Equinor’s Record Output and New North Sea Field Mask a Brutal Stock Selloff

Equinor posts record production and $9.77B Q1 profit, but shares fall 9%. Shareholders get $0.39 dividend and up to $1.5B buyback; Eirin gas field starts after 45 years.

The Norwegian energy giant delivered its strongest-ever production figures alongside a hefty shareholder return plan on Wednesday, yet investors responded by hammering the stock nearly nine percent lower to €32.30. The selloff erased a chunk of the year’s gains, though the shares still trade 55 percent higher since January.

Equinor’s adjusted operating profit for the first quarter came in at $9.77 billion, with adjusted net income reaching $3.7 billion. The standout metric was daily output of 2.31 million barrels of oil equivalent, a nine percent jump from a year earlier. New developments on the Norwegian continental shelf, alongside international projects in the UK and Brazil, powered the increase. Higher oil and US gas prices offset weaker European gas benchmarks, while CEO Anders Opedal pointed to ongoing geopolitical tensions as a continued demand driver.

A Second Buyback Tranche and a Dividend Payout

Shareholders will receive a cash dividend of $0.39 per share. The company also confirmed the second tranche of its buyback programme, allocating up to $375 million to repurchase its own equity. The buyback is expected to commence after the annual general meeting in May, subject to shareholder approval. For the full year, Equinor plans to spend up to $1.5 billion on share repurchases, executed through independent brokers on venues including the Oslo Stock Exchange.

Eirin Comes Online After Decades of Dormancy

Amid the quarterly noise, Equinor quietly started production at the Eirin gas field in the North Sea, a project that had sat untouched since its discovery in 1978. The field re-entered the company’s plans in 2023 as Norway’s role as a critical European gas supplier intensified. Developed as a subsea tieback to the existing Gina Krog platform, Eirin now exports gas via the Sleipner A facility. Total investment came to roughly NOK 4.5 billion. The field holds an estimated 27.6 million barrels of oil equivalent in recoverable resources. An added benefit: the tieback extends Gina Krog’s economic life by seven years, pushing its expected shutdown from 2029 to 2036.

Exploration and Renewables Push Forward

Equinor’s exploration engine remains active. During the quarter, the company made seven commercial discoveries in Norway and began drilling at the Raia gas field in Brazil. On the renewables front, it acquired the Brazilian onshore wind project Esquina do Vento, with construction slated to start in 2026.

The company’s broader strategy for the mature Norwegian shelf leans heavily on new drilling and well interventions. Equinor expects new wells to account for roughly 70 percent of total production by 2035. Meanwhile, in Canada, it filed a development application for the Bay du Nord oil project off the coast of Newfoundland. The proposal now sits with the offshore regulator, and both federal and provincial ministers must sign off. A final investment decision is expected next year.

Equinor’s stock remains within striking distance of its 52-week high of €36.91, despite Wednesday’s sharp pullback. The disconnect between record operational performance and the market’s reaction suggests investors may be locking in profits after a blistering rally, even as the company continues to pump out cash and expand its asset base.