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Equinor ASA (EQNR)
NYSE:EQNR
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Equinor ASA
(NYSE:EQNR)
79Outperform
Positive Factors
Financial Performance
EQNR sees visibility to stable $5B EPI FCF to 2035, beyond recently discussed 2030, supported by two pre-FID projects that are accounted for in its budget.
Production
EQNR reiterated an ability to maintain Norwegian production to 2035.
Negative Factors
Cash Distribution
The cash distribution outlook was disappointing.
Market Reaction
The market reacted negatively, with EQNR losing $2.3B in the US session versus the $2.5B value of EQNR's stake in Orsted.
Equinor ASA (EQNR) vs. S&P 500 (SPY)
Market Cap
$66.80B
Dividend Yield4.5%
Average Volume (3M)3.90M
Price to Earnings (P/E)8.2
Beta (1Y)0.26
Revenue Growth-4.07%
EPS Growth-20.34%
CountryUS
Employees24,126
SectorEnergy
Sector Strength61
IndustryOil & Gas Integrated
Share Statistics
EPS (TTM)3.12
Shares Outstanding2,792,781,300
10 Day Avg. Volume3,122,414
30 Day Avg. Volume3,896,519
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.71
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$28.88Price Target Upside23.37% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
Equinor ASA Business Overview & Revenue Model
Company DescriptionEquinor ASA is a Norwegian multinational energy company primarily engaged in the exploration, production, refining, and marketing of petroleum and petroleum-derived products. Operating in over 30 countries, Equinor is a major player in the oil and gas sector, as well as a growing entity in renewable energy sources such as wind and solar power. The company is committed to sustainability and is actively investing in low-carbon solutions to reduce its carbon footprint.
How the Company Makes MoneyEquinor ASA generates revenue through various streams, primarily centered around its oil and gas operations. The company makes money by exploring and extracting crude oil and natural gas, which are then processed, refined, and sold to markets around the world. Additionally, Equinor operates midstream and downstream activities that include the transportation, refining, and marketing of oil and gas products. Moreover, Equinor is increasingly investing in renewable energy projects, such as offshore wind farms, which contribute to its revenue. The company also engages in strategic partnerships and collaborations to enhance its capabilities and expand its market reach. These efforts, combined with its focus on operational efficiency and cost management, help drive Equinor's profitability.
Equinor ASA Financial Statement Overview
Summary
Equinor ASA's financial performance shows strong profitability margins and efficient cash flow management, with a solid balance sheet. However, there are challenges in revenue growth and a decrease in stockholders' equity that need monitoring.Income Statement
Equinor ASA shows a consistent revenue base despite some fluctuations. Gross and net profit margins indicate strong profitability, though there is a noticeable decline from previous years. Revenue growth has faced challenges recently, highlighting potential industry risks. EBIT and EBITDA margins remain robust, reflecting operational efficiency.75
Positive
Balance Sheet
The balance sheet of Equinor ASA is solid, with a moderate debt-to-equity ratio indicating a balanced leverage position. Return on equity demonstrates reasonable profitability for shareholders. The equity ratio is stable, suggesting sound asset utilization. However, the decrease in stockholders' equity presents a potential concern.70
Positive
Cash Flow
Equinor ASA's cash flow is strong with healthy operating cash flow relative to net income, indicating efficient cash generation. Free cash flow has declined, but remains positive, pointing to effective capital management. The company's ability to generate cash supports its financial flexibility.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 102.50B | 106.85B | 149.00B | 88.74B | 45.75B | Gross Profit |
| 41.93B | 48.04B | 88.81B | 41.87B | 9.53B | EBIT |
| 30.93B | 35.77B | 78.81B | 33.66B | -2.87B | EBITDA |
| 39.56B | 50.18B | 85.75B | 42.98B | 6.60B | Net Income Common Stockholders |
| 8.81B | 11.88B | 28.75B | 8.56B | -5.50B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 23.45B | 38.87B | 45.45B | 33.28B | 18.62B | Total Assets |
| 131.14B | 143.58B | 158.02B | 147.12B | 121.97B | Total Debt |
| 30.09B | 31.80B | 32.17B | 36.24B | 38.12B | Net Debt |
| 21.97B | 22.16B | 16.59B | 24.21B | 31.36B | Total Liabilities |
| 88.76B | 95.08B | 104.03B | 108.10B | 88.08B | Stockholders Equity |
| 42.34B | 48.49B | 53.99B | 39.01B | 33.87B |
| Cash Flow | Free Cash Flow | |||
| 7.93B | 14.13B | 26.38B | 20.78B | 1.91B | Operating Cash Flow |
| 20.11B | 24.70B | 35.14B | 28.82B | 10.39B | Investing Cash Flow |
| -3.53B | -12.41B | -15.86B | -16.21B | -12.09B | Financing Cash Flow |
| -17.74B | -18.14B | -15.41B | -4.84B | 2.99B |
Equinor ASA Technical Analysis
Negative
23.41
Price Trends
23.94
Negative
23.59
Negative
24.08
Negative
Market Momentum
0.83
Negative
75.66
Negative
90.89
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EQNR, the sentiment is Negative. The current price of 23.41 is below the 20-day moving average (MA) of 25.20, below the 50-day MA of 23.94, and below the 200-day MA of 24.08, indicating a bearish trend. The MACD of 0.83 indicates Negative momentum. The RSI at 75.66 is Negative, neither overbought nor oversold. The STOCH value of 90.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EQNR.
Equinor ASA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $66.80B | 8.17 | 19.39% | 4.50% | -4.07% | -20.34% | |
79 Outperform | $191.04B | 12.55 | 8.82% | 4.33% | -5.74% | -11.09% | |
78 Outperform | $122.01B | 8.41 | 13.43% | 4.80% | -10.66% | -23.19% | |
77 Outperform | $45.60B | 16.67 | 5.58% | 5.18% | -5.16% | -41.74% | |
76 Outperform | $82.86B | 13.31 | 10.52% | 20.11% | -10.81% | -70.65% | |
61 Neutral | $81.31B | 219.47 | 0.59% | 6.54% | -9.97% | -98.08% | |
57 Neutral | $7.70B | 4.18 | -3.52% | 8.32% | 0.35% | -64.68% |
* Energy Sector Average
Performance Comparison
EQNR
Equinor ASA
23.41
-2.14
-8.38%
BP
BP
28.38
-8.43
-22.90%
E
Eni SPA
28.14
-3.94
-12.28%
PBR
Petroleo Brasileiro SA- Petrobras
13.13
0.10
0.77%
SHEL
Shell
64.13
-4.87
-7.06%
TTE
TotalEnergies
57.70
-12.77
-18.12%
Equinor ASA Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: -3.10% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a strong financial performance and increased production outlook, highlighting Equinor's achievements in safety, financial returns, and shareholder distribution. However, challenges in the renewables and low-carbon sectors, alongside geopolitical risks, present notable concerns.Highlights
Record Safety Performance
Equinor achieved its best safety results ever with a serious incident frequency reduced to 0.3, a 73% reduction since 2011.
Strong Financial Performance
Equinor reported a 21% return on capital employed for the year and generated $18 billion in cash flow from operations after tax, surpassing initial guidance.
Increased Production Outlook
Oil and gas production is expected to grow by more than 10% from 2024 to 2027, with a target of 2.2 million barrels per day by 2030, up from 2 million in the previous outlook.
Competitive Capital Distribution
For 2025, Equinor is planning a total capital distribution of $9 billion, including a $0.02 increase in quarterly cash dividend and $5 billion for share buybacks.
Lowlights
Challenges in Renewables and Low-Carbon Solutions
Equinor reduced its investments in renewables and low-carbon solutions by 50% compared to last year's outlook, citing market challenges and delays in customer commitments.
Empire Wind Project Risks
The Empire Wind project faces challenges with returns under pressure and uncertainty related to tax credits and political risks, although it is progressing with significant derisking.
Geopolitical and Market Uncertainty
Equinor acknowledged high market and political uncertainty, affecting energy markets and projects like Rosebank, which faces regulatory and political risks.
Company Guidance
During Equinor's Capital Market Update for 2024, several key metrics and strategic directions were highlighted. The company aims to achieve industry-leading returns with a projected return on capital employed of over 15% through 2030. Equinor plans to double its production growth, with a target of more than 10% increase in oil and gas production from 2024 to 2027, and expects to deliver a free cash flow of $23 billion over the next three years. In 2025, the Board has proposed a total capital distribution of $9 billion, including a $0.02 increase in the quarterly cash dividend and a $5 billion share buyback. Operational performance improvements were noted, with the Johan Sverdrup and Troll fields achieving a combined production efficiency close to 95% in 2024. Additionally, Equinor is adjusting its investment strategy in renewables, reducing spending by 50% compared to last year's outlook, and targeting 10-12 gigawatts of installed renewable capacity by 2030. The company's focus remains on delivering strong shareholder value through strategic adaptation to market conditions and leveraging operational efficiencies.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.