Equinor loses $1 bn as U.S. wind farm tariffs and regulations hit the business.
Equinor Faces Major Losses from U.S. Wind Project Impairment
Norwegian energy firm Equinor announced a $955 million write‑down tied to its Empire Wind offshore venture in New York. The cut reflects regulatory shifts and a spike in steel tariffs that are eroding expected synergies across future wind farms.
Key Takeaways
- Empire Wind 1 – 54 turbines, capable of energizing 500,000 Brooklyn households.
- Impairment Allocation – $763 million linked to Empire Wind 1 and the South Brooklyn Marine Terminal; the remainder relates to the second project phase.
- Tariff Impact – A 50 percent steel levy introduced by the Trump administration is factored into the loss.
- Financial Result – Equinor’s Q2 net profit dropped 30 percent YoY to $1.3 billion.
Project Status After Admin Reversal
Construction of the Empire Wind first phase was paused in mid‑April due to executive orders that froze federal permitting and loans for wind developments. The Trump administration reversed its blockade in May, allowing the project to resume.
CEO Outlook
CEO Anders Opedal stressed, “While Empire Wind 1 remains profitable, the terminal and port facilities were built on the assumption that several wind farms would use them. This assumption is no longer valid under current conditions.”
Market Reaction
Equinor shares slipped 0.5 percent on the Oslo Stock Exchange during early morning trading, even as the broader market gained 0.35 percent.
