Equinor (Buy, TP: NOK340.00) - Capital distributions likely extended
The Q2 results were in line with our expectations, and we have made limited revisions to our 2023–2025e EPS. Equinor’s balance sheet remains overcapitalised, with adj. net cash of USD12.9bn despite significant cash outflows in Q2. We believe H2 should be broadly net cash flow-neutral as FCF mirrors planned dividends and share buybacks, thus setting Equinor up for end-2023e adj. net cash above end-2022’s USD10.4bn. In our view, this supports our case that the ~USD17bn capital distributions planned for 2023 (equalling an ~18% yield) are likely to be extended into 2024, despite our expectation of a YOY decline in FCF. We reiterate our BUY and NOK340 target price.Equinor is engaged in oil and gas exploration and production activities. Co. is primarily focused on exploration, development and production of oil and gas on the Norwegian continental shelf (NCS). Co.'s operations are organized into four segments. The Development and Production Norway and Development and Production International segments explore, develop, produce and extract crude oil, natural gas and natural gas liquids. The Marketing, Processing and Renewable Energy segment markets, trades, transports and processes oil and natural gas and renewable energy. The Other segment consists of global well and project delivery, research and develpoment, and business development.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.