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Norway's Equinor sees profits jump due to soaring oil and gas prices

AFP
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Norway's Equinor sees profits jump due to soaring oil and gas prices
Norway's Equinor recorded a record result in the third quarter. Photo by: AFP Daniel Sannumm Lauten.

Norwegian energy giant Equinor on Friday reported a spike in third-quarter net profits thanks to soaring gas and oil prices heightened by the war in Ukraine.

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The company follows other energy majors including TotalEnergies and Shell in announcing huge profits on the back of a lucrative hydrocarbon market.

Equinor announced a net profit of $9.4 billion between July and September, a huge increase on its $1.4-billion profit during the same period last year.

The price of Equinor's oil per barrel was 34 percent higher than in the third quarter last year, while the equivalent figure for its gas sold in Europe shot up by 60 percent.

The company's adjusted earnings shot up to $24.3 billion against $9.8 billion a year ago. Turnover spiked to $43.6 billion. With Russia slashing its gas deliveries to Europe following tensions over its invasion of Ukraine, Norway has become the continent's primary supplier, covering a quarter of its imports of the resource.

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Equinor responded by pumping out more natural gas in Norwegian waters in the third quarter, producing 11 percent more than in the same period in 2021.

"Norway's and Equinor's role as a reliable energy provider is more important than ever," chief executive Anders Opedal said in a statement.

"I am proud of all our people going to great lengths to keep the energy production high and secure."'

Unlike in other countries, the sizable profits of energy giants in Norway have not generated fierce political debates over imposing exceptional windfall taxes as inflation rises.

The Scandinavian nation owes much of its wealth to its energy resources and already heavily taxes oil companies.

As the Norwegian state owns a majority share in Equinor, most of the dividends will go to the country's sovereign fund.

READ MORE: What does Norway do with its oil money?

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