Norwegian petroleum company Equinor has launched a US$5bn buy-back programme to increase capital distribution and strengthen its dividend policy. The programme will be led until end-2022, starting with a US$1.5bn buyback to be concluded by February 2020 (with up to US$500m to be purchased in the market). The programme represents around 292 million shares (around 8.7 % of the share capital) including shares to be redeemed from the Norwegian State, all to be cancelled once repurchased. Shares will be repurchased at prices ranging from NOK50/share (US$5.6) to NOK500/share (US$56). The programme was approved by the Board of Directors in May 2019.
The Norwegian state will still retain a proportionate ownership interest in Equinor at 67%. The price to be paid to the State for the redemption of shares will be the volume-weighted average of the price paid by Equinor for shares purchased in the market plus an interest rate compensation, adjusted for any dividends paid in the period up until final settlement with the State.