Equinor's renewables unit posts wider Q4 loss as expenses swell

The renewables segment of Norwegian oil and gas group Equinor ASA (NYSE:EQNR) widened its net operating loss in the fourth quarter of 2022 as an 81% year-on-year jump in revenues could not offset soaring costs.

The unit’s performance was burdened by increased business development costs related to the higher activity levels in the US, the UK and Asia, Equinor said on Wednesday.

At USD 63 million (EUR 58.8m), the segment’s net operating loss expanded from USD 38 million a year back and from USD 56 million in the preceding quarter. Its adjusted loss, meanwhile, more than doubled on the year to USD 86 million.

Net income from equity-accounted investments halved in the fourth quarter as a result of higher costs for projects under development but the full-year level improved as lower resources were needed for the Empire Wind offshore project in US waters at the beginning of the year.

In view of the increased costs, Equinor booked a wider 2022 adjusted loss at renewables. The operating result for the past year was negative, resulting from the lower divestment gains throughout the year.

Net income (loss) from equity-accounted investments

Renewable power generation, covering only Equinor’s share, slipped by 3% on the year in October-December 2022 due to lower availability. Fuelled by the start of generation at the Guanizuil IIA solar plant in Argentina, power output for the full year was 5% higher than in 2021.

Looking ahead, Equinor confirmed its goal of having 12 GW-16 GW of installed renewables capacity by 2030, saying its portfolio of projects within renewables and acreage is progressing well. “The strategy remains focused on profitable growth, demonstrating discipline and capturing value through market cycles,” it added.

(USD 1.0 = EUR 0.933)

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