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Segments | 6 Months Ended
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Jun. 30, 2021
Segments [abstract] |
Segments | 2 Segments A s from 1 J une 2021 Equinor’s operations are managed through the following operating segments (business areas): Exploration & Production Norway (E PN), Exploration & Production International (E PI), Exploration & Production USA (E PIUSA), Marketing, Midstream & Processing (MMP), Renewables (REN), Projects, Drilling and Procurement (PDP) and Technology, Digital & Innovation (TDI) and Corporate staff and functions. The main change in the organisational corporate structure compared to previous periods is that the operating segment Development & Production Brazil is merged into the operating segment Exploration & Production International. In addition, the operating segment Exploration is divided and merged into Exploration & Production Norway, Exploration & Production International and Exploration & Production USA. Global Strategy & Business development is divided and merged into the functions for Chief Financial Officer and Safety, Se curity and Sustainability. The operating segment Technology, Projects & Drilling is split into Technology, Digital & Innovation and Projects, Drilling & Procurement. The new organisational corporate structure has not implied any changes in the reportable s egments. The reporting 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) consist of the bu siness areas EPN, EPI, EPI USA, MMP and REN respectively. The operating segments, PDP, TDI and corpora te staffs and functions are aggregated into the reporting segment “Other” due to the immateriality of these operating segments. The majority of the costs within the operating segments PDP and TDI are allocated to the E&P Norway, E&P International, E&P USA, MMP and REN reporting segments. The changes have no material effect on comparable figures. As from the first quarter of 2021, Equinor changed its reporting as REN became a separate reporting segment. Previously the activities in REN were reported in the segment “Other”. The new reporting structure has been applied retrospectively with comparable figures reclassified. The change has its basis in the increased strategic importance of the renewable business for Equinor and that the information is regarded us eful for the readers of the financial statements. Inter-segment sales and related unrealised profits, mainly from the sale of crude oil and products, are eliminated in the Eliminations column below. Inter-segment revenues are based upon estimated market p rices. The reported measure of segment profit is net operating income/(loss). Deferred tax a ssets, pension assets and non-current financial assets are not allocated to the segments. The measurement basis for segments is IFRS as applied by the group with the exception of IFRS 16 Leases and the line item Additions to PP&E, intangibles and equity a ccounted investments. All IFRS 16 leases are presented within the Other segment. The lease costs for the period are allocated to the different segments based on underlying lease payments, with a corresponding credit in the Other segment. Lease costs alloca ted to licence partners are recognised as other revenue s in the Other segment. Additions to PP&E, intangible assets and equity accounted investments in the E&P and MMP segments include the period’s allocated lease costs related to activity being capitalise d with a corresponding negative addition in the Other segment. The line item Additions to PP&E, intangibles and equity accounted investments excludes movements related to changes in asset retirement obligation s.
Second quarter 2021 | E&P Norway | E&P International | E&P USA | MMP | REN | Other | Eliminations | Total
(in USD million)
Revenues third party, other revenue and other income | 42 | 287 | 101 | 16,892 | 7 | 117 | 0 | 17,446
Revenues inter-segment | 6,167 | 1,170 | 867 | 82 | 0 | 1 | (8,287) | 0
Net income/(loss) from equity accounted investments | 0 | 19 | 0 | 7 | (6) | (4) | 0 | 16
Total revenues and other income | 6,210 | 1,475 | 968 | 16,981 | 2 | 114 | (8,287) | 17,462
Purchases [net of inventory variation] | 0 | 14 | (0) | (15,448) | 0 | (0) | 8,035 | (7,399)
Operating, selling, general and administrative expenses | (828) | (439) | (287) | (1,097) | (32) | 57 | 298 | (2,329)
Depreciation, amortisation and net impairment losses | (908) | (228) | (438) | (284) | (1) | (252) | 0 | (2,111)
Exploration expenses | (55) | (231) | (39) | 0 | 0 | 0 | 0 | (326)
Total operating expenses | (1,792) | (884) | (764) | (16,829) | (33) | (195) | 8,333 | (12,164)
Net operating income/(loss) | 4,418 | 591 | 204 | 152 | (31) | (82) | 46 | 5,298
Additions to PP&E, intangibles and equity accounted investments | 1,368 | 429 | 180 | 59 | 156 | 52 | 0 | 2,243
First quarter 2021 | E&P Norway | E&P International | E&P USA | MMP | REN | Other | Eliminations | Total
(in USD million)
Revenues third party, other revenue and other income | 28 | 221 | 121 | 15,697 | 1,382 | 111 | 0 | 17,559
Revenues inter-segment | 5,755 | 805 | 872 | 84 | 0 | 1 | (7,517) | 0
Net income/(loss) from equity accounted investments | 0 | 23 | 0 | 8 | (1) | 0 | 0 | 30
Total revenues and other income | 5,783 | 1,049 | 993 | 15,789 | 1,381 | 111 | (7,517) | 17,589
Purchases [net of inventory variation] | 0 | (29) | (0) | (14,176) | 0 | (0) | 7,040 | (7,166)
Operating, selling, general and administrative expenses | (794) | (252) | (335) | (1,069) | (40) | 54 | 277 | (2,160)
Depreciation, amortisation and net impairment losses | (1,570) | (400) | (436) | (152) | (0) | (240) | 0 | (2,797)
Exploration expenses | (70) | (107) | (70) | 0 | 0 | 0 | 0 | (247)
Total operating expenses | (2,433) | (788) | (841) | (15,397) | (40) | (187) | 7,317 | (12,369)
Net operating income/(loss) | 3,350 | 261 | 152 | 392 | 1,341 | (76) | (200) | 5,220
Additions to PP&E, intangibles and equity accounted investments | 1,308 | 396 | 157 | 38 | 128 | (13) | (0) | 2,014
Second quarter 2020 | E&P Norway | E&P International | E&P USA | MMP | REN1) | Other1) | Eliminations | Total
(in USD million)
Revenues third party, other revenue and other income | 10 | 52 | 67 | 7,392 | (0) | 50 | 0 | 7,570
Revenues inter-segment | 1,649 | 515 | 408 | 88 | 0 | 1 | (2,661) | 0
Net income/(loss) from equity accounted investments | 0 | (11) | 0 | 7 | 38 | 0 | 0 | 33
Total revenues and other income | 1,659 | 555 | 475 | 7,486 | 38 | 50 | (2,661) | 7,603
Purchases [net of inventory variation] | 0 | (26) | 0 | (5,127) | 0 | (0) | 2,403 | (2,750)
Operating, selling, general and administrative expenses | (706) | (281) | (293) | (1,423) | (38) | 163 | 166 | (2,411)
Depreciation, amortisation and net impairment losses | (992) | (509) | (475) | (326) | (0) | (220) | 0 | (2,522)
Exploration expenses | (65) | (288) | (40) | 0 | 0 | 0 | 0 | (393)
Total operating expenses | (1,762) | (1,103) | (808) | (6,877) | (38) | (56) | 2,569 | (8,075)
Net operating income/(loss) | (104) | (548) | (332) | 610 | (0) | (6) | (92) | (472)
Additions to PP&E, intangibles and equity accounted investments | 1,118 | 484 | 268 | 51 | 4 | 382 | (0) | 2,307
1) Reclassified |  |  |  |  |  |  |  |
First half 2021 | E&P Norway | E&P International | E&P USA | MMP | REN | Other | Eliminations | Total
(in USD million)
Revenues third party, other revenue and other income | 70 | 508 | 222 | 32,589 | 1,389 | 227 | 0 | 35,005
Revenues inter-segment | 11,923 | 1,975 | 1,739 | 166 | 0 | 2 | (15,804) | 0
Net income/(loss) from equity accounted investments | 0 | 42 | 0 | 15 | (6) | (4) | 0 | 47
Total revenues and other income | 11,992 | 2,525 | 1,961 | 32,770 | 1,383 | 225 | (15,804) | 35,052
Purchases [net of inventory variation] | 0 | (15) | (0) | (29,625) | 0 | (1) | 15,076 | (14,565)
Operating, selling, general and administrative expenses | (1,622) | (691) | (622) | (2,166) | (72) | 110 | 574 | (4,489)
Depreciation, amortisation and net impairment losses | (2,478) | (627) | (873) | (436) | (1) | (492) | 0 | (4,908)
Exploration expenses | (125) | (338) | (109) | 0 | 0 | 0 | 0 | (572)
Total operating expenses | (4,225) | (1,672) | (1,605) | (32,226) | (73) | (383) | 15,650 | (24,534)
Net operating income/(loss) | 7,767 | 853 | 356 | 544 | 1,310 | (157) | (154) | 10,518
Additions to PP&E, intangibles and equity accounted investments | 2,676 | 825 | 337 | 97 | 284 | 38 | 0 | 4,257
Balance sheet information |  |  |  |  |  |  |  |
Equity accounted investments | 3 | 1,181 | 0 | 96 | 1,067 | 32 | (0) | 2,377
Non-current segment assets | 35,530 | 17,481 | 11,811 | 3,572 | 141 | 3,668 | 0 | 72,202
Non-current assets not allocated to segments |  |  |  |  |  |  |  | 13,303
Total non-current assets |  |  |  |  |  |  |  | 87,882
First half 2020 | E&P Norway | E&P International | E&P USA | MMP | REN1) | Other1) | Eliminations | Total
(in USD million)
Revenues third party, other revenue and other income | 17 | 218 | 208 | 22,087 | 0 | 99 | 0 | 22,629
Revenues inter-segment | 5,179 | 1,680 | 1,152 | 184 | 0 | 1 | (8,197) | 0
Net income/(loss) from equity accounted investments | 0 | 5 | 0 | 18 | 82 | 0 | 0 | 104
Total revenues and other income | 5,196 | 1,903 | 1,360 | 22,289 | 82 | 100 | (8,197) | 22,733
Purchases [net of inventory variation] | 0 | (68) | 0 | (18,627) | 0 | (0) | 8,549 | (10,146)
Operating, selling, general and administrative expenses | (1,341) | (779) | (664) | (2,767) | (71) | 255 | 353 | (5,014)
Depreciation, amortisation and net impairment losses | (2,833) | (1,380) | (1,711) | (607) | (0) | (429) | 0 | (6,959)
Exploration expenses | (160) | (536) | (332) | 0 | 0 | 0 | 0 | (1,028)
Total operating expenses | (4,333) | (2,763) | (2,707) | (22,001) | (72) | (174) | 8,902 | (23,147)
Net operating income/(loss) | 863 | (860) | (1,347) | 288 | 11 | (74) | 705 | (414)
Additions to PP&E, intangibles and equity accounted investments | 2,407 | 1,225 | 694 | 107 | 5 | 484 | (0) | 4,922
Balance sheet information |  |  |  |  |  |  |  |
Equity accounted investments | 2 | 563 | 0 | 87 | 925 | 20 | 0 | 1,599
Non-current segment assets | 30,547 | 19,715 | 15,557 | 4,350 | 189 | 3,901 | 0 | 74,259
Non-current assets not allocated to segments |  |  |  |  |  |  |  | 10,853
Total non-current assets |  |  |  |  |  |  |  | 86,711
1) Reclassified |  |  |  |  |  |  |  |
In the second quarter of 20 2 1 Equinor recognised net impairment reversals of USD 276 million of which USD 113 million was impairments of acquisition cost and signature bonuses classified as exploration expenses. The line item Exploration expenses in the Consolidated statement of income also includes impairment of capitali s ed exploration well cost. For information regarding impairment of capitalised exploration cost, see note 6 Property, plant and equipment and intangible assets. In the E&P International segment the net impairment reversal w as USD 93 million. Impairments of USD 95 million related to exploration license s in South America and w ere classified as exploration expenses. Net i mpairment reversal of other assets of USD 188 million w ere mainly related to an asset in the Europe and Asia are a caused by positive change in the short-term price assumptions and a North America offshore asset valued at fair value less cost to sell following the re classifi cation to held for sale. In the E&P Norway segment the net impairment reversal was USD 3 96 million mainly related to an offshore asset caused by a positive change in the short-term price assumptions. In the MMP segment the impairments were USD 185 million mainly related to a refinery valued at fair value less cost to sell following the reclassification to held for sale. In addition, in the segments Other and E&P USA total impairments of USD 29 million have been recognized. For information on gro up impairment losses and reversals, see note 6 Property, plant and equipment and intangible assets. For information regarding acquisition and disposal of interests, see note 3 Acquisitions and disposals. See also note 8 Impact of the Covid-19 pandemic. Revenues from contract s with customer s by geographical areas When attributing the line item Revenues third party, other revenues and other income to the country of the legal entity executing the sale for the second quarter of 2021, Norway constitutes 76% and USA constitutes 16% of such revenues. For the second quarter of 2020, Norway and US A constituted 79% and 16% of such r evenues, r espectively. For the first half of 2021, Norway constitutes 7 8% and the US con stitutes 16% of such revenues. For the first half of 2020, Norway and the US constituted 80% and 15% of such revenues respectively
Non-current assets by country |  |  |  |
| At 30 June | At 31 March | At 31 December | At 30 June
(in USD million) | 2021 | 2021 | 2020 | 2020
Norway | 41,342 | 40,261 | 42,192 | 36,383
USA | 12,667 | 12,867 | 13,172 | 16,524
Brazil | 8,339 | 8,226 | 8,203 | 8,796
UK | 4,222 | 4,256 | 4,398 | 4,913
Azerbaijan | 1,674 | 1,670 | 1,683 | 1,696
Canada | 1,478 | 1,445 | 1,527 | 1,435
Russia | 1,012 | 974 | 973 | 427
Angola | 914 | 897 | 725 | 1,331
Algeria | 772 | 794 | 808 | 866
Denmark | 568 | 918 | 953 | 887
Other countries | 1,592 | 1,378 | 1,447 | 2,601
Total non-current assets1) | 74,579 | 73,686 | 76,082 | 75,858
1) Excluding deferred tax assets, pension assets and non-current financial assets.
Revenues from contracts with customers and other revenues |  |  |
Quarters |  |  | First half | Full year
Q2 2021 | Q1 2021 | Q2 2020 |  | (in USD million) | 2021 | 2020 | 2020
9,060 | 8,714 | 4,018 |  | Crude oil | 17,774 | 11,858 | 24,509
3,443 | 3,298 | 1,188 |  | Natural gas | 6,741 | 3,358 | 7,213
2,908 | 2,661 | 923 |  | - European gas | 5,569 | 2,691 | 5,839
319 | 422 | 196 |  | - North American gas | 741 | 486 | 1,010
215 | 216 | 68 |  | - Other incl. Liquefied natural gas | 431 | 181 | 363
2,682 | 2,373 | 1,258 |  | Refined products | 5,055 | 3,287 | 6,534
1,672 | 1,910 | 839 |  | Natural gas liquids | 3,582 | 2,288 | 5,069
205 | 256 | 286 |  | Transportation | 461 | 615 | 1,083
341 | 112 | 88 |  | Other sales | 454 | 225 | 681
17,402 | 16,664 | 7,677 |  | Revenues from contracts with customers | 34,067 | 21,631 | 45,088
80 | 78 | (9) |  | Taxes paid in-kind | 158 | 38 | 93
294 | (159) | 152 |  | Physically settled commodity derivatives | 135 | 251 | 209
(471) | (523) | (318) |  | Gain/(loss) on commodity derivatives | (994) | 594 | 108
74 | 69 | 61 |  | Other revenues | 143 | 113 | 256
(23) | (536) | (114) |  | Total other revenues | (558) | 996 | 665
17,380 | 16,129 | 7,563 |  | Revenues | 33,508 | 22,627 | 45,753

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