Norway's energy giant Equinor reports third-quarter loss
Norwegian energy giant Equinor reported a net loss of $210 million in the third quarter on Wednesday, compared with a $2.3 billion profit in the same period last year.
The decline was largely due to a $754 million impairment charge on the value of its assets, News.Az reports, citing foreign media.
The write-down was triggered by Equinor lowering its forecast for average crude prices in 2030-2040 to $75 per barrel, as accounting rules require companies to regularly reassess asset values. A 14% drop in the value of the main international crude oil contract in the third quarter compared with last year also weighed on earnings, alongside tax changes.
Equinor, in which the Norwegian government holds a controlling stake, operates gas and oil fields off Norway’s coast and internationally, while also expanding into renewable energy.
The company’s adjusted operating income, its preferred financial performance measure excluding exceptional items, fell 10% year-on-year to $6.2 billion, slightly below the $6.3 billion analysts had expected.
Production rose 7% compared with the third quarter of last year, averaging 2.13 million barrels of oil equivalent per day, driven by a 9% increase from Norwegian fields.
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