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Equinor (EQNR) to Divest Danish Refining Business to Klesch
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Equinor ASA (EQNR - Free Report) recently agreed to divest the refining business in Denmark to the Klesch Group, an industrial commodities group with presence in several countries. The financial details of the deal are yet to be disclosed.
The deal incorporates Equinor’s Kalundborg refinery and terminal, located northwest of Zealand. The refinery has a processing capacity of 107,000 barrels of oil and condensate per day. It produces 5.5 million tons of oil-related products per annum. Moreover, its Hedehusene terminal and related infrastructure and industrial properties located near Copenhagen are included in the deal. The employees of the divested facilities are expected to be transferred to the Klesch Group, wherein they will likely enjoy equitable employment conditions.
The move is in line with Equinor’s plan of streamlining its portfolio, while focusing more on core operations. As such, the company is expected to get down the Mongstad refining business in Norway, which offers a major industrial cluster and is expected to support Equinor’s green ambitions. It is expected to play a significant role in the company’s hydrogen, biofuel and ammonia value chains’ development. Equinor’s key strategy is to align operations with the Paris Climate Agreement and capitalize on the renewable energy space.
To combat climate change, the company is investing actively in renewable energy projects, comprising power generation from solar and wind energy. Equinor expects to boost production capacities from renewables to 4-6 GW by 2026. Moreover, by 2035, the company plans to boost the capacity of renewable projects to 12-16 GW.
Importantly, streamlining its Marketing, Midstream & Processing segment’s portfolio through divesting the Danish refining business is expected to boost the company’s profitability. The segment recorded adjusted profit of $61 million for the first quarter, which declined drastically from $229 million a year ago owing to low refinery margins.
Price Performance
Shares of the company have gained 58%, outperforming the industry’s 27.1% growth in the past year.
Earthstone’s sales for 2021 are expected to jump 87.7% year over year.
Pembina Pipeline’s bottom line for 2021 is expected to rise 37.4% year over year.
PHX Minerals’ bottom line for 2021 is expected to surge 140% year over year.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
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Equinor (EQNR) to Divest Danish Refining Business to Klesch
Equinor ASA (EQNR - Free Report) recently agreed to divest the refining business in Denmark to the Klesch Group, an industrial commodities group with presence in several countries. The financial details of the deal are yet to be disclosed.
The deal incorporates Equinor’s Kalundborg refinery and terminal, located northwest of Zealand. The refinery has a processing capacity of 107,000 barrels of oil and condensate per day. It produces 5.5 million tons of oil-related products per annum. Moreover, its Hedehusene terminal and related infrastructure and industrial properties located near Copenhagen are included in the deal. The employees of the divested facilities are expected to be transferred to the Klesch Group, wherein they will likely enjoy equitable employment conditions.
The move is in line with Equinor’s plan of streamlining its portfolio, while focusing more on core operations. As such, the company is expected to get down the Mongstad refining business in Norway, which offers a major industrial cluster and is expected to support Equinor’s green ambitions. It is expected to play a significant role in the company’s hydrogen, biofuel and ammonia value chains’ development. Equinor’s key strategy is to align operations with the Paris Climate Agreement and capitalize on the renewable energy space.
To combat climate change, the company is investing actively in renewable energy projects, comprising power generation from solar and wind energy. Equinor expects to boost production capacities from renewables to 4-6 GW by 2026. Moreover, by 2035, the company plans to boost the capacity of renewable projects to 12-16 GW.
Importantly, streamlining its Marketing, Midstream & Processing segment’s portfolio through divesting the Danish refining business is expected to boost the company’s profitability. The segment recorded adjusted profit of $61 million for the first quarter, which declined drastically from $229 million a year ago owing to low refinery margins.
Price Performance
Shares of the company have gained 58%, outperforming the industry’s 27.1% growth in the past year.
Zacks Rank & Stocks to Consider
The company currently has a Zacks Rank #3 (Hold). Some better-ranked players in the energy space include Earthstone Energy, Inc. , Pembina Pipeline Corporation (PBA - Free Report) and PHX Minerals Inc. (PHX - Free Report) , each having a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earthstone’s sales for 2021 are expected to jump 87.7% year over year.
Pembina Pipeline’s bottom line for 2021 is expected to rise 37.4% year over year.
PHX Minerals’ bottom line for 2021 is expected to surge 140% year over year.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>