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Equinor (EQNR) Acquires Additional Stake in Scatec for NOK 305M
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Equinor ASA (EQNR - Free Report) increased its ownership interest in Norway-based renewable energy producer Scatec ASA by acquiring a further 3.1% stake.
Per the deal, Equinor has agreed to pay NOK 305 million.
Equinor has acquired 5 million shares at NOK 61 for each Scatec share. This brings the company’s total equities to 25.8 million shares or 16.2%.
In 2017, Equinor formed a 50/50 joint venture (JV) with Scatec to develop large-scale solar plants in Brazil. This was followed by a second joint project in Argentina in 2018. The companies are also partners in Norsk Hydro’s Rein renewables unit in another solar development in Brazil.
The acquisition is in line with Equinor’s growth strategy within renewables. With the latest acquisition of additional shares in Scatec, Equinor strengthens its exposure to the expanding solar energy sector.
Equinor’s global solar business increased significantly in the last decade. Solar energy is expected to become an important source of renewable power ahead due to its technological efficiency, innovation, and scale effects.
Scatec has an efficient management team and a proven strategy for value creation. Scatec, an integrated independent producer, has a project pipeline and backlog of 16.7 gigawatts across renewable technologies.
The imperative to reduce the consequences of climate change becomes more important with each passing day. Notably, the latest acquisition remains an important investment for Equinor and supports its strategy to create a strong position in renewables to maximize shareholders’ value.
Price Performance
Shares of Equinor have underperformed the industry in the past six months. The stock has declined 22% against the industry’s 4.7% growth.
Sunoco LP’s (SUN - Free Report) fourth-quarter 2022 earnings of 42 cents per unit missed the Zacks Consensus Estimate of 77 cents. Weak quarterly earnings resulted from the higher total cost of sales and operating expenses.
Sunoco has witnessed upward estimate revisions for 2023 earnings in the past 30 days. For 2023, Sunoco expects adjusted EBITDA of $850-$900 million.
RPC Inc.’s (RES - Free Report) adjusted earnings of 41 cents per share in the fourth quarter beat the Zacks Consensus Estimate of 30 cents. The strong quarterly results were backed by higher activity levels in all the service lines and rising equipment utilization.
As of Dec 31, RPC had cash and cash equivalents of $126.4 million, up sequentially from $73.2 million. Nonetheless, the company managed to maintain a debt-free balance sheet.
Valero Energy Corporation’s (VLO - Free Report) fourth-quarter 2022 adjusted earnings of $8.45 per share beat the Zacks Consensus Estimate of $7.45 per share. The strong quarterly results were driven by increased refinery throughput volumes and a higher refining margin.
Valero can benefit from the Gulf Coast export volumes as fuel demand recovery gets support from Asia economies. The Gulf Coast contributed 59.4% to the total throughput volume in the fourth quarter of 2022.
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Equinor (EQNR) Acquires Additional Stake in Scatec for NOK 305M
Equinor ASA (EQNR - Free Report) increased its ownership interest in Norway-based renewable energy producer Scatec ASA by acquiring a further 3.1% stake.
Per the deal, Equinor has agreed to pay NOK 305 million.
Equinor has acquired 5 million shares at NOK 61 for each Scatec share. This brings the company’s total equities to 25.8 million shares or 16.2%.
In 2017, Equinor formed a 50/50 joint venture (JV) with Scatec to develop large-scale solar plants in Brazil. This was followed by a second joint project in Argentina in 2018. The companies are also partners in Norsk Hydro’s Rein renewables unit in another solar development in Brazil.
The acquisition is in line with Equinor’s growth strategy within renewables. With the latest acquisition of additional shares in Scatec, Equinor strengthens its exposure to the expanding solar energy sector.
Equinor’s global solar business increased significantly in the last decade. Solar energy is expected to become an important source of renewable power ahead due to its technological efficiency, innovation, and scale effects.
Scatec has an efficient management team and a proven strategy for value creation. Scatec, an integrated independent producer, has a project pipeline and backlog of 16.7 gigawatts across renewable technologies.
The imperative to reduce the consequences of climate change becomes more important with each passing day. Notably, the latest acquisition remains an important investment for Equinor and supports its strategy to create a strong position in renewables to maximize shareholders’ value.
Price Performance
Shares of Equinor have underperformed the industry in the past six months. The stock has declined 22% against the industry’s 4.7% growth.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Equinor currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunoco LP’s (SUN - Free Report) fourth-quarter 2022 earnings of 42 cents per unit missed the Zacks Consensus Estimate of 77 cents. Weak quarterly earnings resulted from the higher total cost of sales and operating expenses.
Sunoco has witnessed upward estimate revisions for 2023 earnings in the past 30 days. For 2023, Sunoco expects adjusted EBITDA of $850-$900 million.
RPC Inc.’s (RES - Free Report) adjusted earnings of 41 cents per share in the fourth quarter beat the Zacks Consensus Estimate of 30 cents. The strong quarterly results were backed by higher activity levels in all the service lines and rising equipment utilization.
As of Dec 31, RPC had cash and cash equivalents of $126.4 million, up sequentially from $73.2 million. Nonetheless, the company managed to maintain a debt-free balance sheet.
Valero Energy Corporation’s (VLO - Free Report) fourth-quarter 2022 adjusted earnings of $8.45 per share beat the Zacks Consensus Estimate of $7.45 per share. The strong quarterly results were driven by increased refinery throughput volumes and a higher refining margin.
Valero can benefit from the Gulf Coast export volumes as fuel demand recovery gets support from Asia economies. The Gulf Coast contributed 59.4% to the total throughput volume in the fourth quarter of 2022.