The Statkraft Group’s gross operating revenues rose by 8% in the six months to 30 June. The increase is primarily attributable to earnings from the power plants acquired from E.ON AG at the turn of the year. The rise in revenues was, however, less than expected owing to the sharp fall in German electricity prices compared with first-half 2008. Lower gas power production in Germany coincided with a fall in earnings from Norwegian hydropower, bringing about a lower underlying result.
In the first six months, Statkraft laid the foundations for strengthening its position as Europe’s largest generator of renewable energy by entering into a number of major agreements, including agreements for offshore wind power in the United Kingdom and hydropower in Southeast Europe.
Highlights in the quarter
Statkraft and Boliden Odda have entered into a large-scale agreement that was finalised in the second quarter and became effective as of 1 July. As part of this agreement, Statkraft and Boliden Odda signed two long-term industrial power agreements for the period 2009-2030. The agreement for delivery of around 20 TWh is the largest industrial power agreement Statkraft has entered into since 1998. Statkraft SF owns the power facilities in Tyssedal, but the waterfall rights and power plants are leased out to AS Tyssefaldene on terms set by the authorities. In line with the agreement, Statkraft acquired Boliden’s 39.88% shareholding in Tyssefaldene, and now owns 60.17% of the shares in Tyssefaldene. The remaining shares are owned by Eramet through the company DNN Industrier AS.
Power delivery to Ortviken Pappersbruk began on 1 June as a result of the agreement between Statkraft and the Swedish paper manufacturer SCA. The agreement with SCA was signed in the third quarter 2007 and included a ten-year contract to deliver 500 GWh of electricity annually to Ortviken Pappersbruk.
On 23 June, Statkraft acquired 95% of the shares in Yesil Enerji from the Turkish company Global Investment Holdings. This acquisition has given Statkraft the rights to six hydropower projects in Turkey with the potential to generate a total of approximately 2 TWh annually.
Statkraft has commenced construction of the Group’s first solar park. The solar power plant is being built in the Latina region of Italy, 60 kilometres south of Rome, and will be completed during 2009. Installed capacity will be 3.3 MW, at an investment cost of about NOK 120 million.
In response to a large proportion of French hydropower licences being put out to tender in the years up until 2030, Statkraft set up an office in Lyon in France during the second quarter.
At the annual general meeting on 30 June, Hilde M. Tonne and Bertil Tiusanen were elected to serve as new members of the board of directors of Statkraft AS. The board now consists of Arvid Grundekjøn (chair), Ellen Stensrud (deputy chair), and board members Halvor Stenstadvold, Berit Rødseth, Hilde M. Tonne, Bertil Tiusanen, Thorbjørn Holøs, Astri Botten Larsen and Odd Vanvik.
Statkraft SF’s business
Statkraft SF’s object is to own all the shares in Statkraft AS and provide that company with loans. In addition, Statkraft SF 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 and to plants that will be owned by Statkraft on reversion to state ownership, together with certain overseas commitments (Asian Power Invest AB and Nordic Hydropower AB).
The consolidated financial statements for Statkraft SF 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 sub-group.
In the closing balance sheet for the second quarter of 2009, the value of the total assets of Statkraft SF was NOK 1 384 million greater than that of the total assets of the Statkraft AS Group. The book value of the leased power plants and the overseas commitments amounted to NOK 1 448 million.
The short-term interest-bearing liabilities of the Statkraft SF Group were NOK 2 735 million higher than those of the Statkraft AS Group, as a consequence of the borrowing by Statkraft SF of NOK 3 billion under an established line of credit in order to finance the dividend payment for the financial year 2004. This loan falls due in full in June 2010. At the end of the second quarter, interest-bearing liabilities amounted to NOK 53 355 million, compared to NOK 43 541 million at the end of 2008. The interest-bearing debt ratio was 47.5%, compared with 38.3% at the end of 2008. Current assets, excluding cash and cash equivalents, totalled NOK 15 306 million and short-term interest-free liabilities amounted to NOK 25 522 million.
The differences between the respective income statements of Statkraft SF and Statkraft AS primarily concern revenues and expenses associated with the ongoing operation of the retained assets. These differences are relatively modest.
Contacts:
Stein Dale, CFO, tel.: +47 24 06 72 11 / +47 450 02 111
Yngve Frøshaug, VP Investor Relations, tel.: +47 24 06 78 76 / +47 900 23 021
This information is subject to the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act).