Equinor’s renewables business has reported a net operating loss of $166m for the third quarter of 2024, compared with a loss of $412m in the same period in 2023.
Net operating loss includes the effect of a $50m impairment of an offshore wind lease project in California in third quarter 2024, with a $300m impairment on Equinor’s offshore wind projects on the US north-east coast impacting the same period of the prior year.
The net operating loss for the first nine months of 2024 also included a $147m net loss resulting from the asset swap transaction between Equinor and bp in the first quarter, under which Equinor took full ownership of the Empire Wind lease and projects and bp took full ownership of the Beacon Wind lease and projects.
In the third quarter of 2024, $60m was allocated for onshore renewables and $301m was allocated for offshore wind projects, primarily related to the South Brooklyn Marine Terminal (SBMT) and Empire Wind projects in the US and investments related to projects in the UK.
The substantial increase in power generation in the third quarter and first nine months of 2024 compared to the same periods of 2023 was driven by the addition of onshore power plants in Brazil and Poland, and the start of production at the partner operated Mendubim solar plants in Brazil.
Equinor produced 677GWh from renewable assets in the third quarter, up 82% from the same quarter last year.
The increase was driven by the addition of onshore power plants in 2024.
The offshore wind parks Dudgeon, Sheringham Shoal and Arkona also contributed positively to the production.
The progress at Dogger Bank A is slower than expected.
Based on this, the expected growth in power production from renewable assets in 2024 is adjusted to around 50%.
Net income/(loss) from equity-accounted investments increased significantly in the third quarter and the first nine months of 2024 compared to the same periods in 2023.
Equinor president and chief executive Anders Opedal (pictured) said: “We continue to invest in renewables and develop low carbon value chains.”