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Segments | 6 Months Ended
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Jun. 30, 2022
Segments [abstract] |
Segments | 2 Segments Equinor’s operations are managed through operating segments (business areas). The reportable 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) correspond to the operating segments. The operating segments Projects, Drilling & Procurement (PDP), Technology, Digital & Innovation (TDI) and Corporate staff and functions are aggregated into the reportable segment Other based on materiality. The majority of the costs in PDP and TDI are allocated to the three Exploration & Production segments, MMP and REN. 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 prices. The reported measure of segment profit is net operating income/(loss) . Deferred tax assets, pension assets and non-current financial assets are not allocated to the segments. The measurement basis for the segments is IFRS as applied by the group, except for the line-item Additions to PP&E, intangibles and equity accounted investments in which movements related to changes in asset retirement obligations are excluded. With effect from the second quarter 2022, Equinor has changed the measurement basis for the segments related to leases. Since the implementation of IFRS 16 Leases in 2019, all leases have been presented within the Other segment and lease costs have been allocated to the operating segments based on underlying lease payments with a corresponding credit in the Other segment. As from the second quarter 2022, lease contracts are accounted for in accordance with IFRS 16 in all segments based on functional responsibility. This change does not affect Equinor’s consolidated financial statements. Comparative numbers in the segments have been restated. Second quarter 2022 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 132 237 82 35,921 3 33 0 36,408 Revenues inter-segment 16,580 1,559 1,548 93 0 9 (19,789) 0 Net income/(loss) from equity accounted investments 0 42 0 (2) 12 0 0 51 Total revenues and other income 16,712 1,838 1,629 36,012 15 42 (19,789) 36,459 Purchases [net of inventory variation] 0 (36) (0) (33,379) 0 (1) 19,564 (13,851) Operating, selling, general and administrative expenses (984) (370) (244) (956) (56) (3) 209 (2,404) Depreciation, amortisation and net impairment losses (1,202) (315) (362) (221) (1) (39) 0 (2,140) Exploration expenses (45) (135) (151) 0 0 0 0 (331) Total operating expenses (2,231) (856) (757) (34,556) (57) (43) 19,774 (18,727) Net operating income/(loss) 14,482 982 872 1,456 (42) (1) (16) 17,733 Additions to PP&E, intangibles and equity accounted investments 1,339 573 170 253 57 14 (0) 2,405 First quarter 2022 E&P Norway 1) E&P International 1) E&P USA MMP 1) REN Other 1) Eliminations 1) Total (in USD million) Revenues third party, other revenue and other income 1) 209 62 78 35,825 90 31 0 36,294 Revenues inter-segment 1) 18,245 1,324 1,191 89 0 10 (20,859) 0 Net income/(loss) from equity accounted investments 0 67 0 3 29 0 0 99 Total revenues and other income 1) 18,454 1,453 1,269 35,917 119 41 (20,859) 36,393 Purchases [net of inventory variation] 0 27 0 (34,289) 0 0 20,752 (13,510) Operating, selling, general and administrative expenses 1) (816) (390) (220) (923) (41) (78) 197 (2,271) Depreciation, amortisation and net impairment losses 1) (600) (1,378) 212 (212) (1) (39) 0 (2,017) Exploration expenses (106) (81) (16) 0 0 0 0 (203) Total operating expenses 1) (1,521) (1,822) (24) (35,425) (41) (116) 20,949 (18,001) Net operating income/(loss) 1) 16,933 (369) 1,245 492 77 (76) 90 18,392 Additions to PP&E, intangibles and equity accounted investments 1) 1,072 626 126 265 43 56 (0) 2,188 1) Restated due to implementation of IFRS 16 in the segments, mainly affecting the line item Operating, selling, general and administrative expenses in MMP (reduction of USD 136 million) and Other (increase of USD 177 million) and the line item Depreciation, amortisation and net impairments in MMP (increase of USD 134 million) and Other (reduction USD 201 million). Second quarter 2021 E&P Norway 1) E&P International 1) E&P USA MMP 1) REN Other 1) Eliminations 1) Total (in USD million) Revenues third party, other revenue and other income 1) 78 291 101 16,897 7 72 0 17,446 Revenues inter-segment 1) 6,167 1,170 867 82 0 10 (8,296) 0 Net income/(loss) from equity accounted investments 0 19 0 7 (6) (4) 0 16 Total revenues and other income 1) 6,245 1,479 968 16,986 2 78 (8,296) 17,462 Purchases [net of inventory variation] 0 14 (0) (15,448) 0 (0) 8,035 (7,399) Operating, selling, general and administrative expenses 1) (811) (425) (286) (969) (32) (112) 307 (2,329) Depreciation, amortisation and net impairment losses 1) (959) (244) (438) (424) (1) (44) 0 (2,111) Exploration expenses (55) (231) (39) 0 0 0 0 (326) Total operating expenses 1) (1,825) (886) (764) (16,842) (33) (156) 8,342 (12,164) Net operating income/(loss) 1) 4,420 593 204 144 (31) (78) 46 5,298 Additions to PP&E, intangibles and equity accounted investments 1) 1,322 430 180 138 159 14 0 2,243 1) Restated due to implementation of IFRS 16 in the segments, mainly affecting the line item Operating, selling, general and administrative expenses in MMP (reduction of USD 128 million) and Other (increase of USD 169 million) and the line item Depreciation, amortisation and net impairments in MMP (increase of USD 140 million) and Other (reduction of USD 208 million). First half 2022 E&P Norway E&P Internationa l E&P USA MMP REN Other Eliminations Total (in USD million) Revenues third party, other revenue and other income 341 298 160 71,746 93 64 0 72,702 Revenues inter-segment 34,825 2,883 2,739 182 0 19 (40,648) 0 Net income/(loss) from equity accounted investments 0 109 0 1 41 0 0 151 Total revenues and other income 35,166 3,290 2,898 71,929 134 83 (40,648) 72,852 Purchases [net of inventory variation] 0 (9) (0) (67,668) 0 (0) 40,316 (27,361) Operating, selling, general and administrative expenses (1,799) (760) (465) (1,880) (97) (81) 406 (4,675) Depreciation, amortisation and net impairment losses (1,802) (1,693) (150) (433) (2) (78) 0 (4,158) Exploration expenses (150) (216) (168) 0 0 0 0 (534) Total operating expenses (3,752) (2,678) (782) (69,981) (99) (159) 40,723 (36,727) Net operating income/(loss) 31,414 613 2,117 1,948 35 (77) 75 36,125 Additions to PP&E, intangibles and equity accounted investments 2,410 1,199 296 518 100 70 (0) 4,593 Balance sheet information Equity accounted investments 3 490 0 113 1,001 52 (0) 1,659 Non-current segment assets 29,176 14,975 11,121 3,631 183 1,009 0 60,094 Non-current assets not allocated to segments 12,319 Total non-current assets 74,073 First half 2021 E&P Norway 1) E&P International 1) E&P USA 1) MMP 1) REN 1) Other 1) Eliminations 1) Total (in USD million) Revenues third party, other revenue and other income 1) 138 514 222 32,599 1,389 143 0 35,005 Revenues inter-segment 1) 11,923 1,975 1,739 166 0 20 (15,823) 0 Net income/(loss) from equity accounted investments 0 42 0 15 (6) (4) 0 47 Total revenues and other income 1) 12,060 2,531 1,961 32,780 1,383 160 (15,823) 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) (1,589) (662) (621) (1,908) (72) (231) 593 (4,489) Depreciation, amortisation and net impairment losses 1) (2,579) (661) (874) (704) (1) (88) 0 (4,908) Exploration expenses (125) (338) (109) 0 0 0 0 (572) Total operating expenses 1) (4,293) (1,676) (1,605) (32,236) (73) (320) 15,669 (24,534) Net operating income/(loss) 1) 7,767 855 356 544 1,310 (160) (154) 10,518 Additions to PP&E, intangibles and equity accounted investments 1) 2,587 819 337 190 286 38 0 4,258 Balance sheet information Equity accounted investments 3 1,181 0 96 1,067 32 0 2,377 Non-current segment assets 1) 38,337 17,839 11,967 4,786 145 1,086 0 74,160 Non-current assets not allocated to segments 13,303 Total non-current assets 89,841 1) Restated due to implementation of IFRS 16 in the segments, mainly affecting the line item Operating, selling, general and administrative expenses in MMP (reduction of USD 258 million) and Other (increase of USD 341 million) and the line item Depreciation, amortisation and net impairments in MMP (increase of USD 268 million) and Other (reduction of USD 404 million). Equinor has not recognised any significant impairments or reversals of impairments in the second quarter of 2022. Net impairment reversals amounted to USD 276 million in the second quarter of 2021, of which USD 113 million related to acquisition cost and signature bonuses classified as exploration expenses. In the second quarter of 2021, net impairment reversals of USD 396 million and USD 93 million were recognised in the E&P Norway segment and E&P International segment respectively. In the MMP segment, the impairments amounted to USD 185 million in the second quarter of 2021. Net impairment reversals in the first half of 2022 amounted to USD 245 million (net impairment of USD 152 million in the first half of 2021), of which USD 832 million related to impairment of equity accounted investments in the first quarter of 2022. The recoverable amounts in the impairment assessments are normally based on value in use. Value in use estimates and discounted cash flows used to determine the recoverable amount of assets tested for impairment are based on internal forecast on cost, production profiles and commodity prices. Non-current assets by country At 30 June At 31 December (in USD million) 2022 2021 Norway 32,886 40,564 USA 12,077 12,323 Brazil 8,929 8,751 UK 1,868 2,096 Azerbaijan 1,609 1,654 Canada 1,294 1,403 Angola 932 948 Algeria 656 708 Argentina 550 474 Denmark 486 536 Other 467 1,757 Total non-current assets 1) 61,754 71,213 1) Excluding deferred tax assets, pension assets and non-current financial assets. The decrease in non-current assets in Norway from 31 December 2021 to 30 June 2022 is mainly due to currency effect of USD 4.2 billion and increased interest rates which have effect on the asset retirement obligation of USD 2.7 billion. Revenues from contracts with customers by geographical areas When attributing the line item Revenues from contracts with customers to the country of the legal entity executing the sale for the second quarter of 2022, Norway constitutes 84 % and USA constitutes 14 % of such revenues ( 85 % and 12 % respectively for the first half of 2022). For the second quarter of 2021, Norway and USA constituted 76 % and 16 % of such revenues, respectively ( 78 % and 16 % for the first half of 2021). Revenues from contracts with customers and other revenues Quarters First half Q2 2022 Q1 2022 Q2 2021 (in USD million) 2022 2021 16,397 15,034 9,060 Crude oil 31,431 17,774 12,923 15,538 3,443 Natural gas 28,461 6,741 11,457 14,350 2,908 - European gas 25,808 5,569 766 621 319 - North American gas 1,387 741 699 567 215 - Other incl. Liquefied natural gas 1,266 431 2,531 2,904 2,682 Refined products 5,435 5,055 2,529 2,576 1,672 Natural gas liquids 5,106 3,582 310 282 205 Transportation 592 461 651 1,117 341 Other sales 1,768 454 35,342 37,451 17,402 Revenues from contracts with customers 72,793 34,067 1,045 (1,401) (23) Total other revenues 1) (356) (558) 36,387 36,050 17,380 Revenues 72,437 33,508 1) Principally relates to commodity derivatives.

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