Courtesy of Lemon_tm
Equinor, listed on the New York Stock Exchange as EQNR, has unveiled the initiation of the first tranche of a buyback program, with a total value of $1.2 billion earmarked for 2024.
The initial tranche will incorporate stock repurchases worth up to $396 million and is anticipated to culminate no later than April 5, 2024.
The Norwegian energy giant also confirmed a share buyback program stretching across 2024 to 2025, allotting $10 billion to $12 billion for the cause, $6 billion of which will be allocated in 2024, incorporating shares to be redeemed from the Norwegian State.
The announced aim of the buyback program is to diminish the issued share capital of the company, a move that historically has been correlated with a positive impact on the share price of many firms.
The board of directors will determine the commencement of subsequent share buyback tranches post the initial tranche in 2024 on a quarterly basis, aligning with the organization’s dividend policy.
Furthermore, Equinor has augmented its Q4 dividend payout by 17% to $0.35, signifying the company’s commitment to returning value to its shareholders via both buybacks and dividends.
Notably, the stock price witnessed a 1.1% upsurge during pre-market trading on Wednesday, signaling positive investor sentiment in response to the buyback announcement.
