· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece on Financial Post or enjoy below:
🗞️ Driving the news: Equinor has scaled back its renewable energy targets just two months after acquiring a $2.3 billion stake in Orsted
• The company lowered its 2030 renewable generation goal from 16 GW to 10-12 GW and cut investment in low-carbon solutions to $5 billion by 2027
• This follows a broader trend of oil majors refocusing on fossil fuels to maintain cash flow for dividends and buybacks
🔭 The context: The decision comes despite Equinor’s recent commitment to offshore wind through its Orsted deal, which has since seen Orsted's shares decline by over a third
• Other energy giants like BP and Shell have also slowed their renewable investments, citing financial pressures
• Meanwhile, Shell and Orsted have pulled back from US offshore wind, and Germany’s RWE has warned of possible delays in its $57 billion green investment plan
🌍 Why it matters for the planet: Equinor’s retreat from renewables underscores the financial struggles of the offshore wind sector and the challenge of scaling clean energy
• A shift back to oil and gas threatens climate goals and highlights the volatility of corporate commitments to green energy
• However, Norway remains a key gas supplier to Europe, which continues to seek alternatives to Russian energy
⏭️ What's next: Investors welcomed Equinor’s move, with shares rising 0.4%, indicating market preference for stable fossil fuel returns
• The company increased oil and gas production forecasts and announced a $5 billion share buyback for 2025
• The renewables sector may face further setbacks as companies prioritize profitability over green expansion
💬 One quote: “Equinor has delivered what investors expected” – Steffen Evjen, DNB analyst
📈 One stat: Equinor posted a 25% increase in Q4 earnings, with adjusted operating income after tax reaching $2.29 billion, beating estimates
Click for more news covering the latest on renewable energy
