Norway's Equinor (EQNR.NO) is one of Europe's largest energy companies. The company consolidates its portfolio of commodity investments by extracting oil, natural gas and providing renewable energy (solar panels, wind farms);
- The company's shares are 'benefiting' from the energy crisis and higher commodity prices, with the bourse gaining nearly 40% since the beginning of the year amid weakening Eurozone indices. The correction triggered by the drop in energy commodity prices beginning in early September caused Equinor's shares to lose 10% of their value;
- In a press release, Equinor confirmed the company's complete exit from Russia and the definitive abandonment of the Kharjaga oil field (30% stake). The Kharjaga field is still 20% owned by France's Total. These shares were to be sold to the Russian entity Zarubezhneft;
- The company's vice president for oil and gas, Helge Haugane as reported by Reuters and Bloomberg, revealed that European energy companies have received margin calls and need at least €1.5 trillion) to cover their exposure to soaring gas prices;
- Equinor's estimate does not include UK entities. Haugane stressed that small and medium-sized energy companies may be in a particularly weak position. Margin Calle are due to the fact that some companies sell energy in advance to secure the supply price. However, in order to secure it, they must maintain the required security deposit before they deliver energy. Soaring prices among many players potentially cause problems finding cash;
- Haugane also stressed that the only way out if all gas supplies from Russia are halted this winter is to reduce demand for gas. Currently, the EU is pushing member countries for a 15% reduction in gas consumption;
- Equinor CEO Andreas Opedal, in an interview with the Financial Times, stressed that he understands 'that there are people on the other side of the bills' and supported possible intervention by politicians in the market by agreeing to impose higher taxes on energy companies. Opedal also stressed that intervention is necessary to stop the "unequal distribution of wealth;
- Equinor, after excellent recent quarters of exponentially growing profits, raised the value of its share buyback to $6 billion in 2022, emphasizing confidence in the long-term prospects of the business. The Norwegian state remains the majority shareholder in the company (67% stake).
Equinor shares (EQNR.NO), D1 interval. The company's shares are moving in a strong uptrend, having gained nearly 50% since March 2020. In the face of recent declines in oil and gas prices, the commodity company's price has reacted with declines. In the past, RSI levels near 40 have often proved to be local demand 'supports'. The company's share price is more than 15% above its 200-session moving average. A possible resurgence in energy commodities closer to the winter period could potentially embolden bulls on Equinor's stock again. Source: xStation5
