Impairments of £2.1bn take toll on energy giant Equinor
Impairments of £2.1 billion dragged Equinor into the red in the third quarter of the year while revenues and production also fell.
The Norwegian energy giant posted a net loss of £858.5 million, compared to a profit of £1.28bn in the same period last year. It recognised impairments of £2.16bn, of which £1.73bn related to unconventional onshore assets in North America, mainly as a result of more cautious price assumptions.
Lower prices for oil and gas impacted the earnings for the quarter, with adjusted earnings of £2bn down from £3.7bn last year, while revenues dropped 18% from £14.8bn to £12.1bn. Production was 1.9m barrels of oil per day, down 8% on Q3 2018.
However that was partly offset by the ramp-up of new projects like Johan Sverdrup in Norway and Mariner in the UK.
Chief executive Eldar Saetre said: “Since the beginning of the third quarter, we have started production from Trestakk, Mariner, Snefrid Nord, Utgard, and Johan Sverdrup.
“At Johan Sverdrup, the field has already achieved a daily production above 200,000 barrels.
“The five new fields are expected to deliver on average more than 200,000 high-value barrels per day net to Equinor in 2020.
“We are developing a portfolio of profitable projects with low CO2 emissions, and we are on track to deliver strong production growth in 2020 and a 3% average annual production growth from 2019 to 2025.”