UBS Maintains Sell Rating on Equinor ASA with NOK225 Price Target.

UBS analyst Henri Patricot maintains a Sell rating on Equinor ASA with a price target of NOK225.00. The analyst has an average return of -0.9% and a 56.56% success rate on recommended stocks. The current analyst consensus on Equinor ASA is a Hold with an average price target of NOK267.20, representing a 2.37% upside.

Norway’s state-owned energy major, Equinor ASA (EQNR), has awarded a significant contract to Aker Solutions for work on its Fram Sør subsea development in the North Sea. The move marks a critical step in Equinor’s efforts to combine multiple discoveries in the northern part of the basin and enhance supply to Europe [1].

Under the engineering, procurement, construction, installation, and commissioning (EPCIC) contract, Aker Solutions will upgrade the Troll C platform topsides to receive and process hydrocarbons from the Fram Sør subsea tie-back. The scope also includes new subsea templates. The value of the contract is described as "sizeable," ranging between NOK 0.5 billion and NOK 1.5 billion ($49-$150 million). Work has already begun, with the first production targeted for 2029-end [1].

The Fram Sør project, located about 20 kilometers north of Troll C in 350-meter-deep water, will be developed using 4 x 4 subsea templates tied back to existing Fram infrastructure and Troll C for processing and export. The reservoir lies at depths ranging from 1,800 to 2,800 meters. Equinor plans to start with 12 wells, with another four well slots reserved for future development in the Fram/Troll area [1].

Aker Solutions’ Bergen office, which led the front-end engineering and design, will now spearhead project execution with support from its Mumbai team. Detailed engineering, procurement, and shop engineering will be handled across both offices, while fabrication will take place at Aker’s Egersund yard in Norway [1].

At the end of June, Equinor submitted the Plan for Development and Operation for Fram Sør, emphasizing its strategic role in enhancing European oil and gas supplies. Equinor holds a 45% stake in the project, with Vår Energi and Inpex Idemitsu Norge owning 40% and 15%, respectively [1].

Investors interested in the energy sector may look at a few better-ranked stocks like TechnipFMC plc (FTI), W&T Offshore, Inc. (WTI), and Oceaneering International, Inc. (OII), each carrying a Zacks Rank #2 (Buy) at present [1].

UBS analyst Henri Patricot maintains a Sell rating on Equinor ASA with a price target of NOK225.00. The current analyst consensus on Equinor ASA is a Hold with an average price target of NOK267.20, representing a 2.37% upside [2].

References:
[1] https://www.nasdaq.com/articles/equinor-awards-north-sea-subsea-development-deal-aker-solutions
[2] https://www.investing.com/news/analyst-ratings/equinor-stock-price-target-raised-to-21-from-19-at-td-cowen-93CH-4130618