Material Event

This Report on Form 6-K contains a report of the first quarter 2021 results of Equinor ASA.

Equinor first quarter 2021 results

Equinor reports adjusted earnings of USD 5.47 billion and USD 2.66 billion after tax in the first quarter of 2021. IFRS net operating income was USD 5.22 billion and the IFRS net income was USD 1.85 billion.

The first quarter of 2021 was characterised by:

·Strong results due to price recovery, sustained cost improvements and strict capital discipline.

·Very strong cash flow and a 7.1 percentage points reduction of adjusted net debt ratio to 24.6%.

·Solid operational performance and high production efficiency. Some impact from Covid-19 and restrictions on projects in execution.

·Significant gain of USD 1.38 billion from farm downs in offshore wind assets.

·Cash dividend of USD 0.15 per share.

'With sustained improvements and capital discipline, we are able to capture value from recovering oil and gas prices and achieve our best quarterly results since 2014. We deliver a net cash flow above 5 billion dollars and reduce our adjusted net debt ratio to below
25 percent. The forceful response and solid operational performance delivered by our organisation during the pandemic is providing for a strong position for safe operations, value creation and cash flow generation in 2021 and going forward,' says Anders Opedal, President and CEO of Equinor ASA.

'Equinor aims to be a leader in the energy transition and during the quarter we strengthened our position within offshore wind with the awarded offtake contracts from New York State for Empire Wind 2 and Beacon Wind 1. We also booked capital gains of around
1.4 billion dollars from farm downs, demonstrating our ability to create value from accessing and maturing renewable projects. Within low carbon solutions we have started construction of the Northern Lights terminal and secured funding for three low carbon projects in the UK', says Opedal.

Adjusted earnings [5] were USD 5.47 billion in the first quarter, up from USD 2.05 billion in the same period in 2020. Adjusted earnings after tax [5] were USD 2.66 billion, up from USD 0.56 billion in the same period last year.

Higher realised prices for gas and liquids positively impacted the results from all upstream segments, further supported by sustained costs improvements and strict capital discipline.

Results from the Marketing, midstream and processing segment were impacted by losses on derivatives for gas forward sales, shut down of the Hammerfest LNG plant and weak refinery margins.

The Renewables segment delivers strong financial results with a capital gain from farm downs of around USD 1.4 billion, included in both IFRS and adjusted results, from the divestments of a 50% non-operated interest in the offshore wind projects Empire Wind and Beacon Wind in the US and a 10% equity interest in the Dogger Bank A and B in the UK.

IFRS net operating income was USD 5.22 billion in the first quarter, up from USD 0.06 billion in the same period in 2020. IFRS net income was USD 1.85 billion in the first quarter, compared to negative USD 0.71 billion in the first quarter of 2020. Net operating income was impacted by higher prices for gas and liquids, gains from transactions, and lower impairments of USD 0.43 billion in the first quarter of 2021.

Equinor delivered total equity production of 2,168 mboe per day in the first quarter, down from 2,233 mboe per day in the same period in 2020. Shut down of the Hammerfest LNG plant and maintenance at Peregrino were partially offset by higher flex gas volumes, increased gas volumes from the US onshore and increased production from Johan Sverdrup and Snorre Expansion. Equity production of renewable energy for the quarter was 450 GWh, down from 558 GWh for the same period last year, impacted by lower winds than expected for the season.

At the end of first quarter 2021, Equinor has completed 5 exploration wells with 4 commercial discoveries and 11 wells were ongoing. The 4 discoveries at the Norwegian continental shelf have added around 60 million boe net to Equinor near existing infrastructure. Adjusted exploration expenses in the first quarter were USD 0.23 billion, compared to USD 0.30 billion in the same quarter of 2020.

Cash flows provided by operating activities before taxes paid and changes in working capital amounted to USD 6.62 billion for the first quarter, compared to USD 4.50 billion for the same period in 2020. Organic capital expenditure [5] was USD 1.96 billion for the first

three months of 2021. At quarters end, net debt to capital employed ⁽¹⁾ was 24.6%, down from 31.7% last quarter. Including the lease liabilities according to IFRS 16, the net debt to capital employed⁽¹⁾ was 30.6%.

The board of directors has decided a cash dividend of USD 0.15 per share for the first quarter 2021.

The safety statistics for the first quarter of 2021 indicate fewer serious incidents and personal injuries in Equinor compared to the same period last year. The twelve-month average Serious Incident Frequency (SIF) for the period ending at 31 March was 0.5 for 2021, down from 0.6 in 2020. The twelve-month average Recordable Injury Frequency (TRIF) for the period ending at 31 March was 2.3 for 2021, down from 2.4 in 2020.

GROUP REVIEW

First quarter 2021

Total equity liquids and gas production [4] was 2,168 mboe per day in the first quarter of 2021, down 3% compared to 2,233 mboe per day in the first quarter of 2020 mainly due to expected natural decline, the shutdown at the Hammerfest LNG plant and production halt on Peregrino in Brazil due to repairs. Ramp-up of fields on the Norwegian continental shelf and higher flexible gas off-take partially offset the decrease.

Total entitlement liquids and gas production [3] was 2,014 mboe per day in the first quarter of 2021, down 3% compared to
2,076 mboe per day in the first quarter of 2020. The production was negatively influenced by the factors mentioned above in addition to higher US royalty volumes, partially offset by lower effects from production sharing agreements (PSA) [4]. The net effect of PSA and US royalties was 154 mboe per day in total in the first quarter of 2021 compared to 157 mboe per day in the first quarter of 2020.

Balance sheet information: The sum of equity accounted investments and non-current segment assets was USD 73,686 million for the period ending 31 March 2021, compared to USD 71,505 million for the period ending 31 March 2020.

Net operating income was USD 5,220 million in the first quarter of 2021, compared to USD 58 million in the first quarter of 2020. The increase was mainly due to higher average prices for liquids and gas, lower net impairments in the first quarter of 2021 and gain on sale of assets in the Renewables (REN) segment. Lower operational and administrative expenses and exploration expenses in the first quarter of 2021 added to the increase, partially offset by lower production for liquids in addition to weak refinery margins in MMP.

In the first quarter of 2021, net operating income was negatively impacted by impairments(2) of USD 431 million and unrealised loss on gas derivatives of USD 16 million. Net operating income was positively impacted by inventory hedge contracts of USD 271 million in addition to operational storage effects of USD 105 million.

In the first quarter of 2020, net operating income was negatively impacted mainly by net impairments of USD 2,452 million and operational storage effects of USD 343 million.

Adjusted total revenues and other income were USD 17,287 million in the first quarter of 2021 compared to USD 14,970 million in the first quarter of 2020. The increase was mainly due to higher average prices for liquids and gas, gain on sale of assets in REN and higher gas production, especially from the E&P USA segment. The increase was partially offset by lower liquids production from E&P International and E&P USA. Losses on derivative positions were offset by higher realised value of physical commodities sales in the MMP segment.

Adjusted purchases [6] were USD 7,071 million in the first quarter of 2021, compared to USD 7,856 million in the first quarter of 2020. The decrease was mainly due to lower third-party volumes for liquids, partially offset by higher average prices for liquids and gas.

Adjusted operating and administrative expenses were USD 2,133 million in the first quarter of 2021, compared to USD 2,445 million in the first quarter of 2020. The decrease was mainly due to lower transportation costs, especially in the MMP segment, primarily due to lower freight rates on shipping of liquids in addition to lower operation and maintenance cost due to reduced activity in E&P International and E&P USA. The NOK/USD currency development partially offset the decrease.

Adjusted depreciation, amortisation and net impairment losses were USD 2,386 million in the first quarter of 2021, compared to USD 2,321 million in the first quarter of 2020. The increase was mainly due to higher investments and the NOK/USD currency development. The increase was partially offset by higher reserves estimates, especially in the E&P International segment, and a lower depreciation basis resulting from net impairments in previous periods and a classification of a US onshore asset as held for sale.

Adjusted exploration expenses were USD 230 million in the first quarter of 2021, compared to USD 302 million in the first quarter of 2020. The decrease was mainly due to lower drilling cost and a lower portion of exploration expenditure capitalised in earlier years being expensed this quarter. A lower portion of exploration expenses being capitalised this quarter partially offset the increase. For more information, see the table titled Adjusted exploration expenses in the Supplementary disclosures.

After total adjustments(3) of USD 247 million to net operating income, Adjusted earnings [5] were USD 5,467 million in the first quarter of 2021, up USD 3,420 million from the first quarter of 2020.

Adjusted earnings after tax [5] were USD 2,662 million in the first quarter of 2021, which reflects an effective tax rate on adjusted earnings of 51.3%, compared to 72.6% in the first quarter of 2020. The decrease in the effective tax rate was mainly due to increased adjusted earnings in the first quarter of 2021 in entities with lower than average tax rates, and in entities without recognised taxes.

Cash flows provided by operating activities increased by USD 941 million compared to the first quarter of 2020. The increase was mainly due to decreased tax payments and higher liquids and gas prices, partially offset by a change in working capital and decreased cash flow from derivatives.

Cash flows used in investing activities decreased by USD 1,163 million compared to the first quarter of 2020. The decrease was mainly due to increased proceeds from sale of assets, decreased financial investments and lower capital expenditures, partially offset by increased derivative payments.

Cash flows used in financing activities increased by USD 1,839 million compared to the first quarter of 2020. The increase was mainly due to repayment of finance debt and increased payment of short-term debt, partially offset by decreased dividend paid.

Total cash flows increased by USD 264 million compared to the first quarter of 2020.

Free cash flow [5] in the first quarter of 2021 was USD 5,170 million compared to USD 362 million in the first quarter of 2020. The increase was mainly due to higher operating cash flow mainly due to higher liquids and gas prices, increased proceeds from sale of assets, decreased tax payments, decreased dividend paid and lower capital expenditures, partially offset by decreased cash flow from derivatives.

OUTLOOK

·Organic capital expenditures [5] are estimated at an annual average of USD 9-10 billion for 2021-2022(4).

·Equinor intends to continue to mature its attractive portfolio of exploration assets and estimates a total exploration activity level of around USD 0.9 billion for 2021, excluding signature bonuses, accruals and field development costs.

·Equinor's ambition is to keep the unit of production cost in the top quartile of its peer group.

·For the period 2020-2026, production growth(5) [7] is expected to come from new projects resulting in around 3% CAGR (Compound Annual Growth Rate) based on current forecast.

·Scheduled maintenance activity is estimated to reduce equity production by around 50 mboe per day for the full year of 2021.

·Production for 2021 is estimated to be around 2% above 2020 level5.

These forward-looking statements reflect current views about future events and are, by their nature, subject to significant risks

and uncertainties because they relate to events and depend on circumstances that will occur in the future. We continue to monitor the impact of Covid-19 on our operations. Deferral of production to create future value, production cuts, gas off-take, timing of new capacity coming on stream, operational regularity, the ongoing impact of Covid-19 and activity level in the US onshore represent the most significant risks related to the foregoing production guidance. There has been considerable uncertainty created by the Covid-19 pandemic and we are still unable to predict the ultimate impact of this event, including impact on general economic conditions worldwide. Our future financial performance, including cash flow and liquidity, will be impacted by the extent and duration of the current market conditions, the development in realised prices, including price differentials and the effectiveness of actions taken in response to the pandemic. For further information, see section Forward-looking statements.

EXPLORATION & PRODUCTION NORWAY

First quarter 2021 review

Average daily production of liquids and gas decreased by 1% to 1,384 mboe per day in the first quarter of 2021, compared to
1,394 mboe per day in the first quarter of 2020. The decrease was mainly due to natural decline and shutdown at the Hammerfest LNG plant, partially offset by ramp-up on Johan Sverdrup and higher flexible gas off-take.

Balance sheet information: The sum of equity accounted investments and non-current segment assets was USD 34,300 million for the period ending 31 March 2021, compared to USD 26,856 million for the period ending 31 March 2020.

Net operating income was USD 3,350 million in the first quarter of 2021 compared to USD 967 million in the first quarter of 2020. The increase was mainly due to higher liquids price and gas transfer price in addition to lower impairments.

In the first quarter of 2021, net operating income was negatively impacted by impairment of assets of USD 276 million, partially offset by net overlifted volumes of USD 65 million. In the first quarter of 2020, net operating income was negatively impacted by impairment of assets of USD 859 million and a negative impact from net underlifted volumes of USD 31 million.

Adjusted operating and administrative expenses increased mainly due to the NOK/USD exchange rate development partially offset by lower operation and maintenance cost due to general improvement initiatives. Adjusted depreciation, amortisation and net impairment losses increased mainly due to the NOK/USD exchange rate development, increased depreciation of the asset retirement obligation (ARO) assets and reduced proved reserves. Adjusted exploration expenses decreased mainly due to lower drilling costs.

After total adjustments of USD 213 million to net operating income, Adjusted earnings[5] were USD 3,563 million in the first quarter of 2021, compared to USD 1,863 million in the first quarter of 2020.

Equinor first quarter 20218

EXPLORATION & PRODUCTION INTERNATIONAL

First quarter 2021 review

Average daily equity production of liquids and gaswas 360 mboe per day in the first quarter of 2021 compared to 421 mboe per day in the first quarter of 2020. The decrease was primarily due to natural decline in mature fields and repairs on Peregrino in Brazil resulting in a production halt, partially offset by field specific production on the UK continental shelf and in Russia.

Average daily entitlement production of liquids and gaswas 267 mboe per day in the first quarter of 2021 compared to 322 mboe per day in the first quarter of 2020. The decrease was due to lower equity production partially offset by lower effects from production sharing agreements (PSA). The net effects from PSA were 93 mboe per day in the first quarter of 2021 compared to 98 mboe per day in the first quarter of 2020.

Balance sheet information: The sum of equity accounted investments and non-current segment assets was USD 18,380 million for the period ending 31 March 2021, compared to USD 19,983 million for the period ending 31 March 2020.

Net operating income was positive USD 261 million in the first quarter of 2021 compared to negative USD 312 million in the first quarter of 2020. The increase was mainly due to higher liquids and gas prices, lower depreciation and lower exploration expenses, in addition to lower impairments in the first quarter of 2021 compared to the first quarter of 2020. The increase was partially offset by lower entitlement production in the first quarter of 2021.

In the first quarter of 2021, net operating income was negatively impacted by net underlifted volumes of USD 66 million and impairments of USD 55 million. In the first quarter of 2020, net operating income was negatively impacted by net impairments of USD 383 million.

Adjusted operating and administrative expenses decreased mainly due to lower operation and maintenance expenses. Adjusted depreciation, amortisation and net impairment losses decreased mainly due to increased reserve estimates and lower entitlement production from mature fields. Reduced ARO asset estimates and lower depreciation basis resulting from net impairments in previous periods added to the decrease, partially offset by higher investments and increased production from specific fields. Adjusted exploration expenses decreased mainly due to a lower portion of exploration expenditure capitalised in earlier years being expensed this quarter in addition to lower drilling and other costs. A lower portion of exploration expenditure being capitalised this quarter partially offset the decrease.

After total adjustments of USD 121 million to net operating income, Adjusted earnings [5] were USD 382 million in the first quarter of 2021, up from USD 4 million in the first quarter of 2020.

EXPLORATION & PRODUCTION USA

First quarter 2021 review

Average daily equity production of liquids and gaswas 423 mboe per day in the first quarter of 2021 compared to 418 mboe per day in the first quarter of 2020. The increase was mainly due to wells brought online late in 2020 and less curtailment in the US onshore causing higher production, partially offset by downtime due to planned maintenance and natural decline in the US offshore.

Average daily entitlement production of liquids and gasincreased slightly to 362 mboe per day in the first quarter of 2021 compared to 360 mboe per day in the first quarter of 2020. The minor increase was mainly due to the factors mentioned above.

Balance sheet information: The sum of equity accounted investments and non-current segment assets was USD 11,984 million for the period ending 31 March 2021, compared to USD 15,549 million for the period ending 31 March 2020.

Net operating income was positive USD 152 million in the first quarter of 2021 compared to negative USD 1,015 million in the first quarter of 2020. The increase was mainly due to higher commodity prices and lower impairments of assets in the first quarter of 2021.

In the first quarter of 2021, net operating income was negatively impacted by net impairments of USD 40 million, relating to the unconventional US onshore assets. In the first quarter of 2020, net operating income was negatively impacted by impairments of USD 1,014 million, with the primary effect from unconventional US onshore assets.

Adjusted operating and administrative expenses decreased mainly due to lower activity level in US onshore in the first quarter of 2021. Adjusted depreciation, amortisation and net impairment losses decreased mainly due to lower depreciation basis resulting from classification of a US onshore asset as held for sale in the fourth quarter of 2020 and lower production in US offshore.Adjusted exploration expenses increased mainly due to a higher portion of exploration expenditure capitalised in earlier years being expensed this quarter and a lower portion of exploration expenditure being capitalised. Lower drilling costs partially offset the increase.

After total adjustments of USD 40 million to net operating income, Adjusted earnings [5] were USD 192 million in the first quarter of 2021, up from USD 11 million in the first quarter of 2020.

Equinor first quarter 202112

MARKETING, MIDSTREAM & PROCESSING

First quarter 2021 review

Natural gas sales volumes amounted to 15.6 billion standard cubic meters (bcm) in the first quarter of 2021, a decrease of 0.8 bcm compared to the first quarter of 2020. Of the total gas sales in the first quarter of 2021, entitlement gas was 13.6 bcm,
up 0.2 bcm from the first quarter of 2020. The increase was mainly due to higher volumes DPI GLU entitlement, partially offset by the absence of equity LNG volumes as a result of the outage at the Hammerfest LNG plant due to shutdown.

Liquids sales volumes amounted to 197.4 million barrels (mmbl) in the first quarter of 2021, down by 7.3 mmbl compared to the first quarter of 2020 mainly due to decreased purchase from third party.

Average invoiced European natural gas sales price was 64% higher in the first quarter of 2021 compared to the first quarter of 2020 mainly due to general strengthening of market prices. Average invoiced North American piped gas sales price increased by 46% in the same period mainly due to increased Henry Hub price due to cold weather.

Balance sheet information: The sum of equity accounted investments and non-current segment assets was USD 3,985 million for the period ending 31 March 2021, compared to USD 4,324 million for the period ending 31 March 2020.

Net operating income was positive USD 392 million in the first quarter of 2021 compared to negative USD 322 million in the first quarter of 2020. The increase was mainly due to gain on inventory hedging effects of USD 287 million and positive results from liquids trading in the first quarter of 2021, compared to gain on inventory hedging effects of USD 65 million in the first quarter of 2020. A positive effect from operational storage of USD 105 million due to change in market prices in addition to lower impairments, compared to a negative effect from operational storage of USD 343 million in the first quarter of 2020, contributed to the increase. Lower refinery margins partially offset the increase.

Adjusted purchases [6] increased mainly due to higher prices for both liquids and gas, partially offset by lower third-party volumes for liquids. Adjusted operating and administrative expenses decreased mainly due to lower transportation costs caused by lower freight rates on shipping of liquids in addition to lower volumes. Adjusted depreciation, amortisation and net impairment losses slightly increased.

After total adjustments of USD 330 million to net operating income, Adjusted earnings [5] were USD 61 million in the first quarter of 2021, compared to USD 229 million in the first quarter of 2020. The decrease was mainly due to weaker gas results from net change in fair value of gas derivatives, the absence of LNG sales due to the outage at the Hammerfest LNG plant and lower refinery margins, partially offset by improved results from liquids trading.

RENEWABLES

As from the first quarter of 2021, Equinor changed its reporting as REN became a separate reporting segment. Previously the activities in REN were reported in the segment 'Other'. The change has its basis in the increased strategic importance of the renewable business for Equinor and that the information is regarded useful for the readers of the financial statements. Following the change, Equinor has determined the adjusted earnings item of gain or loss from sales of assets is not applicable to REN, as the management considers presentation of the segment operations result, including the presentation of the gain from divestments, as being reflective of the performance of the segment at this point of time. See Use and reconciliation of non-GAAP financial measures in the Supplementary disclosures for more information.

First quarter 2021 review

Power generation⁽⁶⁾was 450 GWh in the first quarter of 2021, compared to 558 GWh in the first quarter of 2020. The decrease was due to wind being below seasonal average in the first quarter of 2021 compared to wind being above seasonal average in the first quarter of 2020. The availability has been high in the first quarter of 2021. For the Equinor operated windfarms the twelve-month period ending
31 March average production-based availability was 96.6%.

The Empire Wind 2 and Beacon Wind 1 projects in the US were awarded offtake contracts early January 2021. The execution of the procurement award is subject to the successful negotiation of a purchase and sale agreement, which the partnership expects to finalise together with the New York State Energy Research and Development Authority (NYSERDA).

Equinor closed the divestments of offshore wind interests in the UK to Eni and in the US to bp in the first quarter of 2021.

Balance sheet information: The sum of equity accounted investments and non-current segment assets was USD 1,115 million for the period ending 31 March 2021, compared to USD 1,140 million for the period ending 31 March 2020.

Net operating income was USD 1,341 million in the first quarter of 2021 compared to USD 11 million in the first quarter of 2020. The increase was due to gain on the divestments⁽⁷⁾ completed in the first quarter of 2021 amounted to around USD 1.4 billion. Net operating income was negatively impacted by lower net income from equity accounted investments than in the first quarter of 2020. Net income from equity accounted investments in operation was affected by lower production, while net loss from other equity accounted investments presented higher costs compared to the first quarter of 2020 due to the progressing of projects⁽⁸⁾.

Adjusted operating and administrative expenses increased mainly due to high project activity in the US, the UK and in Asia. Adjusted depreciation, amortisation and net impairment losses remained at the same level as in the first quarter of 2020.

After total adjustments of USD 3 million to net operating income, Adjusted earnings [5] were USD 1,344 million in the first quarter of 2021, compared to USD 13 million in the first quarter of 2020.

CONDENSED INTERIM FINANCIAL STATEMENTS

First quarter 2021

CONSOLIDATED STATEMENT OF INCOME

Equinor first quarter 202119

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

CONSOLIDATED BALANCE SHEET

Equinor first quarter 202122

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

CONSOLIDATED STATEMENT OF CASH FLOWS

1)Full year 2020 includes the sale of Lundin shares.

2)Repayment of lease liabilities are separated from the line item Repayment of finance debt and 2020 has been reclassified.

3)At 31 March 2021 cash and cash equivalents included a net overdraft of USD 135 million. At 31 December 2020 and at 31 March 2020 cash and cash equivalents net overdraft were zero.

Notes to the Condensed interim financial statements

1 Organisation and basis of preparation

Organisation and principal activities

Equinor ASA, originally Den Norske Stats Oljeselskap AS, was founded in 1972 and is incorporated and domiciled in Norway. The address of its registered office is Forusbeen 50, N-4035 Stavanger, Norway.

The Equinor group's (Equinor's) business consists principally of the exploration, production, transportation, refining and marketing of petroleum and petroleum-derived products, and other forms of energy. Equinor ASA is listed on the Oslo Børs (Norway) and the New York Stock Exchange (USA).

All of Equinor's oil and gas activities and net assets on the Norwegian continental shelf are owned by Equinor Energy AS, a 100% owned operating subsidiary of Equinor ASA. Equinor Energy AS is co-obligor or guarantor of certain debt obligations of Equinor ASA.

Following changes in Equinor's internal reporting to management the composition of Equinor's operating and reporting segments has changed as of the first quarter of 2021. Segment information for prior periods has been reclassified to align with the new segment presentation. For further information see note 2 Segments to these condensed interim financial statements.

Equinor's condensed interim financial statements for the first quarter of 2021 were authorised for issue by the board of directors on
28 April 2021.

Basis of preparation

These condensed interim financial statements are prepared in accordance with International Accounting Standard 34 Interim Financial Reporting as issued by the International Accounting Standards Board (IASB) and as adopted by the European Union (EU). The condensed interim financial statements do not include all the information and disclosures required by International Financial Reporting Standards (IFRS) for a complete set of financial statements, and these condensed interim financial statements should be read in conjunction with the Consolidated annual financial statements for 2020. IFRS as adopted by the EU differs in certain respects from IFRS as issued by the IASB, but the differences do not impact Equinor's financial statements for the periods presented. A description of the significant accounting policies applied in preparing these condensed interim financial statements is included in Equinor's Consolidated annual financial statements for 2020.

There have been no changes to the significant accounting policies during 2021 compared to the Consolidated annual financial statements for 2020.

The condensed interim financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair presentation of the financial position, results of operations and cash flows for the dates and interim periods presented. Interim period results are not necessarily indicative of results of operations or cash flows for an annual period. Certain amounts in the comparable periods in the note disclosures have been reclassified to conform to current period presentation. The subtotals and totals in some of the tables may not equal the sum of the amounts shown due to rounding.

The condensed interim financial statements are unaudited.

Use of estimates

The preparation of financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an on-going basis, considering current and expected future market conditions. A change in an accounting estimate is recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The ongoing Covid-19 pandemic create additional estimation uncertainties and impact key assumptions applied by Equinor in the valuation of our assets and the measurement of our liabilities. Reference is made to note 2 Significant accounting policies in Equinor's Consolidated annual financial statements for 2020 and to note 8 Impact of the Covid-19 pandemic to these condensed interim financial statements for further information.

2 Segments

Equinor's operations are managed through the following operating segments (business areas): Development & Production Norway (DPN), Development & Production International (DPI), Development & Production Brazil (DPB), Development & Production USA (DPUSA), Marketing, Midstream & Processing (MMP), New Energy Solutions (NES), Technology, Projects & Drilling (TPD), Exploration (EXP) and Global Strategy & Business Development (GSB).

The reporting segments Exploration & Production Norway (E&P Norway), Exploration & Production USA (E&P USA), MMP and Renewables (REN) consist of the business areas DPN, DPUSA, MMP and NES respectively. The operating segments DPI and DPB are aggregated into the reporting segment Exploration & Production International (E&P International). The aggregation has its basis in similar economic characteristics, such as similar revenue growth, net operating income, the assets' long term and capital-intensive nature and exposure to volatile oil and gas commodity prices, the nature of products, service and production processes, the type and class of customers, the methods of distribution and regulatory environment. The operating segments GSB, TPD, EXP and corporate staffs and support functions are aggregated into the reporting segment 'Other' due to the immateriality of these operating segments. The majority of the costs within the operating segments GSB, TPD and EXP are allocated to the E&P Norway, E&P USA, E&P International, MMP and REN reporting segments.

As from the first quarter of 2021, Equinor changed its reporting as REN became a separate reporting segment. Previously the activities in REN were reported in the segment 'Other'. The new reporting structure has been applied retrospectively with comparable figures reclassified. The change has its basis in the increased strategic importance of the renewable business for Equinor and that the information is regarded useful for the readers of the financial statements.

Inter-segment sales and related unrealised profits, mainly from the sale of crude oil and products, are eliminated in the Eliminations column below. Inter-segment revenues are based upon estimated market prices.

Segment data for the first quarter of 2021, fourth quarter of 2020 and first quarter of 2020 is presented below. The reported measure of segment profit is net operating income/(loss). Deferred tax assets, pension assets and non-current financial assets are not allocated to the segments.

The measurement basis for segments is IFRS as applied by the group with the exception of IFRS 16 Leases and the line item Additions to PP&E, intangibles and equity accounted investments. All IFRS 16 leases are presented within the Other segment. The lease costs for the period are allocated to the different segments based on underlying lease payments, with a corresponding credit in the Other segment. Lease costs allocated to licence partners are recognised as other revenues in the Other segment. Additions to PP&E, intangible assets and equity accounted investments in the E&P and MMP segments include the period's allocated lease costs related to activity being capitalised with a corresponding negative addition in the Other segment. The line item Additions to PP&E, intangibles and equity accounted investments excludes movements related to changes in asset retirement obligations.

In the first quarter of 2021, Equinor recognised impairments of USD 428 million of which USD 17 million was acquisition cost and signature bonuses classified as exploration expenses. The line item Exploration expenses in the Consolidated statement of income also includes impairment of capitalised exploration well cost. For information regarding impairment of capitalised exploration cost, see note 6 Property, plant and equipment and intangible assets.

In the E&P International segment the impairments were USD 55 million of which USD 4 million was classified as exploration expenses. The impairment of other assets of USD 51 million was mainly caused by a decision to discontinue production on a North America offshore asset.

In the E&P USA segment the impairments were USD 40 million of which USD 12 million was classified as exploration expenses. The impairment is related to an Equinor-operated onshore asset measured at fair value less cost of disposal in connection with reclassification to held for sale.

In the E&P Norway segment the impairment was USD 276 million and was caused by increased cost estimates and decreased production estimates of an asset under construction.

In the MMP segment the impairments were USD 57 million. The main impairment trigger was reduced revenue estimates on a gas pipeline.

For information on group impairment losses and reversals, see note 6 Property, plant and equipment and intangible assets.

For information regarding acquisition and disposal of interests, see note 3 Acquisitions and disposals.

See also note 8 Impact of the Covid-19 pandemic.

Revenues from contracts with customers by geographical areas

When attributing the line item Revenues third party, other revenues and other income to the country of the legal entity executing the sale for the first quarter of 2021, Norway constitutes 79% and USA constitutes 16% of such revenues. For the first quarter of 2020, Norway and USA constituted 80% and 15% of such revenues, respectively.

1) Excluding deferred tax assets, pension assets and non-current financial assets.

3 Acquisitions and disposals

Divestment of 10% of Dogger Bank Farm A and B

On 26 February 2021, Equinor closed the transaction with Eni to sell a 10% equity interest in the Dogger Bank Wind Farm A and B assets in the UK for a total consideration of GBP 206.4 million (USD 285 million), resulting in a gain of GBP 202.8 million (USD 280 million). After closing, the new overall shareholdings in Dogger Bank A and Dogger Bank B are SSE Renewables (40%), Equinor (40%), and Eni (20%). Equinor will continue to equity account for the remaining investment as a joint venture. The gain is presented in the line item Other income in the Consolidated statement of income in the REN segment.

Bakken onshore unconventional field

On 9 February 2021, Equinor agreed to divest its interests in the Bakken field in the US states of North Dakota and Montana to Grayson Mill Energy, backed by EnCap Investments, for a total consideration of USD 900 million before interim period adjustments. At the end of March 2021, a total of USD 150 million has been received as prepayment and is presented in the line items Cash and cash equivalents and Trade, other payables and provisions in the Consolidated balance sheet. The effective date of the transaction is 1 January 2021. Closing was subject to the satisfaction of customary conditions including authority approvals and took place on 26 April 2021. Bakken is classified as held for sale 31 March 2021. For further information see note 9 Subsequent events.

Divestment of non-operated interest in the Empire Wind and Beacon Wind assets on the US east coast

On 29 January 2021, Equinor closed the transaction with BP to sell 50% of the non-operated interests in the Empire Wind and Beacon Wind assets for a preliminary total consideration after interim period adjustments of USD 1.2 billion, resulting in a gain of USD 1.1 billion for the divested part, of which USD 500 million had been prepaid at the end of December 2020. Through this transaction, the two companies have established a strategic partnership for further growth within offshore wind in the USA. Following the transaction, Equinor remains the operator with a 50% interest. Equinor consolidated the assets until transaction closing, and thereafter the investments are classified as joint ventures and accounted for using the equity method. The gain is presented in the line item Other income in the Consolidated statement of income in the REN segment.

4 Financial items

Gains/(losses) on derivative financial instruments is a loss of USD 360 million in the first quarter of 2021,compared to a gain of
USD 193 million in the first quarter of 2020, mainly due to increased interest rates.

Equinor has a US Commercial paper programme available with a limit of USD 5 billion of which USD 250 million has been utilised as of
31 March 2021.

In the first quarter of 2021, Equinor recorded total lease payments of USD 329 million, of which USD 27 million were payment of interest and USD 302 million were down-payment of lease liabilities.

5 Income taxes

The tax rate for the first quarter of 2021 was primarily influenced by positive operating income in countries with unrecognised deferred tax assets.

The tax rate for the fourth quarter of 2020 and for the full year 2020 was primarily influenced by losses including net impairments recognised in countries with unrecognised deferred taxes or in countries with lower than average tax rates. The tax rate was also influenced by currency effects in entities that are taxable in other currencies than the functional currency, partially offset by the temporary changes to Norway's petroleum tax system and changes in best estimates for uncertain tax positions.

The tax rate for the first quarter of 2020 was primarily influenced by losses including impairments recognised in countries with unrecognised deferred tax assets or in countries with lower than average tax rates and currency effects in entities that are taxable in other currencies than the functional currency.

6 Property, plant and equipment and intangible assets

Right-of-use (RoU) assets are included within property, plant and equipment with a net book value of USD 3,854 million per
31 March 2021. Additions to RoU assets amount to USD 50 million. Gross depreciation of RoU assets amount to USD 313 million in the first quarter of 2021, of which depreciation costs of USD 80 million have been allocated to exploration and development activities and are presented net on the Depreciation, amortisation and net impairment losses and Additions lines in the table above.

Net impairments/(reversal) of impairments
For information on impairment losses and reversals per reporting segment, see note 2 Segments.

The net impairments have been recognised in the Consolidated statement of income as Depreciation, amortisation and net impairment losses and Exploration expenses based on the impaired assets' nature of property, plant and equipment and intangible assets, respectively.

The recoverable amounts in the first quarter of 2021 were mainly based on value in use.

Value in use estimates and discounted cash flows used to determine the recoverable amount of assets tested for impairment are based on internal forecasts on costs, production profiles and commodity prices.

7 Provisions, commitments, contingent liabilities and contingent assets

Asset retirement obligation

Equinor's estimated asset retirement obligations (ARO) have decreased by USD 1,489 million to USD 15,802 million compared to year-end 2020, mainly due to the increase in discount rates. Changes in ARO are reflected within Property, plant and equipment and Provisions and other liabilities in the Consolidated balance sheet.

Supreme Court decision related to ICMS indirect tax (Imposto sobre Circulaçao de Mercadorias - Tax on the Circulation of Goods and Certain Services)

In Brazil, the State of Rio de Janeiro in 2015 published a law whereby crude oil extraction would be subject to a 18% ICMS indirect tax (Imposto sobre Circulaçao de Mercadorias - Tax on the Circulation of Goods and Certain Services). The Brazilian Industry Association filed a suit with the Federal Supreme Court of Brazil challenging the law's constitutionality, and in March 2021 the plenary of Brazil's Supreme Court declared the State of Rio de Janeiro's law to be unconstitutional. The decision is still not formally final, as the State may present motions for clarification of any part of the decision. However, the Supreme Court's decision significantly strengthens Equinor's position in the ICMS related legal proceedings which previously were initiated by Equinor and which currently are ongoing for the Roncador and Peregrino fields in in the legal system of the State of Rio de Janeiro. Following the Supreme Court's decision, Equinor evaluates the probability of any cash outflow in these cases, where the maximum exposure for Equinor at first quarter end 2021 totals USD 620 million, to be remote. As no provisions have previously been made in the matter, the Brazilian Supreme Court's decision does not impact Equinor's condensed interim financial statements for the first quarter 2021.

During the normal course of its business, Equinor is involved in legal and other proceedings, and several claims are unresolved and currently outstanding. The ultimate liability or asset in respect of such litigation and claims, cannot be determined now. Equinor has provided in its Condensed interim financial statements for probable liabilities related to litigation and claims based on the company's best judgement. Equinor does not expect that its financial position, results of operations or cash flows will be materially affected by the resolution of these legal proceedings.

8 Impact of the Covid-19 pandemic

In 2021, the Covid-19 pandemic continues to impact worldwide economic growth and energy demand, and the uncertainties with regard to recovery from the effects of the pandemic remain. During the first quarter of 2021, oil prices rebounded after an unprecedented collapse and increased volatility in 2020. Developments related to the ongoing pandemic, such as new or continued lockdowns or other measures implemented by various countries, new outbreaks, and the success of ongoing vaccination efforts, will continue to impact energy demand, energy prices, and related volatilities in 2021 and beyond.

On 19 March 2021, Equinor published its 2020 Annual Report and Form 20-F. The impact of the Covid-19 pandemic for the Equinor group, including the impact for future energy price levels and demand, is discussed and reflected in a number of notes to those 2020 annual Consolidated financial statements. The Covid-19 pandemic related information with a reach beyond 2020 continue, in all material aspects, to apply for the first quarter of 2021.

During the first quarter of 2021, Equinor has only experienced immaterial effects of the pandemic from assets in operation, due to measures taken to maintain and secure safe production. The Covid-19 pandemic continues to impact Equinor's maintenance and development project portfolio world-wide with personnel limitation issues causing schedule delays and cost increases. The situation continues to be unpredictable and may have additional consequences for the progress and costs of our projects.

Within the group, the activities of Equinor's Brazilian organisation, and especially the Peregrino field projects, are the most impacted by the Covid-19 pandemic, and the situation in Brazil is continuously and closely monitored by Equinor management. Strict measures have been implemented, including office closures, scale-back of offshore activities, quarantines, and a strong focus on safety.

9 Subsequent events

On 28 April 2021, the board of directors resolved to declare a dividend for the first quarter of 2021 of USD 0.15 per share. The Equinor shares will trade ex-dividend 11 August 2021 on the Oslo Børs and for ADR holders on the New York Stock Exchange. Record date will be 12 August 2021 and payment date will be 27 August 2021.

On 26 April 2021, Equinor closed the agreement with Grayson Mill Energy to divest its interest in the Bakken field for a total preliminary consideration USD 849 million, including USD 150 million in prepayment and interim period settlement. The interim period settlement only includes cash received and cost paid up to closing. The consideration will be final in early 2022.

Supplementary disclosures

1)Total scope 1 emissions of CO2 (kg CO2) from exploration and production, divided by total production (boe).