The renewables segment of Norwegian oil and gas group Equinor ASA (OSE:EQNR) recorded a net operating loss of USD 412 million (EUR 391m) in the third quarter of 2023 following a setback for US offshore wind projects.
The deterioration in the loss from USD 56 million a year ago mainly reflects a USD-300-million impairment the company recognised in relation to its offshore wind projects on the US North East Coast after the New York Public Service Commission rejected its price increase petitions to address cost inflation.
Equinor said it is assessing the implications of this rejection for its projects.
The company in addition saw higher development costs this year. More details of its renewables segment’s performance are in the table:
|in USD million||Q3 2023||Q3 2022||9-mo 2023||9-mo 2022|
|Total revenues and other income||(5)||12||(3)||146|
|Total operating expenses||(406)||(69)||(589)||(167)|
|Net operating profit/(loss)||(412)||(56)||(591)||(21)|
|Power generation (GWh) Equinor share||352||294||1,198||1,131|
“We continue our transition, with first power from Dogger Bank in the UK – the world’s largest offshore wind farm, further expanding in onshore renewables in Brazil and Poland, and investing in the Bayou Bend CCS project in the US,” said president and chief executive Anders Opedal.
At a group level, Equinor delivered USD 2.73 billion in adjusted earnings after tax, down from USD 7.19 billion a year ago as gas prices declined from the “extraordinary levels” in 2022.
(USD 1 = EUR 0.949)