Equinor : Second Quarter 2022 Report - Form 6-K

July 27, 2022 at 06:44 am

This Report on Form 6-K contains a report ofthe second quarter 2022 results of Equinor ASA.

Equinor second quarter 20222

Equinor second quarter 2022

Equinor delivered adjusted earnings* of USD 17.6 billion and USD 5.00 billion after tax in the

second quarter of 2022. Net operating income was USD 17.7 billion and the net income was

reported at USD 6.76 billion.

Strategic and industrial developments:

●Further optimisation of the oil and gas portfolio

●Assets in Russia exited

●Continued progress in building new value chains in low carbon with investments in battery storageand power

●Progressing a strong portfolio of projects in execution

Operational performance:

●Continued high production performance

●High gas production from E&P Norway to support European energy security

●Safe startup of Hammerfest LNG

Financial performance:

●Continuing to generate strong earnings and cash flow from operations, partially offset by increased costs

●Balance sheet further strengthened with net debt ratio* reduced to negative 38.6%

●Significant step-up in capital distribution with cash dividend of USD 0.20 per share, increased extraordinarycash dividend to USD

0.50 per share for the second and third quarter,and increased share buy-back programme to up to USD 6.00 billion for 2022,

with a third tranche of around USD 1.83 billion

Anders Opedal, president and CEO of Equinor ASA:

"Russia's invasion of Ukraine impacted already tight energy markets and has created an energy crisis withhigh prices affecting people

and all sectors of society. Equinor puts its best effort into securing safe and reliable deliveries of energy to Europe, whilst continuing to

invest in the energy transition."

"Equinor continues to provide high gas production from the NCS, including volumes fromHammerfest LNG, now safely back in

production. Solid operational performance and high production combined with high prices resulted instrong financial results with

adjusted earnings of more than 17 billion dollars before tax"

"We have taken important steps within our low carbon portfolio to help our customers decarbonise. Investments inthe UK power

company Triton Power and the battery storage developer East Point Energy in the US will expand our energy offerings and be

important building blocks in new value chains."

Quarter

Change

Financial information

First half

Q2 2022

Q1 2022

Q2 2021

Q2 on Q2

(unaudited, in USD million)

2022

2021

Change

17,733

18,392

5,298

>100%

Net operating income/(loss)

36,125

10,518

>100%

17,590

17,991

4,641

>100%

Adjusted earnings*

35,581

8,726

>100%

6,762

4,714

1,943

>100%

Net income/(loss)

11,476

3,797

>100%

5,000

5,179

1,578

>100%

Adjusted earnings after tax*

10,180

2,867

>100%

8,520

15,771

6,643

28%

Cash flows provided by operating activities

24,291

12,627

92%

6,964

12,689

4,511

54%

Free cash flow*

19,653

9,681

>100%

Quarter

Change

First half

Q2 2022

Q1 2022

Q2 2021

Q2 on Q2

Operational data

2022

2021

Change

106.9

97.1

63.7

68%

Group average liquids price (USD/bbl) [1]

102.0

60.0

70%

1,984

2,106

1,997

(1%)

Total equity liquids and gas production (mboe per day) [4]

2,045

2,082

(2%)

325

511

283

15%

Power generation (GWh) Equinor share

837

733

14%

Q2 | First half

Full year

Health, safety and the environment

Q2 2022

2021

Serious incident frequency (SIF) Twelve-month average as at Q2 2022

0.5

0.4

Upstream CO

intensity (kg

/boe)

as at first half 2022

6.8

7.0

Equinor second quarter 20223

30 June

31 December

%-point

Net debt to capital employed adjusted*

2022

2021

change

Net debt to capital employed adjusted*

(38.6%)

(0.8%)

(37.8)

Dividend

(USD per share)

Q2 2022

Q1 2022

Q2 2021

Announced dividend per share

0.20

0.18

Extraordinary dividend per share

0.50

0.20

In the first half of 2022 Equinor has acquired and settled shares in the market under the sharebuy-back programmes, of USD 742

million.

For items marked with an asterisk throughout this report,see Use and reconciliation of non-GAAP financialmeasures in the Supplementary disclosures.

Progressing on strategy for the energy transition

Equinor enhanced the value creation with continued optimisation of its oil and gas portfolio withthe announced sale of assets in the

Ekofisk area, and a share in the Martin Linge field on the NCS. In the US, Equinor'stransactions in the North Platte project resulted in

an increased interest in the project as well as a proceed. The group entered intoa long-term LNG purchase agreement which will add

new volumes to the portfolio from 2026.

Further, progress was made in developing value chains within low carbon. In the UK, Equinor is investing in the power company Triton

Power and will prepare for future use of hydrogen in the Saltend power station. In theUS, Equinor acquired the battery storage

developer East Point Energy to further broaden the group's energy offerings.

Equinor is executing a full portfolio of 23 projects with overall good progress, despite impact fromglobal supply chain disruptions and

the pandemic. On the NCS, Johan Sverdrup phase 2 and Njord future are expectedon stream the fourth quarter, while the floating

wind farm Hywind Tampen is expected to be completed next spring. In Brazil, Peregrino phase 2 is on track for start-up in third

quarter. The wind farm Dogger Bank in UK is on track for the first phase to come into operation in 2023.

Equinor previously announced that it will exit all joint ventures in Russia and halt all investmentsin the country. This was completed in

the quarter and the company was released from all future commitments and obligations.

High production impacted by seasonal turnarounds contributed to energy security

Solid operational performance as well as optimised production to deliver more gas to Europe,resulted in high production, with less

impact from the seasonal turnaround than for the same quarter last year. E&P Norway delivered a 18% increase in production of gas

and a 7% increase in overall production,compared to the same quarter last year. In Brazil, the Peregrino field came back on stream in

July and will contribute with valuable volumes going forward.

The Renewables segment delivered 15% higher power generation compared to thesame quarter last year, mainly due to the

production from the Guanizuil IIA solar plant in Argentina.

In the second quarter Equinor completed 9 exploration wells offshore and 3 wells were ongoing at quarterend. Equinor made 3

commercial discoveries in the quarter, all close to infrastructure on the NCS.

Strong financial results capturing high prices

Energy prices remained high in the quarter. Compared to last quarter Equinor realised higher prices for liquids, while the averaged

invoiced gasprice in Europe eased off slightly.

Adjusted earnings* for the quarter was USD 17.6 billion, up from USD 4.64 billionin the same quarter last year. Adjusted earnings

after tax* was USD 5.00 billion, up from USD 1.58 billion in the same period lastyear. In the quarter the operational and administrative

costs increased due to higher environmental costs, electricity prices and field cost, partially offset by currency effects.

The MMP segment contributed with strong results, particularly from European gas and power optimisationand trading.

Equinor reported net operating income of USD 17.7 billion in the quarter, up from USD 5.30 billion in the same period in 2021. Net

income was USD 6.76 billion in the quarter, compared to USD 1.94 billion in the second quarter of 2021.

Continued strong cash flow and capital discipline further strengthening the balance sheet

Cash flows provided by operating activities before taxes and changes in working capital amounted to USD18.1 billion for the second

quarter, compared to USD 6.54 billion for the same period in 2021. Organic capital expenditure* was USD 1.99 billion forthe quarter.

Free cash flow* was USD 6.96 billion for the second quarter, impacted by the two last NCS tax instalments for 2021 and theincreased

capital distribution from the fourth quarter in 2021. From the third quarter, the NCS tax instalments will be based on 2022 resultsand

are expected at around NOK 70 billion for third quarter.

Strong cash flow and capital discipline resulted in a further reduction of adjusted net debt to capitalemployed* to negative 38.6% at

the end of the quarter. This is improved from negative 22.2% in the first quarter of 2022.

Equinor second quarter 20224

Competitive capital distribution

The board of directors has decided a cash dividend of USD 0.20 per share for the second quarter. Based on continued strong

earnings in the quarter the board of directors has decided an increase in extraordinary cash dividend fromUSD 0.20 to USD 0.50 per

share for second and third quarter of 2022. Furthermore, based on the strength of the brentprice, balance sheet and commodity

prices, the board of directors has decided to initiate a third tranche of share buy-backof USD 1.83 billion and increase the share buy-

back programme for 2022 from previously communicated up to USD 5.00 billion to up to USD6.00 billion. The third tranche will

commence on 28 July and will end no later than 26 October 2022.

Emissions and serious incident frequency

Average CO

-emissions from Equinor's operated upstream production, ona 100% basis, were 6.8 kg per boe for the first half of 2022,

expected to increase somewhat with fields back on stream. The twelve-month average serious incidentfrequency (SIF) for the period

ending 30 June 2022 was 0.5.

Equinor second quarter 20225

GROUP REVIEW

Quarters

Change

Financial information

First half

Q2 2022

Q1 2022

Q2 2021

Q2 on Q2

(unaudited, in USD million)

2022

2021

Change

36,459

36,393

17,462

>100%

Total revenues and other income

72,852

35,052

>100%

36,315

36,712

17,173

>100%

Adjusted total revenues and other income*

73,027

33,118

>100%

(18,727)

(18,001)

(12,164)

54%

Total operating expenses

(36,727)

(24,534)

50%

(13,885)

(13,781)

(7,531)

84%

Adjusted purchases*

(27,666)

(14,602)

89%

(2,390)

(2,450)

(2,287)

Adjusted operating and administrative expenses*

(4,840)

(4,461)

(2,149)

(2,333)

(2,500)

(14%)

Adjusted depreciation, amortisation and net impairments*

(4,482)

(4,886)

(8%)

(301)

(157)

(212)

42%

Adjusted exploration expenses*

(458)

(443)

17,733

18,392

5,298

>100%

Net operating income/(loss)

36,125

10,518

>100%

17,590

17,991

4,641

>100%

Adjusted earnings*

35,581

8,726

>100%

1,713

2,182

1,747

(2%)

Capital expenditures and Investments

3,895

3,897

(0%)

8,520

15,771

6,643

28%

Cash flows provided by operating activities

24,291

12,627

92%

Quarters

Change

First half

Q2 2022

Q1 2022

Q2 2021

Q2 on Q2

Operational information

2022

2021

Change

1,984

2,106

1,997

(1%)

Total equity liquid and gas production (mboe/day)

2,045

2,082

(2%)

1,842

1,958

1,845

(0%)

Total entitlement liquid and gas production (mboe/day)

1,900

1,929

(2%)

325

511

283

15%

Power generation (GWh) Equinor share

837

733

14%

113.8

101.4

68.8

65%

Average Brent oil price (USD/bbl)

107.6

64.9

66%

106.9

97.1

63.7

68%

Group average liquids price (USD/bbl)

102.0

60.0

70%

25.53

29.77

7.08

>100%

E&P Norway average internal gas price (USD/mmbtu)

27.68

6.23

>100%

6.25

4.18

1.82

>100%

E&P USA average internal gas price (USD/mmbtu)

5.21

1.99

>100%

For items impacting net operating income/(loss), see Use and reconciliation of non-GAAP financial measuresin Supplementary

disclosures.

Operations

Total equity liquids and gas production for the second quarter of 2022 has remained stable compared to the same period last year.

Positive contributions from the new field Martin Linge on the NCS, and less impactfrom maintenance and turnaround activities

compared to the same quarter last year, supported further increased production levels of gas for the quarter from E&P Norway, up

18% compared to same quarter last year, as focus on energy security and supply of gas to Europe continues. E&P International and

E&P USA production decreased in the second quarter relative to the second quarterof 2021, impacted by Equinor's exit from Russia

in the first quarter of 2022 and the divestment of a US onshore asset in the second quarterof 2021.

Significantly higher realised prices for the period relative to 2021 contributed to the increase innet operating income and adjusted

earnings* in the second quarter and the first half of 2022 compared to the same periods last year. Strong results were recorded from

European gas and power optimisation and trading, Danske Commodities as well as high refiningmargins in the quarter resulted in a

significant increase in net operating income for the Marketing, Midstream and Processing segment, positivelycontributing to the

overall business results in the quarter and first half of 2022 relative to the same periodsin the prior year.

Operating cost increased compared to the second quarter of 2021, impacted by the ramp-up of new fields,increased field costs, high

electricity prices and environmental taxes offset by significant currency effects due to the strengthening of the USD against the NOK

and the EUR.

Taxes

The consistently high share of earnings from the NCS and lower effect of uplift deduction, increased theeffective reported income tax

for the second quarter and first half of 2022 relative to the corresponding periods in 2021. Theeffective reported tax rate was 65.8%

for the second quarter of 2022 (60.4% for the second quarter of 2021), and 69.0% for firsthalf of 2022 (59.7% first half of 2021).

The effective tax rate on adjusted earnings* of 71.5% for the second quarter of 2022 and 71.4% for the first halfof 2022 also

increased compared to 66.0% and 67.1% in 2021 due to the high share of NCS earnings and lowereffect of uplift deduction.

Equinor second quarter 20226

Retrospective application of the Norwegian Petroleum Tax Act and TaxPayment Act amendments adopted on 17 June 2022, effective

from 1 January 2022, had an immaterial cumulative impact to the financial statement in thesecond quarter of 2022.

Cash flow, net debt and capital distribution

Cash flow provided by operating activities before taxes paid and working capital items improved by USD11,523 million to USD 18,066

million from the second quarter of 2021 and by 24,961 million to USD 38,122 millionfrom the first half of 2021. This improvement was

impacted by strong financial results due to high production and increased commodity prices across both theNCS and our international

businesses.

Taxes paid of USD 8,050 million in the second quarter of 2022 increased relative to the prior quarter primarily due to the two

payments of NCS taxes, totalling USD 7,750 million. One instalment was paid in thefirst quarter.

Free cash flow* remained strong, at USD 19,653 million for the first half of 2022 compared to USD9,681 million in the same period of

2021, despite the significant increase in tax payments, increased dividend paymentsand the share buy-back programme.

The board of directors has decided a cash dividend of USD 0.20 per share for the second quarter. Based on continued strong

earnings in the quarter the board of directors has decided an increase in extraordinary cash dividendfrom USD 0.20 to USD 0.50 per

share for second and third quarter of 2022. Furthermore, based on the strength of thebrent price, balance sheet and commodity

prices, the board of directors has decided to initiate a third tranche of share buy-backof USD 1.83 billion and increase the share buy-

back programme for 2022 from previously communicated up to USD 5.00 billion to up to USD6.00 billion. The third tranche will

commence on 28 July and will end no later than 26 October 2022.

OUTLOOK

●

Organic capital expenditures*

are estimated at an annual average of around USD 10 billion for 2022-2023 and at an annual

average of around USD 12 billion for 2024-2025

●

Production

for 2022 is estimated to be around 2% above 2021 level [6].

●

Equinor's ambition is to keep the

unit of production cost

in the top quartile of its peergroup.

●

Scheduled maintenance activity

is estimated to reduce equity production by around 40 mboe per day for the full year of 2022.

These forward-looking statements reflect current views about future events and are, by their nature, subjectto significant risks and

uncertainties because they relate to events and depend on circumstances that will occurin the future. Deferral of production to create

future value, gas off-take, timing of new capacity coming on stream, operational regularity and the ongoing impactof Covid-19

represent the most significant risks related to the foregoing production guidance. Our future financialperformance, including cash flow

and liquidity, will be affected by the extent and duration of the current market conditions, the development in realised prices, including

price differentials and other factors discussed elsewhere in the report. For further information,see section Forward-looking

statements.

USD/NOK exchange rate assumption of 9.

Equinor second quarter 20227

SUPPLEMENTARYOPERATIONALDISCLOSURES

Quarters

Change

First half

Q2 2022

Q1 2022

Q2 2021

Q2 on Q2

Operational data

2022

2021

Change

Prices

113.8

101.4

68.8

65%

Average Brent oil price (USD/bbl)

107.6

64.9

66%

109.8

100.3

64.9

69%

E&P Norway average liquids price (USD/bbl)

105.1

60.8

73%

109.2

96.3

65.3

67%

E&P International average liquids price (USD/bbl)

102.8

62.3

65%

91.6

82.5

56.7

61%

E&P USA average liquids price (USD/bbl)

87.3

53.5

63%

106.9

97.1

63.7

68%

Group average liquids price (USD/bbl) [1]

102.0

60.0

70%

1,009

859

533

89%

Group average liquids price (NOK/bbl) [1]

932

507

84%

25.53

29.77

7.08

>100%

E&P Norway average internal gas price (USD/mmbtu)[8]

27.68

6.23

>100%

6.25

4.18

1.82

>100%

E&P USA average internal gas price (USD/mmbtu)[8]

5.21

1.99

>100%

27.18

29.60

7.54

>100%

Average invoiced gas prices - Europe (USD/mmbtu) [7]

28.44

7.07

>100%

6.51

4.62

2.25

>100%

Average invoiced gas prices - North America (USD/mmbtu)[7]

5.52

2.50

>100%

22.8

5.8

3.4

>100%

Refining reference margin (USD/bbl) [2]

14.3

2.4

>100%

Entitlement production (mboe per day)

576

638

604

(5%)

E&P Norway entitlement liquids production

607

633

(4%)

174

201

212

(18%)

E&P International entitlement liquids production

187

212

(12%)

123

114

138

(10%)

E&P USA entitlement liquids production

119

144

(18%)

873

953

954

(9%)

Group entitlement liquids production

913

989

(8%)

767

798

652

18%

E&P Norway entitlement gas production

782

687

14%

(7%)

E&P International entitlement gas production

(22%)

166

170

199

(17%)

E&P USA entitlement gas production

168

206

(18%)

969

1,005

891

Group entitlement gas production

987

940

1,842

1,958

1,845

(0%)

Total entitlement liquids and gas production [3]

1,900

1,929

(2%)

Equity production (mboe per day)

576

638

604

(5%)

E&P Norway equity liquids production

607

633

(4%)

260

287

295

(12%)

E&P International equity liquids production

273

297

(8%)

137

127

153

(10%)

E&P USA equity liquids production

132

161

(18%)

973

1,051

1,052

(7%)

Group equity liquids production

1,012

1,091

(7%)

767

798

652

18%

E&P Norway equity gas production

782

687

14%

(15%)

E&P International equity gas production

(13%)

198

203

239

(17%)

E&P USA equity gas production

200

246

(19%)

1,011

1,055

945

Group equity gas production

1,032

991

1,984

2,106

1,997

(1%)

Total equity liquids and gas production [4]

2,045

2,082

(2%)

REN power generation

325

511

283

15%

Power generation (GWh)

837

733

14%

Equinor second quarter 20228

Health, safety and the environment

Twelve months

average per

Full year

Health, safety and the environment

Q2 2022

2021

Total recordable injury frequency (TRIF)

2.5

2.4

Serious Incident Frequency (SIF)

0.5

0.4

Oil and gas leakages (number of)

First half

Full year

Climate

2022

2021

Upstream CO

intensity (kg CO

/boe)

6.8

7.0

1)Number of leakages with rate above 0.1 kg/second during the past 12 months.

2)Totalscope 1 emissions of CO

(kg CO

) from exploration and production, divided by total production (boe).

3)As of the second quarter of 2022, work-related illness is excluded from SIF

Equinor second quarter 20229

EXPLORATION& PRODUCTION NORWAY

Quarter

Change

Financial information

First half

Q2 2022

Q1 2022

Q2 2021

Q2 on Q2

(unaudtied, in USD million)

2022

2021

Change

16,712

18,454

6,245

>100%

Total revenues and other income

35,166

12,060

>100%

16,491

18,663

6,224

>100%

Adjusted total revenues and other income*

35,154

11,896

>100%

(2,231)

(1,521)

(1,825)

22%

Total operating expenses

(3,752)

(4,293)

(13%)

(914)

(884)

(846)

Adjusted operating and administrative expenses*

(1,798)

(1,544)

16%

(1,203)

(1,421)

(1,362)

(12%)

Adjusted depreciation, amortisation and net impairments*

(2,624)

(2,706)

(3%)

(44)

(101)

(48)

(8%)

Adjusted exploration expenses*

(146)

(118)

24%

14,482

16,933

4,420

>100%

Net operating income/(loss)

31,414

7,767

>100%

14,330

16,256

3,967

>100%

Adjusted earnings/(loss)*

30,586

7,527

>100%

1,339

1,072

1,322

Additions to PP&E, intangibles and equity accounted

investments

2,410

2,587

(7%)

Quarters

Change

Operational information

First half

Q2 2022

Q1 2022

Q2 2021

Q2 on Q2

E&P Norway

2022

2021

Change

1,343

1,436

1,257

E&P entitlement liquid and gas production (mboe/day)

1,389

1,320

109.8

100.3

64.9

69%

Average liquids price (USD/bbl)

105.1

60.8

73%

25.53

29.77

7.08

>100%

Average internal gas price (USD/mmbtu)

27.68

6.23

>100%

For items impacting net operating income/(loss),see Use and reconciliation of non-GAAP financial measuresin the Supplementary

disclosures.

Production & Revenues

The increase in production compared to the second quarter of 2021 was mainly due to positive contributionsfrom the new field Martin

Linge and narrower scope of planned turnarounds. In addition, Snøhvit resumed production this quarter contributingan average of 15

mboe per day. The change in short-term strategy from gas injection to gas export for Gina Krog continues and has been granted until

30 September 2022. Partially offsetting this, Oseberg has reduced production by approximately 15 mboe per day this quarterdue to

time limited low gas prices in UK and in combination with natural decline. Overall, production of gasvolumes increased 18% and

liquids decreased by 5% compared to the second quarter of 2021. For the first half of 2022 thereis an increase in gas volumes of

14% and a reduction in liquids of 4% compared to the first half of 2021.

Operating expenses and financial results

Net operating income is driven by high energy prices. increased operating and administrative expenses partlyoffset the higher energy

prices.

The increase in adjusted operating and administrative expenses compared to the second quarter of 2021 wasprimarily related to

ramp-up of new fields and increased maintenance costs. Higher environmental taxes and electricityprices added to the increase,

partially offset by the NOK/USD exchange rate development. The same factors combined with higher transportation costsalso drove

the increase for the first half of 2022.

Lower field development and drilling development costs resulted in lower adjusted exploration

expenses in the second quarter of 2022. Net operating income for the second quarter of 2022 waspositively impacted by net

overlifted volumes of USD 152 million.

Equinor second quarter 202210

EXPLORATION& PRODUCTION INTERNATIONAL

Quarters

Change

Financial information

First half

Q2 2022

Q1 2022

Q2 2021

Q2 on Q2

(unaudited, in USD million)

2022

2021

Change

1,838

1,453

1,479

24%

Total revenues and other income

3,290

2,531

30%

1,956

1,852

1,318

48%

Adjusted total revenues and other income*

3,808

2,519

51%

(856)

(1,822)

(886)

(3%)

Total operating expenses

(2,678)

(1,676)

60%

(373)

(423)

(364)

Adjusted operating and administrative expenses*

(796)

(683)

17%

(324)

(339)

(433)

(25%)

Adjusted depreciation, amortisation and net impairments*

(663)

(799)

(17%)

(111)

(40)

(136)

(18%)

Adjusted exploration expenses*

(151)

(239)

(37%)

982

(369)

593

66%

Net operating income/(loss)

613

855

(28%)

1,111

1,078

400

>100%

Adjusted earnings/(loss)*

2,189

783

>100%

573

626

430

33%

Additions to PP&E, intangibles and equity accounted

investments

1,199

819

46%

Quarters

Change

Operational information

First half

Q2 2022

Q1 2022

Q2 2021

Q2 on Q2

E&P International

2022

2021

Change

306

341

349

(12%)

E&P equity liquid and gas production (mboe/day)

323

354

(9%)

210

239

252

(17%)

E&P entitlement liquid and gas production (mboe/day)

224

259

(13%)

109.2

96.3

65.3

67%

Average liquids price (USD/bbl)

102.8

62.3

(65%)

For items impacting net operating income/(loss),see Use and reconciliation of non-GAAP financial measuresin the Supplementary

disclosures.

Production & Revenues

The decrease in production was primarily due to no Russian production volumes in the second quarterof 2022 following the decision

in the first quarter of 2022 to exit the country, and natural decline in several mature fields. The net effects from production sharing

agreements (PSA) decreased to 95 mboe per day in the second quarter of 2022, from 97 mboeper day in the second quarter of 2021,

primarily caused by the lower equity production.

The main driver for the increase in revenues is the continued increase in realised liquids and gasprices for the second quarter and the

first half of 2022 relative to the same periods last year. The increase is partially offset by the lower entitlement production.

Operating expenses and financial results

Adjusted operating and administrative expenses increased in the second quarter and the first halfof 2022 compared to the same

periods last year, mainly due to higher operations and maintenance expenses. Increased royalties and production fees primarily

driven by higher prices added to the increase for the first half of 2022. Adjusted explorationexpenses decreased in the second quarter

and first half of 2022 compared to the same periods last year, mainly due to lower expensed drilling costs, lower field development

and lower other cost. In the first half of 2022, net operating income was negatively impacted by impairmentsof USD 1,096 million,

primarily related to the exit from Russia.

Equinor second quarter 202211

EXPLORATION& PRODUCTION USA

Quarters

Change

Financial information

First half

Q2 2022

Q1 2022

Q2 2021

Q2 on Q2

(unaudited, in USD million)

2022

2021

Change

1,629

1,269

968

68%

Total revenues and other income

2,898

1,961

48%

1,629

1,269

968

68%

Adjusted total revenues and other income*

2,898

1,961

48%

(757)

(24)

(764)

(1%)

Total operating expenses

(782)

(1,605)

(51%)

(240)

(221)

(272)

(12%)

Adjusted operating and administrative expenses*

(461)

(606)

(24%)

(362)

(320)

(438)

(17%)

Adjusted depreciation, amortisation and net impairments*

(682)

(846)

(19%)

(146)

(15)

(28)

>100%

Adjusted exploration expenses*

(161)

(86)

88%

872

1,245

204

>100%

Net operating income/(loss)

2,117

356

>100%

881

713

230

>100%

Adjusted earnings/(loss)*

1,594

422

>100%

170

126

180

(6%)

Additions to PP&E, intangibles and equity accounted

investments

296

337

(12%)

Quarters

Change

Operational information

First half

Q2 2022

Q1 2022

Q2 2021

Q2 on Q2

E&P USA

2022

2021

Change

335

329

391

(14%)

E&P equity liquid and gas production (mboe/day)

332

407

(18%)

289

284

337

(14%)

E&P entitlement liquid and gas production (mboe/day)

287

350

(18%)

91.6

82.5

56.7

61%

Average liquids price (USD/bbl)

87.3

53.5

63%

6.25

4.18

1.82

>100%

Average internal gas price (USD/bbl)

5.21

1.99

>100%

For items impacting net operating income/(loss),see Use and reconciliation of non-GAAP financial measuresin the Supplementary

disclosures.

Production & Revenues

The decrease in production was primarily due to natural decline from the Appalachia Basin assets, the divestmentof Bakken in 2021

as well as decrease in the Gulf of Mexico production due to increased effect from turnarounds in 2022.

The continued increase in realised liquids and gas prices for the second quarter and the firsthalf of 2022 relative to the same periods

last year has been the main driver for the increase in revenues. The increase in prices has beenpartially offset by the lower

entitlement production.

Operating expenses and financial results

Adjusted operating expenses decreased in the second quarter and the first half of 2022 comparedto the same periods last year

mainly due to

lower operations and maintenance expenses and depletion due to lower production and improvedreserves

. Increased

royalties and production fees primarily driven by higher prices partially offset the decrease for the first half of 2022.Adjusted

exploration expenses increased in the second quarter and first half of 2022 compared to thesame periods last year mainly due to

expensing of previously capitalised well costs. In the first half of 2022, net operating income waspositively impacted by net

impairment reversals of USD 526 million, primarily related to the change in short term commodityprices. In the first half of 2021, net

operating income was negatively impacted by impairment and losses recognised on the divestmentof the Bakken asset of USD 66

million.

Equinor second quarter 202212

MARKETING, MIDSTREAM & PROCESSING

Quarters

Change

Financial information

First half

Q2 2022

Q1 2022

Q2 2021

Q2 on Q2

(unaudited, in USD million)

2022

2021

Change

36,012

35,917

16,986

>100%

Total revenues and other income

71,929

32,780

>100%

35,971

35,715

16,879

>100%

Adjusted total revenues and other income*

71,686

32,402

>100%

(34,556)

(35,425)

(16,842)

>100%

Total operating expenses

(69,981)

(32,236)

>100%

(33,429)

(34,470)

(15,535)

>100%

Adjusted purchases*

(67,899)

(29,816)

>100%

(1,012)

(1,001)

(968)

Adjusted operating and administrative expenses*

(2,013)

(1,918)

(221)

(212)

(222)

(1%)

Adjusted depreciation, amortisation and net impairments*

(433)

(445)

(3%)

1,456

492

144

>100%

Net operating income/(loss)

1,948

544

>100%

1,310

154

>100%

Adjusted earnings*

1,341

224

>100%

235

56%

- Liquids

325

214

52%

972

(383)

>100%

- Natural Gas Europe

590

>100%

123

(50%)

- Natural Gas US

142

>100%

228

(22)

N/A

- Other

284

(80)

N/A

253

265

138

83%

Additions to PP&E, intangibles and equity accounted

investments

518

190

>100%

Quarters

Change

Operational information

First half

Q2 2022

Q1 2022

Q2 2021

Q2 on Q2

2022

2021

Change

180.5

185.5

180.6

(0%)

Liquids sales volumes (mmbl)

366.0

378.0

(3%)

15.4

16.5

14.2

Natural gas sales Equinor (bcm)

32.0

29.8

13.7

14.1

12.6

Natural gas entitlement sales Equinor (bcm)

27.8

26.1

27.18

29.60

7.54

>100%

Average invoice gas price - Europe (USD/mmbtu)

28.44

7.07

>100%

6.51

4.62

2.25

>100%

Average invoice gas price - North America (USD/mmbtu)

5.52

2.50

>100%

For items impacting net operating income/(loss),see Use and reconciliation of non-GAAP financial measuresin the Supplementary

disclosures.

Volumes, Pricing & Revenues

Average invoiced European natural gas sales price was significantly higher than second quarter of2021 due to increased market

prices driven by low gas stocks in Europe, high demand and tight supply. Average invoiced North American piped gas sales price

increased significantly compared to second quarter last year as market prices were driven by bothsupply and demand factors;

production growth was weaker than expected whilst demand, especially from power generationwas strong.

Financial Results

Adjusted earnings* in the second quarter of 2022 increased significantly from the second quarterof 2021. Adjusted earnings in

Natural Gas Europe were mainly driven by strong results from geographical optimisation and positivelyinfluenced by derivatives

applied to price risk manage bilateral gas contracts and geographical optimisation of future physicalflows. The result is reduced by

negative mark to market effects from derivatives applied to lock in value on future LNG deliveries and loss related to anoil linked gas

sales contract. Adjusted earnings in Natural Gas US were driven by strong trading results partiallyoffset by losses on derivatives used

to hedge future physical deliveries. Adjusted earnings in Liquids were primarily driven by products trading.The Other section was

dominated by strong trading results in Danske Commodities. It is also positively influenced byrealising high refining margins despite

turnaround during large part of quarter and negatively influenced by losses on methanol productionfrom natural gas at

Tjeldbergodden.

Net operating income of USD 1,456 million in the quarter includes net positive effect from changes in fairvalue of embedded

derivatives and in estimates of certain non-operational losses provided for, periodisation of inventory hedging effect and gains on

operational storage value.

In the second quarter of 2021 adjusted earnings for Natural Gas Europe were impacted by losseson derivatives on gas forward

contracts, offset by gains in other contracts. Adjusted earnings for Liquids were relatively weak due to tradinglosses. Adjusted

earnings from Natural Gas US were driven by physical gas sales and trading gains. Negativeadjusted earnings in the Other section

were heavily influenced by low refinery margins.

Equinor second quarter 202213

The increase in adjusted earnings in the first half of 2022 compared to same periodlast year is mainly explained by stronger results

from Natural Gas Europe both from derivatives and trading. In addition, there were higher resultsin 2022 from Danske Commodities

and refining.

From the first quarter to the second quarter of 2022, adjusting earnings have increased driven by thestrong result from geographical

optimisation and higher derivatives result within Natural Gas Europe.

RENEWABLES

Quarters

Change

Financial information

First half

Q2 2022

Q1 2022

Q2 2021

Q2 on Q2

(unaudited, in USD million)

2022

2021

Change

(56%)

Revenues third party, other revenue and other income

1,389

(93%)

(6)

N/A

Net income/(loss) from equity accounted investments

(6)

N/A

119

>100%

Total revenues and other income

134

1,383

(90%)

>100%

Adjusted total revenues and other income*

>100%

(57)

(41)

(33)

74%

Total operating expenses

(99)

(73)

35%

(56)

(41)

(32)

77%

Adjusted operating and administrative expenses*

(97)

(72)

35%

(1)

(6%)

Adjusted depreciation, amortisation and net impairments*

(2)

(1)

48%

(42)

(31)

(35%)

Net operating income/(loss)

1,310

(97%)

(42)

(10)

(31)

(34%)

Adjusted earnings*

(52)

(70)

26%

159

(64%)

Additions to PP&E, intangibles and equity accounted

investments

100

286

(65%)

Quarters

Change

Operational information

First half

Q2 2022

Q1 2022

Q2 2021

Q2 on Q2

2022

2021

Change

325

511

283

15%

Power Generation (GWh) Equinor share

837

733

14%

For items impacting net operating income/(loss), see Useand reconciliation of non-GAAP financial measuresin the Supplementary disclosures.

Power generation

The increase in power generation compared to second quarter last year was mainly due tostart-up of production from Guanizuil IIA in

the third quarter of 2021. This is consistent with the year-on-year trend.

Results from equity accounted investments

Net income/(loss) from equity accounted investments increased compared to the second quarterlast year. The increased result

compared to the second quarter last year was mainly due to a lower portion of project costsbeing expensed because the Empire

Wind project in the US started capitalisation of project costs in the first quarter of 2022.

Operating expenses and financial results

Operating and administrative expenses increased due to increased business development costs driven by higheractivity level in the

US, the UK and in Asia. This is consistent with the year-on-year trend.

Net operating income was negative and adjusted earnings was negative USD 42 million in the secondquarter of 2022 compared to

negative USD 31 million in the second quarter of 2021. The decrease was driven by increased businessdevelopment costs partially

offset by increased net results from equity accounted investments.

Net operating income in the first half of 2022 decreased significantly compared to last year due to lowerdivestment gains in 2022.Net

income in the first half of 2022 was positively impacted by divestment gain on USD 87 million. Netoperating income in the first half of

2021 was positively impacted by divestments gains of USD 1,382 million.

Capital expenditure for the second quarter and first half of 2022 decreased compared tosame periods last year. This was mainly due

to the acquisition of Wento and higher capital contribution to equity accounted investments last year.

Equinor second quarter 202214

CONDENSED INTERIM FINANCIAL STATEMENTS

Second quarter 2022

CONSOLIDATED STATEMENTOF INCOME

Quarters

First half

Q2 2022

Q1 2022

Q2 2021

(unaudited, in USD million)

Note

2022

2021

36,387

36,050

17,380

Revenues

72,437

33,508

Net income/(loss) from equity accounted investments

151

244

Other income

265

1,497

36,459

36,393

17,462

Total revenues and other income

72,852

35,052

(13,851)

(13,510)

(7,399)

Purchases [net of inventory variation]

(27,361)

(14,565)

(2,200)

(1,989)

(2,134)

Operating expenses

(4,189)

(4,076)

(205)

(282)

(195)

Selling, general and administrative expenses

(487)

(413)

(2,140)

(2,017)

(2,111)

Depreciation, amortisation and net impairments

(4,158)

(4,908)

(331)

(203)

(326)

Exploration expenses

(534)

(572)

(18,727)

(18,001)

(12,164)

Total operating expenses

(36,727)

(24,534)

17,733

18,392

5,298

Net operating income/(loss)

36,125

10,518

(327)

(266)

(304)

Interest expenses and other financial expenses

(593)

(616)

2,351

(903)

(90)

Other financial items

1,447

(485)

2,023

(1,169)

(393)

Net financial items

854

(1,101)

19,756

17,223

4,905

Income/(loss) before tax

36,979

9,417

(12,995)

(12,509)

(2,962)

Income tax

(25,503)

(5,620)

6,762

4,714

1,943

Net income/(loss)

11,476

3,797

6,757

4,710

1,938

Attributable to equity holders of the company

11,467

3,789

Attributable to non-controlling interests

2.12

1.46

0.60

Basic earnings per share (in USD)

3.57

1.17

2.11

1.46

0.60

Diluted earnings per share (in USD)

3.56

1.16

3,188

3,228

3,247

Weighted average number of ordinary shares outstanding(in millions)

3,208

3,248

3,197

3,237

3,257

Weighted average number of ordinary shares outstandingdiluted (in millions)

3,217

3,257

Equinor second quarter 202215

CONSOLIDATED STATEMENTOF COMPREHENSIVE INCOME

Quarters

First half

Q2 2022

Q1 2022

Q2 2021

(unaudited, in USD million)

2022

2021

6,762

4,714

1,943

Net income/(loss)

11,476

3,797

(419)

107

Actuarial gains/(losses) on defined benefit pensionplans

(392)

224

(6)

(24)

Income tax effect on income and expenses recognisedin OCI

(50)

(326)

Items that will not be reclassified to the Consolidatedstatement of income

(305)

174

(4,410)

173

119

Foreign currency translation effects

(4,238)

(4,410)

173

119

Items that may be subsequently reclassified tothe Consolidated statement of

income

(4,238)

(4,389)

(153)

202

Other comprehensive income/(loss)

(4,542)

247

2,372

4,561

2,144

Total comprehensive income/(loss)

6,933

4,044

2,368

4,557

2,140

Attributable to the equity holders of the company

6,925

4,036

Attributable to non-controlling interests

1) Other comprehensive income (OCI).

Equinor second quarter 202216

CONSOLIDATED BALANCE SHEET

At 30 June

At 31 December

(unaudited, in USD million)

Note

2022

2021

ASSETS

Property, plant and equipment

54,787

62,075

Intangible assets

5,307

6,452

Equity accounted investments

1,659

2,686

Deferred tax assets

6,478

6,259

Pension assets

815

1,449

Derivative financial instruments

660

1,265

Financial investments

2,788

3,346

Prepayments and financial receivables

1,579

1,087

Total non-current assets

74,073

84,618

Inventories

5,257

3,395

Trade and other receivables

17,741

17,927

Derivative financial instruments

6,856

5,131

Financial investments

25,105

21,246

Cash and cash equivalents

20,582

14,126

Total current assets

75,541

61,826

Assets classified as held for sale

2,352

676

Total assets

151,966

147,120

EQUITY AND LIABILITIES

Shareholders' equity

41,206

39,010

Non-controlling interests

Total equity

41,226

39,024

Finance debt

24,062

27,404

Lease liabilities

2,318

2,449

Deferred tax liabilities

13,393

14,037

Pension liabilities

4,086

4,403

Provisions and other liabilities

15,814

19,899

Derivative financial instruments

2,035

767

Total non-current liabilities

61,708

68,959

Trade, other payables and provisions

10,985

14,310

Current tax payable

21,636

13,119

Finance debt

5,775

5,273

Lease liabilities

1,138

1,113

Dividends payable

1,262

582

Derivative financial instruments

6,416

4,609

Total current liabilities

47,214

39,005

Liabilities directly associated with the assets classifiedas held for sale

1,818

132

Total liabilities

110,740

108,096

Total equity and liabilities

151,966

147,120

1) Audited

Equinor second quarter 202217

CONSOLIDATED STATEMENTOF CHANGES IN EQUITY

(unaudited, in USD million)

capital

Additional

paid-in

capital

Retained

earnings

Foreign

currency

translation

reserve

Share-

holders'

equity

Non-

controlling

interests

Total equity

At 1 January 2021

1,164

6,852

30,050

(4,194)

33,873

33,892

Net income/(loss)

3,789

3,797

Other comprehensive income/(loss)

174

247

Total comprehensive income/(loss)

4,044

Dividends

(877)

Share buy-back

Other equity transactions

(8)

(9)

(18)

At 30 June 2021

1,164

6,844

33,136

(4,121)

37,023

37,041

At 1 January 2022

1,164

6,408

36,683

(5,245)

39,010

39,024

Net income/(loss)

11,467

11,476

Other comprehensive income/(loss)

(305)

(4,238)

(4,542)

Total comprehensive income/(loss)

6,933

Dividends

(2,551)

Share buy-back

(22)

(2,148)

(2,170)

Other equity transactions

(9)

(8)

(2)

(11)

At 30 June 2022

1,142

4,252

45,295

(9,483)

41,206

41,226

1) Audited

2) For more information see note 7 Capital distribution.

Equinor second quarter 202218

CONSOLIDATED STATEMENTOF CASH FLOWS

Quarters

First half

Q2 2022

Q1 2022

Q2 2021

(unaudited, in USD million)

Note

2022

2021

19,756

17,223

4,905

Income/(loss) before tax

36,979

9,417

2,140

2,017

2,111

Depreciation, amortisation and net impairment

4,158

4,908

Exploration expenditures written off

161

(2,821)

284

(Gains)/losses on foreign currency transactions andbalances

(2,537)

(27)

(6)

(89)

(Gains)/losses on sale of assets and businesses

(94)

(1,367)

(920)

(300)

(565)

(Increase)/decrease in other items related to operatingactivities

(1,220)

(343)

953

170

(Increase)/decrease in net derivative financial instruments

956

746

Interest received

(233)

(118)

(199)

Interest paid

(351)

(340)

18,066

20,055

6,543

Cash flows provided by operating activities beforetaxes paid and working

capital items

38,122

13,161

(8,050)

(4,307)

(344)

Taxes paid

(12,357)

(428)

(1,496)

444

(Increase)/decrease in working capital

(1,473)

(106)

8,520

15,771

6,643

Cash flows provided by operating activities

24,291

12,627

168

(111)

Cash used/received in business combinations

168

(111)

(1,713)

(2,182)

(1,747)

Capital expenditures and investments

(3,895)

(3,897)

(3,069)

(2,850)

(4,224)

(Increase)/decrease in financial investments

(5,920)

(3,525)

940

424

(65)

(Increase)/decrease in derivatives financial instruments

1,364

(370)

(134)

(Increase)/decrease in other interest-bearing items

(137)

140

692

Proceeds from sale of assets and businesses

217

1,839

(3,567)

(4,465)

(5,589)

Cash flows used in investing activities

(8,032)

(6,202)

(1)

Repayment of finance debt

(1,425)

(344)

(317)

(308)

Repayment of lease liabilities

(661)

(610)

(1,310)

(582)

(389)

Dividends paid

(1,893)

(744)

(304)

(439)

Share buy-back

(742)

(2,250)

(2,804)

687

Net current finance debt and other financing activities

(5,054)

(327)

(4,208)

(4,142)

(10)

Cash flows provided by/(used in) financing activities

(8,350)

(3,107)

745

7,165

1,044

Net increase/(decrease) in cash and cash equivalents

7,910

3,318

(1,064)

(270)

Effect of exchange rate changes on cash and cash equivalents

(1,334)

(170)

20,882

13,987

8,857

Cash and cash equivalents at the beginningof the period (net of overdraft)

13,987

6,757

20,562

20,882

9,904

Cash and cash equivalents at the end of theperiod (net of overdraft)

20,562

9,904

The line Increase (decrease) in other items relatedto operating activities in the first half of 2022 includedpayment of USD

189

million

which represent the accretion related to the paymentof the acquisition and disposal of the interestsin the Bacalhau field as described

below.

Net after cash and cash equivalents acquired. Theline item includes cash consideration related tothe acquisition of Statfjord licences in

second quarter of 2022 as described in note3 Acquisitions and disposals

The line Capital expenditures and investments forthe first half of 2022 includes USD

336

million which represents the net of an USD

769

million payment of a contingent consideration relatedto the acquisition of interests in the Bacalhaufield in 2016 and 2017, and a

corresponding receipt of USD

433

million for the simultaneous payment of contingent considerationrelated to disposal of parts of the

acquired interests in 2018.

At 30 June 2022 cash and cash equivalents includeda net overdraft of USD

million compared to a net overdraft of USD

million at

30 June 2021 and USD

140

million at 31 December 2021.

Equinor second quarter 202219

Notes to the Condensed interim financial statements

1 Organisation and basis of preparation

Organisation and principal activities

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, N-

4035 Stavanger, Norway

Equinor's business consists principally of the exploration, production, transportation, refining and marketing of petroleum and

petroleum-derived products, and other forms of energy.

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 of certain

debt obligations of Equinor ASA.

Equinor's condensed interim financial statements for the second quarter of 2022 were authorisedfor issue by the board of directors on

26 July 2022.

Basis of preparation

These condensed interim financial statements are prepared in accordance with International AccountingStandard 34 Interim Financial

Reporting as issued by the International Accounting Standards Board (IASB) and as adopted by the EuropeanUnion (EU). The

condensed interim financial statements do not include all the information and disclosures requiredby International Financial Reporting

Standards (IFRS) for a complete set of financial statements, and these condensed interim financial statementsshould be read in

conjunction with the Consolidated annual financial statements for 2021. IFRS as adopted by the EUdiffersin certain respects from

IFRS as issued by the IASB, but the differences do not impact Equinor's financial statements for the periods presented. Adescription

of the significant accounting policies applied in preparing these condensed interim financial statements is included inEquinor's

Consolidated annual financial statements for 2021.

There have been no changes to the significant accounting policies during 2022 compared to the Consolidated annualfinancial

statements for 2021. With effect from the second quarter 2022, due to the evolving trading business in theGroup, Equinor has

determined that fair value less cost to sell (FV) is an appropriate measurement basis forcommodity inventories held for trading

purposes with subsequent changes in FV recognised in the Consolidated statementof income. Comparative numbers have not been

restated due to materiality.

Certain amounts in the comparable periods in the note disclosures have been reclassified toconform to current period presentation.

The subtotals and totals in some of the tables may not equal the sum of the amounts shown dueto rounding. When determining fair

value, there have been no changes to the valuation techniques or models and Equinor applies thesame sources of input and the

same criteria for categorisation in the fair value hierarchy as disclosed in the Consolidatedannual financial statements for 2021.

The Condensed interim financial statements are unaudited.

Use of estimates

The preparation of financial statements in conformity with IFRS requires management to makejudgments, estimates and assumptions

that affect the application of policies and reported amounts of assets, liabilities, income and expenses. The estimates andassociated

assumptions are reviewed on an on-going basis and are based on historical experience and various otherfactors that are believed to

be reasonable under the circumstances, the results of which form the basis for making the judgmentsabout carrying values of assets

and liabilities that are not readily apparent from other sources. Actual results maydiffer from these estimates.

Equinor second quarter 202220

2 Segments

Equinor's operations are managed through operating segments (business areas). Thereportable 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 obligationsare excluded. With effect from

the second quarter 2022, Equinor has changed the measurement basis for the segments related toleases. Since the implementation

of IFRS 16 Leases in 2019, all leases have been presented within the Other segment andlease costs have been allocated to the

operating segments based on underlying lease payments with a corresponding credit in the Othersegment. As from the second

quarter 2022, lease contracts are accounted for in accordance with IFRS 16 in all segmentsbased on functional responsibility. This

change does not affect Equinor's consolidated financial statements. Comparative numbers in thesegments 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

35,921

36,408

Revenues inter-segment

16,580

1,559

1,548

(19,789)

Net income/(loss) from equity accounted

investments

(2)

Total revenues and other income

16,712

1,838

1,629

36,012

(19,789)

36,459

Purchases [net of inventory variation]

(36)

(0)

(33,379)

(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)

(2,140)

Exploration expenses

(45)

(135)

(151)

(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

(0)

2,405

Equinor second quarter 202221

First 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

209

35,825

36,294

Revenues inter-segment

18,245

1,324

1,191

(20,859)

Net income/(loss) from equity accounted

investments

Total revenues and other income

18,454

1,453

1,269

35,917

119

(20,859)

36,393

Purchases [net of inventory variation]

(34,289)

20,752

(13,510)

Operating, selling, general and

administrative expenses

(816)

(390)

(220)

(923)

(41)

(78)

197

(2,271)

Depreciation, amortisation and net

impairment losses

(600)

(1,378)

212

(212)

(1)

(39)

(2,017)

Exploration expenses

(106)

(81)

(16)

(203)

Total operating expenses

(1,521)

(1,822)

(24)

(35,425)

(41)

(116)

20,949

(18,001)

Net operating income/(loss)

16,933

(369)

1,245

492

(76)

18,392

Additions to PP&E, intangibles and equity

accounted investments

1,072

626

126

265

(0)

2,188

1) Restated due to implementation of IFRS 16 inthe 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, amortisationand net

impairments in MMP (increase of USD

134

million) and Other (reduction USD

201

million).

Equinor second quarter 202222

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

291

101

16,897

17,446

Revenues inter-segment

6,167

1,170

867

(8,296)

Net income/(loss) from equity accounted

investments

(6)

(4)

Total revenues and other income

6,245

1,479

968

16,986

(8,296)

17,462

Purchases [net of inventory variation]

(0)

(15,448)

(0)

8,035

(7,399)

Operating, selling, general and

administrative expenses

(811)

(425)

(286)

(969)

(32)

(112)

307

(2,329)

Depreciation, amortisation and net

impairment losses

(959)

(244)

(438)

(424)

(1)

(44)

(2,111)

Exploration expenses

(55)

(231)

(39)

(326)

Total operating expenses

(1,825)

(886)

(764)

(16,842)

(33)

(156)

8,342

(12,164)

Net operating income/(loss)

4,420

593

204

144

(31)

(78)

5,298

Additions to PP&E, intangibles and equity

accounted investments

1,322

430

180

138

159

2,243

1) Restated due to implementation of IFRS 16 inthe 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 andnet

impairments in MMP (increase of USD

140

million) and Other (reduction of USD

208

million).

Equinor second quarter 202223

First half 2022

E&P

Norway

E&P

Internationa

E&P

USA

MMP

REN

Other

Eliminations

Total

(in USD million)

Revenues third party, other revenue and

other income

341

298

160

71,746

72,702

Revenues inter-segment

34,825

2,883

2,739

182

(40,648)

Net income/(loss) from equity accounted

investments

109

151

Total revenues and other income

35,166

3,290

2,898

71,929

134

(40,648)

72,852

Purchases [net of inventory variation]

(9)

(0)

(67,668)

(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)

(4,158)

Exploration expenses

(150)

(216)

(168)

(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

(77)

36,125

Additions to PP&E, intangibles and equity

accounted investments

2,410

1,199

296

518

100

(0)

4,593

Balance sheet information

Equity accounted investments

490

113

1,001

(0)

1,659

Non-current segment assets

29,176

14,975

11,121

3,631

183

1,009

60,094

Non-current assets not allocated to

segments

12,319

Total non-current assets

74,073

Equinor second quarter 202224

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

138

514

222

32,599

1,389

143

35,005

Revenues inter-segment

11,923

1,975

1,739

166

(15,823)

Net income/(loss) from equity accounted

investments

(6)

(4)

Total revenues and other income

12,060

2,531

1,961

32,780

1,383

160

(15,823)

35,052

Purchases [net of inventory variation]

(15)

(0)

(29,625)

(1)

15,076

(14,565)

Operating, selling, general and

administrative expenses

(1,589)

(662)

(621)

(1,908)

(72)

(231)

593

(4,489)

Depreciation, amortisation and net

impairment losses

(2,579)

(661)

(874)

(704)

(1)

(88)

(4,908)

Exploration expenses

(125)

(338)

(109)

(572)

Total operating expenses

(4,293)

(1,676)

(1,605)

(32,236)

(73)

(320)

15,669

(24,534)

Net operating income/(loss)

7,767

855

356

544

1,310

(160)

(154)

10,518

Additions to PP&E, intangibles and equity

accounted investments

2,587

819

337

190

286

4,258

Balance sheet information

Equity accounted investments

1,181

1,067

2,377

Non-current segment assets

38,337

17,839

11,967

4,786

145

1,086

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 inthe 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 andnet

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 quarterof 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 impairmentreversals of USD

396

million and USD

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 basedon internal forecast on cost,

production profiles and commodity prices.

Equinor second quarter 202225

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

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

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 mainlydue 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 entityexecuting the sale for the

second quarter of 2022, Norway constitutes

% and USA constitutes

% of such revenues (

% and

% respectively for the first

half of 2022). For the second quarter of 2021, Norway and USA constituted

% and

% of such revenues, respectively (

% and

% 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

(356)

(558)

36,387

36,050

17,380

Revenues

72,437

33,508

1) Principally relates to commodity derivatives.

Equinor second quarter 202226

3 Acquisitions and disposals

Acquisition

Acquisition of Statfjord

On 31 May 2022, Equinor closed a transaction to acquire all of Spirit Energy's interests in productionlicenses in the Statfjord area

which covers the Norwegian and UK Continental Shelves and consists of three integratedproduction platforms and satellite subsea

installations. All licenses are operated by Equinor. Spirit Energy's ownership shares in the licenses covered by the transaction range

from

11.56

% to

48.78

%. The cash consideration received was USD

193

million, whereof USD

million related to Spirit's lifting of

volumes on Equinor's behalf in June 2022. The assets and liabilities acquired have been reflectedin accordance with the principles in

IFRS 3 Business Combination. The transaction is reflected in the E&P Norway and E&PInternational segments with a cash

consideration of USD

million and USD

million respectively.

In the segment E&P Norway, the acquisition resulted in an increase of USD

million in Property, Plant and Equipment, an increase

of USD

390

million in Asset Retirement Obligation, a reduction of Deferred Tax Liability of USD

298

million and an increase in taxes

payable of USD

million. In the segment E&P International, the acquisition resulted in an increaseof USD

million in Property,

Plant and Equipment, an increase of USD

241

million in Asset Retirement Obligation and an increase of Deferred Tax Asset of USD

86 million. Both the consideration and the purchase price allocation are preliminary.

Acquisition of Triton Power

On 28 June 2022, Equinor and SSE Thermal entered into an agreement to acquire the power company Triton Power from Energy

Capital Partners (ECP) for a combined consideration of USD

413

million (GBP

341

million) before adjustments that mainly relates to

net debt and working capital. The key plant included in the purchase of Triton Power is the Saltend Power Station withan installed

capacity of

1.2

GW. Equinor and SSE Thermal will own

% each of Triton Power. Closing of the transaction is expected during 2022,

subject to approvals by the UK National Security Filing and EU Merger Control.

Disposals

10% of Dogger Bank C

On 10 February 2022, Equinor closed the transaction with Eni to sell a

% equity interest in the Dogger Bank C project in the UK for

a total consideration of USD

million (GBP

million), resulting in a gain of USD

million (GBP

million). After closing, Equinor's

ownership share is

%. Equinor will continue to equity account for the remaining investment as a jointventure. The gain is presented

in the line item Other income in the Consolidated statement of income in the REN segment.

Exit Russia

Following Russia's invasion of Ukraine, Equinor announced that it had decided to stop new investments inRussia and start the

process of exiting Equinor's joint arrangements. Based on this decision, Equinorevaluated its assets in Russia and recognised net

impairments of USD

1.083

billion in the first quarter, of which USD

251

million was related to property, plant and equipment and

intangible assets and USD

832

million was related to investments accounted for using the equity method. The impairments were net

of contingent consideration from the time of acquiring the assets. The impairments were recognisedin the line items Depreciation,

amortisation and net impairment losses and Exploration expenses in the Consolidated statementof income based on the nature of the

impaired assets and reflected in the E&P International segment. During the second quarter, Equinor has transferred its participating

interests in four Russian entities to Rosneft and is released from all future commitmentsand obligations with no material impact on the

financial statements. The ownership interests in Kharyaga have been transferred to the operator.

Equinor has stopped trading in Russian oil. This means that Equinor will not enter into any newtrades or engage in new transport of

oil and oil products from Russia. Equinor has assessed the accounting impact of certain commitmentsarising from such contracts

entered into prior to the invasion and deem the impact to be immaterial.

Held for sale

Equinor Energy Ireland Limited

In the fourth quarter of 2021, Equinor entered into an agreement with Vermilion Energy Inc (Vermilion) to sell Equinor's non-operated

equity position in the Corrib gas project in Ireland. The transaction covers a sale of

100

% of the shares in Equinor Energy Ireland

Limited (EEIL). EEIL owns

36.5

% of the Corrib field alongside the operator Vermilion (

%) and Nephin Energy (

43.5

%). Equinor and

Vermilion have agreed a consideration of USD

434

million before closing adjustments and contingent consideration linked to 2022

production level and gas prices. The effective date for the transaction is 1 January 2022. Closing is expected in thesecond half of

2022.

Ekofisk and Martin Linge on the Norwegian Continental Shelf

On 10 May 2022, Equinor entered into an agreement with Sval Energi to divest Equinor'sownership share in the Greater Ekofisk

Area, a

% ownership share in Martin Linge and an

18,5

% share in Norpipe Oil AS for a cash consideration of USD

billion before

interim period settlement, and a contingent consideration linked to realised oil and gas prices for 2022 and2023. Equinor will retain a

% ownership share in Martin Linge and continue as operator of the field. Closing of thetransaction is expected in the second half of

2022, subject to customary government and license approvals.

Equinor second quarter 202227

4 Financial items

Quarters

First half

Q2 2022

Q1 2022

Q2 2021

(in USD million)

2022

2021

2,821

(284)

(43)

Net foreign currency exchange gains/(losses)

2,537

280

114

Interest income and other financial items

394

(224)

(134)

Gains/(losses) on financial investments

(357)

(123)

(526)

(599)

(101)

Gains/(losses) other derivative financial instruments

(1,126)

(462)

(327)

(266)

(304)

Interest and other finance expenses

(593)

(616)

2,023

(1,169)

(393)

Net financial items

854

(1,101)

Equinor has a US Commercial paper programme available with a limit of USD

billion. USD

799

million has been utilised as of 30

June 2022, compared to USD

2,600

million utilised as of 31 December 2021.

Equinor reports significant unrealised foreign currency gains in the second quarter 2022, mainly related toa significant strengthening

of USD versus NOK.

5 Income taxes

Quarters

First half

Q2 2022

Q1 2022

Q2 2021

(in USD million)

2022

2021

19,756

17,223

4,905

Income/(loss) before tax

36,979

9,417

(12,995)

(12,509)

(2,962)

Income tax

(25,503)

(5,620)

65.8

72.6

60.4

Effective tax rate

59.7

The effective tax rate for the second quarter of 2022 was primarily influenced by low share of income before taxfrom the Norwegian

continental shelf and positive income in countries with lower tax rates and with unrecognised deferredtax assets. The effective rate

for the first half of 2022 was primarily influenced by high share of income before tax from the Norwegiancontinental shelf and losses

including impairments recognised in countries with lower effective tax rates, partially offset by positive income in countries with lower

tax rates and with unrecognised deferred tax assets. The effective tax rate for the second quarter of 2022 and for thefirst half of 2022

was also influenced by currency effects in entities that are taxable in other currencies than the functionalcurrency.

Retrospective application of the Norwegian Petroleum Tax Act amendments adopted on 17 June 2022, effective from 1 January 2022,

had an immaterial cumulative impact on the interim financial statement in the second quarter 2022.

The effective tax rate for the second quarter of 2021 and for the first half of 2021 was primarily influenced by positiveoperating

income in countries with unrecognised deferred tax assets. The effective tax rate for the second quarter of 2021 wasalso influenced

by currency effects in entities that are taxable in other currencies than the functional currency.

6 Provisions, commitments, contingent items and related parties

Asset retirement obligation

Equinor's estimated asset retirement obligations (ARO) have decreased by USD

4.432

billion to USD

12.985

billion at 30 June 2022

compared to year-end 2021, mainly due to increased discount rates and strengthening of USD versusother currencies. Main impact

on currency is in NOK within E&P Norway. Changes in ARO are reflected within Property, plant and equipment and Provisions and

other liabilities in the Consolidated balance sheet.

Deviation notices and disputes with Norwegian tax authorities

In the fourth quarter of 2020, Equinor received a decision from the Norwegian tax authoritiesrelated to the capital structure of the

subsidiary Equinor Service Center Belgium N.V., concluding that the capital structure had to be based on the arm length's principle,

Equinor second quarter 202228

affecting the fiscal years 2012 to 2016. Equinor received a claim of USD

182

million that was paid in 2021. During the second quarter

of 2022, the tax authorities reversed its position and accepted Equinor's initial position. Assuch, the tax payment will be reimbursed to

Equinor. As no amounts were previously expensed in the financial statements, the decision does not affect the Consolidated

statement of income.

Equinor has an ongoing dispute regarding the level of Research & Development cost to be allocatedto the offshore tax regime.

During the second quarter of 2022, the Oil Taxation Office informedEquinor that it had decided to accept Equinor's position regarding

certain disputed items, resulting in a reduction in Equinor's maximum exposure toapproximately USD

149

million. Equinor has

provided for its best estimate in the matter.

During the normal course of its business, Equinor is involved in legal and other proceedings,and several unresolved claims are

currently outstanding. The ultimate liability or asset in respect of such litigation and claimscannot be determined at this time. Equinor

has provided in its Condensed interim financial statements for probable liabilities related tolitigation and claims based on the

company's best judgement. Equinor does not expect that its financial position, results of operations or cashflows will be materially

affected by the resolution of these legal proceedings.

Related parties

The line item Prepayments and Financial Receivables includes USD

1.206

billion which represent a gross receivable from the

Norwegian state under the Marketing Instruction in relation to the state's (SDFI) expected participation in the gassales activities of a

foreign subsidiary of Equinor. At year-end 2021, the corresponding amount was USD

435

million. The increase is mainly related to

increased volumes as well as higher cost price on the gas storage.

7 Capital distribution

In February 2022 Equinor launched a share buy-back programme for 2022 of up to USD

5,000

million, where the first tranche of

around USD

1,000

million was finalised in March 2022. USD

330

million of the first tranche was acquired in the open market and

recognised as a reduction in equity as treasury shares in the first quarter 2022. The treatment ofthe proportionate share of

% from

the Norwegian State is described below.

In May 2022, Equinor launched the second tranche of the 2022 share buy-back programme ofUSD

1,333

million. For the second

tranche Equinor entered into an irrevocable agreement with a third party for up to USD

440

million of shares to be purchased in the

open market, while up to USD

893

million of shares from the Norwegian State will, in accordance with an agreement with theMinistry

of Trade, Industry and Fisheries,be redeemed at the annual general meeting in May 2023 in order for the Norwegian Stateto

maintain its ownership percentage in Equinor. As of 30 June 2022, USD

338

million has been acquired in the open market, of which

USD

304

million has been settled.

The second tranche of USD

440

million (both acquired and remaining order) has been recognised as a reduction in equity as treasury

shares due to the irrevocable agreement with the third party. The remaining order of the second tranche is accrued for and classified

as Trade, other payables and provisions, and this tranche was completed 13 July 2022.

In line with the objective for the share buy-back programme which was executed by Equinor ASAin the period 28 July 2021 to 25

March 2022, a proportionate share of

% from the Norwegian State was redeemed in accordance with an agreement with the

Ministry of Petroleum and Energy for the Norwegian State to maintain their ownership percentagein Equinor. The redemption was

approved by the annual general meeting held on 11 May 2022. The State's share including interest and dividends was recognised as

a short-term liability and as a reduction in equity as treasury shares in the second quarter 2022, subsequentto the decision at the

annual general meeting held on 11 May 2022. The shares were cancelled 29 June 2022 and the liability of USD

1,399

million (NOK

13,496

million) to the Norwegian State was settled 20 July 2022.

On 26 July 2022, the board of directors decided a cash dividend for the second quarter of 2022of USD

0.20

per share and an

increase in the extraordinary cash dividend from USD

0.20

per share to USD

0.50

per share for the second and third quarter of 2022.

The Equinor shares will be traded ex-dividend 11 November 2022 on the Oslo Børs and for ADR holders on the New York Stock

Exchange. Record date will be 14 November 2022 and payment date will be 29 November 2022.

On 26 July 2022, the board of directors decided to initiate the third tranche of the sharebuy-back programme for 2022 of around USD

1,833

million, including shares to be redeemed from the Norwegian State (subject toannual general meeting approval in May 2023),

and increase the share buy-back programme for 2022 from previously communicated up to USD

5,000

million to up to USD

6,000

million. The third tranche will commence on 28 July and will end no later than 26 October2022

Equinor second quarter 202229

Responsibility statement

Board and management confirmation

Today,the board of directors, the chief executive officer and the chief financial officer have reviewed and approved the Equinor ASA

Condensed interim financial statements as of 30 June 2022.

To the best of our knowledge, we confirm that:

●

the Equinor ASA Condensed interim financial statements for the first half of 2022 havebeen prepared in accordance with IFRSs

as adopted by the European Union (EU), IFRSs as issued by the International AccountingStandards Board (IASB) and additional

Norwegian disclosure requirements in the Norwegian Accounting Act, and that

●

the information presented in the Condensed interim financial statements gives a true and fairview of the company's and the

group's assets, liabilities, financial position and results for the period viewed in their entirety, and that

●

the information presented in the Condensed interim financial statements gives a true and fair viewof the development,

performance, financial position, principle risks and uncertainties of the group, and that

●

the information presented in the Condensed interim financial statements gives a true and fairview of major related-party

transactions

Oslo, 26July 2022

THE BOARDOF DIRECTORSOF EQUINORASA

/s/ JON ERIK REINHARDSEN

CHAIR

/s/ ANNE DRINKWATER

DEPUTY CHAIR

/s/ BJØRNTORE GODAL

/s/ REBEKKA GLASSER

HERLOFSEN

/s/ MICHAELLEWIS

/s/ JONATHANLEWIS

/s/ FINN BJØRNRUYTER

/s/ TOVEANDERSEN

/s/ STIG LÆGREID

/s/ PER MARTIN LABRÅTEN

/s/ HILDEMØLLERSTAD

/s/ ULRICAFEARN

CHIEF FINANCIALOFFICER

/s/ ANDERSOPEDAL

PRESIDENTAND CEO

Equinor second quarter 202230

SUPPLEMENTARYDISCLOSURES

Exchange rates

Quarters

Change

First half

Q2 2022

Q1 2022

Q2 2021

Q2 on Q2

Exchange rates

2022

2021

Change

0.1059

0.1130

0.1195

(11%)

NOK/USD average daily exchange rate

0.1095

0.1184

(8%)

0.1004

0.1143

0.1168

(14%)

NOK/USD period-end exchange rate

0.1004

0.1168

(14%)

9.4411

8.8483

8.3697

13%

USD/NOK average daily exchange rate

9.1327

8.4445

9.9629

8.7479

8.5592

16%

USD/NOK period-end exchange rate

9.9629

8.5592

16%

1.0636

1.1216

1.2058

(12%)

EUR/USD average daily exchange rate

1.0928

1.2053

(9%)

1.0387

1.1101

1.1884

(13%)

EUR/USD period-end exchange rate

1.0387

1.1884

(13%)

USE AND RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

Non-GAAP financial measures are defined as numerical measures that either excludeor include amounts or certain accounting items

that are not excluded or included in the comparable measures calculated and presented inaccordance with GAAP (i.e., IFRS).

Management considers adjusted earnings and adjusted earnings after tax together with other non-GAAPfinancial measures as

defined below, to provide a better indication of the underlying operational and financial performance in the period (excluding

financing), and therefore better facilitate comparisons between periods.

The following financial measures may be considered non-GAAP financial measures:

●

Adjusted earnings

are based on net operating income/(loss) and adjusts for certain items affecting the income for the period in

order to separate out effects that management considers may not be well correlated to Equinor'sunderlying operational

performance in the individual reporting period. Management considers adjusted earnings to bea supplemental measure to

Equinor's IFRS measures, which provides an indication of Equinor's underlyingoperational performance in the period and

facilitates an alternative understanding of operational trends between the periods. Adjusted earningsinclude adjusted revenues

and other income, adjusted purchases, adjusted operating expenses and selling, general and administrativeexpenses, adjusted

depreciation expenses and adjusted exploration expenses.

●

Adjusted earnings after tax

- equals the sum of net operating income/(loss) less income tax in business areas and adjustments

to operating income taking the applicable marginal tax into consideration. Adjusted earnings aftertax excludes net financial items

and the associated tax effects on net financial items. It is based on adjusted earnings less the taxeffects on all elements included

in adjusted earnings (or calculated tax on operating income and on each of the adjusting itemsusing an estimated marginal tax

rate). In addition, tax effect related to tax exposure items not related to the individual reporting period isexcluded from adjusted

earnings after tax. Management considers adjusted earnings after tax, which reflects a normalised taxcharge associated with its

operational performance excluding the impact of financing, to be a supplemental measure to Equinor'snet income. Certain net

USD denominated financial positions are held by group companies that have a USD functionalcurrency that is different from the

currency in which the taxable income is measured. As currency exchange rates change betweenperiods, the basis for measuring

net financial items for IFRS will change disproportionally with taxable income which includesexchange gains and losses from

translating the net USD denominated financial positions into the currency of the applicable tax return. Therefore,the effective tax

rate may be significantly higher or lower than the statutory tax rate for any given period. Adjustedtaxes included in adjusted

earnings after tax should not be considered indicative of the amount of current or total tax expense(or taxes payable) for the

period.

Adjusted earnings and adjusted earnings after tax should be considered additional measures ratherthan substitutes for net operating

income/(loss) and net income/(loss), which are the most directly comparable IFRS measures. Thereare material limitations

associated with the use of adjusted earnings and adjusted earnings after tax compared with theIFRS measures as such non-GAAP

measures do not include all the items of revenues/gains or expenses/losses of Equinor thatare needed to evaluate its profitability on

an overall basis. Adjusted earnings and adjusted earnings after tax are only intended to beindicative of the underlying developments

in trends of our on-going operations for the production, manufacturing and marketing of ourproducts and exclude pre-and post-tax

impacts of net financial items. Equinor reflects such underlying development in our operations by eliminatingthe effects of certain

items that may not be directly associated with the period's operations or financing. However, for that reason, adjusted earnings and

adjusted earnings after tax are not complete measures of profitability. These measures should therefore not be used in isolation.

●

Capital employed adjusted -

this measure is defined as Equinor's total equity (including non-controlling interests) andnet

interest-bearing debt adjusted.

Equinor second quarter 202231

●

Net interest-bearing debt adjusted

- this measure is defined as Equinor's interest bearing financial liabilities less cashand cash

equivalents and current financial investments, adjusted for collateral deposits and balances heldby Equinor's captive insurance

company and balances related to the SDFI.

●

Net debt to capital employed

Net debt to capital employed adjusted, including lease liabilities

and

Net debt to capital

employed ratio adjusted

- Following implementation of IFRS 16 Equinor presents a "net debt to capital employedadjusted"

excluding lease liabilities from the gross interest-bearing debt. Comparable numbers are presentedin the table Calculation of

capital employed and net debt to capital employed ratio in the report include Finance leaseaccording to IAS17, adjusted for

marketing instruction agreement.

●

Organic capital expenditures

- Capital expenditures, defined as Additions to PP&E, intangibles and equity accounted

investments in note 2 Segments to the Condensed interim financial statements, amounted to USD2.4 billion in the second quarter

of 2022 (second quarter of 2021: USD 2.2 billion). Organic capital expenditures are capital expendituresexcluding acquisitions,

recognised lease assets (RoU assets) and other investments with significant different cash flow pattern. In the second quarterof

2022, a total of USD 0.4 billion (second quarter of 2021: USD 0.2 billion) is excluded in the organiccapital expenditures. Forward-

looking organic capital expenditures included in this report are not reconcilable to its mostdirectly comparable IFRS measure

without unreasonable efforts, because the amounts excluded from such IFRS measure to determine organiccapital expenditures

cannot be predicted with reasonable certainty.

●

Gross capital expenditures

- Capital expenditures, defined as Additions to PP&E, intangibles and equity accountedinvestments

in the financial statements, including Equinor's proportionate share of capital expendituresin equity accounted investments not

included in additions to equity accounted investments. Forward-looking gross capital expendituresincluded in this report are not

reconcilable to its most directly comparable IFRS measure without unreasonable efforts, because the amountsexcluded from

such IFRS measure to determine gross capital expenditures cannot be predicted with reasonable certainty.

●

Free cash flow for the second quarter of 2022 and 2021

includes the following line items in the Consolidated statement of cash

flows: Cash flows provided by operating activities before taxes paid and working capital items (2022: USD18.1 billion | 2021: USD

6.5 billion), taxes paid (2022: negative USD 8.0 billion | 2021: negative USD 0.3 billion), cashused/received in business

combinations (2022: USD 0.2 billion | 2021: negative USD 0.1 billion), capital expenditures and investments (2022:negative USD

1.7 billion | 2021: negative USD 1.7 billion), increase/decrease in other items interest-bearing (2022: USD0.0 billion | 2021:

negative USD 0.1 billion), proceeds from sale of assets and businesses (2022: USD 0.1 billion | 2021: USD 0.7billion), dividend

paid (2022: negative USD 1.3 billion | 2021: negative USD 0.4 billion) and share buy-back (2022: negative USD0.3 billion | 2021:

USD 0.0 billion), resulting in a free cash flow of USD 7.0 billion in the second quarterof 2022 (2021: 4.5 billion).

●

Free cash flow for the first half of 2022 and 2021

includes the following line items in the Consolidated statement of cash flows:

Cash flows provided by operating activities before taxes paid and working capital items (2022: USD38.1 billion | 2021: USD 13.2

billion), taxes paid (2022: negative USD 12.4 billion | 2021: negative USD 0.4 billion), cashused/received in business

combinations (2022: USD 0.2 billion | 2021: negative USD 0.1 billion), capital expenditures and investments (2022:negative USD

3.9 billion | 2021: negative USD 3.9 billion), increase/decrease in other items interest-bearing (2022: USD0.0 billion | 2021:

negative USD 0.1 billion), proceeds from sale of assets and businesses (2022: USD 0.2 billion | 2021: USD1.8 billion), dividend

paid (2022: negative USD 1.9 billion | 2021: negative USD 0.7 billion) and share buy-back (2022: negative USD0.7 billion | 2021:

USD 0.0 billion), resulting in a free cash flow of USD 19.7 billion in the first half

of 2022 (2021: USD 9.7 billion).

Adjusted earnings

adjust for the following items:

●

Changes in fair value of derivatives:

Certain gas contracts are, due to pricing or delivery conditions, deemed to contain

embedded derivatives, required to be carried at fair value. Also, certain transactions relatedto historical divestments include

contingent consideration, are carried at fair value. The accounting impacts of changes in fairvalue of the aforementioned are

excluded from adjusted earnings. In addition, adjustments are also made for changes in the unrealisedfair value of derivatives

related to some natural gas trading contracts. Due to the nature of these gas sales contracts, theseare classified as financial

derivatives to be measured at fair value at the balance sheet date. Unrealised gains and losseson these contracts reflect the

value of the difference between current market gas prices and the actual prices to be realised under the gas salescontracts. Only

realised gains and losses on these contracts are reflected in adjusted earnings. This presentation best reflectsthe underlying

performance of the business as it replaces the effect of temporary timing differences associated with the re-measurements of the

derivatives to fair value at the balance sheet date with actual realised gains and losses forthe period.

●

Periodisation of inventory hedging effect:

Commercial storage is hedged in the derivatives market and is accounted for using

the lower of cost or market price. If market prices increase above cost price, the inventory willnot reflect this increase in value.

There will be a loss on the derivative hedging the inventory since the derivativesalways reflect changes in the market price. An

adjustment is made to reflect the unrealised market increase of the commercial storage. Asa result, loss on derivatives is

matched by a similar adjustment for the exposure being managed. If market prices decreasebelow cost price, the write-down of

the inventory and the derivative effect in the IFRS income statement will offset each other and no adjustment is made.

●

Over/underlift

: Over/underlift is accounted for using the sales method and therefore revenues were reflectedin the period the

product was sold rather than in the period it was produced. The over/underlift positiondepended on several factors related to our

lifting programme and the way it corresponded to our entitlement share of production. The effect on incomefor the period is

therefore adjusted, to show estimated revenues and associated costs based upon the productionfor the period to reflect

operational performance and comparability with peers.

Equinor second quarter 202232

●

The

operational storage

is not hedged and is not part of the trading portfolio. Cost of goods sold is measuredbased on the

FIFO (first-in, first-out) method, and includes realised gains or losses that arise due tochanges in market prices. These gains or

losses will fluctuate from one period to another and are not considered part of the underlyingoperations for the period.

●

Impairment and reversal of impairment

are excluded from adjusted earnings 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 impairmentis reversed. Impairment and reversal of

impairment can impact both the exploration expenses and the depreciation, amortisation and impairmentline items.

●

Gain or loss from sales of assets

is eliminated from the measure since the gain or loss does not give an indicationof future

performance or periodic performance; such a gain or loss is related to the cumulative value creationfrom the time the asset is

acquired until it is sold.

●

Eliminations (Internal unrealised profit on inventories)

Volumes derived from equity oil inventory will 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 ininventory at period end, is

eliminated according to IFRS (write down to production cost). The proportion of realised versus unrealisedgain will fluctuate from

one period to another due to inventory strategies and consequently impact net operatingincome/(loss). Write-down to production

cost is not assessed to be a part of the underlying operational performance, and eliminationof internal profit related to equity

volumes is excluded in adjusted earnings.

●

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 unusualor infrequent transactions, but they may

also include transactions that are significant which would not necessarily qualify as eitherunusual or infrequent. Other items are

carefully assessed and can include transactions such as provisions related to reorganisation,early retirement, etc.

●

Change in accounting policy

are adjusted when the impacts on income in the period are unusual or infrequent,and not

reflective of Equinor's underlying operational performance in the reportingperiod.

For more information on our use of non-GAAP financial measures, see section 5.2 Use and reconciliationof non-GAAP financial

measures in Equinor's 2021 Annual Report and Form 20-F.

Equinor second quarter 202233

Reconciliation of adjusted earnings

The table specifies the adjustments made to each of the profit and loss line item includedin the net operating income/(loss) subtotal.

Items impacting net operating income/(loss) in the

second quarter of 2022

Equinor

group

Exploration

Production

Norway

Exploration

Production

Internationa

Exploration

Production

USA

Marketing,

Midstream

Processing

Rene-

wables

Other

(in USD million)

Total revenues and other income

36,459

16,712

1,838

1,629

36,012

(19,748

)

Adjusting items

(144)

(221)

118

(41)

Changes in fair value of derivatives

(34)

(74)

Periodisation of inventory hedging effect

Over-/underlift

(144)

(221)

Gain/loss on sale of assets

(9)

Adjusted total revenues and other income

36,315

16,491

1,956

1,629

35,971

(19,748

)

Purchases [net of inventory variation]

(13,851)

(36)

(0)

(33,379)

19,564

Adjusting items

(34)

(50)

Operational storage effects

(50)

Eliminations

Adjusted purchases [net of inventory variation]

(13,885)

(36)

(0)

(33,429)

19,580

Operating and administrative expenses

(2,404)

(984)

(370)

(244)

(956)

(56)

206

Adjusting items

(3)

(56)

Over-/underlift

(10)

Other adjustments

Gain/loss on sale of assets

Provisions

(56)

Adjusted operating and administrative expenses

(2,390)

(914)

(373)

(240)

(1,012)

(56)

206

Depreciation, amortisation and net impairments

(2,140)

(1,202)

(315)

(362)

(221)

(1)

(39)

Adjusting items

(9)

(0)

(9)

Impairment

(9)

Adjusted depreciation, amortisation and net

impairments

(2,149)

(1,203)

(324)

(362)

(221)

(1)

(39)

Exploration expenses

(331)

(45)

(135)

(151)

Adjusting items

Impairment

Adjusted exploration expenses

(301)

(44)

(111)

(146)

Net operating income/(loss)

17,733

14,482

982

872

1,456

(42)

(17)

Sum of adjusting items

(143)

(152)

130

(146)

Adjusted earnings/(loss)

17,590

14,330

1,111

881

1,310

(42)

(1)

Tax on adjusted earnings

(12,590)

(11,121)

(405)

(21)

(1,050)

(1)

Adjusted earnings/(loss) after tax

5,000

3,210

707

861

259

(34)

(1)

Equinor second quarter 202234

Items impacting net operating income/(loss) in the

second quarter of 2021

Equinor

group

Exploration

Production

Norway

Exploration

Production

Internationa

Exploration

Production

USA

Marketing,

Midstream

Processing

Rene-

wables

Other

(in USD million)

Total revenues and other income

17,462

6,245

1,479

968

16,986

(8,218)

Adjusting items

(289)

(22)

(161)

(107)

Changes in fair value of derivatives

(60)

(19)

(41)

Periodisation of inventory hedging effect

(67)

Operating and administrative expenses

Over-/underlift

(106)

(2)

(103)

Provisions

(57)

Adjusted total revenues and other income

17,173

6,224

1,318

968

16,879

(8,218)

Purchases [net of inventory variation]

(7,399)

(0)

(15,448)

8,035

Adjusting items

(133)

(87)

(46)

Operational storage effects

(87)

Eliminations

(46)

Adjusted purchases [net of inventory variation]

(7,531)

(0)

(15,535)

7,989

Operating and administrative expenses

(2,329)

(811)

(425)

(286)

(969)

(32)

195

Adjusting items

(35)

Over-/underlift

(35)

Other adjustments

(25)

Gain/loss on sale of assets

Provisions

Adjusted operating and administrative expenses

(2,287)

(846)

(364)

(272)

(968)

(32)

195

Depreciation, amortisation and net impairments

(2,111)

(959)

(244)

(438)

(424)

(1)

(44)

Adjusting items

(389)

(403)

(188)

202

Impairment

211

202

Reversal of impairment

(600)

(403)

(197)

Adjusted depreciation, amortisation and net

impairments

(2,500)

(1,362)

(433)

(438)

(222)

(1)

(44)

Exploration expenses

(326)

(55)

(231)

(39)

Adjusting items

113

Impairment

113

Adjusted exploration expenses

(212)

(48)

(136)

(28)

Net operating income/(loss)

5,298

4,420

593

204

144

(31)

(32)

Sum of adjusting items

(656)

(453)

(193)

(46)

Adjusted earnings/(loss)

4,641

3,967

400

230

154

(31)

(78)

Tax on adjusted earnings

(3,064)

(2,861)

(106)

(124)

Adjusted earnings/(loss) after tax

1,578

1,106

294

230

(27)

(56)

1) E&P Norway, E&P International, MMP and Other segments are restated dueto implementation of IFRS 16 in the segments.

Equinor second quarter 202235

Items impacting net operating income/(loss) in the

first quarter of 2022

Equinor

group

Exploration

Production

Norway

Exploration

Production

Internationa

Exploration

Production

USA

Marketing,

Midstream

Processing

Rene-

wables

Other

(in USD million)

Total revenues and other income

36,393

18,454

1,453

1,269

35,917

119

(20,818)

Adjusting Items

319

209

400

(202)

(87)

(1)

Changes in fair value of derivatives

205

(154)

314

Periodisation of inventory hedging effect

(247)

Over-/underlift

449

363

Gain/loss on sale of assets

(88)

(87)

(1)

Adjusted total revenues and other income

36,712

18,663

1,852

1,269

35,715

(20,819)

Purchases [net of inventory variation]

(13,510)

(34,289)

20,752

Adjusting Items

(272)

(181)

(90)

Operational storage effects

(181)

Eliminations

(90)

Adjusted purchases [net of inventory variation]

(13,781)

(34,470)

20,662

Operating and administrative expenses

(2,271)

(816)

(390)

(220)

(923)

(41)

119

Adjusting Items

(179)

(68)

(33)

(0)

(78)

Over-/underlift

(101)

(68)

(33)

Provisions

(78)

Adjusted operating and administrative

expenses

(2,450)

(884)

(423)

(221)

(1,001)

(41)

119

Depreciation, amortisation and net impairments

(2,017)

(600)

(1,378)

212

(212)

(1)

(39)

Adjusting Items

(315)

(821)

1,039

(533)

Impairment

1,039

Reversal of Impairment

(1,354)

(821)

(533)

Adjusted depreciation, amortisation and net

impairments

(2,333)

(1,421)

(339)

(320)

(212)

(1)

(39)

Exploration expenses

(203)

(106)

(81)

(16)

Adjusting Items

Impairment

Adjusted exploration expenses

(157)

(101)

(40)

(15)

Net operating income/(loss)

18,392

16,933

(369)

1,245

492

Sum of adjusting items

(401)

(676)

1,447

(532)

(461)

(87)

(91)

Adjusted earnings/(loss)

17,991

16,256

1,078

713

(10)

(76)

Tax on adjusted earnings

(12,812)

(12,602)

(234)

(13)

Adjusted earnings/(loss) after tax

5,179

3,655

844

700

(7)

(49)

1) E&P Norway, E&P International, MMP and Other segments are restated dueto implementation of IFRS 16 in the segments.

Equinor second quarter 202236

Items impacting net operating income/(loss) in the

first half of 2022

Equinor

group

Exploration

Production

Norway

Exploration

Production

Internationa

Exploration

Production

USA

Marketing,

Midstream

Processing

Rene-

wables

Other

(in USD million)

Total revenues and other income

72,852

35,166

3,290

2,898

71,929

134

(40,565)

Adjusting items

174

(13)

517

(243)

(87)

(1)

Changes in fair value of derivatives

170

(154)

354

(29)

Periodisation of inventory hedging effect

(205)

Over-/underlift

305

142

164

Gain/loss on sale of assets

(97)

(9)

(87)

(1)

Adjusted total revenues and other income

73,027

35,154

3,808

2,898

71,686

(40,566)

Purchases [net of inventory variation]

(27,361)

(9)

(0)

(67,668)

40,316

Adjusting items

(306)

(231)

(75)

Operational storage effects

(231)

Eliminations

(75)

Adjusted purchases [net of inventory variation]

(27,666)

(9)

(0)

(67,899)

40,242

Operating and administrative expenses

(4,675)

(1,799)

(760)

(465)

(1,880)

(97)

326

Adjusting items

(165)

(36)

(134)

Over-/underlift

(41)

(43)

Other adjustments

Gain/loss on sale of assets

Provisions

(134)

Adjusted operating and administrative expenses

(4,840)

(1,798)

(796)

(461)

(2,013)

(97)

326

Depreciation, amortisation and net impairments

(4,158)

(1,802)

(1,693)

(150)

(433)

(2)

(78)

Adjusting items

(324)

(821)

1,030

(533)

Impairment

1,030

Reversal of impairment

(1,354)

(821)

(533)

Adjusted depreciation, amortisation and net

impairments

(4,482)

(2,624)

(663)

(682)

(433)

(2)

(78)

Exploration expenses

(534)

(150)

(216)

(168)

Adjusting items

Impairment

Adjusted exploration expenses

(458)

(146)

(151)

(161)

Net operating income/(loss)

36,125

31,414

613

2,117

1,948

(2)

Sum of adjusting items

(544)

(828)

1,576

(523)

(607)

(87)

(75)

Adjusted earnings/(loss)

35,581

30,586

2,189

1,594

1,341

(52)

(78)

Tax on adjusted earnings

(25,401)

(23,722)

(639)

(34)

(1,043)

Adjusted earnings/(loss) after tax

10,180

6,864

1,550

1,560

297

(42)

(50)

Equinor second quarter 202237

Items impacting net operating income/(loss) in the

first half of 2021

Equinor

group

Exploration

Production

Norway

Exploration

Production

Internationa

Exploration

Production

USA

Marketing,

Midstream

Processing

Rene-

wables

Other

(in USD million)

Total revenues and other income

35,052

12,060

2,531

1,961

32,780

1,383

(15,663)

Adjusting Items

(1,934)

(165)

(12)

(378)

(1,379)

Changes in fair value of derivatives

(44)

(19)

(24)

Periodisation of inventory hedging effect

(354)

Impairment from associated companies

Over-/underlift

(100)

(145)

Gain/loss on sale of assets

(1,382)

Provisions

(57)

Adjusted total revenues and other income

33,118

11,896

2,519

1,961

32,402

(15,663)

Purchases [net of inventory variation]

(14,565)

(15)

(0)

(29,625)

15,075

Adjusting Items

(37)

(191)

154

Operational storage effects

(191)

Eliminations

154

Adjusted purchases [net of inventory variation]

(14,602)

(15)

(0)

(29,816)

15,229

Operating and administrative expenses

(4,489)

(1,589)

(662)

(621)

(1,908)

(72)

362

Adjusting Items

(21)

(10)

Over-/underlift

(21)

Change in accounting policy

(23)

(25)

Gain/loss on sale of assets

Provisions

Adjusted operating and administrative expenses

(4,461)

(1,544)

(683)

(606)

(1,918)

(72)

362

Selling, general and administrative expenses

(413)

(2)

(42)

(104)

(195)

(44)

(26)

Adjusted selling, general and administrative

expenses

(413)

(2)

(42)

(104)

(195)

(44)

(26)

Depreciation, amortisation and net impairments

(4,908)

(2,579)

(661)

(874)

(704)

(1)

(88)

Adjusting Items

(127)

(138)

259

Impairment

622

276

259

Reversal of impairment

(600)

(403)

(197)

Adjusted depreciation, amortisation and net

impairments

(4,886)

(2,706)

(799)

(846)

(445)

(1)

(88)

Exploration expenses

(572)

(125)

(338)

(109)

Adjusting Items

130

Impairment

130

Adjusted exploration expenses

(443)

(118)

(239)

(86)

Net operating income/(loss)

10,518

7,767

855

356

544

1,310

(314)

Sum of adjusting items

(1,792)

(240)

(72)

(321)

(1,379)

154

Adjusted earnings/(loss)

8,726

7,527

783

422

224

(70)

(160)

Tax on adjusted earnings

(5,859)

(5,447)

(312)

(153)

Adjusted earnings/(loss) after tax

2,867

2,081

472

422

(61)

(117)

1) E&P Norway, E&P International, MMP and Other segments are restated dueto implementation of IFRS 16 in the segments

Equinor second quarter 202238

Adjusted earnings after tax by reporting segment

Quarters

Q2 2022

Q1 2022

Q2 2021

(in USD million)

Adjusted

earnings

Tax on

adjusted

earnings

Adjusted

earnings

after tax

Adjusted

earnings

Tax on

adjusted

earnings

Adjusted

earnings

after tax

Adjusted

earnings

Tax on

adjusted

earnings

Adjusted

earnings

after tax

E&P Norway

14,330

(11,121)

3,210

16,256

(12,602)

3,655

3,967

(2,861)

1,106

E&P International

1,111

(405)

707

1,078

(234)

844

400

(106)

294

E&P USA

881

(21)

861

713

(13)

700

230

MMP

1,310

(1,050)

259

154

(124)

REN

(42)

(34)

(10)

(7)

(31)

(27)

Other

(1)

(76)

(49)

(78)

(56)

Equinor group

17,590

(12,590)

5,000

17,991

(12,812)

5,179

4,641

(3,064)

1,578

Effective tax rates on adjusted

earnings

71.6%

71.2%

66.0%

1) Q1 2022 and Q2 2021 are restated dueto implementation of IFRS 16 in the segments.

First half

2022

2021

(in USD million)

Adjusted

earnings

Tax on

adjusted

earnings

Adjusted

earnings

after tax

Adjusted

earnings

Tax on

adjusted

earnings

Adjusted

earnings

after tax

E&P Norway

30,586

(23,722)

6,864

7,527

(5,447)

2,081

E&P International

2,189

(639)

1,550

783

(312)

472

E&P USA

1,594

(34)

1,560

422

MMP

1,341

(1,043)

297

224

(153)

REN

(52)

(42)

(70)

(61)

Other

(78)

(50)

(160)

(117)

Equinor group

35,581

(25,401)

10,180

8,726

(5,859)

2,867

Effective tax rates on adjusted earnings

71.4%

67.1%

1) First half 2021 is restated due to implementationof IFRS 16 in the segments.

Equinor second quarter 202239

Reconciliation of adjusted earnings after tax to net income

Quarters

Reconciliation of adjusted earnings after tax to net income

First half

Q2 2022

Q1 2022

Q2 2021

(in USD million)

2022

2021

17,733

18,392

5,298

Net operating income/(loss)

36,125

10,518

13,075

12,572

3,025

Income tax less tax on net financial items

25,647

5,888

4,658

5,820

2,272

Net operating income after tax

C = A-B

10,478

4,630

(143)

(401)

(656)

Items impacting net operating income/(loss)

(544)

(1,792)

(485)

239

Tax on items impacting net operating income/(loss)

(246)

(29)

5,000

5,179

1,578

Adjusted earnings after tax*

F = C+D-E

10,180

2,867

2,023

(1,169)

(393)

Net financial items

854

(1,101)

Tax on net financial items

144

268

6,762

4,714

1,943

Net income/(loss)

I = C+G+H

11,476

3,797

1) For items impacting net operating income/(loss),see Reconciliation of adjusted earnings in the Supplementarydisclosures.

Quarters

Change

Adjusted exploration expenses

First half

Q2 2022

Q1 2022

Q2 2021

Q2 on Q2

(in USD million)

2022

2021

Change

121

127

186

(35%)

E&P Norway exploration expenditures

248

300

(17%)

115

127

(10%)

E&P International exploration expenditures

159

260

(39%)

(10%)

E&P USA exploration expenditures

66%

262

221

342

(23%)

Group exploration expenditures

484

606

(20%)

(88)

N/A

Expensed, previously capitalised exploration expenditures

(41)

N/A

(19)

(91)

(42)

(54%)

Capitalised share of current period's explorationactivity

(110)

(123)

(10%)

113

(74%)

Impairment (reversal of impairment)

130

(41%)

331

203

326

Exploration expenses according to IFRS

534

572

(7%)

(30)

(46)

(113)

(74%)

Items impacting net operating income/(loss)

(76)

(130)

(41%)

301

157

212

42%

Adjusted exploration expenses

458

443

1) For items impacting net operating income/(loss),see Reconciliation of adjusted earnings in the Supplementarydisclosures.

Equinor second quarter 202240

Calculation of capital employed and net debt to capital employed ratio

The table below reconciles the net interest-bearing debt adjusted, the capital employed, the net debt tocapital employed ratio

adjusted including lease liabilities and the net debt to capital employed adjusted ratiowith the most directly comparable financial

measure or measures calculated in accordance with IFRS.

Calculation of capital employed and net debt to capitalemployed ratio

At 30 June

At 31 December

(in USD million)

2022

2021

Shareholders' equity

41,206

39,010

Non-controlling interests

Total equity

41,226

39,024

Current finance debt and lease liabilities

6,913

6,386

Non-current finance debt and lease liabilities

26,380

29,854

Gross interest-bearing debt

33,293

36,239

Cash and cash equivalents

20,582

14,126

Current financial investments

25,105

21,246

Cash and cash equivalents and financial investment

45,687

35,372

Net interest-bearing debt [9]

B1 = B-C

(12,393)

867

Other interest-bearing elements

4,361

2,369

Net interest-bearing debt adjusted normalised fortax payment, including lease liabilities*

(8,033)

3,236

Lease liabilities

3,457

3,562

Net interest-bearing debt adjusted*

(11,490)

(326)

Calculation of capital employed*

Capital employed

A+B1

28,833

39,891

Capital employed adjusted, including lease liabilities

A+B2

33,194

42,259

Capital employed adjusted

A+B3

29,737

38,697

Calculated net debt to capital employed*

Net debt to capital employed

(B1)/(A+B1)

(43.0%)

2.2%

Net debt to capital employed adjusted, includinglease liabilities

(B2)/(A+B2)

(24.2%)

7.7%

Net debt to capital employed adjusted

(B3)/(A+B3)

(38.6%)

(0.8%)

1)Cash and cash equivalents adjustments regardingcollateral deposits classified as cash and cash equivalentsin the Consolidated

balance sheet but considered as non-cash in the non-GAAPcalculations as well as financial investments inEquinor Insurance AS

classified as current financial investments.

Equinor second quarter 202241

FORWARD-LOOKING STATEMENTS

This report contains certain forward-looking statements that involve risks and uncertainties. In some cases,we use words such as

"ambition", "continue", "could", "estimate", "intend", "expect", "believe", "likely", "may", "outlook","plan", "strategy", "will", "guidance",

"targets", and similar expressions to identify forward-looking statements. Forward-lookingstatements include all statements other than

statements of historical fact, including, among others, statements regarding Equinor's plans, intentions, aims,ambitions and

expectations, including with respect to the Covid-19 pandemic, its impacts, consequencesand risks and Equinor's response to it; the

decision to stop new investments into Russia and trading in Russian oil; estimates regardingtax payments; the commitment to

develop as a broad energy company; the ambition to be a leader in the energy transitionand reduce net group-wide greenhouse gas

emissions; future financial performance, including cash flow and liquidity; accounting policies; the ambition to growcash flow and

returns; expectations regarding returns from Equinor's oil and gas portfolio; plans to developfields and increase gas exports; plans for

renewables production capacity and investments in renewables; expectations regarding development of renewablesprojects, CCUS

and hydrogen businesses; market outlook and future economic projections and assumptions, including commodityprice assumptions;

organic capital expenditures through 2025; expectations and estimates regarding production; theambition to keep unit of production

cost in the top quartile of our peer group; scheduled maintenance activity and the effects thereof on equity production;completion and

results of acquisitions and disposals; expected amount and timing of dividend payments and the implementationof our share buy-

back programme; and provisions and contingent liabilities. 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 formany reasons.

These forward-looking statements reflect current views about future events and are, by their nature, subjectto significant risks and

uncertainties because they relate to events and depend on circumstances that will occur inthe 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 recent significant oil price volatility

and production and the uncertainty regarding demand created by the Covid-19 pandemic;Russia's invasion of Ukraine and our

subsequent decision to stop new investments into Russia and exiting our Russian joint ventures; levels andcalculations of reserves

and material differences from reserves estimates; natural disasters, adverse weather conditions, climate change, and otherchanges

to business conditions; regulatory stability and access to attractive renewable opportunities; unsuccessful drilling; operational

problems, in particular in light of supply chain disruptions; health, safety and environmental risks; the effects of climate change;

regulations on hydraulic fracturing; security breaches, including breaches of our digital infrastructure (cybersecurity); ineffectiveness of

crisis management systems; the actions of competitors; the development and use of new technology, particularly in the renewable

energy sector; inability to meet strategic objectives; the difficulties involving transportation infrastructure; political andsocial stability

and economic growth in relevant areas of the world; reputational damage; an inability to attract andretain personnel; risks related to

implementing a new corporate structure; inadequate insurance coverage; changes or uncertainty in or non-compliancewith laws and

governmental regulations; the actions of the Norwegian state as majority shareholder; failure to meet ourethical and social standards;

the political and economic policies of Norway and other oil-producing countries; non-compliance with internationaltrade sanctions; the

actions of field partners; adverse changes in tax regimes; exchange rate and interest rate fluctuations; factorsrelating to trading,

supply and financial risk; general economic conditions; and other factors discussed elsewhere inthis report and in Equinor's Annual

Report on Form 20-F for the year ended December 31, 2021, filed with the U.S. Securities and ExchangeCommission (including

section 2.13 Risk review - Risk factors thereof). Equinor's 2021 Annual Report and Form 20-Fis available at Equinor's website

www.equinor.com.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, wecannot 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. Anyforward-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 report, either to make them conform to actual resultsor changes in our expectations.

We use certain terms in this document, such as "resource" and "resources" that the SEC's rules prohibit us from includingin our filings

with the SEC. U.S. investors are urged to closely consider the disclosures in our Form 20-F, SEC File No. 1-15200. This form is

available on our website or by calling 1-800-SEC-0330 or logging on to www.sec.gov.

Equinor second quarter 202242

END NOTES

The group's

average liquids price

is a volume-weighted average of the segment prices of crude oil, condensate and natural gas

liquids (NGL).

The

refining reference margin

is a typical gross margin and will differ from the actual margin, due to variations in type of crude

and other feedstock, throughput, product yields, freight cost, inventory, etc

Liquids volumes

include oil, condensate and NGL, exclusive of royalty oil.

Equity volumes

represent produced volumes under a

production sharing agreement (PSA)

that correspond to Equinor's

ownership share in a field.

Entitlement volumes

, on the other hand, represent Equinor's share of the volumes distributed to the

partners in the field, which are subject to deductions for, among other things, royalty and the host government's share of profit oil.

Under the terms of a PSA, the amount of profit oil deducted from equity volumes will normallyincrease with the cumulative return

on investment to the partners and/or production from the licence. Consequently, the gap between entitlement and equity volumes

will likely increase in times of high liquids prices. The distinction between equity and entitlementis relevant to most PSA regimes,

whereas it is not applicable in most concessionary regimes such as those in Norway, the UK, the US, Canada and Brazil.

Transactions with the

Norwegian State.

The Norwegian State, represented by the Ministry of Trade, Industry and Fisheries, is

the majority shareholder of Equinor and it also holds major investments in other entities. This ownershipstructure means that

Equinor participates in transactions with many parties that are under a common ownership structureand therefore meet the

definition of a related party. Equinor purchases liquids and natural gas from the Norwegian State, represented by SDFI (the

State's Direct Financial Interest). In addition, Equinor sells the State's natural gas productionin its own name, but for the

Norwegian State's account and risk, and related expenditures are refunded by the State.

The production guidance reflects our estimates of

proved reserves

calculated in accordance with US Securities and Exchange

Commission (SEC) guidelines and additional production from other reserves not included inproved reserves estimates. The

growth percentage is based on historical production numbers, adjusted for portfolio measures.

The group's

average invoiced gas prices

include volumes sold by the MMP segment.

The internal

transfer price

paid from the MMP segment to the E&P Norway and E&P USA segments.

Since different legal entities in the group lend to projects and others borrow from banks, project financing through externalbank

or similar institutions is not netted in the balance sheet and results in over-reporting of the debtstated in the balance sheet

compared to the underlying exposure in the group. Similarly, certain net interest-bearing debt incurred from activities pursuant to

the Marketing Instruction of the Norwegian government are offset against receivables on the SDFI. Someinterest-bearing

elements are classified together with non-interest bearing elements and are therefore includedwhen calculating the net interest-

bearing debt.

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Equinor ASA published this content on 27 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 July 2022 10:43:03 UTC.

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Equinor ASA

Equities

EQNR

NO0010096985

Integrated Oil & Gas

Equinor : Second Quarter 2022 Report - Form 6-K

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