Equinor Shifts Focus to Boost Profit, Downsizes Renewables

Core Viewpoint - Equinor ASA is shifting its focus from rapid expansion in renewables to prioritizing profitability due to rising costs and diminishing returns in the renewable energy sector [1][6][7] Strategic Shift in Focus - Equinor will reduce the number of renewable projects and concentrate operations in select markets, responding to what it describes as a "down cycle" in renewables [2][3] - The company aims to position itself for effective competition once the industry recovers, while still maintaining long-term renewable energy goals [3] Ongoing Projects and Market Exits - Despite the strategic pivot, Equinor's renewables division is expected to have its busiest year ever, with three major offshore wind projects underway: Dogger Bank in the U.K., Empire Wind 1 in the U.S., and Baltyk 2 and 3 in Poland [4] - Equinor has begun scaling back its international presence, canceling offshore wind projects in Spain and Portugal, and previously exiting Vietnam, indicating a focus on maximizing profitability in select markets [5] Industry Context - Equinor's decision reflects a broader trend among European energy companies recalibrating strategies in response to economic pressures, as the clean energy sector faces high costs and lower-than-expected returns [6][7]