Equinor reported a US$91m net operating loss within its renewables division in Q2 2023, compared to a loss of US$42m in the same period last year.
The developer said that this was mainly due to lower prices and higher project costs from schemes under development as they mature.
Positive contribution of US$33m from producing offshore wind assets to net income for the quarter was more than offset by net losses from projects under development of US$37m, Equinor’s board said.
Project expenses have increased compared to the second quarter of 2022, mainly driven by increased expenditure in Baltyk projects, it added.
Higher business development expenditure combined with increased activity levels as projects mature leading to an upward trend of operating and administrative expenses in the second quarter and first half of 2023 compared to 2022, the directors said.
Maturing projects costs mainly relates to offshore wind projects in the UK and Asia, they added.
Net operating income decreased significantly in the first half of 2023 compared to the same period last year due to divestment gains of US$87m from the Dogger Bank C wind farm recognised in 2022 and increased development costs in 2023.
In the second quarter of 2023, the power generation came mainly from offshore wind farms Dudgeon, Sheringham Shoal and Arkona, accounting for 251GWh.
Onshore renewables contributed 83GWh, primarily from Apodi and Guañizuil IIA projects.
The slight increase in production compared to the second quarter and the first half of 2022 was mainly driven by new production from onshore power plants in Poland which was partly offset by lower average wind speeds for UK wind farms.
The board added that production starting from solar plants in Poland has driven an increase in revenue compared to the same quarter last year.
Additions to PP&E, intangibles, and equity accounted investments for the second quarter of 2023 was US$267m, of which, US$43m of additions were related to onshore renewables, and US$224m additions related to offshore wind projects mainly related to the commercial-scale lease in California, the directors said.