Equinor Reports Mixed Financial Results, faces Critically important Write-Downs in US Offshore Wind Projects
Equinor has announced its latest financial performance, revealing a slight dip in revenue and a notable decline in profit before tax compared to the previous year. The company’s operations on the Norwegian continental shelf were described as “strong,” but the overall results were impacted by ample losses in its US offshore wind ventures.
In the reported quarter, Equinor’s revenue stood at $25.13 billion, a marginal decrease from $25.46 billion in the same period last year. Profit before tax also saw a decline, falling to $5.76 billion from NOK 7.53 billion in the prior year’s corresponding quarter.This downturn is largely attributed to significant write-downs in the company’s offshore wind accounts in the United States.
Specifically, Equinor has written down the value of its US offshore wind assets by $955 million (NOK 9.6 billion). The company cited “changed rules leading to loss of synergies from future offshore wind projects and increased exposure to tariff rates” as the reasons for this adjustment. Of this total write-down, $763 million (NOK 7.7 billion) is directly related to the Empire Wind 1/South Brooklyn Terminal project, with the remainder impacting the Empire Wind 2 license.
Despite thes setbacks, Equinor’s CEO, Opedal, emphasized the company’s continued commitment to developing its renewable energy portfolio. He noted that the progress of the Empire Wind 1 project is progressing.
The article also touches upon the complex political landscape surrounding Equinor’s US offshore wind projects. The Trump administration had previously halted the Empire Wind project outside New york, a decision that was later reversed. Equinor expressed gratitude to various stakeholders for this turnaround, including former US President Donald Trump and the Norwegian government, attributing the reversal to “dialog with authorities and representatives at federal, state and local level.” the Empire Wind project, which employs over 1,000 people, is slated to commence operations in 2027.
Equinor’s expansion into green energy has faced scrutiny due to lower returns compared to its oil and gas operations. earlier this year, the company adjusted its green targets, though it has not abandoned them.
In terms of shareholder returns, the board has approved a dividend of $0.37 per share, totaling $946 million (NOK 9.5 billion). For the full year,Equinor anticipates distributing approximately NOK 9 billion ($91 billion) to shareholders,which includes planned share repurchases of up to $5 billion ($50 billion).
