Equinor ASA (OSL:EQNR)
Norway · Delayed Price · Currency is NOK 338.30
-0.70 (-0.21%)
May 8, 2026, 4:29 PM CET
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AGM 2021
May 11, 2021
Welcome to the Annual General Meeting of Equinor ASA. Welcome also to non Norwegian participants. Simultaneous translation to English is available. If you're logged into the Lumi AGM, you can choose English version by selecting preferred broadcast language. We will, therefore, continue in Norwegian.
My name is Toona Lundebacker, and I'm the Chair of the Corporate Assembly and the Nomination Committee of Equinor. As you will see from the notice convening the meeting, the Board of Equinor ASA has appointed me to open today's Annual General Meeting in accordance with Section 512 of the Public Limited Liability Companies Act. With me on the panel, I have Chair of the Board of Directors, Jon Erik Reinhassen President, Chief Executive Officer, Anders Ogedal General Counsel Legal, Steve Hilleg Thorstensen and Company Secretary, Matt Johannson Hannesen. As you will see, we are seated here with a 2 meter distance between us and will observe COVID-nineteen risk mitigating measures. And we will continue to do so also by disinfecting the rostrum between speakers.
This year, the Annual General Meeting will be held as a digital meeting where shareholders attend online. The reason for a Digital Annual General Meeting is the authority's recommendation to avoid large gathering and is in accordance with interim legislation, exempting companies from physical attendance requirements to reduce the COVID-nineteen risk. I want to start by giving you some practical information. Items will be open for voting once we have recorded the number of shares represented. We expect to complete the list in a few minutes to ensure registration of those who log in.
You will then be eligible to vote on the various items being shown on your screen. And you will see that through the polling icon. We will open all items on the agenda at the same time. And you choose how you want to cast your vote by pressing the button for for, against or abstain on each item. You are free to change your vote on an individual item until the point where that item's Vote is closed.
You will no longer then be able to vote on this item. Shareholders are welcome to submit questions and comments to the items whenever they want until the item in question is closed. You may begin to send questions and comments to all Items on the agenda now. Questions and comments from shareholders will go to Equinor's moderator in Lumi to moderate any inappropriate language. The questions will be published once we start addressing the item in question.
Please state which item your question or comment relates to when submitting it. Shareholders will be identified by name but not by the number of shares held. We want to point out that questions or comments received after an item is closed will not be answered. And we may also group questions together and answer them jointly wherever this is practical and expedient for the conduct of the general meeting. Questions related to items not on the agenda will generally not be addressed.
In order to take into account a natural delay in the live broadcast stream of about 30 seconds, There will be a short pause after each item is presented. We do this to ensure that as many votes as possible are registered. During the proceedings, we may also need to take short pauses to ensure that the meeting is conducted in a good manner. Prerequisites from external auditor will also monitor DNB's voting proceedings Since no shareholders who submitted proposals cannot attend in persons, 9 of them have sent us written Supporting statements and they will be read by a representative from Equinor. This statement will take no longer than 5 minutes per shareholder This proposal and such a time limit is necessary to ensure that the AGM be held in the most appropriate and time efficient manner possible.
If anyone else wishes to comment or put questions, there is a 1,000 character limit to messages in the Lumi system. In my capacity as the person opening the meeting, it's my duty under Section 513 of the Public Limited Liability Companies Act To make a list of the shares that are legally represented at this AGM and DNB will hand over the list which will be accounted for. We Have the following portion of the share capital represented. 2,182,875,850 shares I'll represented by shareholders log in to Lumi. 3,307,414 shares are represented by proxy.
Let me see. 122,915,000,000,000,215,217,000 shares are represented by Advance Notes Our shares are represented by voting instructions to the chair of the board. And in sum, this And this is 79.93 percent of the share capital, which is represented here at this Annual General Meeting. We have now opened the vote for all items on the agenda and move forward to deal with the first item, namely the election of chair of the meeting. Please note that the vote will soon be closed, so please cast your vote now.
To shareholders who missed the explanation about how to vote, you'll also find this information on the login information page. And we also wish to point out that you are also free to vote on remaining items now. The voting results for all items will follow from the attachment to the minutes, which will be posted on the company's website Shortly after the Annual General Meeting, we will not wait before the counting of votes on each individual item if there is a clear majority for or against the motion. The Board of Directors proposes that the General Meeting elects the Chair of the Corporate Assembly, that is me, to chair this meeting. And I will ask, are there any other proposals from any shareholders?
We haven't received any other nominations for Chair of the meeting, and we hereby close this vote. The MP has now confirmed that the proposed resolution is endorsed by a majority of the vote cost and the Chair of the Corporate Assembly has been elected to chair this meeting. We now move to the next item, approval of the notice and the agenda. And please remember That we close the vote once we have dealt with it. Section 510 of the It should be sent at no later than 3 weeks prior to the meeting.
The notice convening the meeting and the notice of attendance was sent to all Shareholders registered in the Norwegian Central Securities Depository on the date of the notification pursuant to the deadline specified in the act. The notice, financial statements and directors report as well as other attachment to the notice are published on the company's website in compliance with Section 511A of the Public Limited Liability Act and the company's articles of association. Thus notification has taken place in accordance with The acts and the provisions of the articles of association. In my capacity, as chair, I propose that after the accounts by the Chair Ward and the CEO relating to Item 67, a representative from the company will read out the supporting statements from the shareholders submitting motions under Items 8 through 17. Once all the proposals have been presented, we will open the floor for answers to the interventions on the 10 shareholders proposal plus items 67.
The point of dealing with these items together is to maximize practicality and time efficiency. Voting will take place in accordance with the notice of the meeting. It is only interventions, questions and comments that will be merged for the said items. This is the same method we have employed at previous general meetings. We have not received any questions or comments, And we hereby close this vote.
Been adopted by a majority of the votes cast, and the general meeting is declared to have been legally convened, and the agenda is adopted. We'll now move to the next item, next election October to cosign the management together with the chair of the meeting. And please remember that we will Close the vote once we have dealt with this item. The following are nominated to sign the minutes of the meeting along with the Chair of the meeting, Bjorn Stor Lohorvik, the State's Representative from the Ministry of Petroleum and Energy and General Counsel and SVP Legal of Equinor. Are there any other nominations from shareholders?
No other proposals have been received. And we now close the vote on this item. DNB has now confirmed that the proposal has been adopted by a majority of the votes cast and that Bjorn Soler Horvik and Siegfried Torstensson have been elected to cosign the minutes along with the chair of the meeting. The general meeting will now deal with Item 6, The approval of the Annual Report Alecos for Equinor ASA and the Equinor Group for 2020, including the Board's proposal for the distribution of Q4 2020. And we will close the item once we have dealt with it.
As mentioned earlier, interventions, questions and comments related to Item 217 will be dealt with in conjunction with the discussions under Item 6. You may now submit any questions or comments relating to Items 67 and to the shareholder motions 8 to 17. Please note that questions and comments will not be published until after the reports and supporting statements. Please also state which item your message relates to. The directors' report on annual accounts with the auditors' report and the statement by the corporate assembly are included in the annual report and have been made available on the company's website.
Reading them aloud is therefore necessary. I now give the floor to Chair of the Board, Jon Erik Rehnavsen, who will account for the Board's view of operations and proposal for dividend. Item 6, the Board's proposal for authorization to distribute dividend based on approved Annual accounts for 2020, that is item 7, and the Board's report on corporate governance, item 18. The chair will also account for the board's response to the 10 shareholders' proposals, items 8 to 17. The floor will then be given to CEO, Anders Opeldal.
And later on the item 19 on the agenda, The Chair of the Board will give a separate report on the Board of Directors' proposed guidelines and statement regarding remuneration of executive management.
Thank you, Thula. Dear fellow shareholders, Every year, we gather for the Annual General Meeting. This year, for the first time, on a fully digital platform. I must admit that I, as many had hoped and perhaps believed, that by this time, We could again see each other in person, but that's not how it is. A lot remains before we get back to some sort of normal.
2020 will remain as a year we will all remember and that goes for Equinor as well. I wish to start with safety. In the year with particular challenges related to COVID-nineteen. The company has handled a demanding situation in a good manner. The extent of infection control measures and management have varied from location to location, But we have seen a limited impact on operations by the pandemic in most places.
Last year, we saw a decline both in frequency of serious incidents and personal injury compared to the year before. But in 2020, we also had several large incidents In Norwegian Onshore Plants, there was a fire at the methanol plant at Kjellbergoben and fire at the LNG plant in Hammerfest. Furthermore, seepage of oily water into the ground was identified at Monsta. These are incidents which challenge the safety of our employees and have a negative impact on the environment, affect the supply of our products and have an impact on our financial results. We acknowledge that we have too many serious incidents.
We have not sufficiently secured Good learning and compliance after incidents leading to repeating cases. The lack of capacity and expertise have been addressed as areas of concern. The Board has a clear expectation to see improvements here in the time ahead. Certain milestones mark the history of the company. For last year, I would like to highlight The change of Group President and CEO.
After more than 14 years with the company, Eldar Setra chose to step down as Group President. Not only has he contributed to Equinor for 4 decades, That is Statoil First and then Equinor. But he has steered the company through 2 oil price crisis and a pandemic. He also staked out a clear course for the company's way forward. With the Board of Directors, he lay a strategy making us well prepared for the energy transition and the tremendous changes that society is facing.
Eldar was the 1st group CEO who was recruited internally. In a period marked by a lot of turbulence, his Sound knowledge of the company and extended experience made a great difference. He laid a solid foundation for Anders The process identifying a new group President and CEO is one of the most important tasks of the Board of Directors. It was a thorough process in which the board considered internal as well as external candidates. We are pleased to yet again have found the best candidate within the company.
Equinor is in a phase of considerable transformation when the world needs to keep taking more action to Combat Climate Change. The Board's mandates to Amish is to accelerate Equinor's development as a broad energy company and create greater value for our shareholders through the energy transition. The world is changing rapidly, and we face great steps to respond to the climate challenge. Equinor wants to be a leading company in the energy transition, and we need to take charge to rise to the challenge. Amash is now well underway with establishing a new organization, An updated strategy showing how the company will prioritize efforts, capital and expertise in the time ahead We'll be presented at our Capital Markets Day on the 15th June.
2020 was a highly demanding year for Equinor, for the industry and for society at large. Equinor operations were solid, but the results were heavily impacted by low oil and gas prices. And we had certain plants out of production due to incidents. The company took forceful measures in response to demanding market conditions. And the company delivered $3,700,000,000 in cost cuts, including reduced international investments, exceeding the ambitions we set as the pandemic hit.
In 2020, net operating income was negative $3,420,000,000 compared to positive $9,300,000,000 in 2019. Adjusted earnings before tax ended up at 3.94 dollars, a reduction from RMB13.5 billion in 2019, whereas the adjusted earnings after taxes were 0 point $92,000,000,000 The flow from operations after tax landed at $10,900,000,000 in 2020. Average CO2 emissions from Equinor operated production was 8 kilos per barrel in 2020, which is a reduction from 9.5 per barrel the preceding year. Equinor continues to optimize the oil and gas portfolio with the new projects to be sanctioned in 2021, 2022 having an average breakeven oil price of around $30 per barrel. Based on this competitive portfolio, Equinor expects production growth in oil and gas going towards 2026.
The tax package offered by Norwegian authorities last year was an important measure to secure jobs and activities for oil companies as well as for the service and supply industry. This was significant and shows the value of cooperation between industry authorities and unions. In 2020, we've also shown a strong ability to create value through transactions in offshore wind. Equinor entered into an agreement to farm down in the Dogger Bank Wind Farm A and B and established a Strategic partnership in the U. S.
Where BP agreed to farm in 50% into the Empire Wind and the Beacon Wind assets. And as you have seen, our growth in this segment continues. CEO, Anders Obrador, will cover the earnings in greater detail. At last year's Annual General Meeting, Equinor's U. S.
Projects were thoroughly discussed. Many wanted to understand how the company could end up in this situation. In June, the Board appointed a committee led by state authorized public accountant, Elle Rohelgitzen of PwC To review the company's operations in the U. S. With particular focus on onshore operations.
The objective was to learn and improve, and the committee submitted its report in October 2020. The report was thorough and critical. Equinor has had great Financial loss as a consequence of investments in the U. S. This was mainly driven by ambitious growth in volume and 2 optimistic expectations of the oil price.
Furthermore, the fast growth resulted in a period of extensive challenges of control. The board and the management should have seen and addressed the challenge earlier. And it is now the responsibility of the Board and the management to ensure that we learn from this. At the same time, the report showed that extensive improvement measures implemented when the challenges became internally known in 2014, did yield results. The Board and the administration keep this matter high on the agenda and will continue in the time ahead to follow-up and implement measures based DWC report.
Various activities get a lot of attention. Often, it is positive and at times more critical. In addition to the operations in the U. S, Our operations in Angola have received a lot of attention in 2020 this year. Both these cases led to parliamentary hearings in Norway.
I attended these public hearings along with current and former CEOs and former chairs of the board on behalf of the company. The purpose was to elucidate the dialogue between Equinor and the Norwegian Ministry of Petroleum and Energy in these matters.
[SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:]
It's important to be transparent about our operations. We strive to achieve this through our reporting and other communication with shareholders, authorities and society in general. Lessons learned from the U. S. Have already been mentioned.
As for Angola, we are in regular dialogue with Sonangol and express our impatience for progress on the R and D center for which Equinor has contributed funding. I will now give an account of the company's 2020 operations, including The Board's report on dividends, the Board's work in 2020 and the Board's statement on corporate governance, Items number 6, 7 and 18. The Board's statement on remuneration for leading For executive personnel, it's addressed especially under Item 19. The company's dividend policy is to grow the annual cash dividend in line with Long term underlying earnings. The Board approves 1st to 3rd quarter interim dividends Based on an authorization from the general meeting, the general meeting approves the 4th quarter and thereby the total annual dividend based on a proposal from the Board.
The Board of Directors proposes to the general meeting for the Q4 of 2020, a dividend of $0.12 per share. This is in line with our dividend policy and is based on our results in 2020. Like previous years, The Board will ask for the authorization of the general meeting to determine quarterly dividends until the next Annual General Meeting. This is in line with our dividend policy, which should also take into account the expected cash flow, investment plans, Funding needs, acquired financial capacity and the company's overall situation. Let me go on to give an account of the Board's work in 2020.
Management and corporate governance are based on transparency and equal treatment of all our shareholders. It is the mandate of the board and the society around us. The Equinor Board places emphasis on keeping a high standard of corporate governance In line with Norwegian International Standards of Best Practice, Board must be independent and focus on preventing conflicts of interest between shareholders, the Board and management. The Board held 8 ordinary and 9 extraordinary Board meetings in 2020. The high number of extraordinary Board meetings was mainly due to the COVID-nineteen situation.
Meeting attendance was at 99%. The entire Board of Directors or parts of it will normally visit various Equinor plants and office premises in Norway and globally. And at least every other year, all board members travel for an extended board visit to one of Equinor's offices or plants abroad. This was different in 2020 due to COVID-nineteen. The Board often discusses climate related upside and downside risks and Equinor's strategic response to these.
In 2020, the Board has worked holistically with climate risks And the transition of the company. This includes the climate ambitions announced by the company concerning emission reductions on the Norwegian continental shelf and globally and to have net zero carbon emissions by 2,050. Growth in renewable is also an important topic on the Board's agenda. We experienced an increasing level of interest and dialogue with shareholders on climate and how Equinor can contribute towards the energy transition. We appreciate this dialogue.
We're also pleased that the company's energy transition is being noticed in the global arena. A few weeks ago, Equinor was included in Time's list of the world's 100 most influential companies. The result of good communication with some of our larger shareholders, including Climate Action 100 plus. We announced on April 19 that at next year's AGM, we will present a plan for the company's energy transition for a consultative vote. This is to be repeated every 3 years.
Equinor will report on annual target achievement. Sustainability Has been integrated into Equinor's strategy and business model for decades. With a separate plan for energy transition, We invite the shareholders to gain an even better overview of what we do and how we deliver on our ambitions. CEO will go into more detail on this in his presentation. Now I wish to address the board's response to proposals From shareholders in items 8 through 17.
In the material made available ahead of the Annual General Meeting, the board has Commented on the proposals and provided recommendations for the voting. I would still like to elaborate on some of these topics here. In the course of 2020, Equinor announced an extensive set of climate ambitions. Among the most important, continued reduction in own emissions from oil and gas production reached Carbon neutral global operations by 2,030 net 0 emissions by 2,050, including category 1, 23 emissions and to promote profitable growth in renewable energy and the development of low carbon solutions. Transparency and reporting on climate and the environment is important.
And the company aspires to be a leading company in this area. We will continue to develop this. And I can already share with you now that we've decided that starting next year, we will share information on CO2 emissions also per individual field. We believe that climate risk is best described at company level. Furthermore, Equinor has presented this year a new approach to how the company works to protect biological diversity.
1 Part of this that for Equinor to establish voluntary exclusion zones for our own operations and activities. The Board considers that energy transition plan, which will be presented to the Annual General Meeting in 2022 will provide answers in response to several of the topics addressed in the shareholder proposals. When Equinor develops its business strategy, a lot of considerations need to be made. Climate and future market outlooks are very important.
And the
same goes for profitability, value creation and capital discipline. Equinor holds a special role as steward of resources as a key company in Norwegian society, as an employer, as a driver for Norwegian Industry and as one of the largest Taxpayers in Europe. Equinor wants to develop as a broad energy company and contribute To the energy transition in Norway. We believe that the company's already ambitious climate plans stake out a clear direction for Equinor. Furthermore, the company has already notified that it will provide update of short and medium term climate targets At the Capital Markets Day in June and at next year, the energy transition plan will be presented before the AGM.
The Board finds this to be a more robust and holistic approach for the energy transition That's what is outlined in the proposal in Item 8. The Board thinks it is very difficult to precede the micro and macroeconomic as well as the legal consequences of the presented proposal. Although the plan will include some of the submitted proposals, we nevertheless don't recommend the Annual General Meeting to set Specific directions for the completion of the work on the plan. But the shareholders will next year have the opportunity to participate in a consultative vote on an overall plan. Board believes that the company's climate strategy supports sustainable transition to a low carbon society.
The course of Equinor remains firm, Always safe, high creation of values and low carbon emissions. Equinor is an international broad energy And we'll continue to search for the most competitive oil and gas resources of high value, which may be produced with the lowest Possible operational emissions. Equinor expects a gradual decline in global demand for oil and gas from around 2,030. It is absolutely needed for the world to reach the climate targets. Value creation, not volume replacement, is and will be the guideline for Equinor's decisions.
In the long run, Equinor expects to produce less oil and gas than today. With this backdrop and with the included case documents, the board has recommended voting against The submitted proposals. 2020 was a year with challenges that struck everyone in various ways. Despite the pending situation, the company has handled the challenges in a solid manner. Now when prices have gone up, we see that this reaps results and provides a good foundation for value creation.
On behalf of the Board, I wish to thank CEO, Anders Obrdal and his management team for good deliveries in difficult times. And not the least, I wish to express a special gratitude to all employees offshore, at onshore plants, in offices and working from home who have worked hard and delivered even in a difficult year. Without this effort, we would not be as robust as a company as we are today. And with that, I give the floor to the CEO. Thank you for your attention.
Thank you, Jonas Henrique. We'll disinfect the restaurant quickly before giving the floor to our CEO, Anders Thank you, Chia. And dear fellow shareholders, I've been looking forward to this event, my first Annual General Meeting. And for the first time, the AGM is conducted as a fully digital Annual General Meeting. But virtual meetings via the screen is something we've become accustomed to.
In the course of 2020, Equinor and the rest of our society have become more digitalized. This has some clear advantages. But unfortunately, we also see that a life with COVID-nineteen restrictions and extensive use of home office can also have a negative effect on health and job satisfaction. But I would also like to commend colleagues both in Norway and abroad who have gone to work at our facilities offshore and onshore and kept our operations safely running. They've been away from their loved ones While the pandemic developed, combined with strict infection control protocols and reduced socialization with colleagues to a minimum.
It's too early to summarize all the lessons learned after the pandemic, But it's not too early to express my warm gratitude to everyone who are making a huge effort to ensure safe and secure operations, supplying energy to people and industry across the world. 2020 was an extraordinary year in many ways. The pandemic caused human suffering and impacted societies across the world. The global economy was hit And the energy industry was impacted by high volatility in the markets. This required an extraordinary effort from our employees, Suppliers and Authorities.
I wish to thank all employees for delivering Solid operations in a challenging year, but the financial performance in 2020 is strongly influenced by the low oil and gas prices and impairment. In addition to the impact on the markets, COVID-nineteen has severely impacted our projects and operations, which were most severely affected such as in Brazil. As the Chair of the Board also mentioned, we established a powerful action plan early to secure financial robustness during the pandemic. With hard work and commitment across The organization, we exceeded our plan. We achieved improvements of more than $3,700,000,000 through cutting operational, CapEx and exploration costs.
This positions us for strong value creation and cash flow in 2021 the years ahead. The uncertain market situation was challenging for the entire industry and the interim changes to the petroleum tax regime in Norway adopted last summer were very important. These measures stimulated investments and maintained the level of activity in the oil and gas industry, enabling companies to realize planned projects at a time with much uncertainty about oil prices. It helped maintain competence and capabilities at Norwegian Shipyards and in the Norwegian Supply Industry, which in turn facilitates for further development towards the green transition. Throughout the year, The level of activity in Norway has been high, and we have delivered on the expectations of contributing to the award of contracts to a competitive Norwegian Supply Industry.
Today, I would like to spend some time on commenting on last year's performance and offer some reflections around the markets in which we operate. And then I want to say a few words on our strategic development. But let me start with safety. Safety, security must always be a one priority. Our most important responsibility is to avoid major accidents and ensure that everyone can return home from work safe.
In 2020, we had too many incidents. This is not satisfactory. The safety performance shows an improvement over the past years, but as the chair also addressed, The fires at Hammes LNG and at Chelbegarden were among the incidents in 2020, which show we must further strengthen our safety work. Fortunately, no one were injured, but the fires were very serious and had major consequences. We investigate all serious incidents and near misses to identify their cause and implement measures.
Conclusions and findings are shared across the company and with our partners and suppliers. After the fires, we've launched several improvement initiatives across the company. Competence and capacity, capability mapping plus a separate project to strengthen management, organization and governance are among the measures which will ensure safe and competitive operations in a long term perspective. We use reports from the Norwegian Petroleum Safety Authority and our own investigations to extract learning. Employee representatives and HSE personnel are also involved in this work.
The target is always to improve our performance and to strengthen safety. We have worked systematically with improvement over many years. This has been a must to be a robust and competitive company. But the basic premise for all improvement work must be and shall be that it doesn't compromise safety. On the contrary, it must help enhance safety.
This is a demanding balance. And we're therefore humble and attentive when we learn that even in this area, There may be instances where we have not always been good enough. Let me continue with the financial performance for 2020. As the year mentioned, 2020 was a very challenging year in terms of results being impacted by the prices. In 2020, IFRS operating income was negative $3,420,000 compared to positive 9.3 €1,000,000,000 in 2019.
The decrease was primarily driven by lower oil and gas prices. We delivered adjusted earnings of $3,940,000,000 before tax and $900,000,000 after tax. The return on average capital employed was 1.8%. And cash flow from operations after tax was $10,900,000,000 In 2020, Equinor delivered a total equity production of euros 2,070,000,000 barrels of oil equivalents per day. We delivered cash flow from operations of almost $11,000,000,000 after tax, And we have reduced cost and CapEx by more than $3,700,000,000 We reduced investments to US7.8 USD 8,000,000,000 approximately 20% below guiding for the year.
Our response to the pandemic was important to ensure robustness in 2020. But even more important, it enables us to deliver strong cash flow and value creation in 2021 and the years ahead. The Q1 this year saw considerably higher realized prices. We delivered a free net Cash flow of more than $5,000,000,000 We also imported good adjusted earnings and good cash flow from the international Upstream activities. It's encouraging to see that the improvement work pays off.
In the Q1 of this year, we sold the U. S. Back and Field. By doing so, we focus our efforts towards more competitive projects in our portfolio so that we can deliver higher value to our shareholders. Effective from the Q2 2020, we started reporting the U.
S. A. As a separate reporting segment. Our Chair of the Board mentioned the external investigation of Equinor's U. S.
Activities. It was a thorough critical report. And in collaboration with the Board, the corporate executive committee is responsible for ensuring a focus on learning from previous incidents. And we are in the process of implementing such learning. We're also raising the visibility of the results from our renewables activities.
Effective from the Q1 2021, we started reporting this as a separate segment. The divestments made in 2020 in the U. S. A. And the U.
K. Contributed positively to the Q1 financial results by almost $1,400,000,000 This confirmed our ability to create value by securing access 2 and mature renewable projects. And then a few words about the market situation. As I said, the situation in the markets were demanding in 2020. We see a clear improvement with the Rollout of vaccines and societies that are now in the process of reopening in parts of Asia, Europe and the United States.
But the situation in India cause for our concern. Positive signals in other parts of the world has contributed to increased optimism. In this quarter, we have seen that the global economy has become more stable. And during this quarter, the oil prices have also been supported by strong efforts from OPEC, Air France and European and American Stimulation Packages. We also observed a strong growth in European gas prices because of high demand and low LNG imports.
But there is still much uncertainty related to the COVID-nineteen pandemic, and we must be prepared for considerable volatility going forward. Among last year's highlights was the start up of the new gas module at Roll C and the Sonora expansion project, which came on stream ahead of schedule and well below budget. The Johan Sverdrup field continues to deliver major value. The first phase of the field development was repaid after in months. And the production capacity has already increased to 535,000 barrels of oil per day, 1 month ahead of the original plan.
And this is 100,000 barrels more and the original basis when the field went on stream. We also established a new unit, FLX, aimed at enhancing value creation from fields in late life. Together with our partners at Stafjord, We have decided to invest DKK 3,000,000,000 in the Staghfjord Eastfield. This increases recovery by 23,000,000 barrels of oil equivalents. And last week, we received the happy news that our PDO changes have been approved.
We continue the important work of improving energy efficiency at our facilities offshore and onshore. And last year, we successfully reduced emissions in Norway by 280,000 tons of carbon through operational measures. Let me also say a few words about our exploration activities. We completed building 20 exploration wells last year, which resulted in 9 discoveries. We are particularly happy about the discoveries we made on the Norwegian continental shelf Close to existing infrastructure, they can be produced profitably with low carbon emissions.
We have a strong project portfolio in the pipeline with an average breakeven price of around $30 per barrel for the project, which is pending approval in 2021 to 2022. 2020 was a year of solid value capturing from offshore wind and good progress in our renewables portfolio. The plan for development and operation, the PDO, of the floating Wind project, Highwind Tampon, was approved, and construction is well underway. Just before Christmas, Norwegian authorities announced their funding decisions for the Northern Lyle project. This project is part of the government Landscape, the Landscape project, designed to develop a full value chain for carbon capture and storage.
And we've started construction of the landing facility at Agarden. We took the investment decision for Dogo Bank A and B, and we won the largest ever U. S. Win award. In addition, Equinor is leading the U.
K. H2H2N project, which aims to convert Gas to Hydrogen in combination with carbon capture and storage. We have recently obtained important financial support from U. K. Authorities.
Driven, we expect organic investment to be EUR 9,000,000,000 to EUR 10,000,000,000 on average in 2021 2022 and driven by the strong opportunities set in front of us. We took action when the impact impacted us last year and reduced the dividend from 0.27 to 0.09 dollars per share. Since then, we have cautiously and step by step increased dividend somewhat to EUR0.12 in the 4th quarter and EUR0.15 in the Q1 of this year, in step with the gradual normalization of the markets and instead with strengthening positions for Equinor. The world must continue to fight climate change even during a pandemic. My message when I took up the post of CEO for Equinor Once that, we will create value as a leading company in the green transition.
The strategic direction is still is On safe operations, that is always safe, high value and low carbon. We continue the work of reducing carbon intensity from operations, and we are accelerating the transformation towards a broader energy company. We started 2020 by launching ambitious climate ambitions to reduce total greenhouse gas emissions from our self operated fields and onshore facilities in Norway by 40% by 2,030, 70% by 2,040 and down towards near 0 by 2,050. The ambition covers all greenhouse gas emissions from offshore field and onshore plants in Norway where Equinor is operator and embracing both Scope 1 and Scope 2 emissions of Carbon and Methane. Furthermore, we want to increase the renewable energy capacity 10 fold by 2026 and become a global leader in offshore wind.
In November, we announced an ambition to become a net zero energy company by 2,050. This mission comprises emissions from production and emissions and consumption of energy, what we also call scope 3. This ambition sets a clear strategic directions for long term value creation In line with the Paris agreement, this will not be easy. But our almost 50 year history tells us that knowledge, the innovation capability and drive have made us a global leader in our fields. We have successfully done what was considered impossible during our time crossing the Norwegian trench, developing multiphase technology, horizontal drilling, the Oskar subsea gas compression facility and floating offshore wind, just to mention a few accomplishments.
We've had the ability of being proactive and at the forefront and have developed technology to overcome challenges and create industry and ripple effects. As a company, we have stayed relevant by creating huge opportunities and value for almost 50 years. We are to stay We're equally ambitious on behalf of ourselves and the company when we look forward into the next decades. With knowledge, Curiosity and a collaborative approach, we will take new steps in industrial history. We will take a leading role in the green transition.
The world is changing both at authorities, industry and consumer There are other expectations to the forms of energy that we will consume, and the need for energy will also change over time. Therefore, it's all about positioning ourselves well for dealing with a future that will be different from where we are now. And we have therefore said that at the next Annual General Meeting, we will present our plan for energy transition and how to reach climate targets set towards the carbon neutrality in 2,050. We will continue to report on annual target achievements. And every 3rd years after that, we will present an updated plan to the shareholders for an advisory vote.
In order to stay relevant as a company in the future, we must Continue to be competitive and innovative. We must have the capability of prioritizing commitment, Capital and competence to the projects that can bring us there. We need to identify the right oil and gas projects as well as renewables projects. At our Capital Market Day in June, we will present an updated strategy. In addition, we will also present some of the steps in our climate program going forward and how we intend to develop the company to create value for our shareholders while at the same time achieve our climate ambitions.
We have also adjusted our organization in order to be able to deliver on these challenges. Let me leave you by saying the following. Safety is ours And my number one priority, everyone who works for Equinor must return from home safely. That's our responsibility. At this time last year, we feared what lay ahead.
We feared the consequences that the pandemic might have for our employees, our operations and our performance and results. The pandemic has caused a lot of human suffering and impacted societies across the world. But I'm proud and impressed by Our organization's hard work and how we've tackled the challenges that the COVID-nineteen virus have given us. I would therefore like to thank all employees for your hard work and commitment to the company every day. This has been a particularly demanding year for all in face of it all, but I dare say that we have become a stronger company.
We have positioned our well to ensure long term value creations for becoming a leading company in the green transition for continuing to deliver energy to people and develop societies around us. In conclusion, I wish to express my gratitude to the Board of Directors and not least, the Chair of the Board for a good, trusting collaboration. Thank you for your attention.
Thank you to both of you for your accounts. We will now move on to the shareholder proposals, and we remind you that any questions or Comments from logged on shareholders must be submitted into the Lumi AGM solution. These will be published in the course of and after All the shareholder proposals have been read out loud. Please note that we will not open up for questions and comments later to items 6, 7 and the shareholder proposals in items 8 through 17. For these items, there will only be voting on each item.
It is also possible to vote on these items now. If you wish to support the proposal of the shareholder, you vote in favor of the proposal, whereas You should vote against the proposal if you wish to follow the recommendation of the Board of Directors. We now move on to Item 8, a proposal put forward By a shareholder, the proposal under Item 8 was distributed with a notice of the meeting and is being shown on the screen, so it will not be read out loud. Fredrik Petros of Equinor's corporate communication will read the presentation by the shareholder in English, and we will revert to any questions
Chairman, Mr. Oekodal, Directors and Shareholders. Mr. Ochdahl, congratulations on your appointment on November 2 last year. Now that you stand at the helm of 1 of the world's largest Oil majors, you are in a unique position in Norway and beyond.
You are one of the few who can make or break the Paris Climate Agreement. The decisions you will make in your tenure will define how Equinor and the world will look like in a few decades from now. By that time, your grandchildren will realize what position their grandfather held and will surely ask, What did you do about the climate crisis? The first signs are promising. You have wasted no time.
On your first day in office, You doubled Equinor's climate ambition by announcing the ambition to become a net zero energy company by 2,050 for all emissions. We welcome this new ambition. At the AGM of 2019, your predecessor neglected Equinor's Scope 3 responsibility and used it as an excuse to reject our climate resolution. In 2020, the Board Rejected our resolution by assuring shareholders that halving Equinor's carbon footprint was sufficient. We think the investors that supported these crucial steps by voting for our climate targets resolution in 2019 2020, Equinor's steps showed twice that a minority of responsible shareholders can drive change by voting for climate targets.
This year, voting for our climate resolution is still necessary because the fight against climate change Will not be won or lost in 2,050, but in this decade. Rest assured, Mr. Upendal, Shareholders will not hold you accountable in 2,050 when we're both in our 80s. Shareholders will hold you accountable this In this decade, Equinor has no plans to substantially shift Investments to substantially decrease emissions, nowhere near what is needed to realistically put the Paris goals within reach. According to the benchmark of the CA-one hundred plus Equinor has no Paris consistent emission reduction targets And no Paris consistent capital expenditure plans.
Bluntly, your message to shareholder is, We know you expect us to act in the climate emergency, so we have promised to reduce emissions in the distant future while we implement new strategies that will not decrease emissions substantially in the next decade. More and more shareholders believe that the only concrete targets for all emissions will lead oil majors to the necessary shift In investments from fossil fuels to renewables, a growing body of investor opinion sees voting for climate resolutions As integral to their fiduciary responsibility, as the proxies have understood, investors are stewards For both their investee company's future and a world economy wrecked by climate breakdown. Today, the follow of this climate resolution will come to vote for the 3rd time. For the 3rd time, your board advises shareholders to vote against the climate resolution. If Equinor's target were Paris consistent, you shouldn't need to advise shareholders to vote against Paris consistent targets.
Therefore, we trust that responsible shareholders will vote for these climate targets to compel Equinor to advance its climate ambitions To Paris consistent targets. To offer shareholders transparency and clarity about your climate ambition, we have two crucial questions. One, what reduction of net absolute emissions will Equinor achieve by 2,030? 2, what percentage of Equinor's investment will be renewables and in fossil fuels in 2022 and 2023. Mr.
Ruppedal, your shareholders and future generations count on you to take Bold and brave decisions now. You have our support.
Thank you. And we now move on to Item 9, a proposal presented by 2 shareholders. The proposal under Item 9 was distributed with the notice of the meeting and is being shown on the screen, so it will not be read out loud. Fredrik Kjapsenbroten of Equinor's Corporate Communication will read the presentation by the shareholder and we will revert to any questions and comments regarding Item 9 And the vote on the proposal. Dear shareholders, Equinor shareholders must Full and detailed information of Equinor activities in order to fully understand the company's exposure to risks on both the climate and nature.
Therefore, the shareholders, WWF and Greenpeace, Request more transparency and better reporting in all projects, including marine- and land based oil, both domestically and abroad. The Board of Directors of Equinor recommend shareholders to boast against our proposal, the Norwegian Standing Committee on Scrutiny and Constitutional Affairs requested better reporting from Equinor to enable investors Take risk and profitability into account more accurately and effectively. Both climate risk and nature risk are obvious elements to consider. Some Equinor projects abroad have received significant negative attention in the last year. This is not only for financial reasons.
And people. The confidence that Equinor operates in a safe and good manner is eroding steadily. We have contacts in all the countries where Equinor operates, and it is unpleasant to experience how Norway's reputation is damaged by The company's operations. For many people out there, for example, in Australia and Argentina, Equinor equals Norway. In the response to our proposal from the Board of Directors, it is indicated that the company already reports to the respective Countries where they operate, so there is no further need to collect this information.
This is not in line with the shareholders' needs nor our expectations in regards to Transparency from the company. Simply, this information should be made easily available to the shareholders. We also believe that the reporting requirements From some other countries may vary significantly from Norwegian standards, And this information could be useful for shareholders. It is long overdue for Equinor to give shareholders the information they need. We would like the company to report on every field and project to give clear information on how both their oil and gas activities as well as Renewable activities affect both climate and nature.
This should be reported alongside with what mitigation measures the company is implementing. Both professional investors and the government watchdog want better reporting to ensure shareholders' ability to make informed decisions about the company. In the notes from the standing committee on scrutiny and constitutional affairs dated the 4th May 2021, the government watchdog asks For a clear expectation in regards to transparency and reporting from Equinor to ensure that both the public and Investors are better placed to consider both risks and profitability in the company's activities abroad. They also expect the Ministry of Today, Equinor reports On environment and climate on an aggregated company level similar to how they report on financial matters, unfortunately, as we've seen lately, The devil is in the details. A couple of examples.
The 291,000,000 That disappeared in Angola as well as the terrible Bakken affair in the United States, which where the company has now recently sold out of Was a significant loss. We hope that the company's shareholders will support item number 9 on the agenda. It is a sound investment for the company to take sustainability seriously. We are in the middle of both the climate crisis and a nature crisis. And all companies, regardless of sector, must relate to and act on the fact that both of these crises We'll have to be solved within a relatively few years also, Rubis.
Thank you.
Thank you. This brings us to Item 10, a proposal put forward by a shareholder. And the proposal under Item 10, not distributed with a notice of the meeting, is being shown on the screen, so it will not be read aloud. Fredrik Ebbsenbrod from Equinor's Corporate Communication will read out the supporting statement from the shareholder and will revert to any questions and comments to Item 10 and the vote on this motion. The Grandparents' Climate Campaign is an organization that increasing its membership with many prominent former politicians and business people.
We love our grandchildren, and we are strongly concerned about their future. And to the world's children. We are happy that the Norwegian government has strengthened their climate targets in Paris Agreement by cutting our greenhouse gas emissions by at least 15% and up to 55% compared to 1990. But we can't see that the policy with a continuous number of awards of new oil licenses, Even in vulnerable Arctic sea can help us achieve the new climate targets. Equinor It's the Norwegian People's Oil Company.
Norwegian citizens Currently owns 67% of the shares, slightly more than 70%, including the National Insurance Fund shares. Our interests to be protected by the Norwegian Government and the Ministry of Petroleum Energy. To me as a shareholder, it seems like it is the interest of the oil industry that are being protected not the citizens and future generations. The grandparents climate campaign has therefore been involved through third party intervention For Nature and Youth and Greenpeace, who have sued the Norwegian Safe Violation of Article 112 of the Norwegian constitutions on the right of the environment by exploration licenses in the Arctic Sea. Also the IPCC makes it clear that our dependency on fossil Energy sources has caused a deadly global warming that is gradually going worse and that we're now facing both a climate crisis and a natural crisis.
The Supreme Court's judgment of the 22nd December 2020 did not sustain the plaintiff's claim. And we have, therefore, decided to appeal the case to the European Court of Human Rights. There's now a rapid development of new renewable energy sources. Equinor currently has the economic muscles to become a leader in this development while phasing out fossil energy production. This will help create many new industrial jobs that Norway needs, both at Equinor and in the supply industry.
Rather than stepping down the activity on the Norwegian Continental Shelf, Equinor is planning to electrify parts of the Norwegian oil production to reduce domestic climate emissions in compliance with the Paris Agreement. Equinor should help reduce emissions by stepping down the oil and exploration activity rather than using valuable Renewable Energy to reduce the emissions. The largest emissions are generated during the combustion of Norwegian oil and gas abroad. When also other countries are reducing their emissions, we're not guaranteed to find an economically profitable market for our oil and gas in the decades to come. The Grandparents Climate Action reacts strongly to Equinor's projects overseas.
Overall, the company has not made any money On the 100 of billions worth of Norwegian citizens' assets, it has invested abroad. The investment in tar sands in Alberta, Canada caused huge pollution Propulsion for the indigenous population and strongly affected the health and natural environment. We therefore believe that It is deplorable that they are planning fracking in Patagonia. In 2019, Equinor lost €200,000,000,000 on investments in shale, oil and gas in the U. S.
And Norway cannot accept being responsible for the huge pollution problems and the global warming these projects cause in other countries. Equinor should therefore present a Hay Sale Plan for rapid termination of oil and gas production aimed aim to become a leading company in the development of new renewable energy. Thank you. We now move to item 11, a proposal put forward by a shareholder. The proposal under Item 11 is was distributed with a notice is being shown on the screen, so it will not be read aloud.
And Fredrik Jebsenbraun from Corporate Communications will read out the supporting statement And we'll return to any questions and comments to Item 11 and the vote on this motion. Equinor reported a regrettable record loss in 2020 with a net income after tax of negative $5,500,000,000 equivalent to NOK 46,000,000,000 The loss is, of course, impacted by the effects of the coronavirus pandemic. But not just that. The company also sold its assets in the U. S.
Back end field, the shale gas with a record loss in the same way as the company also divested its assets in the Tarzan project in Canada in earlier years at a big loss. We just have to admit that Equinor, as opposed to its profitable ventures on the Norwegian continental shelf, has had an negative return on its business operations abroad. If we had invested the money in securities fund Instead of the operations overseas, we would have been DKK 900,000,000,000 richer. That is the equivalent of half a Norwegian fiscal budget, according to Professor Ustin Nordeng. There have been plenty of warnings against The uncritical ventures abroad in recent years from some of our shareholders, but unfortunately, all in vain.
In addition, the company is struggling with pursuing reputation after corruption scandals both in Iran and Angola. It is therefore extra disappointing To learn that the Board of Directors, in spite of the company's big losses and other negative experience from operations abroad, Still, it's all in favor of extending the oil business with big investments in another new country in a different part of the world. In addition, the investment is not made in the company's core activity offshore, but again, is a risky venture onshore, this time in oil shale in Argentina. Large scale oil production here will, in addition, reduce Argentina's possibilities to comply with the Paris Agreement. Equinor's new focus abroad on large offshore wind projects may also involve a certain risk, but the company's oil and gas production from fossil sources is not sustainable neither for the company nor for future generations.
As a responsible energy company, Equinor must change course and secure the company's future and shareholder value. Increased focus on renewable energy must not come in addition to but replace oil and gas.
Thank you. We will now move on to Item 12, a proposal presented by shareholders. Proposal under Item 12 was distributed with the notice of the meeting and is being shown on the screen, so it will be read out loud. Frederik Smbrotna of Equinor's Corporate Communication will read the presentation by the shareholder, and we will revert to any questions and comments regarding Item 12 and the vote On this proposal, we are a group of concerned Equinor shareholders. In the last few Annual General Meetings, we have proposed various shareholder resolutions to change the Strategic direction of Equinor from a predominantly pure oil and gas exploration and production company with a large carbon footprint With heavy financial losses outside Norway, 2 company that credibly participates in the transition towards a more sustainable world.
By doing so, Equinor would become an attractive ESG possibility. Our past proposed The resolutions have consistently been opposed by the Board of Directors and the Norwegian Government's representative and thereby voted down by the Annual General Meeting. We have reason to believe that if the 2 new resolutions below were passed In the 2021 AGM, Equinor's shareholder value as well as the value to all stakeholders would increase substantially. Further, Equinor's project and environmental exposures would be reduced significantly and the profitability and reputation of the company greatly enhanced. There are two reasons for our suggestion to stop oil, oil and gas exploration in the Norwegian sector of the Barents CA.
An estimated oil Significant financial losses in the Barents Sea, especially if the fields need to be electrified B, If a major accident or oil or gas leakage should happen in this fragile and hostile region, The reputational, environmental and financial consequences for Equinor would be enormous. As stated By the WWF, the highly biodiverse Barents Sea is 1 of Europe's last large clean and relatively A recent national poll shows that a majority of the Norwegian population wants to reduce oil and gas exploration Production. So production in the Barents Sea goes against the majority of the population's opinion. There have been intense debates In Norway, on how far north in the Barents Sea the Norwegian government should open up for exploration and production of oil and gas. The Arctic ice edge in the Faroe fleet fluctuates from year to year.
Scientists have determined that In the age between the ice and open sea, there exists a very active but fragile biodiversity that must be protected. Oil and gas exploration in this region and further into the Arctic winter ice is considered exceedingly expensive and associated with high environmental risk. When the Norwegian Parliament approved the first permits in this region back in 2015, production cost estimates by the Ministry of Petroleum and Energy were not disclosed to the parliament, but later became known creating a political scandal. These cost estimates showed that an average oil price of $84 a barrel required to make projects in this region profitable. In addition, electrification of these offshore production units Expensive and need to be included in the cost of the oil and gas production.
The electrification of the production rigs It should be paid by the oil companies and not by the Norwegian state as the oil companies expect. Further, And governmental reports have pointed out that the emergency response capacity for this region is totally insufficient. The government has issued 147 oil and gas exploration and production licenses to companies in this fragile region. According to government records, Equinor currently has 7 production permits and 29 exploration permits with partners in Permits with partners in the Barents Sea. The electrification of the 7 platforms would require more than 600 megawatts of added capacity from Finmark supplied from added onshore wind power, expansion of the Norwegian north south grid capacity and power importation From Sweden and Finland.
Therefore, there is strong reason to believe that the additional cost of electrification will make future production of oil and gas in the Barents Even more unprofitable. We are therefore of the opinion that Equinor should refrain from further exploration activities In the Barents Sea, Equinor currently has approximately 10 years of proven and estimated oil and gas reserves in the Ice free Norwegian continental shelf south of the Barents Sea. Thank you. We now continue to Item 13, a proposal presented and distributed with a notice of the meeting. It's shown on the screen, so it will not be read out loud.
Fredrik Japsendrotten of Equinor's Corporate Communication Department will read the presentation, and we will revert to any questions and comments regarding Item 13 in the vote of this proposal. Currently, Equinor's renewable energy constitute only 4% of its annual investments, while 96% are used for Oil and Gas Investments. By spinning out the Renewable Energy business into a new co, the focus on its Renewable Energy business We'd be greatly enhanced. As a result, shareholder and stakeholder value would in all probability increase dramatically as it did when the Danish oil and gas company down spun out their wind power business part into a new company called Ersted. Equinor's spin out company could be an attractive environmentally sound and Sustainable investment opportunity with a strong ESG profile.
NewCo would have potential to significantly increase its Share price unhindered by the share price development of the remaining oil and gas company. Meanwhile, Equinor's share price is likely to follow the international downward In this sunset business industry, back in 2006, the Danish government decided to split their fossil energy company, Dong into an oil and gas company and a renewable energy company called Ochsted. Ochsted's The share price was DKK 252 in June of 2016 and DKK 11.71 in January of 2021. In other words, a 370% increase over 4.5 years. Recently, the Danish government sold off the remaining oil and gas business of Dong2 Private Company.
Equinor's share price in February 2016 was NOK 114 and in February 2021, NOK 158. In other words, only a 38% increase over 5 years. However, the share price 10 years ago is about the same as it is now at about NOK140. We believe that with complete focus on renewable energy, the share price of the spin out NewCo will increase significantly based on its The conclusions for the proposals 1213. If these 2 shareholder resolutions are We believe that the value of the shareholders' investments in Equinor will be greatly enhanced and will send a strong message to the majority owner, Norwegian government that Equinor needs to transition into a more sustainable business.
Further, this will signal that Equinor is taking Significant steps towards creating much higher ESG value for all stakeholders. It should be noted that the current Board of Directors and the Norwegian Financial Inspectorate Have been very inactive in overseeing Equinor's international business development, resulting in enormous losses to the company. To date, Equinor has lost $25,000,000,000 in the United States. In addition, Equinor needs to develop specific plans for Scope 3 And how to become carbon net 0 by 2,050 according to the Paris Agreement. National fund management companies constitute a significant group of investors in Equinor and own together about 10% of the shares.
We have communicated our concerns with 13 of these companies and asked for their support in getting these resolutions passed. Also ask for support from our foreign Norwegian asset managers that hold shares in Equinor. All of these fund managers are increasingly driving changes in their portfolio companies according to ESG principles. We, the undersigned, Are all members of BKA, a nationwide association of grandparents concerned about The living conditions for future generations and part of the network international concerned grandparents. On behalf of us BKA members, sincerely, Evan Bakken.
Thank you. We will now move to Item 14, a proposal put forward by a shareholder. The proposal under Item 14 was distributed with a notice and is being shown on the screen, so it will not be read aloud. Fredrik Gebsenbrotner from Equinor's Corporate Communication will read out the supporting statement from the shareholder, and then we'll revert to any questions and comments to item 14 and the vote on this motion. The proposal under Item 14 primarily target the owners of the company, not the executive management.
Since the Norwegian state owns 70% in the company and thus have the size of authority, This proposal primarily go to the state. The state's primary task is to ensure that Norwegian citizens can live safely in the country With good welfare services, the required funding should wholly be raised through direct and indirect taxes, not through risky business operations. There may be good reasons why this date primarily for a limited amount of time is the main owner or co owner in Norwegian Enterprises. But there is no Such reasons for such activities abroad, particularly when the activities may entail large investments with high risk. We assume that the state represented by the Ministry of Petroleum and Energy and as Minister have discussed this proposal, possibly they may also have discussed it with Equinor's corporate management, we can't see that from the Board's response to the proposal.
It would be very natural for the states to give a direct to come to this proposal, and we hereby ask the state's representatives at the AGM to do so. Ivar Sertra. Thank you. We will continue and move to Item 15, which is shareholder proposal. The proposal under Item 15 was distributed where the notice of the meeting is being shown on the screen, so it will not be read aloud.
Fredrik Jeppsenbloten from Equinor's Corporate Communication will read out the supporting statement from the shareholder and will revert to any questions and comments To item 15 and the vote on this motion. Headlines about fluctuating but downturn earnings for Equinor make an impression on the company's shareholders. According to Statistics Norway, the state revenues from oil in 2020 were the lowest since 1999 and more than half from the year before. Norway's carbon emissions were somewhat reduced in 2020 mainly because of the COVID-nineteen pandemic. The reduction, however, is too slow Entralea, due to Equinor's corporate policy, it's about the company's EGS profile, namely environmental, governance and social profile.
As a medical doctor, you have an ethical obligation to raise the alert when there is a great threat to public health. According to the world's most prestigious medical journal, The Lancet, global warming is the greatest global health threat facing the world In the 21st century, the climate crisis is a health crisis. As an Equinor shareholder, a Norwegian citizen and a representative of the Doctors' Climate Campaign, I invite The Annual General Meeting, including the majority shareholder to vote for the shareholder proposal and signed by Doctors' Climate Campaign, Grow Nulanda. Thank you. We'll move to Item 16.
The proposal under Item 16 was distributed with the notice of the meeting and will not be read out loud. Frederik Jensroten of Equinor's Communication. We'll read the presentation by the shareholder, and we'll revert to any questions and comments regarding Item 16 on the vote on this proposal. We are almost 100,000 shareholders who are missing a more sensitive, self critical and solution oriented response and have demanded updated information, like the main owner, the Ministry of Petroleum and Energy. The internal PwC review was done only after thorough revelations in the media on uncontrolled spending and a lack of transparency in the company.
The response of the It does not answer to the requirements of the audit's assessment of improved quality assurance and internal control in Equinor and aspects of the Angola operations. Robust capital discipline is not achieved through enormous losses in the United States, Large transgressions in the Nord field, the Martin Linge field and on the production vessel Johan Castberg. Still, the altered aging practice shows for Q1 this year alone somewhat better results, mostly due to higher oil prices and farm down of assets. Equinor claims that Secure operations is the highest priority in the current company culture. Why then have public inspectorates and representatives for a long time pointed out Illegal oil emissions, deficient maintenance, expertise, training, manning, cost cuts, management failure and HSE risk management.
CEO, Anders Uppdal, admitted in the newspaper Diennes on the 30th April that cost cuts may weaken safety. The Minister of Petroleum has demanded that such incidents be avoided. The annual report also shows Still great security deviations in internal financial IT systems. Equinor needs to do better quality assurance for optimal Financial management improve its challenges in terms of preparedness. Thereby, it is incomprehensible to us The Board of Equinor still rejects the requested audit both this year and last year for direct targeted action points to avoid deficits and achieve better capital discipline with greater sustainable earnings.
Nobody is served By the weakening of the company's trust and reputation, something which in turn can impact on the financial development and thereby The shareholders' returns over time. Perd Henninglaesta. Thank you. And we then proceed to Item 17, which is also presented by a shareholder. The proposal was distributed with a note meeting is shown on the screen, so it will not be read out loud.
We have now had a lot of submissions both from the company and from shareholders. And we will take a break of 5 minutes, and we will be back at 5:45.
Thank you. We are now back. We received many comments and questions during the debate On the items 6 up to and including 17, the questions have been posted and are visible to all shareholders, and we will not read them Out in full, the questions related to Equinor's strategy, the Board of Directors' assessment of the proposal from shareholders A negative financial result for 2020, the results of the international activities and the sale of operations abroad and also CapEx discipline, internal control and safety and also the Hydrogen Ventures. I would like to point out that pursuant to Section 515 Of the Public Limited Liability Companies Act, the Annual General Meeting is not a natural forum for putting questions to or ask for comments from other shareholders, including from the state represented by the Ministry of Petroleum and Energy. I will now give floor to Jon Erik Eilhaptsen, the Chair of the Board, to answer questions and summarize the debate from items 6 through to 17.
Olna, first, I would like to thank you for your active participation At the Annual General Meeting, the topics that have been addressed are important to the company. And we've received several Questions and comments related to the items 6 and 7 and the various shareholder presentations. Both Mr. Ochdal and I addressed in our presentations a number of topics, among other things, safety, strategy, results and internal control dividend, climate risk and the board's response to the incoming proposals. And therefore, I will respond with some overall reflections on climate and transition.
In 2020, we experienced a dramatic drop in oil demand due to COVID-nineteen. And with a subsequent drop in oil prices, this naturally affects the company's Earnings led to reductions. And at the same time, this was the same for the whole industry, and nothing was specific for Equinor. On the contrary, the company was able to take action to Solidify its operations and we can see the positive consequences of this today, not the least in Q1. Climate has been a central theme in the submitted proposals and the presentations and comments received at the meeting today.
And Equinor has as its ambition to be a leading company in the energy transition. And we will become this through developing a clear strategy and follow it up with action. In the course of 2020, Equinor announced, as I accounted for in my presentation, an extensive set of Climate ambitions. Among the most important ones are a continued reduction in our own emissions from oil and gas production With the ambition to have carbon neutral global operations by 2,030 and the reduction of our absolute emissions in Norway by at least 40% by 2,030 and close to 0 in 2,050. Net 0 emissions by 2,050, including category 1, 23 emissions and Seeing profitable growth within renewable energy and the development of low carbon solutions.
So if there's been a question of investments, 60% of the committed investments in 2020 were within renewables and Low Carbon Solutions. In a few weeks, we will hold our Capital Markets Day at which we will present an updated strategy. This will include further details about direction and velocity of the transition the company is facing. We have announced that at the next year's Annual General Meeting, we will present an energy transition plan for advisory vote. And this plan will be updated every 3rd year and will be reported on an annual basis.
Today, Also announced that starting next year, we will share information about CO2 emissions from individual fields. We will still have the dialogue with shareholders, special interest organizations, politicians and social actors on the common Challenge that we have. And for other comments to presentations and shareholder proposals, I make reference to what was said by the CEO and myself at the opening of the debate. Thank you for your attention. Thank you, Jurek.
And now we draw the line for questions and comments to items 67 And the shareholder proposals A through A, 2017. And then that brings us back to item in the approval of the annual accounts and the Director's Report for 2020. And state authorized public accountant, Eric Mormelon of EUI will now read excerpts from the auditor's report for 2020. And Mr. Mormelon is participating via live webcast from Fortiveu.
Here you go. Thank you. Dear General Meeting, We make reference to our auditors report given on the 14th March 2021, which is included in its entirety in the company's annual report On Page 157, we have revised the annual accounts for Equinor ASA continuing
The
financial statements comprise the balance sheet And the same thing is that comprehensive income changes in income and its Another information. And it consists of the balance as of 31st And the listing of changes to capital for the accounting year ended at that date and the description of the significant applied principles and other notes Principles. Central aspects in the audits for 2020. Recoverable amounts of production plans for this, including commissions. An estimated shutdown and removal business and Significant weaknesses in internal control for Axcon.
And In our opinion, the financial statements are prepared in accordance with the law and Regulations. The financial statements present fairly in all material respects the financial position of the parent company, ex the 31 December 2020 and of its financial performance and cash flows for the year then ended in accordance with the Norwegian Accounting Accounting Standards and Practices generally accepted in Norway. The consolidated financial statements present fairly in all material respects The financial position of the group as of 31 December 2020 and of its financial performance and its cash flows for the year then ended in accordance with international financial reporting standards as adopted by the EU. Thank you for your attention. Thank you, Mr.
Momlian. And as the sharer of the Corporate Assembly, I will now read The statement on the Board of Directors proposal at its meeting 18th March 2021, the corporate assembly reviewed the financial statements and the Director's Report for 2020 for Equinor ASA and the Equinor Group and the Board's proposal for the allocation of the annual income. The corporate assembly supports the Board's proposal for the annual accounts and the allocation of the net income. The general meeting is encouraged to adopt the Board's proposal for the annual accounts for 2020 for Equinor ASA and for the Equinor Group as well as the director's report and the distribution of the proposed dividend for Q4 2020. The payment of the dividend is expected on the 27th May 2021.
If you have not yet voted And item 6, please do so now as the items will be closed as we go. We will now close the voting. TMB has now confirmed that the proposal has received a majority of the votes cast And the resolution is thus adopted.
We will now move to the vote Item 7, authorization to distribute dividend based on approved annual accounts 2020. Please note that the vote will soon be closed. I also point out that we have dealt with questions and comments To this item, the proposed resolutions will was distributed with a notice and is being shown on the screen, so it will not be read aloud. The vote is now being closed. DNB has now confirmed that the proposal has received a majority of the votes caused and the resolution is thus adopted.
We will
now move to item 8, namely a proposal. The proposal put forward and is being shown on the screen. If you wish to support the shareholders' proposal, you vote for The proposal. You vote against the proposal if you wish to follow the Board's recommendation. The boat is now being closed.
DNB has now confirmed that the majority of the votes cast are against the proposal and the resolution is thus not adopted. Next, we move to item 9 and the proposal put forward by shareholders being shown on the screen. If you wish to support the shareholders' The vote is now being closed. DNB has now confirmed The majority of the votes cast are against the proposal, and the resolution is thus not adopted. We now move on to item 10, and the proposal put forward is being shown on the screen, will not be read aloud.
If you wish to support the shareholders' proposal, You vote for the proposal. You vote against the proposal if you wish to follow the board's recommendation. The DNB has now confirmed that the majority of the motorcars are against the proposal, and the resolution is not adopted.
We now move on to item 11, and the presented proposal is shown on the screen. If you wish to support the proposal of the shareholder, vote in favor of the proposal, whereas you should vote against the proposal if you wish to follow the recommendations of the Board. We will now close the voting. TMB has now confirmed that the proposal has received a minority of the votes CASK Standard Resolution is thus not adopted. We move on to Item 12 and the presented proposal is shown on the screen.
If you wish to support the proposal of the shareholder, vote in favor of the proposal, whereas you should vote against the proposal if you wish to DMP has now confirmed that the proposal has received A minority of the vote is cast, and the resolution is thus not adopted. We now proceed to Item 13, and the presented proposal is shown on the screen. If you wish to support the proposal of the shareholders, you should vote in favor of the proposal, whereas you should vote against the [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] So if you wish to follow the recommendation of the Board. We will now close the voting. DNB has now confirmed that the proposal has received a minority of the votes cast, and the resolution is thus not adopted.
We now proceed to Item 14, and the presented proposal is shown on the screen. If you wish to support the proposal of the shareholder, you vote in favor of the proposal, whereas you should vote against the proposal if you wish We will now close the voting. DNB has now confirmed that the proposal has received a minority of the votes cast and the resolution is thus not adopted.
We now move on to Item 15 and the proposal forward by a shareholder. And the proposal is being shown on the screen. If you wish to support the shareholders' proposal, you vote for the proposal. You will vote against the proposal if you wish to follow the Board's recommendation. The host is now being closed.
DNB has now confirmed that the majority of the votes cast are against The proposal and the resolution is thus not adopted. We move to item 16, And the proposal put forward is being shown on the screen. If you wish to support the shareholders' proposal, You vote for the proposal. You vote against the proposal if you wish to follow the Board's recommendation. The vote is now being closed.
DNB has now confirmed that the majority of the votes cast are against the proposal, And the resolution is thus not adopted. This brings us to Item 17. And that's the shareholders proposal. And the proposal put forward is being shown on the screen and will not be read aloud. If you wish to support the shareholders' proposal, you vote for the proposal.
You vote against the proposal if you wish to follow the board's recommendation.
Yes.
DNB has now confirmed that the majority of the votes cast are against the proposal And the resolution is thus not adopted. The results of the votes on shareholders' proposals will, As for the other votes conducted, be attached to the minutes which will be posted on the company's website shortly after the general meeting.
We now move on to Item 18, which is the Board's statement on corporate governance. Keep in mind that the voting will be closed once the item has been heard. Pursuant to Section 5, 6th subsection of the Norwegian Public Limited Liability, the company like the AGM shall review and consider the Board's statement on corporate governance Submitted in compliance with Section 33B of the Norwegian Accounting Act. The statement for 2020 is included in Chapter 3 in Equinor's Annual Report, which has been made available on Equinor's website Prior to the AGM, we have prepared for the general meeting to take a consultative vote On the statement on corporate governance, and the Board has proposed that the general meeting endorse the statement. Reference is made to the comments of the Chair of the Board to the account given earlier in today's Annual General Meeting.
No questions or comments have been submitted, and we therefore close the voting. ENB has Now confirm that there is a majority vote in favor, so it is adopted that the general meeting endorses the statement of the Board.
So we will now deal with the Board of Directors' remuneration policy on determination of salary Another remuneration for executive personnel and other remuneration. Please note that the vote will be closed as soon as we have dealt with this MATTER. In accordance with Section 616A of the Public Limited Liability Companies Act, the Board shall prepare a remuneration policy on determination of Salary and other remuneration for executive personnel. This policy concerning the Corporate Executive Committee is included in Equinor ASA's Annual Report Chapter 312 and Note 4 in Equinor's financial statements available at the company's website prior to the AGM. The policy also includes remuneration to employees who are members of the Board and the Corporate Assembly as described in Equinor's Annual Report Chapter 311.
In accordance with Section 616 of Public Limited Liability Companies Act, The Board shall prepare a remuneration report for the Corporate Executive Committee. This report is included in Equinor ASA's Annual Report Chapter 312 A note for in Equinor's financial statements available at the company's website prior to the Annual General Meeting. I now give the floor to Chair of the Board, Jon Erik Reynadsen, who will report on the Board's policy and remuneration report. Thank you, Chona. Through the board's remuneration policy and reports on determination Salary and other remuneration for executive personnel.
The Board has presented a report on the company's remuneration policy, the formal decision making process and the overall remuneration concept for the Corporate Executive Committee. Equinor's remuneration policy and terms are firmly aligned with the company's overall value, people policy and performance oriented framework. The rewards and recognition for executives are designed to attract and retain the right people. The Board emphasizes the importance of offering executive compensation that is competitive but not market leading in the markets in which we operate. The remuneration policy and principles executed in 2020 were mainly in accordance with the declaration given to the AGM last year.
In accordance with new provisions in Section 616A Over the Public Limited Liability Companies Act, the Board has prepared a remuneration policy on salary and other remuneration for executive personnel. Provided they are adopted, the policy will apply for 4 years with less need for material changes that require new decision by the general meeting. The policy is in alignment with the new rules but also generally in accordance with the principles applied by The company over time and as presented in previous years' statement on executive remuneration. In this connection and for the sake of good order, I'd like to mention that the Board of Directors noted that the Norwegian State on 30th April of this year published a new set of state guidelines for executive remuneration and companies with state ownership and that the state presumes that they be followed up in the company's policy or guidelines presented to the Annual General Meeting in 2022. The CEO's terms.
There is no general salary increase for the former and current CEOs, that is Sertra and Oppadar, in 2020. Operators' base salary upon appointment in November was fixed at DKK 9,100,000. The CEO has a variable performance based pay with a potential of 50% of total base salary and a long term incentive scheme with a share purchase of up to 30% of fixed pay. At the request of the Corporate Executive Committee, the Board decided not to pay in Annual bonuses for the Corporate Executive Committee for the performance year in 2020. Even though no annual bonuses were paid, I would still like to attach some comments to the developments in 2020.
In its assessment of the CEO's performance for 2020, The Board has emphasized that the deliveries in key areas have been above, at and below target. The results have been delivered in an extraordinary year, significantly impacted by the pandemic, high market volatility and low commodity prices. Even Though the total recordable injuries frequency, while slightly behind target, is at the best level in the company's history, The total series incident frequency has also improved compared to 2019 but was behind the target. 2020 saw also serious incidents with fires at Melkoya and Kjellbergoten, in addition to the incident with considerable seabage of oily water to the ground at the Monsta Refinery. This underlines the need for further strengthening safety performance.
The carbon intensity for the Upstream portfolio improved compared to 'nineteen, a result better than the set target for 2020. A positive trend has also been observed compared to the 2019 results on both the diversity and inclusion indexes. CapEx has been further reduced due to projects being postponed in order to maintain financial robustness. Value creation from exploration had a positive development in 2020 and ended above target. Production efficiency is below target due to unplanned shutdowns, government imposed oil production Curtailments and operational challenges.
The unit production cost for 2020 is better than the target, reaching the 2021 target 1 year ahead of time. Total relative shareholder return was above the target of being better than average in the peer group. As for the relative return on average capital employed, ROCE, it entered just below the target set for 2020. And finally, the remuneration systems for executives are designed to ensure that we attract and retain people who are strongly committed to deliver on the company's business strategy and who are able to adapt to changing business environment. As a company and our industry We're very severely impacted by a pandemic and the sharply falling prices.
I'd like to particularly highlight 2 important instruments in our remuneration framework. The threshold ensures that bonuses are reduced or not paid If the company's overall financial position makes this appropriate, the modifier ensures that any bonus payments are clearly linked to Equinor's relative performance compared to 11 other peer companies. The Board considers that the company's remuneration systems and practices are transparent and that any deviations are explained in accordance with applicable guidelines and good business practices. Thank you for your attention. Thank you.
I believe well, we have received one question that we will respond to. But in accordance with Section 56, 3rd paragraph Of the Public Limited Liability Companies Act with reference to Section 616A5 paragraph, the Board's remuneration policies for salary executive personnel is subject to approval by the general meeting at every material change and in any case, at least every 4 years. In accordance with Section 56, 4th paragraph of the Public Limited Liability Companies Act with reference to Section 616, 2nd paragraph, An advisory vote shall be held for the Board's remuneration report for salary to executive personnel. The Board recommends that the general meeting by binding vote approves the remuneration policy. And by an advisory, Vogt endorses the Board of Directors' remuneration report.
I will read out one question that we have received for item '19. And Anders Oberdahl will respond to it. The question is, how can you allow that members of the Corporate Executive Committee also have offices or members of the Board that requires an effort in other companies while they Thank you. I believe that everyone who Report to me and all members of my team deliver on the target sector for our activities. We also want all members to develop their leadership experience and develop their expertise.
This is done both when it comes to internal development goal set, but some Executive members may also be allowed to be members of external boards. This means that they gain experience from other industries and also other business culture that they can take back to Equinor. But we will assess this on a case by case basis. Thank you, Anders. I can't say that we have received Other questions or comments to item 19?
DNB has now confirmed that The proposed resolution was adopted by a majority of the Volkskast and that the General Meeting approved the Board's remuneration policy For determination of salary and other remuneration for executive personnel, that is Item 91,191, I'll hand those to the Board of Directors' remuneration report item 19.2.
Please stop. We have now Right. So you're saying that now we have a separate vote on 19.2? I see. DNB has now confirmed that there is a majority in favor of the proposal and that the General Meeting has approved the Board's guidelines for the determination of remuneration In Item 19, too.
So now we have reached Item 20, approval of the remuneration for the company's external auditor for 2020. Please keep in mind that the voting will be closed once the item has been heard. The general meeting is asked To approve the auditing fees for audits in 2020 for Equinor ASA of
51,235,147.
No questions or comments appear to have been submitted and we therefore And DNB has now confirmed that the proposal has received a majority of the votes cast and the resolution is thus adopted. Then we will move on to Item 21, the stipulation of remuneration to the corporate assembly. Please keep in mind That the voting will be closed once the item has been heard. The proposal has been made available in the notice to the AGM is shown on the screen It will not be read out loud. As Chair of the Nomination Committee, I can inform you that the proposed increase in remuneration is on par with the general wage development in society.
Are there other proposals from the shareholders? No other proposals or comments BNP has now confirmed that the proposal has received a majority of the votes cast and the resolution is thus adopted. And then we will move on to Item 22, the stipulation of regeneration to the nomination committee. Please keep in mind that the voting will be closed once the item has Also has been made available in the notice to the Annual General Meeting is shown on the screen and will not be read out loud.
As Chair
of the Nomination Committee, I can inform you that the Nomination Committee has proposed changes to the remuneration to the members of the Nomination Committee. And again, this proposed increase in remuneration is on par with the general wage development in society. Are there other proposals from the shareholders? No proposals or comments have Submitted and we therefore close the voting. DNB has now confirmed that the proposal
We now move to address item 23. And please note that the vote will close once we are dealt with the item. Since 2004, the company has offered a shared savings plan for employees in the group. The purpose of this plan is to augment good business culture and encourage loyalty through employees becoming part owners of the company. Globally, approximately 81% of the employees participate in the share savings plan.
At the Annual General Meeting in 2020, It was decided to authorize the Board of Directors to acquire shares in the market for this purpose. This authorization expires on the date of the Annual General Meeting in 2021, it is proposed that the AGM gives the Board, Oda Vectrus, a new authorization to require shares in the market in order to continue the company's share savings plan. The proposed resolution was distributed with a notice of the meeting and is shown on the screen. So it will not be read aloud. We have not received any questions or comments, And we are therefore closing the vote now.
DNB has now confirmed that the proposal has received The majority of the vote cast and the resolution is thus adopted. We now move to item 24, which concerns an authorization to require Equinor shares in the market for subsequent annulment. Remember that the vote on this item will close when we have dealt with it. The Board request authorization from the Annual General Meeting to repurchase up to 75,000,000 owned shares in the market. That is approximately 2.3% of the company's share capital.
In accordance with Section 94 of the Public Limited Liability Companies Act. Such authorization is common in many listed companies. The repurchase of owned shares benefits shareholders by the remaining shares representing increased ownership interest in the company. For a detailed explanation of the background for the proposal, See the notice. The proposed resolution has also been distributed with a notice and is being shown on the screen, so it will not be read aloud.
We received one question regarding this matter, and I will read it out. And the question goes, why should Equinor use A lot of money to repurchase shares when they report negative net incomes with Heavy CapEx and Renewables require heavy investments. Chair, can you answer? As we have said in our notice, So we do not invite you to actually vote on this. It is all about authorizing The company, as we have also done at other AGMs, this could be a means for capital distribution and also ensure appropriate capital structure.
We also refer to the grounds given in the notice of the Annual General Meeting. Thank you, Jan Erik. We have not received any other questions or comments, and we hereby Close the voting. DNB has now confirmed that This proposal has received a majority of the vote cast and the resolution is thus adopted. All right.
We have now dealt with all the items on the agenda. Shortly, the minutes of the general meeting will be published on the company's website. We want to thank you for your engagement regarding today's general meeting. And thank you to all shareholders who have attended the 1st fully digital Annual General Meeting. The meeting is adjourned.