Norwegian energy giant Equinor said Wednesday it suffered a net loss in the third quarter as it lowered its outlook for oil prices, forcing it to write down the value of its assets.
The net loss of $210 million compared to a net profit of $2.3 billion in the same quarter last year, and was due in large part to a $754 million impairment charge on the value of its assets.
Accounting force companies to regularly restate the value of their assets, and Equinor lowered its forecast of for average crude prices in 2030-2040 to $75 per barrel, thus triggering a write down in the value of some assets.
The 14 percent drop in the value of the main international crude oil contract in the third quarter from the same period last year also hurt earnings, as did tax changes.
The company, in which the Norwegian government holds a controlling stake, exploits gas and oil fields off Norway’s coast and elsewhere in the world. It has also expanded into renewable energy.
Adjusted operating income, the group’s preferred measure of financial performance that excludes some exceptional items, dipped 10 percent from the third quarter last year to $6.2 billion.
That was below the $6.3 billion expected by the panel of analysts surveyed by the company.
Output rose by seven percent from the third quarter last year to an average of 2.13 million barrels per day of oil equivalent, driven by a nine percent gain from its Norwegian fields.
