Equinor's New Phase in Share Buy-Back Programme
Equinor (OSE: EQNR, NYSE: EQNR) is moving forward with its ambitious plans, beginning the fourth tranche of its share buy-back programme. This tranche is a significant step, amounting to a total of up to USD 1.6 billion, including the redemption of shares from the Norwegian State. This initiative reflects Equinor's commitment to optimizing its capital structure and responding to market conditions.
Details About the Fourth Tranche
Starting this new tranche, Equinor will focus on purchasing shares worth up to USD 528 million in the market. The complete tranche aims for an aggregated total of USD 1.6 billion, which includes the shares acquired from the Norwegian State. This phase is slated to conclude no later than 31 January 2025, enabling a structured approach to share repurchases while maintaining financial flexibility.
Two-Year Buy-Back Strategy
Back in February 2024, Equinor announced a comprehensive strategy for share buy-backs, projecting a total of USD 10-12 billion for 2024-2025. For 2024 alone, the company allocated up to USD 6 billion for share repurchases. This forward-looking strategy illustrates Equinor’s intent to return value to shareholders while adapting to ongoing market assessments and maintaining robust balance sheet health.
Independent Share Repurchases
In a notable move, Equinor has decided to enter into a non-discretionary agreement with a third-party firm for executing share repurchases. This allows the third party to make independent trading decisions on behalf of Equinor, ensuring that the buy-back operations are managed efficiently and aligned with market dynamics.
Approval Process for Future Tranches
The company will determine the commencement of any future share buy-back tranches based on the board of directors' quarterly assessments. This will align with their dividend policy, providing a structured approach that is subject to approval from the company’s annual general meetings. This methodical evaluation ensures that share buy-back initiatives are grounded in comprehensive risk assessments and market outlooks.
Share Capital Reduction Plans
A key objective of the share buy-back programme is the reduction of Equinor's issued share capital. All shares acquired in the fourth tranche will be cancelled during a capital reduction process at the company's annual general meeting, scheduled for May 2025. This strategic move is designed to enhance shareholder value by consolidating equity proportions across the board.
Key Authorisations and Limits
The requisite authorisation for this tranche was granted during the annual general meeting on 14 May 2024. It allows for the purchase of a maximum of 92 million shares, of which 52,868,185 shares remain available at the start of this fourth tranche. This is in accordance with previous repurchases made under the existing authorisation, showcasing a strategic limit placed on share acquisitions.
Pricing Parameters for Share Purchases
Equinor's buy-back programme also stipulates specific pricing parameters. The minimum price that can be paid for shares is NOK 50, with a maximum cap set at NOK 1,000. This pricing structure is established to maintain prudent financial discipline while facilitating effective market transactions.
Participation of the Norwegian State
An agreement governing the share buy-back activity outlines how the Norwegian State will participate in this programme. At the May 2025 annual general meeting, the State is expected to endorse the cancellation of the acquired shares as part of a proposal from the board of directors. This agreement ensures that the State will maintain a minimum ownership level of 67%, reaffirming its commitment to Equinor's strategic direction.
Compliance and Regulation for Market Transactions
The execution of purchases during the fourth tranche will occur on the Oslo Stock Exchange and potentially other EEA trading venues. All transactions will comply with safe harbor conditions as governed by the Norwegian Securities Trading Act, EU regulations, and Oslo Stock Exchange guidelines. This regulatory adherence ensures that Equinor maintains transparency and integrity throughout its operations.
Final Remarks and Contact Information
Looking ahead, the board of directors is set to propose the cancellation of shares purchased in this tranche at the forthcoming annual general meeting. This and subsequent tranches will follow a similar procedure aimed at enhancing shareholder equity. Equinor continues to embrace a responsible approach to capital management, showcasing its dedication to stakeholder value.
For further inquiries regarding this programme, interested parties can reach out to the designated contacts:
Investor relations
Bård Glad Pedersen, senior vice president Investor Relations,
+47 918 01 791
Media
Sissel Rinde, vice president Media Relations,
+47 412 60 584
Frequently Asked Questions
What is Equinor’s fourth tranche of the share buy-back programme?
This tranche involves a planned share repurchase of up to USD 1.6 billion aimed at optimizing the company’s capital structure.
How will the share repurchases be managed?
Equinor has engaged a third-party firm to manage the buy-back execution, allowing independent trading decisions to enhance efficiency.
What is the duration of this tranche?
The fourth tranche is expected to commence and complete by January 31, 2025, ensuring a structured time frame for repurchases.
Why is the Norwegian State participating in the buy-back?
The Norwegian State intends to maintain its 67% ownership in Equinor, which necessitates its participation in the share buy-back process.
What regulatory guidelines are in place for these transactions?
All transactions will comply with the Norwegian Securities Trading Act and relevant EU regulations to ensure transparency and legal adherence.
