Equinor exceeds NOK 1,000 billion in market capitalization for the first time after a new jump in oil prices

Equinor exceeds NOK 1,000 billion in market capitalization for the first time after a new jump in oil prices

Now oil company Equinor is worth more than 1,000 billion NOK for the first time. The stock jumped to another record high after the Oslo Stock Exchange opened on Wednesday, rising nearly three percent to more than 308 crowns a piece after a few minutes of trading.

The rise is attributed to another jump in oil prices due to Russia’s attack on Ukraine and the massive economic and financial sanctions imposed by Western countries on Moscow. There are reports of major problems selling Russian oil on the market due to supply restrictions in the global market – as well as general unrest across all markets.

On Wednesday morning, North Sea Brent crude rose more than four percent to $112, and is trading at its highest level since the fall of 2014.

Equinor’s market capitalization has increased significantly during 2021 and into 2022. Since the end of 2020, the share has doubled.

The reason is the high prices of raw materials – especially historical gas prices. There have been harsh conditions in the European gas market that Equinor is delivering to, with new price records constantly throughout the fall and into Christmas. After pulling back somewhat, prices rose again after Russia’s invasion of Ukraine, due to market fears that large volumes could fall back, either due to acts of war or due to deliberate cutbacks.

Russia is by far the largest supplier of natural gas to Europe, and a third of these exports pass through Ukraine in pipelines.

Equinor’s results reflected developments in the commodity markets. The company set new records in both the third and fourth quarters, most recently with more than NOK 130 billion in pre-tax adjusted earnings.

Russia exit

And the Norwegian oil company announced, on Monday evening, its withdrawal from Russia and strategic cooperation with the 40 percent Russian state-owned giant Rosneft led by Igor Sechin, one of the closest relatives of President Vladimir Putin.

Analyst Teodor Sveen-Nilsen at Sparebank 1 Markets commented on the decision as follows:

It should be remembered that Equinor’s net effect is positive due to higher gas and oil prices. Russia makes up a very small part of the company’s operations. But they will likely find it difficult to find good buyers for business in Russia.(Terms)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using a link that leads directly to our pages. All or part of the Content may not be copied or otherwise used with written permission or as permitted by law. For additional terms look here.

Dalila Awolowo

Dalila Awolowo

"Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff."

Leave a Reply

Your email address will not be published. Required fields are marked *