Equinor to Exit RE Producer Scatec

Equinor ASA said Tuesday it had divested an 8.07 percent stake in Scatec ASA for NOK 1.6 billion ($169.38 million) and has entered into an agreement to offload its remaining shareholding in the renewable power producer.

The sale, priced NOK 125 per share, reduces the shareholding of the Norwegian majority state-owned energy company in Oslo-listed Scatec to 8.05 percent.

"Equinor has also entered into a 90-day lock-up agreement for the remaining shareholding", it said in an online statement.

"Scatec and Equinor continue to be partners in the Apodi and Mendubim operating solar assets in Brazil. These partnerships are unaffected by the transaction", Equinor added.

Scatec has a portfolio of 6.2 gigawatts (GW) in operation and under construction across five continents, Scatec says on its website.

The divestment resulted in Folketrygdfondet becoming the biggest shareholder in Scatec with a 9.6 percent interest. Folketrygdfondet, which manages Government Pension Fund Norway, also owns 3.1 percent in Equinor.

Equinor has cut its goal for installed renewable energy capacity to 10-12 GW by 2030 and junked a plan to allot 50 percent of capital to renewables and low-carbon solutions by the end of the decade.

"Equinor has high-graded the project portfolios in renewables and low-carbon solutions, and reduced cost and early-phase spend to improve the value creation for shareholders", Equinor said in its quarterly report February 5, 2025. "The portfolio is expected to deliver more than 10 percent life-cycle equity returns".

For the carbon capture and storage sector, Equinor has kept its target to store 30-50 million metric tons of carbon dioxide equivalent a year by 2035.

Equinor has retained its aim to curb Scope 1 and 2 emissions by half by 2030. However, it said, "The pace of transition depends on frame conditions and market opportunities to create value".

"Adjusting to the market situation and opportunity set, the range for the net carbon intensity ambition will be 15-20 percent in 2030 and 30-40 percent in 2035", it said.

Equinor said it has "significantly" improved its free cash flow outlook through investment reduction and cost discipline.

It expects to average $13 billion in organic capital expenditure per year for 2026-27. Most of this is for an offshore wind project in the U.S.

While reducing renewables investment, Equinor said it is aiming for a 10 percent growth in oil and gas production from 2024 to 2027.

It raised its expected production in 2030 from two million barrels of oil equivalent a day (MMboed) to 2.2 MMboed.

"For the NCS [Norwegian continental shelf], production is expected to maintain at a high level of around 1.2 million boe per day all the way to 2035", it said.

"Equinor will continue to develop existing fields and an attractive project portfolio both on the NCS and internationally. Driving increased recovery and exploration near infrastructure is expected to bring high-value volumes with short lead time, low cost and low emissions".

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