Equinor Doubles Hammerfest LNG Upgrade Cost to $2.8B, Flags Strong Q3 Trading
EQNR sits 88% above its 52-week low of $22.26.
Summary
Equinor raised the cost estimate for its Hammerfest LNG plant upgrade to NOK26.5B (~$2.8B), nearly double the NOK13.2B estimate from 2022 (NOK15.2B in today's value). The company cited complexity at the operating facility and weather challenges in northern Norway. The project is 60% complete with the 2029/2030 start dates unchanged. Separately, Equinor expects its downstream division, including energy trading, to beat Q3 profit guidance of $400M due to unusually strong European refining margins. The cost overrun is material for a project of this scale, though the positive trading update partially offsets the negative sentiment.
At the time of this announcement, EQNR was trading at $41.89 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $102.6B. The 52-week trading range was $22.26 to $45.84. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.