Sign in

    Teodor Sveen-Nilsen • SpareBank 1 Markets

    Teodor Sveen-Nilsen's questions to Equinor ASA (EQNR) leadership

    Teodor Sveen-Nilsen's questions to Equinor ASA (EQNR) leadership • Q2 2024

    Question

    Teodor Sveen-Nilsen of SpareBank 1 Markets questioned the confidence in the flat year-over-year oil and gas production guidance and asked how the recent reorganization of the renewables business might affect long-term production targets.

    Answer

    Executive Torgrim Reitan affirmed the production guidance, citing strong operational performance, the EQT transaction, and manageable U.S. gas curtailments. He cautioned that Q3 turnarounds would be significant at 125,000 boe/d. On renewables, Reitan emphasized that value creation and capital discipline take precedence over volume targets, stating the company will focus investments where value is clearest, though ongoing projects are proceeding as planned.

    Ask Fintool Equity Research AI

    Teodor Sveen-Nilsen's questions to Equinor ASA (EQNR) leadership • Q2 2024

    Question

    Teodor Sveen-Nilsen from SpareBank 1 Markets requested an update on the Wisting project and its contribution to NCS production targets, and asked for an explanation of the relationship between the 3% impairment discount rate and the company's targeted returns for renewable projects.

    Answer

    EVP & CFO Torgrim Reitan stated that Wisting is a promising project being matured for a future investment decision and is part of the risk-weighted portfolio supporting the 2035 NCS production ambition. He clarified that the 3% discount rate for impairment testing reflects the cost of capital, whereas for investment decisions, the company targets a significant premium, specifically double-digit equity returns for renewables, abandoning the previous 4-8% range.

    Ask Fintool Equity Research AI

    Teodor Sveen-Nilsen's questions to Equinor ASA (EQNR) leadership • Q2 2024

    Question

    Teodor Sveen-Nilsen of SpareBank 1 Markets requested an update on the Wisting project and its contribution to the 2035 NCS production target. He also asked for a reconciliation of the 3% impairment discount rate with the stated ambition for double-digit equity returns on renewable projects.

    Answer

    EVP & CFO Torgrim Reitan described Wisting as a promising project being actively worked on, with a potential investment decision next year or later, noting it's part of the risked portfolio for the 2035 ambition. He clarified that the 3% impairment discount rate reflects the cost of capital for such an investment, whereas the double-digit return target is a required premium for making an investment decision, abandoning the previous 4-8% range.

    Ask Fintool Equity Research AI