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Equinor Submits Proposal for Norway's First Offshore Wind Auction, Books $300 Million Impairment for US Offshore Wind, Cuts Production Guidance Despite Q3 Profit Beat

Equinor faces financial hit from U.S offshore wind project impairments and adjusts output guidance, despite Q3 profit beat and initiative to secure comeback through Norway's first offshore wind auction.

Overview

  • Equinor, Norway's energy firm, intends to submit a proposal to pre-qualify for Norway's first offshore wind auction. The company, teaming up with Germany's RWE, is focusing on the Soerlige Nordsjoe II area, which has a capacity of 1.5 GW.
  • Due to global supply chain cost increases and inflationary pressure, Norwegian lawmakers have raised subsidies for Soerlige Nordsjoe II by 53% to 23 billion Norwegian crowns ($2.05 billion).
  • Equinor suffered a financial setback as it booked a $300 million impairment charge on its US offshore wind portfolio following a rejected request to renegotiate terms with New York officials.
  • Despite the financial hit due to the writing off of US offshore wind projects, Equinor posted higher-than-expected profit for the third quarter, owing majorly to the company's trading unit.
  • Equinor has reduced its full-year oil and gas production growth target to 1.5% in 2023 from the initial 3% owing to heavy maintenance at many of its offshore fields.