Equinor ASA (EQNR) AI Stock Analysis

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Equinor ASA

(NYSE:EQNR)

70Outperform

Equinor ASA's overall stock score of 70 reflects its strong financial performance and attractive valuation, offset by bearish technical indicators. The company's robust cash flow and profitability are significant strengths, while the technical analysis suggests caution due to potential downside risks. The solid dividend yield further supports the stock's appeal for income-focused investors.

Positive Factors

Financial Performance

EQNR guided liquids realizations 3% higher than forecast and gas 4% higher than forecast, driving our revision.

Operational Developments

Near-term catalysts include Castberg startup and Empire Wind.

Production and Stability

EQNR reiterated an ability to maintain Norwegian production to 2035.

Negative Factors

Cash Distribution

The cash distribution outlook was disappointing.

Earnings Outlook

Lower near-term earnings are expected due to weakening commodity prices and lower buybacks as a result of more rapid build in leverage.

Leverage Concerns

The risk of Empire Wind getting canceled introduces potential for an increase in leverage in a weakening macro environment.

Equinor ASA (EQNR) vs. S&P 500 (SPY)

Market Cap

$62.92B

Dividend Yield5.14%

Average Volume (3M)4.14M

Price to Earnings (P/E)7.4

Beta (1Y)0.24

Revenue Growth-4.07%

EPS Growth-20.34%

CountryUS

Employees24,126

SectorEnergy

Sector Strength47

IndustryOil & Gas Integrated

Share Statistics

EPS (TTM)0.63

Shares Outstanding2,792,781,300

10 Day Avg. Volume4,764,422

30 Day Avg. Volume4,144,873

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 Cap1.14

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit1.71

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$26.69

Price Target Upside14.80% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering5

Equinor ASA Business Overview & Revenue Model

Company DescriptionEquinor ASA, an energy company, engages in the exploration, production, transportation, refining, and marketing of petroleum and petroleum-derived products, and other forms of energy in Norway and internationally. It operates through Exploration & Production Norway; Exploration & Production International; Exploration & Production USA; Marketing, Midstream & Processing; Renewables; and Other segments. The company also transports, processes, manufactures, markets, and trades in oil and gas commodities, such as crude and condensate products, gas liquids, natural gas, and liquefied natural gas; markets and trades in electricity and emission rights; operates refineries, terminals and processing, and power plants; and develops low carbon solutions for oil and gas. In addition, it develops wind, and carbon capture and storage projects, as well as offers other renewable energy. As of December 31, 2021, the company had proved oil and gas reserves of 5,356 million barrels of oil equivalent. Equinor ASA has collaboration agreements with Vårgrønn; and RWE Renewables and Hydro REIN. The company was formerly known as Statoil ASA and changed its name to Equinor ASA in May 2018. Equinor ASA was incorporated in 1972 and is headquartered in Stavanger, Norway.

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

Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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

Technical Analysis Sentiment

Positive

Last Price23.25

Price Trends

50DMA

23.83

Negative

100DMA

23.56

Negative

200DMA

23.80

Negative

Market Momentum

MACD

-0.40

Positive

RSI

48.74

Neutral

STOCH

34.51

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 23.25 is above the 20-day moving average (MA) of 22.96, below the 50-day MA of 23.83, and below the 200-day MA of 23.80, indicating a neutral trend. The MACD of -0.40 indicates Positive momentum. The RSI at 48.74 is Neutral, neither overbought nor oversold. The STOCH value of 34.51 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 (56)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
E	74 Outperform	$43.66B	16.11	4.78%	5.07%	-2.17%	-25.00%
TTE	71 Outperform	$115.97B	8.20	11.75%	4.80%	-10.66%	-23.19%
EQNR	70 Outperform	$62.92B	7.45	19.39%	5.14%	-4.07%	-20.34%
PBR	66 Neutral	$69.94B	10.78	10.52%	23.73%	-10.81%	-70.65%
SHEL	66 Neutral	$180.57B	12.15	8.82%	4.29%	-5.74%	-11.09%
BP	62 Neutral	$68.32B	186.20	-1.87%	6.66%	-7.70%	-113.83%
Sector *	56 Neutral	$6.99B	3.72	-4.39%	5.96%	-0.24%	-48.44%

* Energy Sector Average

Performance Comparison

EQNR

Equinor ASA

23.25

-1.76

-7.04%

28.12

-8.50

-23.21%

Eni SPA

28.80

-1.48

-4.89%

PBR

Petroleo Brasileiro SA- Petrobras

11.61

-2.66

-18.64%

SHEL

Shell

66.64

-2.89

-4.16%

TTE

TotalEnergies

57.73

-10.79

-15.75%

Equinor ASA Earnings Call Summary

Earnings Call Date:Apr 30, 2025

(Q1-2025)

% Change Since: 0.74%|

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.