Statkraft: Q2 2014: Solid result despite lower power prices

In the second quarter of 2014, Statkraft achieved an underlying operating profit before depreciation (EBITDA) of NOK 2528 million, compared with NOK 2555 million in the corresponding period in 2013. Unrealised currency effects resulted in a net profit of NOK 38 million, compared with a loss of NOK 908 million in the second quarter of 2013. The year-to-date net profit is NOK 2838 million.

The average Nordic power price was 25.7 EUR/MWh, which is 34 per cent lower than in the second quarter of 2013. The Group's power production totalled 13.1 TWh, compared with 10.9 TWh in the corresponding quarter of 2013.

"Statkraft’s underlying operating profit (EBITDA) for the second quarter ended at NOK 2528 million, which is on par with the corresponding quarter in 2013. The result is solid despite significantly lower power prices compared with the same period in 2013. This is mainly due to increased hydropower production and high revenues from Statkraft’s market operations. The result shows the strength of Statkraft’s strategy and organisation," says CEO Christian Rynning-Tønnesen.

A weaker NOK against EUR yielded negative currency effects linked to financial items. These were mainly unrealised and are fully offset by positive translation effects in the equity. The second quarter net profit ended at NOK 38 million, which is an improvement of NOK 946 million compared with the same period in 2013.

There has been a high activity level associated with transactions and projects in the second quarter. Statkraft has increased its shareholding in the Leirdøla hydropower plant from 65 to 100 per cent. Two wind farms have been completed during the period in Sweden and the UK with an overall installed capacity of 152 MW. Statkraft has also completed its restructuring of the Group's international hydropower activities in accordance with the agreement it has entered into with Norfund.

After the second quarter, Statkraft sold 0.3 TWh of power generation in Finland and sold down its shareholding in three operative wind farms in the UK to 51 per cent. A decision has been made to build a new 400 MW offshore wind farm in the UK in partnership with Statoil.

"These transactions have enabled Statkraft to strengthen its platform for further domestic and international growth," says Rynning-Tønnesen.

Statkraft is a leading company in hydropower internationally and Europe’s largest generator of renewable energy. The Group produces hydropower, wind power, gas-fired power and district heating and is a global player in energy market operations. Statkraft has 3600 employees in more than 20 countries.