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Tomorrow, Norwegian oil giant Equinor will release figures for the second quarter of 2018, including production, earnings and future prospects of the company.
Analyst Helge André Martinsen at DNB Markets estimates an EBIT of $ 4.2 billion, which is an annual increase of 40 percent, but is 7 percent under a consensus. Martinsen estimates, among other things, that the consensus underestimates the drop in Equinor production on the Norwegian continental shelf, which is expected to decrease by 10% compared to last year.
– We do not expect a positive result
Quarterly, Martins responds that the stock price will of course fall if the figures fall under the consensus, although the results are increasing year by year.
– From the market point of view, we do not expect a positive result. results mainly due to higher oil and gas prices. We say that we have to be careful before the quarter because we think the expectations are too high, Martinsen told TDN Direct.
Nevertheless, the analyst points out that production growth is expected to increase in the second half and that the production guide should last all year Martins also believes that share buybacks are also possible , which, he says, is announced during Capital Markets Day in February, but does not rule out that it could already be announced during the quarterly presentation
.
On the quarterly presentation, the analyst believes that the focus will be on the decline in Norwegian production, signals of any increase in costs and what Equinor will do with the surplus of Cash Flow
– Cash is very good and the issue does more than M & A or increase your returns and redemptions. This is a positive question for Equinor because investors want answers, says Martinsen, adding that Equinor's cash flow will reach a record high in the coming years.
The Equinor action changed slightly on Wednesday, trading 244.8 million NOK over Oslo Børs.
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