STAVANGER (dpa-AFX) - Equinor (EQNR) announced an around $3 billion action, amid the COVID-19 impact and lower commodity prices.
The company plans to reduce organic capex for 2020 to around $8.5 billion from the prior estimate of $10 billion - $11 billion. It represents a reduction of around 20%.
The company intends to reduce 2020 exploration activity to around $1 billion from the previous outlook of $1.4 billion.
It will reduce annual operating costs by around $700 million compared to original estimates.
The cost reductions come in addition to the already announced suspension of share buy-back.
Upon the implementation of the reduction measures, Equinor can be organic cash flow neutral before capital distribution in 2020 with an average oil price around $25 per barrel for the remaining part of the year.
Copyright RTT News/dpa-AFX
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