OSLO \u2014 Shareholders in Norway\u2019s largest company, Statoil, will approve on Tuesday the board\u2019s proposal to drop \u201coil\u201d from its name as its seeks to diversify its business and attract young talent concerned about fossil fuels\u2019 impact on climate change.<\/p>\n
From Wednesday, the majority state-owned company will change its 46-year-old name to Equinor and trade on the Oslo Exchange under the new ticker EQNR.<\/p>\n
The Norwegian government, which has a 67 per cent stake in the firm, has said it will back the move.<\/p>\n
The oil and gas company said the name change was a natural step after it decided last year to become a \u201cbroad energy\u201d firm, investing up to 15-20 per cent of annual capital expenditure in \u201cnew energy solutions\u201d by 2030, mostly in offshore wind.<\/p>\n
\u201cThe key reason for a company to change its name is when it wants to widen the scope of its activity or direction. Another reason would be because it is in trouble, and it has a reputational problem,\u201d Allyson Stewart-Allen, a London-based international branding expert and the CEO of International Marketing Partners, told Reuters.<\/p>\n
\u201cI don\u2019t believe that\u2019s the case with Statoil.\u201d<\/p>\n
While the company\u2019s profits are growing again, its hydrocarbon business has come under increased scrutiny after the Paris climate deal in 2016.<\/p>\n
\u201cA name with \u2018oil\u2019 as a component would increasingly be a disadvantage. None of our competitors has that. It served us really well for 50 years, I don\u2019t think it will be the best name for the next 50 years,\u201d Eldar Saetre, Statoil\u2019s chief executive, told Reuters.<\/p>\n
The new name was meant to arouse curiosity among young people so they see the other aspects of Statoil, including renewable energy, he added.<\/p>\n
Technology students became less interested in working for oil firms after oil prices crashed in 2014 and renewable energy gained in prominence.<\/p>\n
Statoil ranked 15th in an annual survey of the Nordic country\u2019s most attractive employers conducted by karrierestart.no, a Norwegian careers website, and Norwegian firm Evidente, published on May 3. In 2013, it ranked first.<\/p>\n
There are signs, however, that the name change could help it climb the ranks.<\/p>\n
\u201cStudents who answered the survey after (news of) the name change found Statoil to be between 5 per cent and 10 per cent more attractive as an employer,\u201d Arne Kvalsvik at Evidente said.<\/p>\n
\u201cIt\u2019s likely that Statoil\u2019s name change will have a positive impact on its reputation going forward.\u201d<\/p>\n
Statoil said it remained the first choice among technology students, citing another survey by Swedish firm Universum.<\/p>\n
Truls Gulowsen, head of Greenpeace Norway, said the name change would not be sufficient to improve Statoil\u2019s image as long as the firm was exploring in vulnerable areas, such as the Arctic or the Great Australian Bight.<\/p>\n
\u00a9 Thomson Reuters 2018<\/p>\n","protected":false},"excerpt":{"rendered":"
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