Equinor, the Norwegian energy company, has reported a loss of $83m in adjusted earnings for its renewables business in the first quarter of 2023. This marks a significant decline from a loss of $10m in the same period last year. The net operating loss for the quarter was $89m, compared with an operating income of $77m in Q1 2022.
Equinor stated that the decrease in net operating income and adjusted earnings compared to the same period last year was due to increased business development costs caused by higher activity levels in the US, the UK, and Asia. In the first quarter of 2022, net operating income included divestment gains of $87m from the Dogger Bank C wind farm project.
Equinor's acquisition of BeGreen, which closed in the first quarter of 2023, and investments related to projects in the US significantly contributed to the additions to PP&E, intangibles, and equity accounted investments for the first quarter of 2023 compared to last year.
Power generation, which mainly comes from offshore wind assets, remained stable in Equinor's renewables unit in Q1 2023 compared to the same quarter last year. However, the unit's losses have raised concerns about the profitability of renewable energy investments.
Equinor has set a target of becoming a net-zero company by 2050 and plans to invest up to $15bn in renewable energy by 2030. Despite the Q1 2023 losses, the company remains committed to its renewable energy goals and continues to invest in various projects worldwide.
