Norwegian energy firm Equinor has suspended its 2020 oil and gas output guidance due to market conditions as a result of Covid19 pandemic, collapse of oil prices and government-imposed  curtailments.

The company reported adjusted earnings of $2.05bn and $0.56bn after tax in the first quarter this year (Q1 2020).

Equinor reported a $0.71bn net loss after taking net impairments of $2.45bn.

Equinor ASA president and CEO Eldar Sætre said: “The Covid-19 pandemic is impacting people, societies and industries across the world. Joint efforts by individuals, governments and companies are necessary to respond to the current global emergency.

“Safety is our first priority and we have taken actions to keep our people safe and healthy, contribute positively in the societies in which we operate and mitigate spread of the virus.

“We have also taken forceful actions to strengthen our financial resilience, and we are prepared to take further measures as necessary to protect people, operations and value creation.”

Equinor reiterated its plan to cut capital expenditure (capex) to $8.5bn this year from $10bn last year, and added it now expected spending for next year to be at about $10bn.

Last month, Equinor cut its quarterly cash dividend for the first quarter of the year (Q1 2020) by 67% compared to the previous year (Q4 2019) in response to the current unprecedented market conditions.

Last December, Equinor completed the previously announced sale of its onshore business in the Eagle Ford, Texas, US, to Spanish energy company Repsol for $325m.

In October last year, Petrobras signed a memorandum of understanding (MoU) with Equinor to focus on the development of natural gas business projects.