Why Oil & Gas Major Equinor Shares Are Higher Premarket Thursday
Portfolio Pulse from Lekha Gupta
Equinor ASA (NYSE:EQNR) shares rose in premarket trading after reporting Q1 FY24 results with adjusted revenue of $24.79 billion, surpassing consensus estimates. The company saw a 2% increase in equity liquids production and a 48% increase in renewable energy production. However, equity gas production slightly fell by 1%, and operating cash flow decreased by 39%. Adjusted EPS was $0.96, beating consensus estimates. Equinor declared a quarterly cash dividend of $0.35 and an extraordinary dividend of the same amount, with a share buyback program valued at up to $1.6 billion for 2024. The company reaffirmed its FY24 outlook, expecting stable production and $13 billion in organic capital expenditures. Equinor's focus on renewable energy growth and exploration success was also highlighted.
April 25, 2024 | 12:49 pm
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POSITIVE IMPACT
Equinor reported strong Q1 FY24 results with higher adjusted revenue and EPS than expected, increased dividends, and a significant share buyback program, indicating a positive outlook and financial health.
The positive earnings report, increased dividends, and share buyback program signal strong financial health and growth prospects, likely leading to increased investor confidence and a positive short-term impact on EQNR's stock price.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100
POSITIVE IMPACT
The Pacer Developed Markets International Cash Cows 100 ETF (ICOW) offers exposure to Equinor, and its performance may benefit from Equinor's positive Q1 FY24 earnings and strategic initiatives.
Given ICOW's exposure to Equinor, the company's positive earnings report and strategic focus on renewables could lead to increased investor interest in ICOW, potentially boosting its short-term performance.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Investors can gain exposure to Equinor's performance through the Macquarie ETF Trust Macquarie Energy Transition ETF (PWER), which may see a positive impact due to Equinor's strong Q1 FY24 results.
As PWER provides exposure to Equinor, the company's strong performance and focus on renewable energy growth could attract more investors to PWER, potentially increasing its value in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70