Deepak Fertilisers shares climb 10% on tie-up with Norway’s Equinor

Shares of Deepak Fertilisers & Petrochemicals Corporation Ltd zoomed over 10% today after the industrial chemicals and fertilisers maker said it inked a long-term supply pact for liquefied natural gas (LNG), with Equinor, an international energy company based in Norway. The agreement is aimed at ensuring annual supplies of up to 0.65 million tonnes over a period of 15 years, beginning 2026.

Deepak Fertilisers shares climbed 10.43% to Rs 546 against the previous close of Rs 494.40 on BSE. Deepak Fertilisers stock opened higher at Rs 518.65. Market cap of the firm rose to Rs 6523.34 crore.

A total of 4.12 lakh shares of the firm changed hands amounting to a turnover of Rs 21.89 crore on BSE. 

In terms of technicals, the relative strength index (RSI) of the stock stands at 22.4, signaling it's trading in the oversold zone. The stock is trading lower than the 20 day, 50 day 100 day, 150 dayand 200 day moving averages.

“With this tie-up, Deepak Fertilisers strengthens its value chain with an attractive long-term LNG contract to solidify its value chain from Gas to Ammonia to various downstream Fertilisers, Industrial Chemicals and Mining Chemicals. This end-to-end tie-up shall establish a strong long-term foundation for all of Deepak Fertilisers’ product segments,” said the Indian fertilizer company.

“We are very happy to enter into this long-term agreement with Equinor for supply of LNG. This will put on a solid footing Deepak Fertilisers value-chain right from gas to ammonia to building block Nitric Acids to downstream fertilisers, mining chemicals and industrial chemicals, helping it to absorb global volatility as well as enhance overall margins. We also look forward to exploring with Equinor, strategic tie-ups in our Chemical Business, as well as carbon footprint reduction initiatives.” said Sailesh C. Mehta, Chairman & Managing Director, Deepak Fertilisers.

Equinor is among the established leaders in the oil & gas sector over the last 50 years, with a market cap of $75 Billion wherein majority shares are owned by the Norwegian Government.

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