Statkraft SF Third Quarter 2007
01.11.2007 08:12 | stock exchange information
The Group posted respective pre- and post-tax profits NOK 1,714 million (NOK 365 million), and NOK 1,087 million (loss of NOK 281 million) for the quarter. The profit before tax for the first nine months of the year totalled NOK 5,924 million (NOK 5,199 million), while the profit after tax was NOK 4,201 (NOK 2,946 million).
Electricity prices continued to fall in the third quarter of the year. The average spot price for the quarter was 68% lower than in the corresponding prior-year period. Statkraft also generated less power, which meant that earnings from underlying operations were lower than in the third quarter of 2006.
Statkraft and E.ON AG signed a letter of intent under the terms of which E.ON AG will acquire Statkraft's shareholding in E.ON Sverige AB in exchange for power generation assets and shares in E.ON AG. Statkraft will become Europe's largest producer of renewable energy following the implementation of this agreement.
Statkraft and the Swedish company SCA signed a ten-year industrial power agreement to deliver annual supplies of 500 GWh to SCA's business. A joint venture was also established to focus on renewable energy in Sweden. The plans include the construction of seven wind farms with a potential annual output of around 2.8 TWh, and the possible construction of hydropower facilities in four watercourses where SCA own waterfall rights.
The gas turbines and steam boilers at the two gas power plants in Germany (Knapsack and Herdecke) and at the gas power plant at Kårstø were started up for the first time and synchronised with the electricity grid.
The decision was taken to start construction of the world's first prototype osmosis power plant at Hurum in Buskerud. This represents an important step with regard to the future construction of a commercial plant. It has been estimated that this technology could contribute around 1,600 TWh of electricity globally each year.
The joint venture SN Power signed an agreement with the US energy company PSEG Global to purchase the latter's shares in the Peruvian company Electroandes SA for USD 390 million. This will make SN Power one of Peru's five largest power producers. In Chile, Statkraft has decided to start construction of a further hydropower plant and wind farm.
Statkraft SF's business
Statkraft SF's object is to own all the shares in Statkraft AS and provide that company with loans. Statkraft SF also owns certain assets that may not be formally owned by Statkraft AS. This applies to power plants that have reverted to state ownership and are leased to third parties or power plants that will belong to Statkraft on reversion to state ownership, and individual foreign investments (Asian Power Invest AB and Nordic Hydropower AB).
Statkraft SF's consolidated financial statements will, with the exception of the retained assets and individual items on the liabilities side, be identical with the consolidated financial statements for the Statkraft AS subgroup.
Total assets in Statkraft SF Group's closing balance sheet for the third quarter of 2007 were NOK 349 million higher than the corresponding figure in the Statkraft AS Group balance sheet. NOK 889 million of this difference is attributable to the book value of the power plants that have been leased to third parties and international investments, while changes in current items, and cash and cash equivalents were NOK 540 million lower.
The Statkraft SF Group had almost NOK 3 billion more in long-term interest-bearing liabilities than the Statkraft AS Group, due to the fact that Statkraft SF borrowed NOK 3 billion under an established line of credit in order to finance the dividend payment for the 2004 financial year. At the end of the third quarter interest-bearing liabilities totalled NOK 39.3 billion, compared with NOK 33.2 billion at the end of the corresponding prior-year period. The interest-bearing debt ratio was 50.2%, compared with 45.3% at the end of 2006. Current assets, excluding cash and cash equivalents, totalled NOK 12.7 billion, while short-term interest-free liabilities amounted to NOK 19.6 billion.
Differences between Statkraft SF's and Statkraft AS's respective income statements largely relate to revenues and expenses linked to the ongoing operation of the retained assets. These differences are relatively modest.
EVP/CFO Eli Skrøvset, tel: +47 2406 7914/+47 909 86 495
VP Investor Relations Yngve Frøshaug, tel: +47 2406 7876/+47 900 23 021
The full report including tables can be downloaded from the following link:
|Report 3rd quarter 2007|