Statkraft SF Second Quarter 2007

16.08.2007 08.08 | stock exchange information

The Statkraft SF Group posted a profit before tax of NOK 660 million in the second quarter of the year, compared with NOK 2,530 million in the corresponding prior-year period. The profit before tax for the first six months of the year was NOK 4,211 million, while the profit after tax was NOK 3,113 million.
Electricity prices continued to fall in the second quarter of the year. The average spot price for the quarter was NOK 182/MWh, which represents a decrease of 48% compared with the second quarter of the previous year.
The test period for the gas power plants at Knapsack, Herdecke and Kårstø, which have a total installed capacity of 1,600 MW, began at the start of June, while test operation of the new turbine at the Pålsbu hydropower plant also commenced in June. The power plant is expected to generate 22 GWh of electricity per annum.
On 11 May Statkraft was granted a final licence for the Kjensvatn hydropower plant in Nordland, which is expected to generate 75 GWh of electricity.
During the second quarter Småkraft AS took the decision to build a further four small-scale hydropower plants.
The new waste incineration plant at Heimdal district heating plant in Trondheim entered operation on 13 March 2007, while the plant's official test period started on 5 May. The takeover of the plant is scheduled for the middle of August.
Agder Energi AS and Statkraft AS signed a letter of intent to collaborate on wind power in June 2007. The agreement covers the development, construction and operation of wind farms in Norway and the rest of Europe.
In April SN Power (Statkraft owns 50% of the shares) took over the Magat hydropower plant in the Philippines in collaboration with the Philippine company Aboitiz Equity Ventures. The power plant, which has a capacity of 360 MW, was purchased for USD 530 million following an open, international tender process.
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 first six months of 2007 were NOK 783 million higher than the corresponding figure in the Statkraft AS Group balance sheet. NOK 955 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 172 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 second quarter interest-bearing liabilities totalled NOK 38.9 billion, compared with NOK 33.0 billion at the end of the corresponding prior-year period. The interest-bearing debt ratio was 51.0%, compared with 45.3% at the end of 2006. Current assets, excluding cash and cash equivalents, totalled NOK 11.6 billion, while short-term interest-free liabilities amounted to NOK 23.7 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:


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Report 2nd quarter 2007 .PDF