Norwegian energy company Equinor remains committed to developing as a broad energy firm in a low-carbon future, despite making a net operating loss in the second quarter as a result of the Covid-19 pandemic.
Equinor president and chief executive Eldar Saetre (pictured) said the company expects “market volatility to continue going forward”.
He said the long-term market implications from Covid-19, with possible lower demand and reduced investments in the industry, “remain uncertain”.
But, he added, “Equinor’s strategic direction remains firm and we are committed to develop Equinor as a broad energy company to create value in a low carbon future”.
However, the company’s wind assets, included in the “other reporting segment” performed well in the period.
Net income from the segment was $38m in the second quarter, up from $10m last year.
This came despite seasonal lower wind in the period and planned maintenance, Equinor said.
Overall, the net operating loss was $0.47bn in the second quarter, down from positive $3.52bn in the same period last year.
Adjusted earnings were $0.35bn, down from $3.15bn in 2019, while the company made a net loss of $0.25bn compared with almost $1.48bn profit last year.
The main reason was low oil and gas prices, the company said.
Saetre said: “We have reduced costs, maintained solid operational performance and continued to prioritise value over volume.
“We also continued to progress our highly competitive project portfolio, supported by active policy measures in Norway enabling the industry to continue to work on planned projects that will stimulate new investments and maintain activity in a challenging period.”