Equinor’s renewables division has reported a net operating income loss in the third quarter of 2021.
The loss of of $27m (€23.2m) compares to a gain of $15m in the third quarter of 2020.
The decrease was mainly due to a lower positive proportion of net income from equity accounted investments in the third quarter of 2021 compared to the third quarter of 2020, the directors said.
In addition, costs related to the progressing of the Empire Wind and Beacon Wind assets off the US east coast contributed to reduced net income from equity accounted investments.
The consolidation method for these assets has been changed from proportional to equity accounted investments in 2021, following the farm-down of 50% of the owner share in the first quarter of 2021, the board reported.
Adjusted operating and administrative expenses decreased mainly due to changed consolidation method for the Empire Wind and Beacon Wind assets, partially offset by increased business development costs driven by higher activity level in the US, the UK and in Asia.
Adjusted depreciation, amortisation and net impairment losses were slightly up due to depreciation of certain water permits acquired in 2021.
After total adjustments of $1m to net operating income, adjusted earnings were negative $28m in the third quarter of 2021, compared to positive $15m in the third quarter of 2020.
Power generation in its renewables division was 304GWh in the third quarter of 2021, compared to 319GWh in the third quarter of 2020.
The decrease was due to wind being below seasonal average in the third quarter of 2021.
Equinor president and chief executive Anders Opedal (pictured) said: “Compared to the same quarter last year, the Renewables segment experienced lower winds for the offshore wind assets, partially offset by high availability and higher electricity prices.
“From the third quarter Equinor has decided to change its policy and will exclude gains and losses from sales of assets from the adjusted earnings for the Renewables segment.”