Equinor's renewables division has reported a net operating loss of $220m in the first quarter of this year, marking a significant increase from the loss of $166m in Q1 2023.
The net operating loss includes the impact of a $147m net loss resulting from an asset swap transaction between Equinor and BP. Under the swap, Equinor gained full ownership of the Empire Wind lease and projects, while BP acquired full ownership of the Beacon Wind lease and projects.
This transaction contributed to an overall lower result for the first quarter of 2024 compared to the same period in 2023.
Equinor stated that while the positive result from assets in operation remained consistent with the first quarter of the previous year, increased power generation in Q1 2024 was offset by lower prices.
The increase in net results was attributed to lower project development costs in Q1 2024 compared to the previous year.
In Q1 2024, offshore wind farms generated 468GWh, with major contributions from Dudgeon, Sheringham Shoal, and Arkona. Onshore renewables contributed an additional 271GWh.
The increase in generation compared to the same quarter of 2023 was driven by the addition of onshore power plants in Poland and Brazil, along with the successful production start of partner-operated Mendubim solar plants, also in Brazil.
Equinor's addition of onshore wind farms in Brazil and Poland increased the positive contribution to revenues from third-party sources, other revenue, and other income in Q1 2024 compared to the prior year.
Net income/(loss) from equity accounted investments also increased compared to the same quarter in the prior year.
Baltyk, the offshore wind project in Poland, reached the maturation stage for capitalization of costs from the third quarter of 2023, while the Beacon Wind project was divested following the asset swap transaction between Equinor and BP in the first quarter of 2024.
