Satisfactory result and successful strategy execution

"The financial results for 2020 was satisfactory given the very low Nordic power prices. The main reasons were successful hedging and solid contribution from other market activities. The reservoir filling in the Nordics has normalised at the start of 2021, leading to an increase in the power prices," says CEO Christian Rynning-Tønnesen.

Fourth quarter

The average Nordic system price in the quarter was 13.7 EUR/MWh, a decrease of 65 per cent compared with the same quarter in 2019. Total generation was 17.2 TWh in the quarter, a decrease of 3 per cent. The decrease in generation was related to both Nordic hydropower and German gas-fired power, and was partly offset by higher generation from new wind power assets.

Underlying EBIT in the quarter ended at NOK 1580 million, a decrease of NOK 3844 million compared with the corresponding quarter. The decrease was mainly due to significantly lower Nordic power prices. Positive currency effects contributed to a net profit of NOK 3663 million.

Highlights in the quarter

• Acquired Solarcentury, a global solar developer headquartered in London
• Decided to start construction of two wind farms in Ireland
• Signed a new 15-year financial contract and received NOK 2.3 billion in prepayment
• Signed several new long-term PPAs in Europe and Brazil

"We are very satisfied with the strategic execution across markets and technologies. The acquisition of Solarcentury, new wind projects and power sales agreements are strengthening Statkraft’s position as a leading developer of renewable energy," says CEO Christian Rynning-Tønnesen.

Full year 2020

Financial statements for Statkraft AS Group for 2020 has been approved by the Board of Directors of Statkraft AS. Statkraft's generation reached 65.4 TWh, up 7 per cent from 2019. The average system price at Nord Pool was 10.9 EUR/MWh, a decrease of 72 per cent year-on-year. The underlying EBIT ended at NOK 6670 million, compared with NOK 16 744 million in 2019. Net profit was NOK 3532 million. This was NOK 7795 million lower than in 2019. Proposed dividend amounts to NOK 3673 million.

Statkraft has a solid financial foundation to deliver on the growth strategy. The project pipeline continues to increase and Statkraft is on track to deliver on the target of developing 9 GW of renewable energy by 2025.

Note:

Statkraft does not publish a separate external report for the fourth quarter as the annual report is disclosed together with this stock exchange notice.

In connection with the preparation of the accounts for the fourth quarter, an error was discovered in the reported financial statement for the third quarter. The errors were related to the segments European flexible generation and International power, and have a negative effect on the third quarter figures of NOK 194 million on operating profit and NOK 457 million on share of profit/loss in equity accounted investments respectively. Corrected statements for the third quarter are attached to this stock exchange notice.