Higher development costs dent Equinor's renewables results in Q1

Norwegian energy group Equinor ASA (NYSE:EQNR) said today that high project activity impacted cost levels at its renewables segment in the first quarter of 2023.

The unit recorded adjusted earnings of negative USD 83 million (EUR 75m), compared to negative USD 10 million a year ago.

It made a net operating loss of USD 89 million, against a USD-77-million profit in the same quarter of 2022, when there were divestment gains of USD 87 million from the Dogger Bank C wind farm project.

The decreased results reflect an increase in business development costs due to higher activity levels in the US, the UK and Asia.

Renewable power generation increased slightly year-over-year to 524 GWh due to good availability for the company’s offshore wind farms and production from the Hywind Tampen floating wind farm in Norway.

Overall, the oil and gas group said it delivered strong earnings despite lower prices, booking a net profit of USD 4.97 billion.

“We developed our portfolio within renewables and low-carbon solutions by acquiring the solar project developer BeGreen and collaborating with industry partners, aiming to build large-scale value chains for decarbonisation,” said president and chief executive Anders Opedal.

(USD 1 = EUR 0.906)

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