8,494 Active Recruiters     Over 2 Million Candidates Globally

  1. Keep me logged in
  2. forgot password

Checkout Jobs Basket (0)

You can checkout a maximum of 150 jobs.

Signup Better for Candidates

  • Create a free virtual CV and let recruiters find you
  • Automatically have your profile matched to suitable Oil & Gas positions
  • Link to your profile using it as a free online CV
  • Store all your employment documents to your profile for easy sending
  • Always receive feedback on positions applied for

Signup Better for Recruiters

  • Suitable candidates automatically matched to your position
  • View candidate profiles for free
  • No more waiting for candidates to respond to job advertisements
  • Only ever pay when you match a candidate to a position
  • No more cold calling and sorting through out dated CVs

Oil Crash Makes Wind Power Firm Nordics' Biggest Energy Company

Published in Oil Industry News on Monday, 16 March 2020

Graphic for News Item: Oil Crash Makes Wind Power Firm Nordics' Biggest Energy Company

The oil price crash has led to Danish offshore wind developer Orsted overtaking Norwegian oil major Equinor as the most valuable energy company in the Nordics, highlighting the appeal to investors of renewables over fossil fuels.

Shares in Equinor slid nearly 18% on Monday as crude prices plunged 25% after top producers Saudi Arabia and Russia began a price war that threatens to swamp global oil markets with supply.

At around 0900 GMT on Tuesday, Equinor's market value stood at $42 billion, while Orsted was valued at $45 billion, according to share information on the companies' websites, the first time Orsted has overtaken the Norwegian company.

The drop in oil prices on Monday was the biggest one-day percentage drop since Jan. 17, 1991 at the outset of the first Gulf War and for investors highlighted the risk of investing in oil companies.

As well as volatile crude prices, oil producers have also been hit by a global shift away from heavily polluting fossil fuels.

Orsted, formerly named DONG Energy, has seen its shares gain more than 40% over the past year, while shares in Equinor have fallen by around the same margin.

Orsted has been rebranding itself as a 'renewable major' after it sold its oil and gas business in 2017, courting investors interested in green investments which have seen a boost thanks to policies to protect the environment.

"All investors look at Orsted and say: Here we buy into the future and when they look at the oil companies including Equinor they buy into the past," said head of equity research at Sydbank Jacob Pedersen. Equinor has made some steps towards building a renewable business and plans to spend up to $2 billion-$3 billion a year in 2022-2023 on renewable projects, out of a total capital spending of $12 billion.

Teodor Sveen-Nilsen at Oslo-based Sparebank 1 Markets said the change in market valuation showed green investments gaining momentum over the past few days.

However, low oil prices posed risks for renewables in the longer term.

"Low oil prices are bad for renewable companies, because the cost of energy comes down and there are less incentives to invest in alternative energy sources. Also, low oil prices would encourage demand growth," he said in an e-mail to Reuters.

Both Orsted and Equinor declined to comment when asked by Reuters. Equinor shares steadied on Tuesday, rising around 5% in morning trade, as did shares in Orsted, which fell 4.6% on Monday as global equity markets fell across the board.

They were up 2.6% on Tuesday. ($1 = 6.5694 Danish crowns) 

Source: oilprice.com

Please leave comments and feedback below


North Sea Oil and Gas, Norwegian Oil and Gas, Aberdeen Oil and Gas, Oil and Gas News

Oil and Gas News Archive

Latest Oil & Gas News

Featured Companies

  • View All JobsOMPA

    Offshore Marine People & Academy (OMPA) is a global provider of personnel and training to the renewables, oil & gas, telecommunications and marine industries.

    With over 15 years' industry experience, we work with candidates to match them to the right roles and equip them with the skills and knowledge needed to succeed. Our job is to exceed your expectations.

    Visit us online: offshorempa.com

  • View All JobsChronos Oil and Gas

    Chronos Oil and Gas is one of the fastest growing and best placed recruitment agencies in the sector.

    With over 300,000 candidates on our database and an international team of specialist recruiters we work with clients to staff major projects around the world.

    Register your CV at www.chronosoilandgas.com

  • View All JobsNatural Resources

    Natural Resources is a UK based recruitment company providing personnel of all disciplines and nationalities worldwide.

    We represent clients and candidates at all levels who operate globally within oil & gas, renewables, nuclear, power, mining, marine, drilling, construction and petrochemicals. Our client base includes energy and construction.

    Visit Natural Resources at natural-resources.com