Higher power prices and lower generation
(Oslo, 19 July 2018) Statkraft recorded an underlying EBIT amounting to NOK 1428 million in the second quarter. This was a decrease of NOK 621 million from the corresponding period in 2017. The reduction was driven by unrealised effects in Market operations stemming partly from changed valuation methodology. Significantly lower Norwegian hydropower generation was offset by substantially higher Nordic power prices. The quarterly net profit ended at NOK 271 million.
The average Nordic system price in the quarter was 39.1 EUR/MWh, an increase of 42 per cent compared with the price level experienced in the same quarter in 2017. Statkraft's total generation was 11.5 TWh, a decrease of 22 per cent.
In total for the first half year of 2018 Statkraft achieved an underlying EBIT of NOK 7390 million, an increase of NOK 1351 million compared with the same period in 2017. The main drivers for the improvement were significantly higher Nordic power prices and successful energy management.
- We have strong performance year to date with a net profit of NOK 10.5 billion. This contributes to providing a solid financial position as we now plan to ramp up investments in renewables, says CEO Christian Rynning-Tønnesen.
Statkraft has updated the strategy in response to technological development in each market. Flexible hydropower and intermittent onshore wind and solar power will be combined to deliver reliable, renewable and cost competitive energy to the customers. The updated strategy has four pillars:
- Optimise the hydropower portfolio
- Ramp up as wind and solar developer
- Grow the customer business
- Develop new business within decarbonisation and renewable energy
- The strategy will ensure that Statkraft remains a leading company at the core of the renewable energy transition. Our commitment to act in an ethical and socially responsible manner continues to be a foundation for all activities, says Rynning-Tønnesen.
Statkraft wants to contribute to a good industrial development of its partly owned regional Norwegian companies. In order to facilitate BKK to use its own shares in acquisitions, Statkraft has sold 1.7 per cent of the shares in BKK. Statkraft has also agreed to sell its shareholding of 49 per cent in Istad to Tussa Kraft, subject to receiving the necessary concessions.
For further information, please contact:
Debt Capital Markets: Funding manager Stephan Skaane, tel: +47 905 13 652, e-mail: stephan.skaane@statkraft.com Senior Financial Advisor Arild Ratikainen, tel: +47 971 74 132, e-mail: arild.ratikainen@statkraft.com
Media: Press spokesperson Lars Magnus Günther, tel: +47 912 41 636, e-mail: lars.gunther@statkraft.com
Statkraft is a leading company in hydropower internationally and Europe's largest generator of renewable energy. The Group produces hydropower, wind power, solar power, gas-fired power and supplies district heating. Statkraft is a global company in energy market operations. Statkraft has 3500 employees in 16 countries.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
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