Norwegian energy firm Equinor announced on Wednesday that it has incurred a loss of nearly $1 billion in value on its major offshore wind project in New York, following regulatory changes and increased tariffs.
Chief Executive Anders Opedal stated that the company recorded a $955 million impairment on its Empire Wind project due to regulatory shifts affecting the anticipated synergies in future offshore developments and heightened exposure to tariffs.
The first phase of the Empire Wind complex — comprising 54 turbines designed to power 500,000 homes in Brooklyn — was temporarily halted by the US administration in mid-April.
President Donald Trump, who has returned to office and long criticised wind energy as unsightly and hazardous, introduced several executive orders curbing the sector. These included a temporary suspension of federal permits and loans for both offshore and onshore wind projects.
However, the administration lifted its block on the Empire Wind project in May.
“We’re continuing the development of our renewables portfolio, and Empire Wind 1 is now back in execution,” Opedal confirmed.
Of the $955 million write-down, $763 million relates to Empire Wind 1 and the South Brooklyn Marine Terminal. The remainder is linked to the project’s second phase.
“The terminal and port facilities were designed with multiple wind farms in mind, but under current conditions, that assumption no longer holds,” Opedal told reporters.
He added that the impairment also reflects the impact of the administration’s 50 per cent steel tariff, but maintained that Empire Wind 1 remains “a profitable project.”
This write-down weighed on Equinor’s second-quarter performance, contributing to a 30 per cent year-on-year drop in net profit, down to $1.3 billion.
Lower oil prices also dragged on earnings, despite higher natural gas prices and a production increase nearing 2.1 million barrels of oil equivalent per day.
Equinor shares slipped 0.5 per cent in early trading on the Oslo Stock Exchange, while the broader market gained 0.35 per cent.