Equinor has reported a 94% drop in net operating income for its renewables operations in Q1 2022 due to a “lower gain on divestments”.
The Norwegian developer achieved net operating income of US$77m (€73.2m) in the first quarter of 2022 compared to US$1,341m in the first quarter of 2021.
The decrease was driven by lower gain on divestments in the first quarter of 2022 compared to the first quarter of 2021, Equinor said.
The decrease was partially offset by higher results from equity accounted investments driven by higher power prices for assets in operation, and reduced project development costs after the Empire Wind asset started capitalising expenditures in the first quarter of 2021.
In the first quarter of 2022, net operating income was impacted by a gain of US$87m related to the divestment of a 10% stake in the Dogger Bank C wind farm project.
In the first quarter of 2021, net operating income was impacted by gains of US$1.4bn related to the divestments of a 10% stake in the Dogger Bank A and B wind farm projects and of a 50% stake in the Empire Wind and Beacon Wind assets.
Power generation3 was 511GWh in the first quarter of 2022, compared to 451GWh in the first quarter of 2021.
The increase was mainly due to start-up of production from the Guanizuil IIA solar plant in Argentina and offshore wind farms benefitting from higher wind speeds.
Adjusted operating and administrative expenses remain at the same level compared to the first quarter of 2021, the directors added.
Increased business development costs driven by higher activity level in the US, the UK and in Asia were offset by lower costs due to changed ownership and consolidation method for the Empire Wind and Beacon Wind assets.
After total adjustments of US$87m to net operating income, adjusted earnings for the renewables division were negative US$10m in the first quarter of 2022 compared to negative US$38m in the first quarter of 2021.