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Equinor launches $5B share buyback program

Equinor ASA initiated a share repurchase program for up to $5 billion, as it emphasizes its commitment to return capital to its shareholders.

The Norwegian multinational energy company launched the first tranche of the program, composed of $1.5 billion worth of shares, on Sept. 5. The shares will be purchased on the Oslo Stock Exchange. It is expected to close on Feb. 25, 2020, according to a news release on the same day.

The full $5 billion program is scheduled to run until the end of 2022 and includes shares to be redeemed from the Norwegian state and represents about 292 million shares, or 8.7% of the share capital, based on the company's closing share price and the U.S. dollar-to-Norwegian-kroner exchange rate on Sept. 4. The Norwegian state, represented by the Ministry of Petroleum and Energy, agreed to participate in share repurchases on a proportionate basis to maintain its 67% ownership interest in Equinor.

The subsequent tranches are conditioned on future annual general meetings to renew the buyback authorization and the agreement with the Norwegian state.

"The upcoming start-up of the world-class Johan Sverdrup field, combined with several other new fields in production, provides additional confidence in our outlook for production growth and increased cash generation capacity," Equinor President and CEO Eldar Sætre said in the release.