Statoil shares are trading higher Tuesday as the Norwegian energy company prepares to change its 50-year old name. It’s expected that from Wednesday May 16th, Statoil will become Equinor.
The name change has been put forward to help improve the image of the energy firm and help make it seem more appealing to the younger generation considering a role in the energy sector.
By 1315 BST, Statoil shares were 1.23% higher at €23.00. The stock has been moving broadly higher in the past four weeks.
Statoil’s name change
“On 15 May 2018, the annual general meeting (AGM) in Statoil ASA will vote on the proposal to change the company’s name, from Statoil ASA to Equinor ASA,” the energy company said in a press release.
“The Company expects to implement the name change from (and including) 16 May 2018.,” Statoil said.
It added: “Based on statements made in support of the name change by the company’s majority owner, the company expects the AGM to approve the proposal to change the company’s name to Equinor ASA.”
Statoil’s CEO also told Reuters that while the company’s name has been positive for the past 50 years, that likely won’t be the case in the next 50 years.
“A name with ‘oil’ as a component would increasingly be a disadvantage. None of our competitors has that. It served us really well for 50 years, I don’t think it will be the best name for the next 50 years,” Statoil’s CEO, Eldar Saetre said.
Changing energy backdrop
Statoil’s new name has been created for a number of reasons, including to help the Norwegian energy company help attract the bright young minds from new generations.
Renewable energy is a fast-growing industry. And while Statoil is working to develop and grow its own renewable energy areas, the name Statoil could make some potential employees think that’s not the case.
The initial proposal for the name change came in mid-March.
“Equinor is a name that is forward-looking and creates a strong platform for engagement and dialogue with a broad set of stakeholders, said Statoil’s senior VP of corporate communications, Reidar Gjærum, in a March press release.
“We believe it will create internal alignment and pride, and help attract capital, partners and talents,” he added.