Equinor to commence third tranche of the 2024 share buy-back programme
July 23 2024 - 11:47PM
Equinor (OSE: EQNR, NYSE: EQNR) will on 25 July 2024
commence the third tranche of up to USD 1.6 billion of the share
buy-back programme for 2024, as announced in relation with the
second quarter results 24 July 2024.
In this third tranche of the share buy-back programme for 2024,
shares for up to USD 528 million will be purchased in the market,
implying a total third tranche of up to USD 1.6 billion including
shares to be redeemed from the Norwegian State. The tranche will
end no later than 22 October 2024.
Equinor announced at the Capital Market Update in February 2024
a two-year share buy-back programme of total USD 10-12 billion for
2024-2025, with up to USD 6 billion for 2024, including shares to
be redeemed from the Norwegian State. The share buy-back programme
will be subject to market outlook and balance sheet strength and be
structured into tranches where Equinor will buy back shares for a
certain value in USD over a defined period. For the third tranche
in 2024, Equinor will be entering into a non-discretionary
agreement with a third party who will execute repurchases of shares
and make its trading decisions independently of the company.
Commencement of new share buy-back tranches after the third
tranche in 2024 will be decided by the board of directors on a
quarterly basis in line with the company’s dividend policy and will
be subject to board authorisation for share buy-back from the
company’s annual general meeting and agreement with the Norwegian
State regarding share buy-back (as further described below).
The purpose of the share buy-back programme is to reduce the
issued share capital of the company. All shares purchased as part
of the third tranche for 2024 will thus be cancelled through a
capital reduction at the annual general meeting of the company in
May 2025.
Further information about the share buy-back programme
and the third tranche:
The third tranche of the share buy-back programme for 2024 is
based on an authorisation granted to the board of directors at the
annual general meeting of the company held on 14 May 2024.
According to the authorisation, the maximum number of shares to be
purchased in the market is 92 million, of which 73,194,421 remain
available per commencement of the third tranche in 2024 (buy-backs
made under previous tranches in the authorisation period taken into
account). The minimum price that can be paid per share is NOK 50,
and the maximum price is NOK 1,000. The authorisation is valid
until the earliest of 30 June 2025 and the annual general meeting
of the company in 2025.
An agreement between Equinor and the Norwegian State regulates
the State’s participation in the share buy-back: at the annual
general meeting of the company in May 2025, the State will, as per
proposal by the board of directors, vote for the cancellation of
shares purchased in the market pursuant to the board authorisation,
and the redemption and cancellation of a proportionate number of
its shares in order to maintain its ownership share in the company
at 67%. The price to be paid to the State for redemption of the
State’s shares shall be the volume-weighted average of the price
paid by Equinor for shares purchased in the market plus an interest
rate compensation, adjusted for any dividends paid.
In the third tranche in 2024, shares will be purchased on the
Oslo Stock Exchange and possibly other trading venues within the
EEA. Transactions will be conducted in accordance with applicable
safe harbour conditions, and as further set out in the Norwegian
Securities Trading Act of 2007, EU Commission Regulation (EC) No
2016/1052 and the Oslo Stock Exchange's Guidelines for buy-back
programmes and price stabilisation from February 2021.
The board of directors will propose to the annual general
meeting to be held in May 2025, to cancel shares purchased in the
market in this third tranche in 2024 and to redeem and cancel a
proportionate number of the State’s shares per the agreement with
the State. Based on renewal of this agreement, shares purchased
under subsequent tranches of the share buy-back programme for 2024
and 2025 and a proportionate number of the State’s shares will
follow a similar process at the annual general meetings of the
company in 2025 and 2026, respectively.
This is information that Equinor is obliged to make public
pursuant to the EU Market Abuse Regulation and that is subject to
the disclosure requirements pursuant to Section 5-12 the Norwegian
Securities Trading Act.
Further information from:
Investor relationsBård Glad Pedersen, senior vice president
Investor Relations,+47 918 01 791
MediaSissel Rinde, vice president Media Relations,+47 412 60
584
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