Equinor shares defied the stock market’s slump on Thursday and closed at its second-highest level ever. The oil giant is worth more than NOK 800 billion – more than DNB, Telenor, Hydro and Adevinta combined.
On Thursday, the Oslo Stock Exchange closed sharply down 1.37 percent, after concerns about rising interest rates sent markets lower in the United States and Asia.
But Equinor stock defied the downturn, and was the only one of the five most-traded stocks to gain on the day. Equinor’s stock closed at NOK 246.70, the second-highest closing level for the stock ever. The record was set on December 21 last year, when the stock closed at NOK 249.65.
Oljekjempen is by far the largest company on the Oslo Stock Exchange with a market capitalization of NOK 803.67 billion. Equinor has seen an inventory increase of up to 70 percent since the start of 2021.
By comparison, the next four companies on the top list in total are worth just under NOK 800 billion, split between NOK 317 billion for DNB, NOK 196 billion for Telenor, NOK 143 billion for Norsk Hydro and NOK 138 billion. for Adventa.
He’s violent, but he’s rational. Equinor may have had its best result in many years in the third quarter, after commodity prices rose. The company’s cash flow is very intense, and the dividend capacity is very good, investment economist Mads Johansen at online broker Nordnet tells E24.
According to Johannessen, Nordnet clients have increased their exposure at oil and gas companies Aker BP and Equinor over the past year. He noted that there has been a shift among clients from stocks that are supposedly sustainable and technical to bank stocks like DNB, some thrift banks and Storebrand, as well as cyclical stocks like Yara and Hydro.
It’s a change in line with what we’re seeing in the economy, says Johansen.
Noticeable! Autostore was missing in an earlier version of the format. Status changed on January 7 at 00.30.
Equinor more than doubled its profit in the third quarter
– It makes sense
The investment economist isn’t surprised that Equinor’s stock market continued to bounce through the fall and winter.
– It makes sense that Equinor is at an all-time high now that we’re seeing record-high gas prices and high oil prices. Combined with the strong dollar exchange rate, this means earnings in krone are very good, says Johansen.
The Fed announced faster rate increases as inflation stagnated, which could be positive for cyclical stocks that tend to do well in a higher interest rate scenario. So it makes sense that oil stocks would do well, when the oil market is tight at the same time, he says.
Fourth month in a row with record exports to Norway
This stock worked better
The price of oil has risen more than two percent for the day and five percent so far in 2022, and on Thursday it exceeded $82 a barrel. This contributes to the well-performing oil-rich stocks on the main index this year so far.
Among others, Aker BP is up 4.68 percent and Equinor is up 4.58 percent so far in 2022, according to Infront.
High gas prices in Europe have contributed to solid profits for oil and gas companies this winter. The price was several times higher than usual. Although mild weather and an increased supply of LNG have lowered prices somewhat, gas is still unusually expensive.
These are the three stocks that have performed best on the main index so far in 2022:
- And Norwegian Air Shuttle rose 9.77 percent
- Golden Ocean Group stock rose 9.05 percent
- MPC Container Ships rose 8.76 percent
These stocks have performed the worst on the main index this year so far:
- Arcticzymes Technologies stock fell 9.57%
- PCI Biotech Holding stock fell 8.84 percent
- Nordic Semiconductor down 8.13 percent
Noticeable! In an earlier version, there was confusion between the increase for 2022 in krone and percentage, which gave completely wrong winners and losers. Status changed January 6 on 19.10.
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