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Equinor (EQNR) to Lay Off 30% of Exploration Staff by 2023
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Equinor ASA (EQNR - Free Report) announced its decision to lower its exploration staff by 30% globally by 2023. This reflects the Norwegian integrated energy major’s aim to reduce costs, a measure to survive the coronavirus-induced dented demand for petroleum.
The Norwegian oil and gas firm had 21000 employees at 2019-end and about 20% of the positions in each country were reportedly slashed to maximize the profit at lower oil price, per Reuters. The company proposed severance packages to staffs in a few locations. The integrated firm added that in Norway the headcount will get reduced as a result of natural attrition. Importantly, as reported by Equinor’s communication manager Erik Haaland, the planned headcount reduction is not going to influence the company’s exploration plans for 2020 and 2021. Notably, as a part of this year’s drilling program, the company will drill 30 to 40 wells across its operating resources in the world, as confirmed by the official.
In addition to job cuts, Equinor has lowered its exploration budget to combat weak oil prices. From initial guidance of $1.4 billion, the 2020-exploration budget dropped to $1.1 billion. Importantly, although the crude price has improved significantly over the past few months, the growing number of new world-wide coronavirus cases continued to dampen the company’s upstream business outlook. Investors should know, though Equinor has lowered the exploration budget, for new oil and gas resources, the company has an aim to focus in Norway, Brazil and the United States.
About the company and Price Performance
Headquartered in Stavanger, Norway, Equinor is one of the premier integrated energy companies in the world, with operations across 30 countries. Apart from oil and gas, the company is trying to capitalize on growing renewable energy space so that it could align its operations with the Paris Climate Agreement. Its shares have outperformed the industry in the past six months. Over the past 6 months, the stock gained has gained 7.1% against the industry’s 23.6% decline.
Zacks Rank and Other Stocks To Consider
Equinor currently carries a Zack Rank #2 (Buy). Some other top-ranked players in the energy space are Plains Group Holdings LP (PAGP - Free Report) , Gulfport Energy Corporation (GPOR - Free Report) and Laredo Petroleum Inc each currently sporting a Zacks Rank #1 (Strong Buy).
Over the past 60 days, the Zacks Consensus Estimate for 2020 earnings for Laredo Petroleum has been raised 19.8% and for Gulfport Energy Corporation it has been increased by 220%.
Plains Group Holdings is expected to see earnings growth of 160.6% in 2021.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
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Equinor (EQNR) to Lay Off 30% of Exploration Staff by 2023
Equinor ASA (EQNR - Free Report) announced its decision to lower its exploration staff by 30% globally by 2023. This reflects the Norwegian integrated energy major’s aim to reduce costs, a measure to survive the coronavirus-induced dented demand for petroleum.
The Norwegian oil and gas firm had 21000 employees at 2019-end and about 20% of the positions in each country were reportedly slashed to maximize the profit at lower oil price, per Reuters. The company proposed severance packages to staffs in a few locations. The integrated firm added that in Norway the headcount will get reduced as a result of natural attrition. Importantly, as reported by Equinor’s communication manager Erik Haaland, the planned headcount reduction is not going to influence the company’s exploration plans for 2020 and 2021. Notably, as a part of this year’s drilling program, the company will drill 30 to 40 wells across its operating resources in the world, as confirmed by the official.
In addition to job cuts, Equinor has lowered its exploration budget to combat weak oil prices. From initial guidance of $1.4 billion, the 2020-exploration budget dropped to $1.1 billion. Importantly, although the crude price has improved significantly over the past few months, the growing number of new world-wide coronavirus cases continued to dampen the company’s upstream business outlook. Investors should know, though Equinor has lowered the exploration budget, for new oil and gas resources, the company has an aim to focus in Norway, Brazil and the United States.
About the company and Price Performance
Headquartered in Stavanger, Norway, Equinor is one of the premier integrated energy companies in the world, with operations across 30 countries. Apart from oil and gas, the company is trying to capitalize on growing renewable energy space so that it could align its operations with the Paris Climate Agreement. Its shares have outperformed the industry in the past six months. Over the past 6 months, the stock gained has gained 7.1% against the industry’s 23.6% decline.
Zacks Rank and Other Stocks To Consider
Equinor currently carries a Zack Rank #2 (Buy). Some other top-ranked players in the energy space are Plains Group Holdings LP (PAGP - Free Report) , Gulfport Energy Corporation (GPOR - Free Report) and Laredo Petroleum Inc each currently sporting a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, the Zacks Consensus Estimate for 2020 earnings for Laredo Petroleum has been raised 19.8% and for Gulfport Energy Corporation it has been increased by 220%.
Plains Group Holdings is expected to see earnings growth of 160.6% in 2021.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>