Equinor ASA EQNR, the Norwegian energy giant, delivered a significant economic boost to Norway with deliveries surpassing 93 billion NOK (in 2022) related to the exploration, operation, and modification of its fields and onshore plants. This marks a notable increase of approximately 13% from the previous year’s level, according to a report recently presented at Equinor’s autumn conference.
The report, presented by Kjetil Hove, the executive vice president for Exploration and Production Norway, in collaboration with five trade unions, highlighted that more than 90 percent of these deliveries went to Norwegian suppliers. Equinor’s activities had far-reaching effects on employment, generating 63,000 person-years of employment across the country in 2022. More than 1,700 Norwegian enterprises invoiced a total of 87 billion NOK in exploration, operations and maintenance segments. The report, conducted by Bodo Science Park (KPB), included first-time exploration activities.
Equinor’s purchase from the Norwegian supplier industry for NCS fields’ operation reached 70.6 billion NOK in 2022, while exploration activities accounted for 6.1 billion NOK. Additionally, supplies to onshore plants operated by Equinor amounted to 10.2 billion NOK. International supplies to NCS fields and onshore plants totaled 6.5 billion NOK.
Equinor’s operations and exploration activities had strong ripple effects, creating a total of 63,000 person-years of employment, either directly through Equinor employment (9,800), jobs in Norwegian supplier companies (20,900), or as a result of sub-supplies and consumer effects (32,300).
While the report focused on the ripple effects of Equinor’s activities in exploration, operation, and modification of fields and onshore plants in Norway, it highlighted that the total societal ripple effects and value created by EQNR’s Norwegian activities are even higher.
However, certain factors, such as the value realized for owners and society when field products are sold, tax payments, and environmental and property taxes, were not included in the report. Equinor is expected to pay more than 280 billion NOK in taxes to the Norwegian state this year.
Zacks Rank & Key Picks
Equinor currently carries a Zack Rank #3 (Hold).
Some better-ranked stocks in the energy sector are Matador Resources Company MTDR, Liberty Energy Inc. LBRT and Oceaneering International, Inc. OII, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Matador Resources is among the leading oil and gas explorers in the shale and unconventional resources in the United States. The company’s prime intention is to create more value for shareholders and generate lucrative returns from the capital invested in unconventional plays.
MTDR’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 13.89%.
Liberty Energy is a North American provider of hydraulic fracturing services to upstream energy operators. The company’s multi-basin presence offers an attractive upside opportunity compared to most of its peers. Liberty’s strong relationship with high-quality customers provides revenue visibility and business certainty.
LBRT’s earnings beat estimates in three of the trailing four quarters and missed once, delivering an average surprise of 9.88%.
Oceaneering International is a leading provider of integrated technology solutions, active at all phases of the offshore oilfield lifecycle. Its strong relationship with high-quality customers provides revenue visibility and business certainty. It is well-positioned to supply equipment for deep-water projects and is active at all phases of the offshore oilfield lifecycle.
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Source : Nasdaq