Norwegian Firm Equinor’s RE Unit Reports Losses in Q3 2022; Net Operating Loss at US$56m

Government-owned Norwegian firm Equinor has shared that it is witnessing expanding losses from its renewables unit. The losses have been reported in the third quarter 2022 as against the corresponding quarter last year.

The renewables arm of Equinor recorded a net operating loss of US$56m in the quarter- more than twice the figure in the third quarter of last year, which was US$27m. The company attributed higher business development costs as well as slightly lower production as the reason behind the losses.

At the same time, the net income from equity accounted investments rose to US$9m in the third quarter of this year in comparison to US$6m during the same time in year 2021- this was led by increased results from producing assets. That apart, the net operating income in the first nine months of this year witnessed a significant decline as against year 2021 because of lower divestment gains of US$87m this year in comparison to US$1.385bn last year.

The rise in additions to PP&E, intangibles along with equity accounted investments in the third quarter of 2022 is primarily attributable to its acquisition of East Point Energy- a Virginia-based development firm that delves into the origination, construction, and operation of energy storage projects

In the third quarter of 2022, the Norway-based firm generated 294GWh of power- a fall of 3% as against  304GWh recorded in the third quarter of 2021. Equinor blamed this decline on lower wind but higher O&M.

Meanwhile, the electricity output also slid from 325GWh in the second quarter of this year. Yet the electricity output saw a rise in the first nine months of 2022 in comparison compared to the same period of 2021. The numbers stood at 1131GWh in comparison to 1036GWh. This growth was led by the beginning of production from the Guanizuil IIA solar plant in the third quarter of last year.

“In the third quarter 2022 the decrease in net operating income and adjusted earnings compared to the same period last year was driven by increased business development costs due to higher activity levels in the US, the UK and in Asia, partially offset by increased net results from equity accounted investments,” the company’s statement read.