Equinors Books Wider Operating Loss in Q2

  • Equinor lost $42 million in the second quarter

Due to rising business development expenses, the renewables division of the Norwegian oil and gas company Equinor ASA had a more significant net operating loss in the second quarter of $42 million.

According to Equinor, the better net income from equity-accounted investments somewhat offset the increased deficit. For example, a second-quarter profit from equity accounted for assets of $12 million was achieved at the Empire Wind offshore project in US seas compared to a loss of $6 million a year earlier due to lower project expenses.

The renewables division’s adjusted operating, and administrative costs increased 77% year over year to $56 million as expenditures increased with increased activity in the US, the UK, and Asia.

Renewable power generation, covering only Equinor’s share, climbed by 15%, driven by the start of age 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 Opal.

As a whole, Equinor ended the second quarter with a net profit of $6.76 billion, up from $1.94 billion a year earlier, due to rising energy and liquids prices. In addition, the amount of net operating income, $17.73 billion, more than tripled.

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