🌍💡 Investing in the future of energy!
Norwegian energy company Equinor $EQNR, is taking bold steps towards a more sustainable future. In its latest announcement, the company announced the acquisition of 9,8% stake in Danish offshore wind farm leader Orsted. The investment, worth approximately $2.5 billion, is part of a long-term strategy to strengthen Equinor' s position in the renewable energy sector. 🚀
Equinor has focused on oil and gas production for most of its history, but has been changing dynamically in recent years. Today, it is one of the biggest players in the energy transition. The company aims to be one of the world's most important energy companies by 2030 to install 12-16 GW renewable energy, primarily through investments in offshore wind farms, solar power and other green technologies. ⚡
At the end of the year 2023 had Equinor installed capacity from renewable sources below 1 GW, but the acquisition of a stake in Orsted adds another 1.7 GW to its capacity. The acquisition is part of a wider plan to achieve ambitious decarbonisation and clean energy transition targets. 🔋
Orsted, the world's largest offshore wind developer, has seen its shares fall by 69 % due to rising production costs and technical problems with turbines. But that hasn't deterred Equinor, which sees the investment as a long-term bet on the future of renewable energy. 📉➡️📈
"We believe this is the right counter-cyclical move at the right time. The offshore wind sector is going through a difficult time, but we believe it is a key sector for the future energy transformation," said Equinor CEO Anders Opedal.
Equinor plans to continue to support the development of offshore wind projects, but at the same time said it has no plans to increase its stake in Orsted beyond 10 % and will not seek representation on the company's board. 👥
📊 Offshore wind power may currently face rising turbine costs and logistical delays, but the long-term potential remains huge. Offshore wind plays a key role in the global transition to sustainable energy and will grow in importance over the coming decades. 🌬️
Company Orsted is firmly anchored in the Danish political environment, where it enjoys broad support. Denmark has brought in strong partners in the past, such as Goldman Sachs, to stabilise the company during its transition from fossil fuel extraction to green energy. Despite the current challenges in the wind energy sector, it has Orsted robust global market position and remains a key player in shaping new energy infrastructure. 🌍🔧
What is your opinion of the energy company Equinor?
It's interesting, but I'm very cautious in this sector, so this is a pretty big risk for me.
It might be interesting, but I'm not that interested. The dividend is nice, but the growth isn't great.
I don't see much potential in it and I don't like such companies. Moreover, the wind energy industry is not very stable and the industry is not doing that well.
The growth is pretty steady and the dividend is great. I'll definitely keep an eye on the company. Thanks for the tip😃
I don't quite see the growth of their business as a standalone, but if someone is looking for stability and a nice dividend, it's a nice company.