There is practically not a day that goes by in Germany where we don’t read about the energy crisis. Companies from the industry complain that the energy supply is not secure and not cost-effective enough. Energy companies are currently doing very well. This also applies, especially, to the Norwegian company Equinor. If you have this stock in your portfolio, it is also a dividend star.

LNG contract signed Now, an Indian business partner, Deepak Fertilisers, has signed a long-negotiated contract. Equinor will supply LNG – liquefied natural gas – for 15 years. This is a small indication of the different areas in which Equinor is active – and how far the company’s reach extends.

In the current or future situation, however, Equinor is particularly attractive for another reason: The company offers solutions in the fight against CO2 emissions. It stores CO2 under the seabed. For this, Equinor has already signed contracts with German company Wintershall. In the end, a significant portion of Germany’s CO2 emissions will flow to Norway.

The technology is currently gaining popularity in the German government as well. The Ministry of Economy, led by Robert Habeck, is considering or developing a strategy to store or use CO2 in a different way. Direct business opportunities for Equinor cannot yet be derived from this. Nevertheless, the Norwegians will be involved in the end.

Also doing well in 2023 and 2024 Equinor continues to do well. The revenues for the past year are estimated at around $100 billion. The company will almost certainly make a profit of $12 billion and will also remain strong in the current year – 2024.

The P/E ratio for the past year is expected to be around 8, and it will likely be the same for 2024. These are currently only estimates, but the outlook remains good. The price-to-sales ratio (P/S) is currently significantly less than 1 (an important value). According to current estimates, it will be around 0.8 for both years.

The dividend yield is also a strong argument: You can expect a dividend yield of about 10% for the past year. The dividend yield is expected to be about the same for 2024. It doesn’t get much more attractive than this.