January 31, 2023

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Equinor is down slightly on a bull market, but the manager believes in a recovery: – Share priced too low

After a decline of barely 1 percent in all of 2022, the Oslo Poor’s has continued sideways so far in 2023. When the first trading day of the week ended, the main index was up 0.7 percent.

Lower oil and gas prices have sent stock market powerhouse Equinor, which makes up more than 20 percent of the benchmark, down nearly 10 percent since Christmas. On Monday, the stock closed flat.

The share price is so low, it doesn’t take much before it goes up again. At the same time, the direction of the oil price is important, so I don’t think that you should necessarily expect anything in the short term. But it is clear that the oil sector remains an interesting investment case, says Lev Eriksrud, shareholder director at Alfred Berg.

– do not worry

The spot price of North Sea Brent oil, which is used as a reference for oil trading around the world, rose by three percent on Monday afternoon, thus reaching 80 US dollars per barrel. This is after falling from $86 at the beginning of the year.

– The price of oil is still at fairly high levels, so it’s not a worrisome level in the strict sense of the word. None of the equity analysts included persistently higher oil prices in their estimates, Eriksrud says.

But what happened in the period when the price of oil was higher than expected is that earnings were adjusted upwards with each passing day. And Eriksrud adds that this pull assist is a bit gone.

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Eriksrud has a habit of looking forward to the results season. He does that this time too.

– As a general rule, feelings are more positive in results season. Meanwhile, there are a lot of macro numbers and pessimism driving the market. “We’re in a kind of void,” says Eriksrud.

Other than that, Eriksrød also loves the banking sector.

Interest rates are rising and banks have a good control over losses. Norwegian banks move closely, so there are many opportunities.

TGS rises

TGS rose about seven percent after raising the seismic giant’s rotation numbers.

And the company announced in the morning hours that it expects sales volume, excluding the contribution of newly acquired Magseis Fairfield, of $164 million in the fourth quarter of last year, up $105 million from the same period a year earlier.

— I’m pleased to see the strong sales momentum that accelerated this quarter. Late sales in the fourth quarter are the best since 2014. In addition, we’ve seen strong demand growth related to new investments recently. This means multiclient order reserves increased significantly in the quarter, CEO Christian Johansen says in a letter.

The seismic company of nearly identical name, PGS, is also on the rise rapidly, with its stake up more than nine percent on Monday.

a child grew up

Before the stock market opened, on Monday morning it provided an earnings update for the fourth quarter of last year, as is customary for the company. The quarter contains both “Black Week” and the post-Christmas shopping period, and is therefore known as the most important in merchandise trading.

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The latest figures showed that turnover in the fourth quarter of 2022 was 2.1% higher than in the fourth quarter of 2021. Revenue ended at NOK 1.109 billion. It is the third year in a row that turnover has exceeded NOK 1 billion in the fourth quarter. Income is not adjusted for price growth.

The child share is 4.6 percent on Monday.

However, what has hit retail in Norway and the Nordics in general is massive pressure on margins. In the third trimester, children become result of more than half. The share of children has fallen by more than 40 percent since its peak in August 2021. (Conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We’d like you to share our statuses using links that lead directly to our pages. Reproduction or other use of all or part of the Content may be made only with written permission or as permitted by law. For additional terms look here.