Norsk Hydro: Strong upstream results, building downstream robustness
Hydro’s adjusted EBITDA for the third quarter of 2024 was NOK 7,367 million, up from NOK 3,899 million in the same quarter last year, positively impacted by higher aluminium and alumina prices, lower raw material costs and positive currency effects. This was partly offset by lower recycling margins, Extrusions volumes and Energy prices resulting in an adjusted RoaCE of 8.5 percent over the last twelve months and free cash flow of NOK 1.7 billion.
- Solid upstream results from increasing alumina and aluminium prices
- 2024 improvement programs on track, Extrusions building robustness in weaker core markets
- Energy executing on renewable ambitions with Illvatn pumped storage project
- Reducing ownership from 30 to 19.9 percent and impairing NOK 956 million investments in Vianode
- Hydro and Mercedes-Benz extend partnership to foster socioeconomic development in Brazilian Amazon
“The positive development in our upstream revenue drivers continued in the third quarter, supporting strong results in our upstream business, countering the overall effects of the challenging downstream market,” says Eivind Kallevik, President & CEO of Hydro.
Positive upstream revenue drivers continued into the third quarter, supporting record results in Bauxite & Alumina. The Platts Alumina Index (PAX) gradually increased to USD 562 per tonne by quarter’s end as global alumina supply tightened. Chinese alumina prices also rose due to bauxite sourcing constraints, keeping the market balanced. Alunorte continued the fuel switch project, producing alumina with natural gas during the third quarter, and is expected to be fully implemented by the end of this year. The three-month aluminium price rose from USD 2,515 to USD 2,612 per tonne during the third quarter, supporting solid results in Aluminium Metal.
“The fuel switch at Alunorte exemplifies sustainability and profitability going hand in hand, yielding significant savings in carbon intensity as well as costs. Combined with the higher alumina price driven by the tight alumina market, the investment impacts Bauxite & Alumina‘s result positively this quarter,” says Kallevik.
The downstream aluminium market continued to be challenged by weak demand and recycling margins in Europe and North America. Automotive extrusion demand remains weak due to low electrical vehicle sales in Europe, especially in Germany. Building and construction, and industrial demand continues to be moderate with potential 2025 support from lower interest rates. Low activity in these markets limits aluminium scrap supply, squeezing recycling margins and reducing remelt production in both Hydro Extrusions and Metal Markets.
“Hydro is responding with short and long-term actions to strengthen robustness in Extrusions. While responding to the challenging market with firm mitigating actions, we are continuing to invest in the long-term robustness of our operations,” says Kallevik.
Hydro Extrusions is actively navigating challenging markets to address weak demand. By leveraging production flexibility and implementing cost-cutting programs, Extrusions aims to maintain margins. The recent investment in an automated press in Cressona in the U.S., replacing two old presses, exemplifies the commitment in Extrusions to enhance efficiency and productivity. However, achieving the NOK 8 billion EBITDA target for 2025 will require an extrusion market recovery of more than 20 percent volume growth and a recovery of remelt margins in line with historical averages, both in total representing NOK 2-3 billion improved EBITDA.
Weak markets are pressuring recycling margins, and active measures are taken to boost profitability and secure competitive scrap sourcing. Critical to this effort are enhanced capabilities in advanced scrap sorting. In the third quarter, the Alusort joint venture launched commercial operations of HySort in the U.S., enabling plants to process more post-consumer scrap. This expands Hydro’s HySort portfolio, to soon five machines in operation, including four across Europe, reinforcing the company’s leadership in recycling more post-consumer scrap.
By leveraging a fully integrated, traceable value chain from mine to component, Hydro is attracting strategic partnerships with industry frontrunners like Mercedes-Benz. The collaboration advanced significantly during the third quarter, as both companies committed to a long-term initiative aimed at driving positive change in the Brazilian Amazon. The Corridor program focuses on protecting human rights, generating income for local communities, restoring nature and building low-carbon value chains, underscoring that sustainability in aluminium solutions goes beyond just reducing carbon footprint.
“The agreement with Mercedes-Benz extends our partnership beyond low-carbon product development to create positive social and environmental impact in the state of Pará. Together, we aim to lift sustainability throughout our shared value chain, from mine to end-consumer product,” says Kallevik.
Securing renewable power is key to growth in low-carbon aluminium. Hydro made an investment decision for the Illvatn pumped storage plant in Luster, Norway, aiming to generate 84 GWh of renewable energy annually and improving flexibility in its production system. This will strengthen Hydro Energy’s portfolio, powering industrial production in Norway.
On October 22, Hydro decided to reduce its ownership in the synthetic graphite producer Vianode, based in Norway, from 30 to 19.9 percent. Hydro will step down from the board and no longer provide capital to Vianode to focus on projects supporting Hydro’s strategic priorities towards 2030. Impairments of NOK 956 million of investments in Vianode are taken in the third quarter, with NOK 581 million impacting reported EBITDA and shareholder loan in Vianode of NOK 375 million is impacting Finance expense.
Results and market development per business area
Adjusted EBITDA for Bauxite & Alumina increased compared to the third quarter of last year, from NOK 93 million to NOK 3,410 million, mainly driven by higher alumina sales prices, lower cost of raw materials and positive currency effects, partly offset by increased alumina sourcing costs and decreased sales volume. PAX started the quarter at USD 505 per mt, traded down to USD 478 per mt in July, before increasing gradually to USD 562 per mt at the end of the quarter as the World ex-China alumina market continued tightening.
Adjusted EBITDA for Energy in the third quarter decreased compared to the same period last year, from NOK 762 million to NOK 626 million. Lower prices and lower gain on price area differences were partly offset by the expiry of a 12-month internal fixed price purchase contract from Aluminium Metal at a loss in the same period last year. Average Nordic power prices in the third quarter 2024 decreased, both compared to the same quarter last year and the previous quarter. The decrease compared to the second quarter in 2024 was primarily a result of strengthened hydrological balance and seasonally reduced consumption. Price area differences between the south and the north of the Nordic market region decreased compared to the same quarter last year and increased compared to the previous quarter.
Adjusted EBITDA for Aluminium Metal increased in the third quarter of 2024, from NOK 1,379 million to NOK 3,234 million compared to the third quarter of 2023, mainly due to higher all-in metal prices, reduced carbon cost, higher level in CO2 compensation and positive currency effects, partly offset by increased alumina cost and higher fixed cost. Global primary aluminium consumption was up 1.6 percent compared to the third quarter of 2023, driven by a 2.3 percent increase in China. The three-month aluminium price increased throughout the third quarter of 2024, starting the quarter at USD 2,515 per mt and ending at USD 2,612 per mt.
Adjusted EBITDA for Metal Markets decreased in the third quarter compared to the same period last year, from NOK 568 million to NOK 277 million, due to lower results from recyclers and negative currency effects, partly offset by strong results from sourcing and trading activities. Lower results from recyclers are due to reduced sales prices in a weakening market and additional margin pressure in a tightening scrap market.
Extrusions adjusted EBITDA for the third quarter of 2024 decreased compared to the same quarter last year, from NOK 1,322 million to NOK 879 million driven by lower sales volumes and decreased margins from recycling. General inflation pressured fixed and variable costs, partly offset by cost measures. European extrusion demand is estimated to have decreased 7 percent in the third quarter of 2024 compared to the same quarter last year, and 21 percent compared to the second quarter partly driven by seasonality. Automotive extrusion demand continues to be challenged by weak sales of electric vehicles across Europe, particularly in Germany. Demand for building and construction, and industrial segments has remained moderate after summer with no clear signs of improvement over the coming months, although lower interest rates may support demand into 2025. North American extrusion demand is estimated to have decreased 4 percent during the third quarter of 2024 compared to the same quarter last year and 7 percent compared to the second quarter. The transport segment has been particularly weak, driven by lower trailer build rates. Automotive demand is facing headwinds due to weaker sales of electric vehicles. Demand continues to be soft in the building and construction, and industrial segments, however, underlying demand is expected to gradually improve into 2025 driven by lower interest rates.
Other key financials
Compared to the second quarter 2024, Hydro’s adjusted EBITDA increased from NOK 5,839 million to NOK 7,367 million in the third quarter 2024. Higher realized aluminium and alumina prices combined with lower fixed costs were partly offset by lower Extrusions and recycling volume.
Net income (loss) amounted to NOK 1,409 million in the third quarter of 2024. Net income (loss) included a NOK 907 million unrealized derivative loss on LME related contracts and a net foreign exchange gain of NOK 139 million. The result also includes the impairment of the equity accounted battery investment Vianode of NOK 581 million and NOK 129 million in rationalization charges and closure costs. Further, foreign exchange losses of NOK 1,092 and losses on a loan to Vianode of NOK 375 million are adjusted for. The tax effect on these adjustments reflects a standardized tax rate for taxable gains and tax deductible losses.
Hydro’s net debt decreased from NOK 16.2 billion to NOK 14.8 billion during the third quarter of 2024. The net debt decrease was mainly driven by EBITDA contributions, partly offset by investments and other operating cash flows.
Adjusted net debt decreased from NOK 26.1 billion to NOK 25.0 billion, largely due to the decrease in net debt of NOK 1.5 billion, partly offset by increased net pension liabilities of NOK 0.3 billion and increased collateral of NOK 0.2 billion.
Reported earnings before financial items and tax (EBIT), and net income include effects that are disclosed in the quarterly report. Adjustments to EBITDA, EBIT and net income (loss) are defined and described as part of the alternative performance measures (APM) section in the quarterly report.
Investor contact:
Martine Rambøl Hagen
+47 91708918
Martine.Rambol.Hagen@hydro.com
Media contact:
Halvor Molland
+47 92979797
Halvor.Molland@hydro.com
The information was submitted for publication from Hydro Investor Relations and the contact persons set out above. Certain statements included in this announcement contain forward-looking information, including, without limitation, information relating to (a) forecasts, projections and estimates, (b) statements of Hydro management concerning plans, objectives and strategies, such as planned expansions, investments, divestments, curtailments or other projects, (c) targeted production volumes and costs, capacities or rates, start-up costs, cost reductions and profit objectives, (d) various expectations about future developments in Hydro’s markets, particularly prices, supply and demand and competition, (e) results of operations, (f) margins, (g) growth rates, (h) risk management, and (i) qualified statements such as “expected”, “scheduled”, “targeted”, “planned”, “proposed”, “intended” or similar. Although we believe that the expectations reflected in such forward-looking statements are reasonable, these forward-looking statements are based on a number of assumptions and forecasts that, by their nature, involve risk and uncertainty.
Various factors could cause our actual results to differ materially from those projected in a forward-looking statement or affect the extent to which a particular projection is realized. Factors that could cause these differences include, but are not limited to: our continued ability to reposition and restructure our upstream and downstream businesses; changes in availability and cost of energy and raw materials; global supply and demand for aluminium and aluminium products; world economic growth, including rates of inflation and industrial production; changes in the relative value of currencies and the value of commodity contracts; trends in Hydro’s key markets and competition; and legislative, regulatory and political factors. No assurance can be given that such expectations will prove to have been correct. Except where required by law, Hydro disclaims any obligation to update or revise any
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Justice Department Flags Potential Legal Issues With Elon Musk-Backed $1M Voter Giveaway: America PAC Hits Back — Media Meltdown Only Helping 'Efforts To Support President Trump'
The Justice Department has issued a warning to Elon Musk-founded political action committee (PAC), America PAC, over its cash giveaways to registered voters.
What Happened: The Justice Department expressed concerns that the PAC’s cash incentives to registered voters who sign a petition could potentially infringe federal law, reported The Wall Street Journal. The PAC, backed by Musk, has been offering registered voters in Pennsylvania and six other key states a chance to win $1 million by signing a petition supporting the rights to free speech and firearms.
The Justice Department’s letter suggested that the PAC’s payments could violate federal law against knowingly or willfully paying individuals to register to vote in election contests with federal candidates. The same law also criminalizes paying people to vote.
Despite the warning, the America PAC insists that its cash prizes are lawful. “The PAC is confident in the legality of this initiative and the predictable media meltdown is only helping America PAC’s efforts to support President Trump,” an America PAC representative stated earlier this week.
Three registered voters in Pennsylvania and one in North Carolina have already won seven-figure prizes. The PAC plans to continue daily lotteries through Election Day, open to both newly registered voters and those already on the rolls.
Why It Matters: The cash giveaway initiative by Musk’s PAC has been a subject of controversy since its inception. Election law experts had raised serious legal questions about the initiative. The report highlighted that only registered voters supporting the First and Second Amendments were eligible for the daily prize.
Earlier, billionaire entrepreneur Mark Cuban had questioned the legality of Musk’s daily $1 million PAC giveaway. The same day, Rep. Alexandria Ocasio-Cortez (D-N.Y.) criticized Musk and Donald Trump for their actions, which she perceived as belittling the working classes.
“When you have a billionaire, just dangling a million bucks to those of us and many of us who are struggling to make ends meet, if they dance for him…,” she said.
Image via Wikimedia Commons
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This AI Giant Just Broke Through the $1 Trillion Market Cap Barrier: Here's What Comes Next
Taiwan Semiconductor Manufacturing (NYSE: TSM) just reached rarified air. The semiconductor giant — known as TSMC — just surpassed a market cap of $1 trillion after reporting phenomenal growth for the third quarter. Excluding state-owned enterprises, this is the ninth company in the world to reach a market value above $1 trillion.
Benefitting directly from growing spending on artificial intelligence (AI) computer chips, TSMC is dominating the semiconductor foundry market and is showing no signs of slowing down. Here’s what might come next for the stock.
TSMC is the only company in the world that can manufacture ultrafast computer chips with the smallest transistor length. These 3- and 5-nanometer “nodes” made up around half of the company’s revenue in the third quarter, which shows the high prices and surging demand computer chip companies have for these products. Due to this demand, TSMC is now forecasting 30% revenue growth in U.S. dollar terms for 2024.
Let’s break down this growth from the high-performance compute (HPC) segment, which is where TSMC classifies spending for AI computer chips. In Q3 of 2024, revenue for HPC chips made up 51% of overall revenue. In the same quarter last year, it made up 42% of revenue. This means there was $12 billion in HPC revenue last quarter compared to $7.26 billion in 2023 (in U.S. dollar terms), or approximately 65% year-over-year revenue growth. This is astounding growth for a company so large.
Management sees growth continuing through 2025. The company lays out capital expenditures on new factories in anticipation of demand in future years. As of the latest update, it is planning on spending $30 billion on capital expenditures in 2024. In turn, this should lead to revenue growth in 2025 and 2026 as long as these new factories are utilized.
A big change for TSMC in the next few years will be diversifying outside of its home market in Taiwan. The company and its customers want to stop Taiwan from becoming a chokepoint for semiconductor supply because of the Chinese government’s military rhetoric around the island.
The good news is these new factories are in the process of being built. Three fabrication facilities are being built in Arizona, with high-volume production expected to come at the start of 2025 for the first facility. It has advanced process nodes, meaning it can serve customers for the all-important HPC segment. The second and third facilities will hopefully be ready by the end of this decade.
Satoshi Nakamoto Identity Prediction Market Appears More Volatile Than Bitcoin: Sassaman Dethrones Peter Todd
Bettors on the social prediction market Manifold believed late technologist Len Sassaman to be Bitcoin’s BTC/USD mysterious creator Satoshi Nakamoto, as estimates on the play money-powered platform fluctuate wildly.
What happened: At the time of writing, Sassaman’s odds were 26%, as the cryptographer and privacy champion emerged as the platform’s new favorite.
However, only a few hours ago, the odds were in favor of Peter Todd, the Bitcoin Core engineer identified as Satoshi in the recent HBO documentary “Money Electric: The Bitcoin Mystery.” Todd has categorically denied these claims.
Sassasman’s odds reached an all-time high of 46% when the trailer of the documentary was released in the first week of October. This was also the time when punters on cryptocurrency-based Polymarket bet heavily in favor of him.
Todd’s odds reached 71% on Oct. 14, before nearly halving five days later, and 11% as of this writing.
Why It Matters: Manifold is a social prediction market where users can bet on events and compete with friends for free.
Users can either place bets through “Mana”, a play-money currency, or “Sweepcash,” which can be redeemed for real money.
A user, John Vandivier, while replying to an X post by economist Robin Hanson, said that estimates on the platform aren’t stable, noting how odds shifted in favor of Sassasman from Todd in no time.
Photo via Shutterstock
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NICHI announces Nunavut recipients of funding to advance critical Indigenous housing projects in urban, rural and northern areas and address urgent and unmet needs
IQALUIT, NU, Oct. 23, 2024 /CNW/ – Today, National Indigenous Collaborative Housing Incorporated (NICHI) Chief Executive Officer John Gordon and Minister of Indigenous Services and Minister responsible for FedNor, Patty Hajdu, announced the recipients of NICHI’s expression of need process to address the critical need for safe and affordable urban, rural and northern Indigenous housing projects in Nunavut.
Today’s announcement includes nearly $13 million in funding for 3 projects in Nunavut led by:
- YWCA Agvik Nunavut
- Uquutaq Society – Butler Affordable Housing
- Pairijiit Tigummiaqtikkut Society – Elder Housing Capacity building
Through the national process, $277.8 million out of a total funding amount of $281.5 million is being distributed to 75 projects across the country aimed at building more than 3800 units. This funding was provided to Indigenous Services Canada through Budget 2022 and was distributed by NICHI, applying its “For Indigenous, By Indigenous” approach. NICHI brings together Indigenous-led housing, homelessness, and housing-related service delivery organizations to provide lasting solutions that address diverse housing inadequacies including homelessness for Indigenous Peoples living in urban, rural and northern areas.
Over 171,000 Indigenous Peoples in urban, rural and northern areas off reserve are in core housing need according to the 2021 Census. Indigenous Peoples continue to experience core housing needs at a significantly higher rate than non-Indigenous people – with the gap between them being exacerbated by the housing and homelessness crisis and by inadequacies in distinctions-based funding.
Through a For Indigenous, By Indigenous approach to Indigenous housing that recognizes Indigenous organizations are best placed to understand the needs of their communities, Indigenous Services Canada is striving to close this gap by 2030.
Access to safe and affordable housing is critical to improving health and social outcomes, and to ensure a better future for Indigenous communities. This funding initiative is part of the Government of Canada’s commitment to address the social determinants of health and advance self-determination in alignment with the United Nations Declaration on the Rights of Indigenous Peoples Articles 21 and 23.
Quotes
“Indigenous housing providers deserve Indigenous advocacy at the national level. By securing this investment and developing a For Indigenous, By Indigenous funding process, NICHI is putting Indigenous people back in charge of housing policy for our people and communities. The overwhelming expression of need we received in our application process – totalling $2 billion across 447 applications – demonstrates that the work is far from over – but today, we’re excited to announce funding that will make a positive impact in the lives of Indigenous peoples in Nunavut.”
John Gordon
Chief Executive Officer, National Indigenous Collaborative Housing Incorporated
“In true partnership with Indigenous Peoples, we are getting more homes built, faster. Communities know best what they need, which is why these projects follow a By Indigenous, For Indigenous approach. We will always be there for communities as they take the lead to build homes; it’s a matter of fairness.”
The Honourable Patty Hajdu
Minister of Indigenous Services
“NICHI’s remarkable achievement in swiftly delivering $277.8 million underscores its unwavering commitment to advancing Indigenous housing nationwide. As a new organization, NICHI’s expedient action demonstrates unparalleled dedication and catalytic impact in transforming community housing landscapes. We commend NICHI for its pivotal role in driving forward this transformative initiative.”
Lisa Ker
Acting Executive Director for the Community Housing Transformation Centre
“With thousands of years of collective experience, urban, rural, and northern Indigenous housing providers have the capacity, know-how, and shovel-ready projects to address the challenge. NICHI has shown that it can deliver funding programs swiftly, fairly, and responsibly.”
Margaret Pfoh
President, Canadian Housing and Renewal Association
Quick facts
- On June 8, 2023, the Government of Canada announced that the National Indigenous Collaborative Housing Inc. (NICHI) would deliver $281.5 million in immediate funding over two years to address the urgent, unmet needs of Indigenous Peoples living in urban, rural and northern areas.
- NICHI held its expression of need process from late November 2023 to January 12, 2024, and funding was allocated to 75 non-profit, Indigenous-led housing organizations by an objective, unbiased Project Selection Advisory Council who prioritized urgent and unmet housing need in Indigenous communities across the country. Currently, $3.7 million of the total funding amount remains to be allocated.
- The National Indigenous Collaborative Housing Inc. (NICHI) is an Indigenous-led national housing organization working to ensure that all Indigenous people across Canada have access to supports and services that provide safe, affordable, secure and dignified housing.
- Support for projects will include funding for acquisitions of new properties and buildings, construction of new facilities, repairs and renovations, housing-related training, growing organizational capacity and administration costs.
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Equinor third quarter 2024 results
Equinor (EQNREQNR delivered adjusted operating income* of USD 6.89 billion and USD 2.04 billion after tax in the third quarter of 2024. Equinor reported net operating income of USD 6.91 billion and net income at USD 2.29 billion. Adjusted net income* was USD 2.19 billion, leading to adjusted earnings per share* of USD 0.79.
Financial and operational performance
- Solid financial results
- Effective execution of extensive turnaround programme
- Strong cash flow from operations
Strategic progress
- All-time high production from the Troll field in the gas year
- Northern Lights facility completed and ready to receive CO2
- Acquired a 9.8 percent stake in Ørsted in October
Capital distribution
- Third quarter ordinary cash dividend of USD 0.35 per share, extraordinary cash dividend of USD 0.35 per share and fourth tranche of share buy-back of up to USD 1.6 billion
- Total capital distribution for 2024 in line with announced level of around USD 14 billion
Anders Opedal, President and CEO of Equinor ASA:
“With solid operational performance and results, we are well on track to deliver strong cashflow from operations in line with what we said at the capital markets update in February.”
“Over time, we have upgraded the capacity in the gas value chain. This has contributed to an all-time high production from the Troll field in the gas year. In the quarter, the Johan Sverdrup field delivered a production record of more than 756 000 barrels of oil in one day and reached the milestone of one billion barrels produced since the start-up five years ago. This strengthens our position to deliver safe and reliable energy to Europe.”
“We continue to invest in renewables and develop low carbon value chains. In the quarter, the world’s first commercial storage facility, Northern Lights, was completed and is now ready to receive CO2 from customers.”
Operational performance
Equinor delivered a total equity production of 1,984 mboe per day in the third quarter, down from 2,007 mboe in the same quarter last year.
On the Norwegian continental shelf (NCS), production increased by 2 percent compared to the third quarter 2023. This was due to high gas production from the Troll field and positive contributions from Aasta Hansteen and Oseberg. The increase was partially offset by extensive turnarounds, natural decline and reduced ownership in the Statfjord area.
Internationally, new wells contributed positively to the production. However, the international production was negatively impacted by offshore turnarounds and hurricanes in the United States.
In the quarter, Equinor completed nine offshore exploration wells with one commercial discovery. Four wells were ongoing at the quarter end. Two wells were expensed.
Equinor produced 677 GWh from renewable assets in the third quarter, up 82 percent from the same quarter last year. The increase was driven by the addition of onshore power plants in 2024. The offshore wind parks Dudgeon, Sheringham Shoal and Arkona also contributed positively to the production.
The progress at Dogger Bank A is slower than expected. Based on this, the expected growth in power production from renewable assets in 2024 is adjusted to around 50 percent.
Strategic progress
Equinor continued to optimise the portfolio through projects and strategic business development in the quarter.
On the NCS, the Johan Castberg production vessel was securely anchored at the field in the Barents Sea and hook-up is on track for production start before year-end. In the quarter, Troll B and C became partly powered from shore, contributing to the company’s efforts to strengthen competitiveness and halve operated emissions by 2030.
The recent acquisition of a 9.8 percent stake in Ørsted, gives Equinor exposure to premium offshore wind assets in operation and a solid project pipeline. In the quarter, Equinor also won an offshore wind lease in the U.S. Atlantic Ocean at an attractive price, adding optionality of around 2 gigawatt capacity to its existing portfolio. Furthermore, the company started recalibrating its portfolio of early phase renewable projects to reduce cost and focus business development toward core markets.
Equinor continues to progress its low carbon solutions portfolio. The Northern Lights facility was completed on estimated time and budget. In the UK, two key partner-operated low-carbon solution projects secured funding from the government.
Solid financial results
Equinor delivered adjusted operating income* of USD 6.89 billion. USD 5.88 billion come from Exploration and Production Norway, USD 407 million from E&P International and USD 207 million from E&P USA. Marketing, Midstream & Processing delivered adjusted operating income* of USD 545 million, driven by LNG, power trading and geographical arbitrage for LPG. Adjusted operating income* from Renewables was negative USD 115 million, as the costs of project development exceeded the earnings from assets in operation.
Cash flow from operating activities before taxes paid and working capital items amounted to USD 9.23 billion for the third quarter. Cash flow from operations after taxes paid* was USD 6.25 billion for the quarter, and USD 14.0 billion year to date.
Equinor paid one NCS tax instalment of USD 2.87 billion in the quarter and total capital expenditures were USD 3.14 billion. Organic capital expenditure* was USD 3.08 billion for the quarter and USD 8.73 billion year to date. The organic capital expenditure* guiding for the year is adjusted to USD 12-13 billion. After taxes, capital distribution to shareholders and investments, net cash flow* ended at negative USD 3.42 billion in the third quarter. The Norwegian state’s share of the share buy-back programme of USD 4.02 billion in July impacted the net cash flow*.
Adjusted net debt to capital employed ratio* was negative 2.0 percent at the end of the third quarter, compared to negative 3.4 percent at the end of the second quarter of 2024.
Capital distribution
The board of directors has decided an ordinary cash dividend of USD 0.35 per share and an extraordinary cash dividend of USD 0.35 per share for the third quarter of 2024. This is in line with communication at the capital markets update in February.
The board has decided to initiate a fourth and final tranche of share buy-back for 2024 of up to USD 1.6 billion. The fourth tranche will commence on 25 October and end no later than 31 January 2025. This fourth tranche will complete the announced share buy-back programme of up to USD 6 billion for 2024. It will also conclude total capital distribution for 2024 of around USD 14 billion.
The third tranche of the share buy-back programme was completed on 16 October 2024 with a total value of USD 1.6 billion.
All share buy-back amounts include shares to be redeemed by the Norwegian state.
—
* For items marked with an asterisk throughout this report, see Use and reconciliation of non-GAAP financial measures in the Supplementary disclosures.
—
Further information from:
Investor relations
Bård Glad Pedersen, senior vice president Investor relations,
+47 918 01 791 (mobile)
Press
Sissel Rinde, vice president Media relations,
+47 412 60 584 (mobile)
This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act
- Equinor Third quarter 2024 Financial statements and review
- CFO presentation – 3rd quarter 2024 results
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Viridien and SLB complete the data acquisition for a multi-client survey in Bonaparte Basin, offshore Australia
Paris, France – October 24, 2024
Viridien and SLB have recently completed the acquisition of a new multi-client survey in the Bonaparte Basin, off the NW coast of Australia, that has received industry support and prefunding. The resulting ~6,760 sq km ultramodern PSDM seismic data set will provide a thorough evaluation of this highly prospective and underexplored area to improve industry understanding. The data is currently being processed and the final data will be available in Q2 2025.
The complex geological area has been historically challenging to image due to the presence of carbonates and the shallow water. The new survey will provide modern, high-quality data over an area lacking recent, or any 3D data. The data also partially covers a carbon storage block, recently awarded as permit G-13-AP. The survey deployed Sercel Sentinel MS multi-component streamers and the Sercel QuietSea marine mammal monitoring system.
Dechun Lin, EVP, Earth Data, Viridien, said: “We are delighted to have partnered with SLB for the first time in Australia to successfully complete this large data acquisition project. The new high-quality data set will give interested players greater insight into the exploration and carbon storage potential of this promising area. We will continue to look for opportunities to invest in the country.”
About Viridien:
Viridien (www.viridiengroup.com) is an advanced technology, digital and Earth data company that pushes the boundaries of science for a more prosperous and sustainable future. With our ingenuity, drive and deep curiosity we discover new insights, innovations, and solutions that efficiently and responsibly resolve complex natural resource, digital, energy transition and infrastructure challenges. Viridien employs around 3,500 people worldwide and is listed as VIRI on the Euronext Paris SA FR.
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I caught my employee secretly working a second remote job. Here's why I decided to fire them — and why I think overemployment is sometimes unethical.
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Patrick Synge fired one of his employees for secretly working a second remote job while on the clock.
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He shared how he caught the employee and why he decided to fire them.
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He says overemployment is sometimes “unethical” and can hurt worker productivity.
This as-told-to essay is based on an email conversation with Patrick Synge, the cofounder and chief commercial officer of the business-process-outsourcing and remote-recruitment company Metrickal. The business is headquartered in Barcelona and has 10 full time, fully remote employees, in addition to more than 200 contractors worldwide. The following has been edited for length and clarity.
I’m the cofounder and CCO of a business where every employee works fully remotely. In January, I caught one of them secretly working a second full-time remote job.
Here’s how it all played out — and why I decided to fire them.
My business is headquartered in Barcelona, but one of my employees was based in Peru. He was hired in 2022, and in the beginning, he did his job very well. But then, I started to receive complaints from clients about missed assignments and deadlines. He had also become quite unresponsive. These complaints from clients started to become somewhat regular.
When this employee started refusing certain shifts he usually worked, I became suspicious. I had a feeling that he was doing something on the side, but because there was no proof, I didn’t want to jump to any conclusions.
So instead, I had one-on-one meetings with him to discuss his job performance. When the same issues continued, I told him that if things didn’t change, I’d have to let him go.
While he showed some signs of improvement, his overall performance didn’t change much. This put a significant burden on the rest of the team, who had to cover his shifts and deal with missed deadlines.
In December, unrelated to this particular employee, my company rolled out the time-tracking software called DeskTime.
My long-term goal is to introduce a four-day workweek at my company, and I decided the first step in this process would be understanding how my employees spend their time and what could be optimized to boost productivity.
So our entire team of full-time employees and freelance contractors started using DeskTime. They each had to install the app on their computers, so everyone was well aware that this was being implemented.
After a few weeks, I looked through the tracking data of the struggling employee and noticed there was another company’s name — a US business — that regularly appeared in the data. It became clear to me that this employee had worked on some other company’s tasks.