Analyst: The Melkøya fire may have cost Equinor 20 billion kroner in lost revenue

Melkøya firePhoto: Bjarne Halvorsen / NTB
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The fire in Equinor’s gas plant on Melkøya in 2020 may have cost the company NOK 20 billion in lost revenue, one analyst estimates.

The plant has been out of operation since the fire broke out 19 months ago.

In addition to the costs of rebuilding large parts of the factory, the loss of income had a major financial impact on Equinor. The company, which owns 37% of the plant, did not want to comment on the total cost of the fire. 

However, equity analyst Teodor Sveen-Nilsen in Sparebank 1 Markets believes the lost revenue is enormous – around NOK 20 billion in lost revenue.

The sum is an estimate of the current value of deferred income. In the short term, Sveen-Nilsen estimates that the loss of income, after the insurance settlement, will amount to NOK 30 billion.

The analyst says that the Melkøya loss is magnified by the current high gas prices, but he emphasizes that Equinor is, in any case, doing very well due to the current situation in the energy market.

According to the plan, the plant will be reopened for operation on May 17 this year.

Source: © NTB Scanpix / #Norway Today / #NorwayTodayFinance

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