Pareto analyst predicts «extreme profitability» for Equinor
Cost cuts and increased oil prices may mean another oil fairytale for Equinor. Over the next 2 years, they can earn more than they have made in the last 17 put together.
– Equinor has spent several years gearing up for an oil price of USD 50 a barrel. When prices now rise to USD 70 a barrel, they are in a very good shape for the next couple of years, says analyst in Pareto, Tom Erik Kristiansen, to the newspaper Klassekampen.
Since 2014, Equinor has gone through a comprehensive streamlining process and cut costs drastically.
– The next few years will be completely unique in the history of Equinor if the oil prices remain at today’s level. In the period 2018-20 they can make more money than they have done in the 17 years they have been listed on the Oslo stock exchange put together. It says a bit about how much capital they will generate, says Kristiansen, who dubs it as «extreme profitability».
Confirms efficiency gains
Information Manager in Equinor, Bård Glad Pedersen, confirms the efficiency process.
– In 2013, we expected to need an oil price of USD 70 a barrel for the projects we were working on to be profitable. For the corresponding portfolio, we only need a price of USD 21 dollars per barrel to cover the costs at present.
The Pareto analyst believes this is a perfect opportunity for the company’s plans to invest in renewable energy, but Pedersen rejects that its sufficient to achieve that.
– We expect to invest NOK 100 billion in renewable energy towards 2030, Pedersen states.
© NTB scanpix / #Norway Today