Report from the Board of Directors

Statkraft's 2013 result was characterised by solid operations, new production capacity and higher Nordic power prices.

All segments contributed positively to the Group's underlying EBITDA, ending at NOK 12.4 billion. This was an improvement of 10% from 2012. Major negative currency effects impacted the Group's result, and the net profit was NOK 208 million. However, the currency effects have no cash effect and are fully offset by translation effects in the equity.

Project activity levels were high, and development projects within all technology areas the Group is engaged in were completed in 2013.  In addition, the Group has many ongoing construction projects, in particular within hydro and wind power. Hydropower in Norway represents the largest share of Statkraft's revenues and assets. The most important activity for Statkraft is the operation, maintenance and development of this portfolio to maximise the long term value of the power plants. Energy trading and services have shown solid results over many years, and the Group wants to develop this area also in the emerging markets where Statkraft is building new hydropower plants.

The Group will strengthen its position as a leading international supplier of clean energy through the integration of the activities in South America and South Asia and through the development of hydropower in Southeast Europe.