2iQ Insider Brief: Equinor ASA

EQUINOR ASA

Equinor ASA, formerly Statoil is a Norwegian petroleum and wind energy company with operations in approximately thirty-six countries. The Stavenger based energy company aims to lead in carbon efficient oil and gas production whilst transforming the energy industry globally. It further aims to keep this maintaining it competitiveness and profitability at all times. The market capitalisation of the company is about $61 billion and is listed on Oslo Bors. 

In 2019, the Equinor’s stock peaked at NOK 203.7, however, it declined by 17% in the month of June.  The sharp decline took place on 23rd of June which is when the company reported its quarterly earnings that had dropped more than the market’s expectations. However, Mr Eldar Saetre, the CEO of Equinor, commented that while Equinor delivered solid operational performance and was able to maintain high production, the earnings were affected by lower commodity prices which pulled earnings down. Additionally, Mr Saetre expects to launch highly competitive long term production projects that will allow Equinor to increase its earnings. 

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Source: 2iQ Research

Following the insiders recent activities, it is seen that insiders believe the decline is just a hiccup for Equinor. Mr Jon Reinhardsen, the Chairman, increased his holdings by almost 80% investing into about NOK 319,000 ($36,600) into the company. Moreover, Mr Eldar Saetre, the CEO invested NOK 0.96 million on 6,000 shares  which exhibits the CEO’s confidence on the stock of Equinor bouncing back. Another major insider, Orjan Kvelvane, the Senior Vice President more than doubled his holdings buying Equinor’s stock worth NOK 400,000. With Equinor’s issues looking to be short term, and key insiders taking advantage of the price dip, it can be seen that Equinor will be a favourable stock in the long run.

Disclaimer: Neither 2iQ Research GmbH nor its content providers are responsible for any damages or losses arising from any use of this information.

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