Equinor’s renewables division reported net operating income of $1245m (€1091m) for 2021, compared with a loss of $35m in 2020.
However, the company’s results for the final quarter of 2021 show an operating loss of $38m, a 37% change on the $60m deficit reported at the same time in 2020.
Equinor said that the reduction in the loss was mainly due to higher results from equity accounted investments in operation driven by higher power prices.
This was in addition to reduced project development costs related to the Empire Wind and Beacon Wind assets following the farm-down of 50% of the owner share in the first quarter of 2021.
Increased business development costs driven by higher activity level in the US, the UK and in Asia partially offset the change.
Equinor added that the project pipeline within renewables was competitive and in line with the ambitions of an installed capacity of 12GW-16GW by 2030.
The developer’s installed equity capacity is currently 0.7GW.
In 2021, Equinor farmed down and secured financing on Dogger Bank C, the last phase of the world’s largest offshore wind farm in the UK.
It also signed a cooperation agreement with Korean East-West Power for 3GW of offshore wind projects in South-Korea.
Equinor expects project base returns of 4-8% real and remains determined to capture higher equity returns through project financing and farm downs, its directors said.
In 2021 Equinor booked capital gains of $1.4bn from renewables.
Equinor president and chief executive Anders Opedal (pictured) said: “We continue to invest in profitable projects supporting the energy transition.
“In the quarter, we took the final investment decision on Dogger Bank C, the third phase of the world’s biggest offshore wind farm and announced a divestment of a 10% interest in the project.
“The plan for development and operation for Troll West electrification was approved by the Norwegian authorities, which means that oil can be produced from the prolific Troll- and Fram area with low emissions.
“We also progressed our renewable project pipeline.”