Underlying results remain robust as markets continue to normalise
July 23 2024 - 1:00AM
UK Regulatory
Underlying results remain robust as markets continue to normalise
(Oslo, Norway, 23 July 2024) – Statkraft reported robust
underlying results in the second quarter 2024 with solid
contributions from power generation, and market operations as power
prices continued to fall. Net profit was negative, impacted by
impairments mainly due to local changes in hydrology and lower
price expectations.
- Net operating revenues was NOK 11.2
billion in Q2 2024 compared to 12.9 billion in the comparable
quarter last year, while underlying EBIT decreased to NOK 4.9
billion (NOK 7.4 billion)
- Net profit was NOK -1.0 billion (NOK
5.5 billion), including impairments of NOK 3.1 billion in
hydropower assets in Albania and Turkey due to lower expected
generation, as well as NOK 841 million in German wind power assets
explained by lower future power prices, and NOK 348 million in
hydropower in India.
- Power prices fell by 38 per cent in
the Nordic region in the second quarter and 46 percent in Germany
compared to the same quarter last year.
- Statkraft completed the acquisition
of Spanish-based renewable energy company Enerfin for a total
consideration of NOK 18 billion, adding a portfolio of operating
wind farms and wind and solar projects. As announced earlier,
Statkraft plans to divest the Enerfin portfolio in Canada, the US,
Colombia, Australia, and Chile.
- Statkraft signed several long-term
power contracts, including power purchase agreements both in Europe
and South America. In July, a new PPA contract with Alcoa Norway
was signed, delivering a volume of 876 GWh per year from 2025 to
2027 to their facilities in Lista (NO2).
- Statkraft announced plans to find
new owners for its district heating business in Norway and
Sweden.
- In June, Statkraft announced its
updated strategy, including revised strategic targets.
“I am pleased that we continue to deliver strong underlying
results, despite lower prices. Higher power production, good energy
management and solid results from market activities contributed
positively to the results. While our underlying results are robust,
continued high business development costs as we are investing in
more renewable energy production for the future, reduced financial
hedging effects and impairments explains the negative net result,"
says Statkraft President and CEO, Birgitte Ringstad Vartdal.
The average system price in the Nordic region was 35.3 EUR/MWh,
down 20.7 EUR/MWh from the second quarter of 2023 and down 23.0
EUR/MWh from the first quarter of 2024, mainly due to high
temperatures causing rapid snow melting, high inflow and low
consumption, as well as lower continental prices. The price area
differences in Norway continued to decrease, with prices in the
southern price areas (NO1 and NO2) still higher than the rest of
the country.
Average German base price was 71.8 EUR/MWh, down 20.6 EUR/MWh
from the same quarter last year, while up 4.2 EUR/MWh since the
first quarter 2024. Power prices were down compared to last year
mainly due to lower gas and carbon prices, as well as higher
nuclear production in France.
Statkraft’s generation was 14.4 TWh in the second quarter 2024,
1.3 TWh higher than the second quarter last year. The increase was
driven by Norwegian hydropower and increased generation capacity in
Brazil and Germany.
Operating expenses rose from the second quarter last year and
were slightly higher than in the first quarter. The increase was
driven by a higher number of FTEs, salary adjustments and currency
effects, partly offset by lower performance related remuneration,
as well as increased activity level and increased depreciations and
amortisations from new assets.
Underlying EBIT was NOK 4.9 billion, compared to NOK 7.4 billion
in the same quarter last year, driven by the significantly lower
power prices and hedging effects both in Nordics and Europe, partly
offset by higher revenues from new capacity and gas-fired power
plants.
The Nordics segment was the main contributor to the results with
an underlying EBIT of NOK 4.4 billion despite significantly lower
power prices compared to last year. The Markets segment delivered a
strong underlying EBIT of NOK 1.1 billion in the quarter, primarily
related to origination activities.
Net financial items in the second quarter included positive
currency effects of NOK 1.7 billion due to a strengthening of NOK
vs. EUR.
Profit before tax was NOK 1.1 billion (NOK 12.3 billion) in the
quarter, including total impairments of NOK 4.5 billion. The second
quarter 2023 results included reversals of impairments of NOK 2.2
billion.
After the completion of the acquisition of Enerfin in June,
Statkraft’s total portfolio of power plants in operation now
exceeds 21 GW. It confirms the company’s position as Europe’s
largest producer of renewable energy and places Statkraft among the
top ten wind power producers both in Spain and Brazil. The
acquisition added not only a portfolio of 1.5 GW of wind and solar
farms in operation and under construction, but also a pipeline of
projects under development. This has brought Statkraft’s flexible
portfolio of projects under development to a probability-weighted
total of 21 GW.
“Coming from a period of extensive project- and business
development, it is now time to consolidate and sharpen our focus on
delivering and capitalising on the strong pipeline we have
developed. I am confident that the revised strategy plays to our
competitive strengths and helps us manoeuvre the changes in our
industry, while also setting us up for continued healthy growth. In
doing so, we will continue to renew the way the world is powered,”
says Birgitte Ringstad Vartdal.
For further information, please contact:
Debt Capital Markets:
Vice President 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:
Media Spokesperson Lars Magnus Günther, tel: +47 912 41 636,
e-mail: lars.gunther@statkraft.com
Vice President Torbjørn Steen, tel: +47 911 66 888, e-mail:
torbjorn.steen@statkraft.com
or www.statkraft.com
This information is subject to the disclosure requirements
pursuant to section 5-12 of the Norwegian Securities Trading
Act.
About Statkraft
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 over 6,000 employees in more than
20 countries.
This information is subject to the disclosure requirements
pursuant to Section 5-12 the Norwegian Securities Trading Act
- Q2-2024 Interim Report
- Q2-2024 Presentation