Rising costs widen Equinor's renewables segment loss in Q2

Norwegian energy group Equinor ASA (NYSE:EQNR) saw the loss in its renewables segment double in the second quarter of 2023 as higher project activity impacted cost levels.

The unit recorded an adjusted loss of USD 84 million (EUR 76m), compared to a loss of USD 42 million a year ago, Equinor’s results showed on Wednesday.

At USD 91 million, the net operating loss expanded from USD 42 million a year before when the renewables business recognised investment gains of USD 87 million from the Dogger Bank C wind farm project. Meanwhile, the higher project activity levels in the UK and Asia led to a major increase in operating and administrative expenses and brought the unit’s total operating expenses to USD 95 million, up 66% on the year.

The renewables unit suffered a 72% year-on-year drop in revenues and other income to USD 4 million.

Power generation gained 6% to 345 GWh thanks to production from the Hywind Tampen floating wind farm in Norway and the contribution of new solar parks in Poland. The bulk of the output, 251 GWh, came from the Dudgeon, Sheringham Shoal and Arkona offshore wind farms, while 83 GWh of the total came from onshore renewable plants.

“Equinor delivered solid earnings in a quarter affected by turnarounds and energy prices down from the extraordinary levels last year,” said president and CEO Anders Opedal.

The Norwegian company posted a second-quarter net profit of USD 1.83 billion, down from USD 6.76 billion a year back. Net operating income plunged by 60% to USD 7.05 billion.

(USD 1.0 = EUR 0.904)

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