Latest news with #Opedal
Local Norway
23-07-2025
- Business
- Local Norway
Norway energy firm Equinor takes $1 bn hit on US wind
Equinor chief executive Anders Opedal said the company's net operating income had been hit by a $955 million impairment related to its Empire Wind project "due to regulatory changes" affecting synergies in future offshore wind farms, as well as "increased exposure to tariffs". Construction of the first phase of Empire Wind, a complex of 54 turbines capable of powering 500,000 homes in Brooklyn, was temporarily halted by the US administration in mid-April. US President Donald Trump has repeatedly expressed opposition to wind energy -- claiming turbines are unsightly and dangerous -- and signed a series of executive orders targeting the sector shortly after returning to the White House in January. Those included a temporary freeze on federal permitting and loans for offshore and onshore wind projects. But the administration reversed its decision to block the project in May. "We continue to progress our portfolio in renewables, and the Empire Wind 1 project development is back in execution," Opedal said on Wednesday. Of the total $955 million impairment, Opedal said $763 million related to the Empire Wind 1 project and the South Brooklyn Marine Terminal, while the rest is tied to the second phase of the project. "The construction of the terminal and port facilities was based on the assumption that several wind farms would use them. This is not very relevant under current conditions," Opedal said during a press conference. "The impairment also includes the impact of higher steel tariffs," set at 50 percent by the administration of US President Donald Trump, he added, while stressing that Empire Wind 1 remained "a profitable project". Advertisement The depreciation weighed on second-quarter results, with Equinor reporting a 30 percent year-on-year drop in net profit to $1.3 billion. Performance was also affected by the decline in oil prices, which did not suffice to offset the rise in natural gas prices and increased production, which is nearing 2.1 million barrels of oil equivalent per day. In early morning trading, Equinor shares fell 0.5 percent on the Oslo Stock Exchange, while the broader market was up 0.35 percent.
Reuters
23-07-2025
- Business
- Reuters
Equinor eyes tighter gas market as lower oil prices hit Q2 profit
OSLO, July 23 (Reuters) - Europe's gas market could tighten further ahead of the winter season as storage levels remain well below last year and the continent faces competition from Asia for LNG shipments, the CEO of Norway's Equinor ( opens new tab told Reuters on Wednesday. Europe's biggest gas producer said the prospect of a rebound in pipeline gas flows from rival supplier Russia had also diminished in recent months, citing political opposition in Germany and elsewhere. Equinor reported on Wednesday a 13% drop in second-quarter profits, as expected, as declining oil prices outweighed an increase in the price of gas in Europe and the United States. The Norwegian energy group's adjusted earnings before tax for April-June fell to $6.54 billion from $7.48 billion a year earlier, in line with the $6.53 billion predicted in a poll of 21 analysts compiled by the company. EU gas stores are currently 65.4% full, according to data from Gas Infrastructure Europe, down from around 83% at the same time last year. "This can create a more tight (gas) market during the autumn or during the winter," CEO Anders Opedal told Reuters on the sidelines of Equinor's earnings presentation. The supply situation remains dependent on factors such as the weather-related demand and production regularity, as well as imports from outside the region, he added. "In June, we saw 25% less LNG ships into Europe compared to before, meaning that the competition tightens a little bit," Opedal said. Equinor maintained a projection that its oil and gas output would increase by 4% this year compared to 2024 and kept its forecast for capital expenditure in 2025 of $13 billion. The company on Wednesday booked a $955 million writedown on an offshore wind project in the United States, citing U.S. tariffs and the uncertainty of the regulatory environment under President Donald Trump. In February, Equinor followed rivals such as Shell (SHEL.L), opens new tab and BP (BP.L), opens new tab in promising higher oil and gas output while scaling back investment in renewables, citing challenging market conditions for the green energy transition. Equinor in the second quarter pumped 2.1 million barrels of oil equivalent per day (boed), slightly ahead of expectations in the analyst poll for 2.06 million boed, and up from 2.05 million boed a year earlier. Equinor's share price was down 1% at 1145 GMT, lagging a 1.6% rise in the European energy stock index (.SXEP), opens new tab.
Int'l Business Times
23-07-2025
- Business
- Int'l Business Times
Equinor Takes $1 Bn Hit From US Wind Farm Regulations, Tariffs
Norwegian energy company Equinor said on Wednesday that its giant offshore wind project in New York -- once halted by the US administration -- had lost nearly $1bn in value following regulatory changes and tariffs. Equinor chief executive Anders Opedal said the company's net operating income had been hit by a $955 million impairment related to its Empire Wind project "due to regulatory changes" affecting synergies in future offshore wind farms, as well as "increased exposure to tariffs". Construction of the first phase of Empire Wind, a complex of 54 turbines capable of powering 500,000 homes in Brooklyn, was temporarily halted by the US administration in mid-April. US President Donald Trump has repeatedly expressed opposition to wind energy -- claiming turbines are unsightly and dangerous -- and signed a series of executive orders targeting the sector shortly after returning to the White House in January. Those included a temporary freeze on federal permitting and loans for offshore and onshore wind projects. But the administration reversed its decision to block the project in May. "We continue to progress our portfolio in renewables, and the Empire Wind 1 project development is back in execution," Opedal said on Wednesday. Of the total $955 million impairment, Opedal said $763 million related to the Empire Wind 1 project and the South Brooklyn Marine Terminal, while the rest is tied to the second phase of the project. "The construction of the terminal and port facilities was based on the assumption that several wind farms would use them. This is not very relevant under current conditions," Opedal said during a press conference. "The impairment also includes the impact of higher steel tariffs," set at 50 percent by the administration of US President Donald Trump, he added, while stressing that Empire Wind 1 remained "a profitable project". The depreciation weighed on second-quarter results, with Equinor reporting a 30 percent year-on-year drop in net profit to $1.3 billion. Performance was also affected by the decline in oil prices, which did not suffice to offset the rise in natural gas prices and increased production, which is nearing 2.1 million barrels of oil equivalent per day. In early morning trading, Equinor shares fell 0.5 percent on the Oslo Stock Exchange, while the broader market was up 0.35 percent.
Local Norway
30-04-2025
- Business
- Local Norway
Norwegian energy giant Equinor slams 'unlawful' halt to US wind farm
In mid-April, the US government ordered a halt to Equinor's construction of the huge wind farm, dealing another blow to an industry President Donald Trump opposes. Valued by Equinor at $2.5 billion, the Empire Wind 1 project includes 54 turbines designed to deliver 810 megawatts of energy into Brooklyn, powering 500,000 homes. "We have invested in Empire Wind after obtaining all necessary approvals, and the order to halt work now is unprecedented and in our view unlawful," Equinor chief executive Anders Opedal said in a quarterly earnings statement on Wednesday. "We seek to engage directly with the US Administration to clarify the matter and are considering our legal options," he said. The US government has argued that former president Joe Biden's administration "rushed through" approval of the project "without sufficient analysis". Opedal made the statement as Equinor reported that its net profit reached 2.63 billion kroner ($254 million) in the first quarter, down two percent from the same period a year ago. Advertisement Its adjusted operating income climbed by 15 percent to 8.65 billion kroner, beating analysts' consensus forecast of 8.51 billion kroner. "I am pleased to see the good operational performance and solid production capturing higher gas prices," Opedal said in a statement. "With the current market uncertainties, Equinor's core objective is safe, stable and cost efficient operations and resilience through a strong balance sheet," he said.
Reuters
30-04-2025
- Business
- Reuters
Equinor expects tight European summer gas market
OSLO, April 30 (Reuters) - Europe's need to refill storages, left two-thirds empty after the winter, will keep the gas market tight and require a rise in liquefied natural gas supply, the CEO Anders Opedal of Equinor, the continent's largest gas supplier, said on Wednesday. European gas storage sites ended the winter heating season at their lowest level since 2022 as a result of colder weather and lower wind speeds, which increased demand for gas. The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here. Opedal said Europe would need around 200-300 more cargoes of LNG than last year. "In Europe, gas storages are at a low level and we expect a tight market when these are being replenished," he said when presenting the company's first-quarter earnings, which were lifted by higher gas prices. Equinor ( opens new tab sends its gas via a vast pipeline system, with 70% of volumes sold on a day-ahead basis, and ships LNG from its own plant in Hammerfest in Arctic Norway, also known as Melkoeya. The latter shut down on April 22 for annual maintenance scheduled to last until July 19. Equinor in 2022 overtook Russia's Gazprom ( opens new tab as Europe's biggest supplier of natural gas when Moscow's invasion of Ukraine disrupted decades-long energy ties, but speculation has increased over a potential return of some Russian pipeline gas. Opedal said the latter was "a possibility, but it's a low probability, I think, and the volumes will be limited". In February, Equinor pegged additional Russian volume potential at 40 billion cubic metres per year, a figure that stands, Opedal said. "But that also requires a lot of change in politics to start up the Nord Stream pipeline and then also open up the Yamal pipeline over Poland again, and also the Ukraine pipeline needs to re-open," he added.
