FX.co ★ Equinor To Begin Second Tranche Of $1.6 Bln Share Repurchase In May

Equinor ASA, a Norway-based petroleum refining firm, announced on Thursday that it is set to commence the second phase of its stock buyback program, aimed at repurchasing up to $1.6 billion worth of stocks by July 22nd, 2024.

On top of this, the company has also confirmed an ordinary dividend payment of $0.35, in addition to an extraordinary dividend of $0.35 per share, applicable for the first quarter. Pursuing its objectives, Equinor intends to purchase up to $528 million worth of shares from the market, which signifies a total second tranche of up to $1.6 billion when combined with the shares to be redeemed from the Norwegian State.

The second phase of the buyback program for 2024 indicates that Equinor plans to acquire a maximum of 92 million shares from the market. A share's minimum and maximum payment values are set at 50 NOK and 1,000 NOK respectively.

To execute this phase, Equinor will establish a non-discretionary agreement with a third party who will oversee the repurchase operations. This decision is a part of Equinor's earlier announcement where it disclosed a two-year stock buyback program running from 2024 to 2025, entailing a total expenditure ranging from $10 billion to $12 billion, including up to $6 billion planned for 2024, inclusive of shares to be redeemed from the Norwegian State.

In reference to the first quarter's outcomes, Equinor announced an ordinary cash dividend of $0.35 per share and an additional extraordinary cash dividend of the same value per share, due to be paid on August 28, to all recorded shareholders as of August 19.

Forward-looking, the company expects its organic capital expenditures to touch approximately $13 billion by year-end.