August 9, 2024

Equinor

Following up on yesterday's comment on gas prices in Europe, we would like to put forward Equinor, one investment we hold in our portfolios. Equinor is Norway's state-owned energy company. As one of the largest gas exporters in Europe, Equinor is well-positioned to capitalize on this growing demand. Equinor's mature infrastructure, low-emission production, and extensive drilling and lifetime extension plans on the Norwegian Continental Shelf enable it to maintain highly competitive production costs and solid margins. This company with a solid balance sheet (net cash in 2023) and a ROE above 20%, is currently trading at 7.8 times forward PER and carries a 12M dividend yield of 7.6%. With Europe seeking to diversify its energy sources and reduce dependence on Russian gas, Equinor's strategic positioning enhances its attractiveness as an investment. Please note that this is for information only and not an investment recommendation.