Education
About Us
Working with TipRanks
Follow Us
Equinor ASA (EQNR)
NYSE:EQNR
Top Page
Equinor ASA
(NYSE:EQNR)
Rating:73Outperform
Price Target:
$26.00
â–²( 9.15% Upside)
Positive Factors
Operational Developments
Near-term catalysts include Castberg startup and Empire Wind.
Price Realization
EQNR guided liquids realizations 3% higher than forecast and gas 4% higher than forecast, driving our revision.
Production Guidance
EQNR updates incorporate lower capex and 2027 production of 2.3MM bpoed, which was higher than forecast.
Negative Factors
Cash Distribution
The cash distribution outlook was disappointing.
Commodity Prices
Lower near-term earnings are expected due to weakening commodity prices and lower buybacks as a result of more rapid build in leverage.
Leverage Increase
A potential impairment and full payment to contracts in a worst-case outcome for EW would result in an estimated 4% leverage increase.
Equinor ASA (EQNR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$63.90B
Dividend Yield4.88%
Average Volume (3M)3.99M
Price to Earnings (P/E)7.4
Beta (1Y)0.23
Revenue Growth3.96%
EPS Growth-1.69%
CountryUS
Employees24,126
SectorEnergy
Sector Strength42
IndustryOil & Gas Integrated
Share Statistics
EPS (TTM)0.66
Shares Outstanding2,792,781,300
10 Day Avg. Volume3,864,013
30 Day Avg. Volume3,993,093
Financial Highlights & Ratios
PEG Ratio11.56
Price to Book (P/B)1.42
Price to Sales (P/S)0.00
P/FCF Ratio8.50
Enterprise Value/Market Cap1.34
Enterprise Value/Revenue0.20
Enterprise Value/Gross Profit2.10
Enterprise Value/Ebitda0.51
Forecast
1Y Price Target
$24.29Price Target Upside1.97% Upside
Rating ConsensusHold
Number of Analyst Covering4
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 demonstrates strong operational efficiency and a stable balance sheet, although profitability has faced challenges with declining net profit margins. The company maintains robust cash generation but faces pressures on free cash flow growth. Overall, Equinor shows resilience in its financial structure, with areas for improvement in profitability and cash flow growth.Income Statement
Equinor ASA's revenue has shown a mixed trend, decreasing significantly from 2022 to 2023 but slightly rebounding in TTM (Trailing-Twelve-Months). Gross profit margins remain strong at approximately 38% to 40%, indicating effective cost management. Net profit margins have decreased from 19.3% in 2022 to 8.2% in TTM, reflecting challenges in sustaining net income levels. The EBIT and EBITDA margins remain robust, highlighting operational efficiency.75
Positive
Balance Sheet
The company's debt-to-equity ratio is stable, with total debt reduced slightly over the periods, showing prudent financial management. Stockholders' equity has grown consistently, enhancing financial stability. The equity ratio stands strong at around 33% in TTM, indicating a solid capital structure. Return on equity has decreased, aligning with reduced net income, suggesting pressure on profitability.80
Positive
Cash Flow
Operating cash flow remains strong, although free cash flow has decreased in TTM compared to previous periods, indicating increased capital expenditures. The operating cash flow to net income ratio is favorable, suggesting strong cash generation capabilities. However, free cash flow growth rate is negative in TTM, showing potential challenges in maintaining free cash flow levels.70
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 106.80B | 102.50B | 106.85B | 149.00B | 88.74B | 45.75B | Gross Profit |
| 40.56B | 41.93B | 48.04B | 88.81B | 41.87B | 9.53B | EBIT |
| 32.06B | 30.93B | 35.77B | 78.81B | 33.66B | -2.87B | EBITDA |
| 42.31B | 39.56B | 50.18B | 85.75B | 42.98B | 6.60B | Net Income Common Stockholders |
| 8.77B | 8.81B | 11.88B | 28.75B | 8.56B | -5.50B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 24.85B | 23.45B | 38.87B | 45.45B | 33.28B | 18.62B | Total Assets |
| 137.90B | 131.14B | 143.58B | 158.02B | 147.12B | 121.97B | Total Debt |
| 29.77B | 30.09B | 31.80B | 32.17B | 36.24B | 38.12B | Net Debt |
| 22.40B | 21.97B | 22.16B | 16.59B | 24.21B | 31.36B | Total Liabilities |
| 92.03B | 88.76B | 95.08B | 104.03B | 108.10B | 88.08B | Stockholders Equity |
| 45.82B | 42.34B | 48.49B | 53.99B | 39.01B | 33.87B |
| Cash Flow | Free Cash Flow | ||||
| 7.41B | 7.93B | 14.13B | 26.38B | 20.78B | 1.91B | Operating Cash Flow |
| 20.13B | 20.11B | 24.70B | 35.14B | 28.82B | 10.39B | Investing Cash Flow |
| -5.38B | -3.53B | -12.41B | -15.86B | -16.21B | -12.09B | Financing Cash Flow |
| -14.74B | -17.74B | -18.14B | -15.41B | -4.84B | 2.99B |
Equinor ASA Technical Analysis
Positive
23.82
Price Trends
23.64
Positive
23.45
Positive
23.45
Positive
Market Momentum
0.12
Negative
56.95
Neutral
59.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EQNR, the sentiment is Positive. The current price of 23.82 is above the 20-day moving average (MA) of 23.01, above the 50-day MA of 23.64, and above the 200-day MA of 23.45, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 56.95 is Neutral, neither overbought nor oversold. The STOCH value of 59.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $122.02B | 9.54 | 11.75% | 4.77% | -9.86% | -32.59% | |
76 Outperform | $194.14B | 15.19 | 7.40% | 4.21% | -2.62% | -20.13% | |
74 Outperform | $44.14B | 16.31 | 4.78% | 5.00% | -2.17% | -25.00% | |
73 Outperform | $63.90B | 7.40 | 18.28% | 4.88% | 3.96% | -1.69% | |
69 Neutral | $74.78B | 186.20 | -1.87% | 6.41% | -7.70% | -113.83% | |
68 Neutral | $73.66B | 9.01 | 11.25% | 15.55% | -10.84% | -61.73% | |
57 Neutral | $7.06B | 3.07 | -3.45% | 5.82% | 0.59% | -50.58% |
* Energy Sector Average
Performance Comparison
EQNR
Equinor ASA
23.82
-2.74
-10.32%
BP
BP
29.09
-6.14
-17.43%
E
Eni SPA
29.10
-1.04
-3.45%
PBR
Petroleo Brasileiro SA- Petrobras
11.84
-1.40
-10.57%
SHEL
Shell
66.30
-2.54
-3.69%
TTE
TotalEnergies
57.89
-11.11
-16.10%
Equinor ASA Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 4.43%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Neutral
The earnings call revealed strong financial results driven by gas production and a robust financial position, but was overshadowed by the uncertainty surrounding the Empire Wind project halt and some operational cost increases.Q1-2025 Updates
Positive Updates
Strong Gas Production and Financial Performance
Gas production was particularly strong in Norway and the US, capturing higher prices. Adjusted operating income was reported at $8.6 billion before tax, with a strong cash flow from operations after tax at $7.4 billion.
Solid Financial Position and Capital Distribution
Equinor maintains a strong cash position of around $25 billion and a net debt ratio below 7%. The board approved an ordinary cash dividend of 37 cents per share and a second tranche of share buyback of up to $1.26 billion, totaling an expected $9 billion in capital distribution for the year.
Record Low Incident Frequency
The incident frequency reached a record low of 0.28, and the total recordable injury frequency was 2.2 per million hours worked over the last 12 months.
Positive Impact of U.S. Gas Market Strategy
Realized U.S. gas price was $4.06, a 74% increase from the same quarter last year, driven by strategic marketing and trading practices.
Negative Updates
Empire Wind Project Halt
BOEM issued an order to halt all ongoing activities related to the Empire Wind project, creating significant uncertainty and potential financial exposure of $1.5 to $2 billion.
Lower Oil Production and Trading Results
Oil production was somewhat lower than the same quarter last year. MMP came in below the guided range, impacted by lower liquids and LNG trading results and drilling costs.
Increased Operational Costs
Reported adjusted OpEx and SG&A increased by 11%, impacted by a change in over/under lift positions, increased transportation costs, and royalties.
Company Guidance
During the Equinor Analyst Call for the first quarter of fiscal year 2025, Torgrim Reitan, the CFO, provided insights into the company's financial performance and strategic developments. Equinor reported an adjusted operating income of $8.6 billion before tax and a net income of $2.6 billion. The company's cash flow from operations after tax stood at $7.4 billion, with an adjusted earnings per share of $0.66 and net income-based earnings per share of $0.97. Equinor's strong cash position was highlighted, with around $25 billion in cash and cash equivalents, and a net debt ratio of below 7%. Additionally, the company maintained its guidance for a $9 billion capital distribution for the year, including a dividend of 37 cents per share and a share buyback program. The call also addressed the challenges faced by the Empire Wind project, with a current book value of $2.5 billion, emphasizing the project's importance to Equinor and its commitment to engaging with the U.S. administration to resolve the situation. Safety remained a priority, with an incident frequency of 0.28 and a total recordable injury frequency of 2.2 per million hours worked. Gas production was strong, especially in Norway and the U.S., capturing higher prices, while the company's realized U.S. gas price was $4.06, a notable increase from the previous year. The impact of global economic uncertainties, including increased tariffs and potential trade wars, was also noted as creating volatility in the market.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.