Norway’s state-controlled energy giant Equinor nearly doubled its profits in the second quarter of 2026 as the war with Iran disrupted global energy supplies and sent oil and gas prices higher.
The company reported adjusted earnings before tax of $11.48 billion (€10.06 billion) for the three months to the end of June, up from $6.54 billion (€5.73 billion) in the same period last year and broadly in line with analysts’ expectations.
Equinor said its adjusted operating income rose on the back of higher commodity prices, increased production and strong results from its trading operations. Production grew by 3 per cent year-on-year, while the company said its average oil price rose to $97.90 per barrel. European gas prices also increased sharply during the quarter.
The conflict involving Iran has disrupted energy markets and raised concerns over supplies moving through the Strait of Hormuz, a crucial route for global oil and gas shipments. The resulting uncertainty has pushed prices higher, benefiting producers with limited direct exposure to the Middle East.
Equinor is particularly well placed to benefit from the disruption. The company has no direct production exposure to the conflict zone and is one of Europe’s largest suppliers of natural gas. Its shares have risen by roughly 54 per cent since the start of the year, according to Reuters.
The company’s CEO, Anders Opedal, said the results reflected “strong production, cash flow and financial results” in a volatile energy market.
“Reliable energy is important in a volatile world marked by heightened geopolitical tension. Our role is to deliver energy safely and efficiently every day,” he said.
Equinor reported $7.7 billion in cash flow from operations after taxes during the quarter. The company also announced a further share buyback of up to $1.125 billion, bringing its expected total share buyback programme for 2026 to $3 billion.
The Norwegian state owns 67 per cent of Equinor, meaning the country’s government is the company’s largest shareholder and benefits directly from its dividends. The state is expected to receive around NOK 25.4 billion (€2.32 billion) in dividends from Equinor in 2026.
Equinor’s results come as European energy security remains under pressure. Its CEO warned on Wednesday that Europe was unlikely to reach its target of filling gas storage facilities to 80 per cent before winter. European storage levels were at 54 per cent, according to Reuters, with the continent facing increased competition from Asia for liquefied natural gas.
The energy crisis has also prompted Equinor to increase its focus on its traditional oil and gas business. The company has maintained its target of growing oil and gas production by 3 per cent annually, while reducing planned investment in renewable energy because of weak demand.
The strong results have drawn criticism from environmental groups. Uplift accused Equinor of benefiting from the war while consumers face high energy bills and criticised the company for continuing to support new fossil fuel projects, including the Rosebank oilfield in the North Sea.
Equinor’s results highlight the increasingly contradictory position of European energy policy. Governments are attempting to reduce their reliance on fossil fuels while geopolitical crises continue to make oil and gas more valuable and more strategically important.
For Norway, the situation also underlines the continuing financial importance of its petroleum industry. Although Equinor describes itself as an energy company pursuing a transition towards lower-carbon energy, oil and gas remain the source of its most significant revenues and the principal driver of its latest profit surge.
