Statkraft AS - Q2 2010

(Oslo, 19 August 2010) Following all-time high result in the first quarter of 2010, the result for the second quarter was slightly lower. Underlying profit before tax in the second quarter ended at NOK 2311 million compared with NOK 2295 million in the second quarter of 2009. Statkraft's underlying operating profit amounted to NOK 1119 million in the second quarter, compared with NOK 1420 million in the second quarter of 2009. The result is as expected and mainly reflects normal seasonal variations.

Overall for the first half of 2010, the underlying profit before tax was NOK 7685 million, compared with NOK 5780 million in the first half of 2009. The underlying operating profit for the first half of 2010 amounted to NOK 6612 million, compared with NOK 5363 million for the first half of 2009.

"Results for the first half of the year were good and reflect successful power optimisation and high prices throughout the six months. Moreover, we have achieved good and stable operations and high up-time for the power plants. Statkraft produced far more than normal when the demand for power peaked in January and February, while we have chosen to conserve water in the second quarter due to lower prices and relatively low water levels in the reservoirs. On an annual basis, the current reservoir levels indicate a lower production than last year," says President and CEO Christian Rynning-Tønnesen.

The average system price in the Nordic market was substantially higher in the first half of 2010 than in the corresponding period in 2009, ending at 52.3 EUR/MWh (36.1 EUR/MWh). The average price in the second quarter was 44.9 EUR/MWh (34.0). The average spot price in the German market in the first half of the year was 41.5 EUR/MWh (39.9) and 41.9 EUR/MWh (32.4) in the second quarter.

Statkraft generated 29.0 TWh (27.3) in the first half of 2010. Gas power contributed with increased production, while the production of hydropower was somewhat lower than during the first half of last year. Significantly less was produced in the second quarter than in the first quarter, and production for the quarter ended at 10.6 TWh (10.2 TWh). Relatively low hydropower production is expected for the coming months due to lower than normal reservoir levels. At the end of June, the overall reservoir level for all companies in the Nordic region was 84.3 % of normal, corresponding to 70.1 TWh.

Statkraft generated gross operating revenues of NOK 15 950 million (NOK 12 929 million) in the first six months. The reported accounts are impacted by unrealised changes in value and non-recurring items, and the recognised result for the first half of 2010 was NOK 9759 million before tax (NOK 5294 million), and NOK 5596 million after tax (NOK 3293 million).

In the second quarter, Statkraft decided to focus its growth strategy and scale down the investment plans. The company seeks a positive clarification concerning the capital and dividend policy.

Statkraft is the European leader in renewable energy. The Group develops and produces hydropower, wind power and district heating, and is a major player on the European energy exchanges. Statkraft has more than 3200 employees in more than 20 countries.

For further information:
Vice president Investor Relations Yngve Frøshaug, tel.: +47 24 06 78 76 / +47 900 23 021
Spokesperson Knut Fjerdingstad, tel.: +47 24 06 71 61 /  + 47 901 86 310
or www.statkraft.no