
under temporary service agreements. These
agreements are entered into on market‑based terms
and conditions. Further information regarding the joint
arrangement is provided in note 15 Joint arrangements
and associates.
Equinor has had transactions with other associated
companies and joint ventures in the course of its
ordinary business, for which amounts have not been
disclosed due to materiality. In addition, Equinor has
had transactions with joint operations and similar
arrangements where Equinor is operator. Indirect
operating expenses incurred as operator are charged to
the joint operation or similar arrangement based on the
“no-gain/no-loss” principle.
Related party transactions with management are
presented in note 8 Salaries and personnel expenses.
Related party transactions due to Equinor’s share buy-
back programme are presented in note 20
Shareholders’ equity, capital distribution and earnings
per share. Outstanding balances to related parties split
on SDFI and other related parties are presented in the
below table. All related party transactions are carried
out on market terms.
Equinor 2025 Annual Report on Form 20-F 146
At 31 December 2025 | Norwegian State's Direct Financial Interests | Equity accounted companies and other related parties | Third parties | Total amount |
(in USD million) | ||||
Assets | ||||
Non-current prepayments and financial receivables | ||||
Trade and other receivables | ||||
Current prepayments and financial receivables | ||||
Liabilities | ||||
Non-current provisions and other liabilities | ||||
Trade and other payables | ||||
Current provisions and other liabilities | ||||
Current finance debt | ||||
At 31 December 2024 | Norwegian State's Direct Financial Interests | Equity accounted companies and other related parties | Third parties | Total amount |
(in USD million) | ||||
Assets | ||||
Non-current prepayments and financial receivables | ||||
Trade and other receivables | ||||
Current prepayments and financial receivables1) | ||||
Liabilities | ||||
Non-current provisions and other liabilities | ||||
Trade and other payables | ||||
Current provisions and other liabilities | ||||
Current finance debt | ||||
1) Previously reported number for 2024 has been restated due to a change in classification of cash collaterals for commodity derivative transactions. Reference is made to note 2 Accounting Policies for more information. | ||||
Equinor 2025 Annual Report on Form 20-F 147
financial statements |
Note 28. Financial instruments and fair value measurement
Accounting policies
Financial assets are initially recognised at fair value
when Equinor becomes a party to the contractual
provisions of the asset. Financial assets are
presented as current if they contractually will expire
or otherwise are expected to be recovered within 12
months after the balance sheet date, or if they are
held for trading purposes.
Short-term highly liquid investments with original
maturity of more than 3 months are classified as
current financial investments, primarily accounted for
at amortised cost.
Trade receivables are carried at the original invoice
amount less a provision for doubtful receivables
which represent expected losses computed on a
probability-weighted basis.
A portion of Equinor's financial investments is
managed together as an investment portfolio of
Equinor's captive insurance company and is held in
order to comply with specific regulations for capital
retention. The investment portfolio is managed and
evaluated on a fair value basis in accordance with an
investment strategy and is accounted for at fair value
through profit or loss. Financial assets and financial
liabilities are shown separately in the Consolidated
balance sheet, unless Equinor has both a legal right
and intention to net settle certain balances payable
to and receivable from the same counterparty.
Gains and losses arising on the sale, settlement or
cancellation of financial assets are recognised
Financial liabilities are initially recognised at fair
value when Equinor becomes a party to the
contractual provisions of the liability. Subsequent
measurements depend on classification either at
fair value through profit or loss, or at amortised cost
using the effective interest method. The latter
applies to Equinor's non- current bank loans and
bonds.
Financial liabilities are presented as current if they
are expected to be settled within Equinor’s normal
operating cycle, due to be settled within 12 months
after the balance sheet date, if Equinor does not
have the right to defer settlement more than 12
months after the balance sheet date, or if the
liabilities are held for trading purposes.
Gains and losses arising from the repurchase,
settlement or cancellation of liabilities are
recognised within Net financial items.
Equinor uses derivative financial instruments to
manage certain exposures to fluctuations in
foreign currency exchange rates, interest rates and
commodity prices. These instruments are initially
recognised at fair value on the contract date and
subsequently remeasured at fair value through
profit and loss. The impact of commodity- based
derivatives is recognised in the Consolidated
statement of income as part of Revenues, as such
derivatives are related to sales contracts or
revenue-related risk management for all significant
purposes. The impact of other derivatives is
reflected under Net financial items.
Derivatives are carried as assets when the fair
value is positive and as liabilities when the fair
value is negative. Derivative assets or liabilities
expected to be settled, or with the legal right to be
settled more than 12 months after the balance
sheet date, are classified as non-current.
Derivative financial instruments held for trading
purposes are always classified as current.
Contracts to buy or sell a non-financial item that
can be settled net in cash or another financial
instrument are accounted for as financial
instruments. However, unless Equinor has a
practice of net settlement for similar contracts in
the portfolio, contracts that are entered into and
continue to be held for the purpose of the receipt
or delivery of a non-financial item in accordance
with Equinor's expected purchase, sale or usage
requirements, also referred to as own-use, are not
accounted for as financial instruments. Such sales
and purchases of physical commodity volumes
and power are reflected in the Consolidated
statement of income as Revenue from contracts
with customers and Purchases [net of inventory
variation], respectively. This is applicable to a
significant number of contracts for the purchase or
sale of crude oil and natural gas, as well as for
some contracts for the purchase or sale of power.
For contracts to sell a non-financial item that can
be settled net in cash, but are ultimately physically
settled without qualifying as own use prior to
settlement, the changes in fair value are included
in Gain/loss on commodity derivatives (see note 7
Total revenues and other income) .
When these derivatives are physically settled, the
previously recognised unrealised gain/loss is
deducted on the physically settled commodity
derivatives. Both these elements are included as
part of Revenues. The physical deliveries made
through such contracts are included in Revenue
from contracts with customers at contract price.
Derivatives embedded in host contracts which are
not financial assets within the scope of IFRS 9 are
recognised as separate derivatives and are
measured at fair value with subsequent changes
through profit and loss. This occurs, when their
risks and economic characteristics are not closely
related to those of the host contracts, and the host
contracts are not carried at fair value. Where there
is an active market for a commodity or other non-
financial item referenced in a purchase or sale
contract, a pricing formula based on this active
market will, for instance, be considered to be
closely related to the host purchase or sales
contract. However a price formula with indexation
to other markets or products will result in the
recognition of a separate derivative. In Equinor,
this mainly relates to certain natural gas sales
contracts where the pricing formula references
power. Where there is no active market for the
commodity or other non-financial item in question,
Equinor assesses the characteristics of such a
price related embedded derivative to be closely
related to the host contract if the price formula is
based on relevant indexations commonly used by
other market participants.
Equinor 2025 Annual Report on Form 20-F 148
Financial instruments by category
financial instruments and their carrying amounts by the
categories as they are defined in IFRS 9 Financial
Instruments. Information on fair value of finance debt
measured at amortised cost is presented in note 21. For
other financial current and non-current balance sheet
items at amortised cost, the difference between
amortised cost and fair value is not material.
At 31 December 2025 | |||||
(in USD million) | Note | Amortised cost | Fair value through profit or loss | Non-financial assets | Total carrying amount |
Assets | |||||
Non-current derivative financial instruments | |||||
Non-current financial investments | 16 | ||||
Non-current prepayments and financial receivables | 16 | ||||
Trade and other receivables | 18 | ||||
Current prepayments and financial receivables | 16 | ||||
Current derivative financial instruments | |||||
Current financial investments | 16 | ||||
Cash and cash equivalents | 19 | ||||
Total |
At 31 December 2024 | ||||||
(in USD million) | Note | Amortised cost | Fair value through profit or loss | Non-financial assets | Total carrying amount | |
Assets | ||||||
Non-current derivative financial instruments | ||||||
Non-current financial investments | 16 | |||||
Non-current prepayments and financial receivables | 16 | |||||
Trade and other receivables | 18 | |||||
Current prepayments and financial receivables1) | 16 | |||||
Current derivative financial instruments | ||||||
Current financial investments | 16 | |||||
Cash and cash equivalents1) | 19 | |||||
Total | ||||||
1) Previously reported number for 2024 has been restated due to a change in classification of cash collaterals for commodity derivative transactions. Reference is made to note 2 Accounting Policies for more information. | ||||||
Equinor 2025 Annual Report on Form 20-F 149
At 31 December 2025 | |||||
(in USD million) | Note | Amortised cost | Fair value through profit or loss | Non-financial liabilities | Total carrying amount |
Liabilities | |||||
Non-current finance debt | 21 | ||||
Non-current derivative financial instruments | |||||
Trade and other payables | 24 | ||||
Current provisions and other liabilities | 23 | ||||
Current finance debt | 21 | ||||
Dividend payable | |||||
Current derivative financial instruments | |||||
Total |
At 31 December 2024 | |||||
(in USD million) | Note | Amortised cost | Fair value through profit or loss | Non-financial liabilities | Total carrying amount |
Liabilities | |||||
Non-current finance debt | 21 | ||||
Non-current derivative financial instruments | |||||
Trade and other payables | 24 | ||||
Current provisions and other liabilities | 23 | ||||
Current finance debt | 21 | ||||
Dividend payable | |||||
Current derivative financial instruments | |||||
Total |
Measurement of fair values
Quoted prices in active markets represent the best
evidence of fair value and are used by Equinor in
determining the fair values of assets and liabilities to the
extent possible. Financial instruments quoted in active
markets will typically include financial instruments with
quoted market prices obtained from the relevant
exchanges or clearing houses. The fair values of quoted
financial assets, financial liabilities and derivative
instruments are determined by reference to mid-market
prices, at the close of business on the balance sheet
date.
When there is no active market, fair value is determined
using valuation techniques. These techniques include
recent arm's-length market transactions, reference to
other instruments that are substantially the same,
discounted cash flow analysis, and pricing models and
related internal assumptions. In the valuation
techniques, Equinor also takes into consideration the
counterparty’s credit risk and its own credit risk. This
consideration is either reflected in the discount rate
used or through direct adjustments to the calculated
cash flows. For elements of long-term physical delivery
commodity contracts, fair value estimates, to the extent
possible, are based on quoted forward prices in the
market and underlying indexes in the contracts, as well
as assumptions of forward prices and margins where
observable market prices are unavailable. Similarly, the
fair values of interest and currency swaps are estimated
based on relevant quotes from active markets, quotes
of comparable instruments, and other appropriate
valuation techniques.
Equinor 2025 Annual Report on Form 20-F 150
The following table summarises each class of financial instruments which are recognised in the Consolidated balance sheet at fair value, split by Equinor's basis for fair value measurement.
(in USD million) | Non-current financial investments | Non-current derivative financial instruments - assets | Current financial investments | Current derivative financial instruments - assets | Cash equivalents | Non-current derivative financial instruments liabilities | Current derivative financial instruments - liabilities | Net fair value |
At 31 December 2025 | ||||||||
Level 1 | ( | |||||||
Level 2 | ( | ( | ||||||
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Level 1, fair value based on prices quoted in an active
market for identical assets or liabilities, includes
financial instruments actively traded and for which the
values recognised in the Consolidated balance sheet
are determined based on observable prices on identical
instruments. For Equinor this category will, in most
cases, only be relevant for investments in listed equity
securities and government bonds.
Level 2, fair value based on inputs other than quoted
prices included within level 1, which are derived from
observable market transactions, includes Equinor's non-
standardised contracts for which fair values are
determined on the basis of price inputs from observable
market transactions. This will typically be when Equinor
uses forward prices on crude oil, natural gas, interest
rates and foreign currency exchange rates as inputs to
the valuation models to determine the fair value of its
derivative financial instruments.
Level 3, fair value based on unobservable inputs,
includes financial instruments for which fair values are
determined on the basis of input and assumptions that
are not from observable market transactions. The fair
values presented in this category are mainly based on
internal assumptions. The internal assumptions are only
used in the absence of quoted prices from an active
market or other observable price inputs for the financial
instruments subject to the valuation.
The fair value of certain earn-out agreements and
embedded derivative contracts are determined by the
use of valuation techniques with price inputs from
observable market transactions as well as internally
generated price assumptions and volume profiles. The
discount rate used in the valuation is a risk-free rate
based on the applicable currency and time horizon of
the underlying cash flows adjusted for a credit premium
to reflect either Equinor's credit premium, if the value is
a liability, or an estimated counterparty credit premium if
the value is an asset. In addition, a risk premium for risk
elements not adjusted for in the cash flow may be
included when applicable. The fair values of these
derivative financial instruments have been classified in
their entirety in the third category within current
Equinor 2025 Annual Report on Form 20-F 151
derivative financial instruments and non-current
derivative financial instruments.
During 2025 the financial instruments within level 3
have had a net increase in fair value of
USD 289 million, of which a gain of USD 282 million
was recognised in the Consolidated statement of
income, mainly due to changes in fair value of certain
embedded derivatives. During 2024, financial
instruments within level 3 had a net increase in fair
value of USD 75 million, of which a gain of
USD 216 million was recognised in the Consolidated
statement of income, mainly due to changes in fair
value of certain embedded derivatives and earn-out
agreements..
Note 29. Subsequent events
Agreement to sell Equinor’s onshore assets in
Argentina
On 2 February 2026, Equinor announced that it had
entered into an agreement with Vista Energy to divest
its full onshore position in Argentina’s Vaca Muerta
basin, and the assets have met the requirements for
classification as held for sale after the reporting period.
The transaction includes Equinor’s 30 % non-operated
interest in Bandurria Sur and its 50 % non-operated
interest in Bajo del Toro within the E&P International
segment. The total consideration before interim period
adjustments is estimated to around USD 1,100 million,
consisting of USD 550 million in cash at closing and the
remainder in Vista shares and contingent payments
linked to production and oil prices over a five-year
period. Equinor expects a gain at expected closing.
Gain at closing is dependent on among other closing
date, future development of Vista shares and oil price
and hence a reliable estimate cannot be made. The
transaction has an effective date of 1 July 2025. Closing
of the transaction is subject to relevant approvals, and
is expected within 2026.
FAQ
What does Equinor (EQNR) highlight as its core business in the 2025 Form 20-F?
Equinor emphasises a large upstream oil and gas business, centred on the Norwegian Continental Shelf. E&P Norway delivered USD 34.4 billion in revenues and 1,410 mboe/day entitlement production in 2025, remaining the company’s primary earnings driver alongside international and US exploration and production activities.
How much did Equinor (EQNR) invest in oil and gas exploration and development in 2025?
In 2025, Equinor incurred USD 10.6 billion of expenditures in oil and gas property acquisition, exploration and development. This compares with USD 13.5 billion in 2024, reflecting fewer large acquisitions and a focus on progressing key projects across Norway, the Americas, Africa and Eurasia.
What were Equinor’s 2025 results of operations for oil and gas producing activities?
Equinor’s 2025 oil and gas producing activities generated USD 43.8 billion in total revenues and USD 5.7 billion in after‑tax results. These figures are below 2024 and 2023 levels, as lower commodity prices and higher depreciation outweighed strong Norwegian production and continued contributions from international assets.
How significant are Equinor’s capitalised oil and gas costs at year-end 2025?
At 31 December 2025, Equinor reported total capitalised oil and gas costs of USD 192.2 billion and accumulated depreciation of USD 137.0 billion. Net capitalised costs of USD 55.2 billion underline the scale of its upstream asset base and the importance of long‑life fields and ongoing development projects.
What tax regimes materially affect Equinor’s (EQNR) 2025 profitability?
Equinor’s profitability is heavily shaped by Norway’s petroleum taxation, with a 71.8% total income tax on offshore profits and a 78% marginal rate, plus UK Energy Profits Levy rules and Brazil’s 34% combined corporate tax. The filing also notes evolving UK and Brazilian frameworks that will influence future net earnings.
How does Equinor describe climate and environmental regulation in its 2025 Form 20-F?
Equinor details extensive climate and HSE regulation, including Norway’s Climate Act with 2030 and 2050 reduction targets, EU ETS participation, US federal and state environmental laws, and Brazilian emission and discharge rules. These frameworks, alongside prospective carbon markets, are presented as key factors for operations and long‑term strategy.
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[6-K] EQUINOR ASA Current Report (Foreign Issuer)
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[6-K] EQUINOR ASA Current Report (Foreign Issuer)
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[6-K] EQUINOR ASA Current Report (Foreign Issuer)