Equinor's renewables division books wider operating loss in Q2

Illustration of Hywind Tampen concept. Source: Equinor ASA

The renewables segment of Norwegian oil and gas group Equinor ASA (NYSE:EQNR) booked a wider net operating loss of USD 42 million (EUR 41m) in the second quarter as business development costs increased.

The expanded deficit was partly offset by the improved net income from equity accounted investments, Equinor said on Wednesday. Lower project costs at the Empire Wind offshore project in US waters led to a second-quarter profit from equity accounted investments of USD 12 million versus a loss of USD 6 million a year back.

Adjusted operating and administrative expenses at the renewables division jumped by 77% year-on-year to USD 56 million as costs rose amid higher activity in the US, the UK and Asia.

More details about the division’s financial performance are available in the table below.

Amounts in USD millions	Q2 2022	Q2 2021
Net income (loss) from equity accounted investments	12	(6)
Total revenues and other income	15	2
Total operating expenses	(57)	(33)
Net operating income (loss)	(42)	(31)
Power output (GWh)	325	283

Renewable power generation, covering only Equinor’s share, climbed by 15%, driven by the start of generation at the Guanizuil IIA solar plant in Argentina.

“Russia’s invasion of Ukraine impacted already tight energy markets and has created an energy crisis with high prices affecting people and all sectors of society,” said CEO Anders Opedal.

On a group level, Equinor closed the second quarter with a net profit of USD 6.76 billion, which soared from USD 1.94 billion a year back thanks to the increased energy prices and higher prices for liquids. Net operating income more than tripled, coming at USD 17.73 billion.

(USD 1.0 = EUR 0.977)

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