NORWEGIAN gas giant Equinor said it would be cutting overall payments to shareholders despite beating analyst expectations for a weaker 2023.

The company, which is majority-owned by the government of Norway with a 67 per cent stake, saw net operating income plunge to $36.2bn (£28.6bn) in 2023 from a record-breaking $76.9bn (£60.9bn) in 2020 as gas prices climbed down from the highs seen after Russia invaded Ukraine.

Accordingly, Equinor will reduce the amount paid to shareholders from $17bn (£13.4bn) last year to $14bn (£11bn) this year as more money will be put back into the business.

The firm overtook Russian provider Gazprom as Europe's largest natural gas supplier after the continent severed ties with the former to try and prevent funding Russia's military machine.

It plans on spending the 2023 level of $6bn (£4.8bn) in share buybacks in 2024. Chief executive Anders Opedal said the company remains "well-positioned to deliver profitable growth," in the sector but estimated that "rapid cash flow growth" may not come before 2030.

Shares in the firm closed down just over seven per cent.

(c) 2024 City A.M., source Newspaper