Equinor’s green energy unit has been smeared with red ink

According to the directors, costs associated with US initiatives are an issue

In the third quarter of 2021, Equinor’s renewables segment posted a net operational loss.

The deficit of $27 million (€23.2 million) contrasts with a gain of $15 million in the third quarter of 2020.

According to the directors, the decline was primarily attributable to a smaller positive proportion of net income from equity accounted investments in the third quarter of 2021 than in the third quarter of 2020.

In addition, charges associated with the development of the Empire Wind and Beacon Wind assets off the east coast of the United States led to lower net income from equity reported investments.

Following the farm-down of 50 percent of the owner share in the first quarter of 2021, the consolidation method for these assets was changed from proportional to equity accounted investments in 2021, according to the board.

Adjusted operational and administrative expenditures fell primarily as a result of a new consolidation technique for the Empire Wind and Beacon Wind businesses, but were somewhat offset by higher business development costs owing to increased activities in the US, the UK, and Asia.

Due to the depreciation of some water licences obtained in 2021, adjusted depreciation, amortisation, and net impairment losses were slightly higher.

Adjusted profits were negative $28 million in the third quarter of 2021, compared to positive $15 million in the third quarter of 2020, after total adjustments of $1 million to net operating income.

In the third quarter of 2021, its renewables segment generated 304GWh, compared to 319GWh in the third quarter of 2020.

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In the third quarter of 2021, wind was below seasonal average, resulting in a reduction.

“Compared to the same quarter last year, the Renewables sector had weaker winds for offshore wind assets, slightly compensated by strong availability and higher energy prices,” said Equinor president and chief executive Anders Opedal.

“Effective in the third quarter, Equinor will amend its policy and deduct profits and losses from asset sales from the Renewables segment’s adjusted results.”

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