Equinor ASA (NYSE:EQNR) Q4 2018 Earnings Conference Call - Final Transcript

Feb 06, 2019 • 03:30 am ET


Equinor ASA (NYSE:EQNR) Q4 2018 Earnings Conference Call - Final Transcript


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Reidar Gjaerum

Good morning, everyone. My name is Reidar Gjaerum head of Corporate Communication in Equinor. It's a pleasure to welcome you all to the presentation of Equinor results for the fourth quarter 2018. And this morning we will also give you a preview of what we will present at our capital markets update, which takes place later today.

For you being with us here in London, please observe the security note. If the building needs to be evacuated, the fire alarm will sound. On hearing the alarm security and support staff will be on hand to direct you to the nearest emergency exit and the assembly point. The assembly point is cocktail close, which is next to the Apex London Wall Hotel, just across the street of this venue. And since we are broadcasting this, please also keep your phones on silent.

And with that I leave the word to our CEO, Eldar Saetre.

Eldar Saetre

So, thank you Reidar Gjaerum, and good morning, everyone. So as Reidar said, it has become a tradition for us to invite the investors and analyst to capital market update here in London in February. But this time is different is the first time we do so as Equinor. So for us, 2018 has definitely been a year of change, but some things will remain the same. And first and foremost, of course, is that we always, as always invite you to preview of our main messages before we start and the CMU later today.

Secondly, in terms of consistency, we still take pride in delivering on our promises. And due to some very significant and sustainable improvements, as well as a portfolio of high value projects, our outlooks are even stronger than we presented to you all last year. So, today we will show you that we are on track to increase returns and to grow production and cash flows to record levels which also allows us to step up capital distribution, while at the same time strengthening our balance sheet.

So in short, we are delivering on our strategy, always safe, high value, low carbon. The safety of our people, and the integrity of our operations remain our top priority. So we have reinforced our efforts and last year we delivered our best safety records ever. We know what it takes it's about consistent, leadership and also a systematic approach across the company. And we also know that relentless efforts to ensure operational quality is essential, both to further improve safety as well as efficiency. And our mindset is zero. Last year, we set clear targets for 2018. And our people have responded very well. We have done what we said. In fact, we have delivered above and beyond Even quite ambitious targets. We said that we would be at an average all price of $70 per barrel with grow our return on capital average capital employed to around 10% in 2018 and 12% in 2020.

As it turned out, we deliver 12% already this year,