Equinor Outlines Q1 Gas Derivatives Loss of up to $500 Million

Norway’s Equinor warned on April 8 that its first quarter results would be negatively impacted by between $400 million and $500 million from trade in natural gas derivatives used to hedge its physical deliveries.

“The high volatility and price increase in European gas markets in 1Q have resulted in larger than expected mark to market results for our European gas and LNG business,” the company said in a regular quarterly guidance to analysts.

Equinor has earned record profits from soaring oil and gas prices and is widely expected to see a further increase in earnings this year, forecasts by analysts show.