Equinor reported a $955 million impairment charge in the second quarter, citing regulatory and cost-related challenges tied to its U.S. offshore wind portfolio—most notably the Empire Wind 1 project off the coast of New York. Equinor is already advancing wind projects under development in the NYC area, operated by Capitol Airspace Group (see the map by Rextag).
The delay and reassessment of leasing terms for the project were among the key drivers behind the non-cash write-down, as the company continues to evaluate economic viability amid shifting market dynamics.
The impairment was announced alongside Equinor’s Q2 earnings, which showed a 13% decline in adjusted earnings before tax, falling to $6.54 billion from $7.48 billion in the same period last year. The result was in line with consensus expectations of $6.53 billion, based on a poll of 21 analysts compiled by the company. Net profit fell to $1.32 billion, down from $2.63 billion in the previous quarter.
Despite the clean energy headwinds, Equinor reaffirmed its 2025 capital expenditure target of $13 billion and maintained guidance that oil and gas production will grow by 4% this year compared to 2024. The company produced 2.1 million barrels of oil equivalent per day (boed) in Q2, exceeding analyst expectations of 2.06 million boed and improving from 2.05 million boed a year ago.
"We are on track to deliver production growth in 2025 in line with our guidance," said CEO Anders Opedal.
Equinor’s U.S. onshore natural gas portfolio remained a bright spot, delivering solid results with production up 50% year-over-year, supported by nearly 80% higher gas prices. The company noted that its European piped gas fetched $12 per million British thermal units, marking a 21% increase from the previous year, while average oil prices fell 19% to $63 per barrel.
The offshore wind segment, however, continues to face cost pressures. Large infrastructure projects like Empire Wind require significant quantities of steel and imported components, now subject to higher tariffs, contributing to the rising cost environment. Nevertheless, Equinor emphasized that delivery on Empire Wind 1 is ongoing, despite earlier construction pauses.
In terms of shareholder returns, Equinor maintained its $0.37 quarterly dividend and launched the third tranche of its buyback program. The company reiterated its commitment to return $9 billion to shareholders in 2025, including $5 billion in share repurchases.
Equinor’s stock has declined 1.5% year-to-date, underperforming the broader European energy index, which has gained roughly 10%.
The company, which became Europe’s largest natural gas supplier in 2022, continues to balance its traditional oil and gas strengths with ongoing investments in low-carbon energy. While some renewables face delays, Equinor’s long-term strategy includes both conventional and clean energy growth as market conditions evolve.
Update: Hammerfest LNG Outage Extended
Equinor announced an additional extension of the ongoing maintenance outage at its Hammerfest LNG terminal in northern Norway. The facility—Europe’s largest liquefied natural gas (LNG) export plant—will now remain offline until August 3, according to a regulatory filing published Saturday.
The Melkoeya LNG plant, which began scheduled maintenance on April 22, was originally expected to restart on July 19, before being postponed to July 29. The latest extension adds five more days to the timeline. No specific reason for the delay was provided in the filing, and Equinor has not issued further comment.
Hammerfest LNG has an annual capacity of approximately 6.5 billion cubic meters, representing about 5% of Norway’s total gas exports—enough to supply nearly 6.5 million European homes. It receives feed gas from the Snoehvit field in the Barents Sea, located roughly 143 kilometers offshore.
Ownership of the terminal is shared between Equinor, Petoro, TotalEnergies, Vår Energi, and Harbour Energy.
