Oslo, Norway–Norwegian energy giant Equinor announced Wednesday that its net profit fell 59 percent last year to $11.9 billion, dragged down by a decline in energy prices.
The group was hit by lower oil and gas prices following a spike after Russia invaded Ukraine in 2022.
Adjusted earnings, which excludes certain exceptional elements, stood at $36.2 billion — half of what it was in 2022.
The price of an oil barrel fell 20 percent for the group. Prices for gas produced in Norway tumbled 61 percent and for gas extracted in the United States 68 percent.
Equinor CEO Anders Opedal said that in 2023 the group “continued to contribute to energy security in Europe”.
“We delivered competitive capital distribution, while investing in a profitable portfolio that will contribute to future growth,” he added.
The group has predicted stable production this year compared to last year, adding it aims to double its annual power production from renewable sources compared to 2023.
Equinor had previously run into trouble with its renewable energy projects, making a $300 million provision for its Empire Wind 1 and 2 projects as well as Beacon Wind 1 off the coast of New York due to rising costs.
Together with its partner BP, it tried to get improve financial conditions from US regulators due to the rising costs, but was unsuccessful.
Equinor said last month that it now intends to take full ownership of Empire Wind, while BP will take full ownership of Beacon Wind.
Energy giants have reported a drop in profits for 2023 as oil and gas prices have fallen after surging in the wake of Russia’s invasion of Ukraine in 2022.
Prices remain elevated due to concerns that the Israel-Hamas conflict could spark broader unrest in the crude-rich Middle East.