Equinor records Q3 renewables loss despite jump in generation

Norway's Equinor ASA’s (OSE:EQNR) on Thursday reported an adjusted operating loss of USD 115 million (EUR 107m) in its renewables segment due to costs of project development outpacing earnings from assets in operation.

The net operating loss was USD-166-million and it takes into consideration a USD 50 million impairment of an offshore wind lease project in California. The quarter a year ago included a USD-300-million impairment on Equinor’s offshore wind projects on the US Northeast coast.

More figures for the renewables segment are in the table below:

Equinor’s renewable generation jumped 82% year-over-year to 677 GWh thanks to the addition of onshore power plants in Brazil and Poland, and the start-up of the partner-operated Mendubim solar plants in Brazil. The Dudgeon, Sheringham Shoal and Arkona offshore wind park also contributed to the increase.

Dogger Bank A is advancing more slowly than expected, leading the company to adjust the expected growth in 2024 renewable power production to around 50%.

Equinor noted that its recent purchase of a 9.8% stake in Ørsted provides exposure to premium operating offshore wind assets along with a solid project pipeline and that, in the quarter, it also won an offshore wind lease in the US at an attractive price.

Equinor generated a net profit of USD 2.29 billion in the third quarter.

(USD 1 = EUR 0.929)

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