Equinor $5 Billion Share Buy Back

Equinor is launching a share buy-back program trying to cap it up to $5 billion through the end of 2022. The first phase of the program will start now and will be completed by February 25, 2020. The goal is to reach $1.5 billion.

“Equinor is committed to capital distribution to our shareholders. We have over the last years built a strong financial position with solid credit ratings and a net debt ratio around 20%. The upcoming start-up of the world-class Johan Sverdrup field, combined with several other new fields in production, provides additional confidence in our outlook for production growth and increased cash generation capacity. We are therefore in a good position to increase capital distribution, while continuing to invest in our high-quality project portfolio”, says Eldar Sætre, president and CEO of Equinor ASA.

“Following strong operational improvements over recent years, we increased the quarterly dividends by 13% this year. Utilizing share buy-backs as an additional tool to strengthen capital distribution is aligned with our dividend policy”, says Equinor’s chief financial officer, Lars Christian Bacher.

The program includes shares to be redeemed from the Norwegian country until the end of 2022.

According to an agreement between Equinor and the Norwegian State, represented by the Ministry of Petroleum and Energy, the Norwegian State will participate in share buy-backs on a proportionate basis, ensuring that its ownership interest in Equinor remains unchanged at 67%.

In the long run it will provide a cash flow that will grow its div