GlobeNewswire by notified

Presenting strategy to accelerate Equinor’s transition

Share

Today, Equinor ASA (OSE:EQNR, NYSE:EQNR) presents its strategy to accelerate the company’s transition while growing cash flow and returns.

Key highlights from the strategy update:

  • Accelerating the transition and setting an ambition to reach a 40% reduction in net carbon intensity by 2035, on the way towards net zero by 2050.
  • Stepping up investments in renewables and low carbon solutions to more than 50% of gross annual(1) investments by 2030.
  • Growing cash flow and returns, expecting a free cash flow(2) of around USD 35 billion(3) before capital distribution in 2021 – 2026 and around 12%(3) return on average capital employed(2) in 2021 – 2030.
  • Increasing the quarterly cash dividend to 18 cents per share and introducing new share buy-back programme.

“Our strategy is backed up by clear actions to accelerate our transition while growing cash flow and returns. We are optimising our oil and gas portfolio to deliver even stronger cash flow and returns with reduced emissions from production, and we expect significant profitable growth within renewables and low carbon solutions. This is a strategy to create value as a leader in the energy transition”, says Anders Opedal, president and CEO of Equinor.

Equinor has set a clear ambition to become a net zero energy company by 2050, including emissions from production and final consumption. Today, Equinor also sets interim ambitions, aiming to reduce net carbon intensity with 20% by 2030 and 40% by 2035.

“This is a business strategy to ensure long-term competitiveness during a period with profound changes in the energy systems, as society moves towards net zero. We are building on our position as a global leader within carbon efficient production of oil and gas. We will continue to cut emissions, and in the longer term, Equinor expects to produce less oil and gas than today recognising reducing demand. Significant growth within renewables and low carbon solutions will increase the pace of change towards 2030 and 2035,” says Opedal.

Optimised oil and gas portfolio

Equinor’s oil and gas portfolio can deliver a free cashflow after tax and investments(2) of USD 45 billion(3) from 2021 to 2026. New projects coming on stream by 2030 have an average break even below 35 USD/bbl and a short payback time of less than 2.5 years(3).

On the Norwegian continental shelf, Equinor is optimising its operations to deliver strong value creation and an average annual free cash flow of around USD 4.5 billion(3) in 2021 – 2030. Further improvements at the world class Johan Sverdrup field reduces the break-even price for the full field with 25% to 15 USD/bbl. Internationally, Equinor is focusing its portfolio, exiting operated positions in unconventionals, prioritizing offshore operations where the company can utilize its core competence. The international portfolio is set to deliver strong cash flow, become more robust towards lower prices, and shows a significant upside at higher prices.

High value growth within renewables

Equinor expects gross investments(1) in renewables of around USD 23 billion from 2021 to 2026, and to increase the share of gross capex for renewables and low carbon solutions from around 4% in 2020 to more than 50% by 2030. Based on early low-cost access at scale, Equinor expects to reach a installed capacity of 12 – 16 GW (Equinor share) by 2030. Reflecting current markets levels, Equinor is adjusting expected project base real returns to 4 – 8% and remains determined to capturing higher equity returns through project financing and farm downs. Early access followed by targeted farm down is an integrated part of the value creation proposition. So far, Equinor has divested assets for 2.3 billion USD, booked a capital gain of USD 1.7 billion and expects to deliver nominal equity returns in the range of 12 – 16% from the offshore wind projects with offtake contracts in the UK and US.

New market opportunities in low carbon solutions

The energy transition represents an opportunity for Equinor to leverage its leading position within carbon management and hydrogen, and to develop and grow new value chains and markets. By 2035, Equinor’s ambition is to develop the capacity to store 15 -30 million tonnes CO2 per year and to provide clean hydrogen in 3-5 industrial clusters.

Competitive capital distribution

The Board of Directors of Equinor has decided on a quarterly cash dividend of 18 cents per share for second quarter 2021, an increase of 3 cents from first quarter. The second quarter 2021 cash dividend will formally be declared and announced in connection with the announcement of the second quarter results, including key information relating to the dividend.

The Board has also decided to introduce a new annual share buy-back programme of around USD 1.2 billion starting from 2022. In addition, Equinor expects to execute two tranches of share buy-backs in 2021, with a first tranche of USD 300 million to be launched after announcement of second quarter results, and an indicative second tranche of USD 300 million to be launched after announcement of third quarter results.

The new share buy-back programme is expected to be executed when Brent oil prices are in or above the range of 50-60 USD/bbl and Equinor’s net debt ratio(1) stays within the communicated ambition of 15-30% and this is supported by commodity prices.

The USD 5 billion share buy-back programme launched on 5 September 2019, and suspended as of 22 March 2020, is cancelled.

All share buyback amounts include shares to be redeemed by the Norwegian State.

The purpose of the share buy-back programme is to reduce the issued share capital of the company. All shares repurchased as part of the programme will be cancelled. According to an agreement between Equinor and the Norwegian State, the Norwegian State will participate in share buy-backs on a proportionate basis. Execution of share buy-backs after the 2022 annual general meeting is subject to a renewed authorization, including renewal of the agreement with the Norwegian State. Share buy backs will be executed within applicable safe harbour provisions. Key information related to the first tranche of the share buy-back programme will be announced and executed following announcement of the second quarter 2021 financial report.

Outlook:

  • Organic capital expenditures(2) are estimated at an annual average of USD 9-10 billion for 2021-2022 and at around USD 12 billion for 2023 – 2024(4).
  • Production growth(5) from 2020 to 2021 is estimated to be around 2 %.

See Forward Looking Statements on our webpages: https://www.equinor.com/en/investors/quarterly-results/cmu2021-forward-looking-statement.html

Footnotes:
1: Gross capex defined as capital expenditures before project financing
2: Non GAPP measure
3: Based on 60 USD per bbl
4: Annual average organic capital expenditures based on USD/NOK of 9
5: The growth percentage is based on historical production numbers, adjusted for portfolio measures

Further information from:

Investor relations
Peter Hutton, senior vice president Investor Relations,
+44 7881 918 792 (mobile)

Press
Sissel Rinde, vice president Media Relations,
+ 47 412 60 584 (mobile)

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act

Attachment

To view this piece of content from www.globenewswire.com, please give your consent at the top of this page.
To view this piece of content from ml-eu.globenewswire.com, please give your consent at the top of this page.

About GlobeNewswire by notified

GlobeNewswire by notified
GlobeNewswire by notified
One Liberty Plaza - 165 Broadway
NY 10006 New York

https://notified.com

GlobeNewswire by notified is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.

Subscribe to releases from GlobeNewswire by notified

Subscribe to all the latest releases from GlobeNewswire by notified by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from GlobeNewswire by notified

Iveco Group signs a 150 million euro term loan facility with Cassa Depositi e Prestiti to support investments in research, development and innovation11.6.2024 12:00:00 CEST | Press release

Turin, 11th June 2024. Iveco Group N.V. (EXM: IVG), a global automotive leader active in the Commercial & Specialty Vehicles, Powertrain and related Financial Services arenas, has successfully signed a term loan facility of 150 million euros with Cassa Depositi e Prestiti (CDP), for the creation of new projects in Italy dedicated to research, development and innovation. In detail, through the resources made available by CDP, Iveco Group will develop innovative technologies and architectures in the field of electric propulsion and further develop solutions for autonomous driving, digitalisation and vehicle connectivity aimed at increasing efficiency, safety, driving comfort and productivity. The financed investments, which will have a 5-year amortising profile, will be made by Iveco Group in Italy by the end of 2025. Iveco Group N.V. (EXM: IVG) is the home of unique people and brands that power your business and mission to advance a more sustainable society. The eight brands are each a

DSV, 1115 - SHARE BUYBACK IN DSV A/S11.6.2024 11:22:17 CEST | Press release

Company Announcement No. 1115 On 24 April 2024, we initiated a share buyback programme, as described in Company Announcement No. 1104. According to the programme, the company will in the period from 24 April 2024 until 23 July 2024 purchase own shares up to a maximum value of DKK 1,000 million, and no more than 1,700,000 shares, corresponding to 0.79% of the share capital at commencement of the programme. The programme has been implemented in accordance with Regulation No. 596/2014 of the European Parliament and Council of 16 April 2014 (“MAR”) (save for the rules on share buyback programmes set out in MAR article 5) and the Commission Delegated Regulation (EU) 2016/1052, also referred to as the Safe Harbour rules. Trading dayNumber of shares bought backAverage transaction priceAmount DKKAccumulated trading for days 1-25478,1001,023.01489,100,86026:3 June 20247,0001,050.597,354,13027:4 June 20245,0001,055.705,278,50028:6 June20243,0001,096.273,288,81029:7 June 20244,0001,106.174,424,68

Landsbankinn hf.: Offering of covered bonds11.6.2024 11:16:36 CEST | Press release

Landsbankinn will offer covered bonds for sale via auction held on Thursday 13 June at 15:00. An inflation-linked series, LBANK CBI 30, will be offered for sale. In connection with the auction, a covered bond exchange offering will take place, where holders of the inflation-linked series LBANK CBI 24 can sell the covered bonds in the series against covered bonds bought in the above-mentioned auction. The clean price of the bonds is predefined at 99,594. Expected settlement date is 20 June 2024. Covered bonds issued by Landsbankinn are rated A+ with stable outlook by S&P Global Ratings. Landsbankinn Capital Markets will manage the auction. For further information, please call +354 410 7330 or email verdbrefamidlun@landsbankinn.is.

Relay42 unlocks customer intelligence with a new insights and reporting module, powered by Amazon QuickSight11.6.2024 11:00:00 CEST | Press release

AMSTERDAM, June 11, 2024 (GLOBE NEWSWIRE) -- Relay42, a leading European Customer Data Platform (CDP), is leveraging Amazon QuickSight to power its new real-time customer intelligence, reporting, and dashboard module. Harnessing the breadth and quality of customer data, the new Insights module empowers marketing teams to dive deep into customer behaviors and gain invaluable insights into the performance of their marketing programs across all online, offline, paid, and owned marketing channels. Preview of the Relay42 Insights module, in pre-beta version Key capabilities of the Relay42 Insights module include: Deep insights into customer behaviors: With the Relay42 Insights module, marketers can ask unlimited questions about their data and gain a deeper understanding of how to serve their customers more effectively. Simplicity with AI-powered querying: Marketers can use artificial intelligence to query their data using natural language search, reducing the reliance on data scientists. Us

Metasphere Labs Announces X Spaces Event on the Topic of Green Bitcoin Mining and Sound Money for Sustainability11.6.2024 10:30:00 CEST | Press release

VANCOUVER, British Columbia, June 11, 2024 (GLOBE NEWSWIRE) -- Metasphere Labs Inc. (formerly Looking Glass Labs Ltd., "Metasphere Labs" or the "Company") (Cboe Canada: LABZ) (OTC: LABZF) (FRA: H1N) is thrilled to announce an engaging Twitter Spaces event on Green Bitcoin mining, energy markets, and sustainability on July 3, 2024 at 2 p.m. ET. Follow us on X at MetasphereLabs for updates and to join the event. What We'll Discuss Bitcoin Mining Basics: Understand the fundamentals of Bitcoin mining.Energy Market Dynamics: Explore how Bitcoin mining interacts with energy markets.Sustainable Innovations: Learn about our efforts to promote sustainability in Bitcoin mining.Sound Money: Discover how tamper-proof currency can enhance stability.Efficient Payment Rails: See how fast, neutral payment systems support humanitarian projects.Carbon Footprint: Compare Bitcoin's environmental impact with traditional banking. "We're excited to host this event and dive into the critical topics of Bitcoin

World GlobeA line styled icon from Orion Icon Library.HiddenA line styled icon from Orion Icon Library.Eye