Energy group Equinor is currently benefiting mainly from strong earnings from its core oil and gas business. At the same time, the Norwegians are increasingly focusing on sustainable projects in order to make their investment portfolio future-proof. The latest news confirms this once again.
As the U.S. Department of the Interior announced on Wednesday, Equinor has acquired a lease area for offshore wind turbines at auction. The company acquired more than 100,000 acres (about 255 square kilometers) off the coast of Delaware for $75 million. However, the regulation will likely only begin to use this area after 2035. Equinor justifies the late start with its disciplined approach, which aims to reduce risk and bring a strong project to maturity in the portfolio. This decision makes sense, as offshore projects are currently very expensive and therefore not yet worth the effort.
There is no pressure on Equinor anyway. The Norwegians continue to generate attractive profits due to their successful oil and gas businesses. Stable gas prices in Europe are currently providing particular support. The profitability enables Equinor not only to pay attractive dividends, but also to invest in future-oriented projects. In addition to offshore wind and solar projects, the company has also been working on innovative solutions for CO2 capture and storage for some time. Equinor is already active in these business areas, but they promise high growth potential, especially in the long term.
Artistic turning point?
Meanwhile, the Equinor chart picture is slowly brightening up again. The title has now made up for its recent setback and has reclaimed GD50 at 293.15 NOK (around 24.90 EUR).
With its excellent position in gas, but also in renewable energy, Equinor is very well positioned and has a strong balance sheet and impressive reserves. The technical chart has improved at the same time. However, before entering, investors should wait to see if the breakout from the downtrend is sustainable.
