Equinor (OB:EQNR) Valuation in Focus After Signing Long-Term Operational Contracts for Norwegian Onshore Plants

Equinor (OB:EQNR) just signed a set of new framework agreements for insulation, scaffolding, and surface treatment at its onshore plants in Norway. These contracts, with terms extending up to eight years, highlight the company’s push for stable operations and job support beginning in 2026.

See our latest analysis for Equinor.

Alongside these new contracts, Equinor recently completed a sizable debt offering to enhance financial flexibility, following a year that has seen some volatility in the stock. After a tough stretch earlier in 2024, the share price has begun to show signs of momentum, posting a 3.7% gain over the past month. Still, with a 1-year total shareholder return of just 0.2%, longer-term investors have found the ride a bit more measured. The five-year total return of nearly 161% points to impressive growth for those who have stayed the course.

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With the stock climbing in recent weeks yet still delivering modest returns over the past year, is Equinor trading at an attractive discount or has the market already accounted for its future prospects? Could there still be room for upside?

Most Popular Narrative: 0.5% Undervalued

Equinor's most closely watched narrative puts fair value nearly dead-even with its last close, suggesting the market may be pricing in all known factors. But what is supporting that calculation?

Persistent market optimism appears to be pricing in continued strong demand for Equinor's oil and gas production due to energy security concerns in Europe, as evidenced by new long-term gas supply contracts to the UK and Germany. However, should policy support for decarbonization accelerate or renewables adoption outpace forecasts, future revenues from upstream output may be pressured, leading to overvaluation risk.

Read the complete narrative.

The engine behind this narrative blends big energy security themes with a bold vision for renewables expansion. What crucial projections are powering that equation, and will they hold up if the sector changes course? See for yourself what is driving these numbers and why analysts are nearly split on which direction Equinor’s valuation should go next.

Result: Fair Value of $245.80 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, any acceleration in key projects or successful long-term gas contracts could quickly shift Equinor’s growth outlook and challenge current cautious assumptions.

Find out about the key risks to this Equinor narrative.

Build Your Own Equinor Narrative

If you see things differently or want to dig into the numbers on your own, you can craft a custom narrative in just a few minutes, too: Do it your way

A great starting point for your Equinor research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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