Statkraft AS - third quarter 2010

Acceptable result driven by higher prices and lower production

(Oslo, 11 November 2010) Higher spot power prices, but lower generation, yielded Statkraft an underlying¹ EBITDA of NOK 1745 million in the third quarter, an increase from NOK 1444 million in the corresponding period last year. However, the underlying net profit decreased to NOK 469 million, from NOK 600 million year-on-year, following lower contributions from associated companies.

Year-to-date 2010, the underlying EBITDA reached NOK 9629 million, compared with NOK 8098 million in the corresponding period in 2009. Correspondingly, the underlying net profit was NOK 4940 million, compared with NOK 4415 million at the same time last year.

"The quarterly result is as expected for the season, and is mainly driven by seasonal variations. However, the results so far in 2010 reflect successful power management throughout the year. Statkraft had high generation during the winter due to cold weather and high power prices, after which we have chosen to conserve some of the water in the hydro reservoirs," says CEO Christian Rynning-Tønnesen.

In the third quarter, the average system price in the Nordic market was 45.9 EUR/MWh (31.3). The prices in the first nine months of the year have been considerably higher, compared with the corresponding period in 2009, and ended at 50.2 EUR/MWh (34.5). In the German market, the average spot prices were 42.3 EUR/MWh (38.9) during the first nine months, and 43.8 EUR/MWh (37.1) in the third quarter.

The group's overall power generation for the third quarter reached 10.6 TWh (11.9 TWh). The hydropower generation was on par with the third quarter last year, while gas power generation was considerably lower. Year-to-date, Statkraft generated a total of 39.6 TWh, which is in line with the corresponding period's generation in 2009 of 39.1 TWh. In the fourth quarter, Statkraft expects relatively lower hydropower production compared with the same period last year, due to below-normal hydro reservoir levels. At the closing of September, the overall reservoir hydro levels in the Nordic region were 18% below normal levels, according to the NVE (Norwegian Water Resources and Energy Directorate).

Statkraft's gross operating revenues were NOK 20 314 million (17 518 million) year-to-date. The reported income statement is influenced by unrealised changes in value and non-recurring items. Hence, the accounting net profit was NOK 6759 million (NOK 5938 million).

In its quarterly report for the third quarter of 2010, Statkraft has corrected earlier calculations of underlying tax costs in 2009 up to and including the second quarter of 2010, which relates to changes in values of securities subject to the exemption method. The accounting profit after tax is not affected. 

¹⁾ Adjusted for unrealised changes in value and significant non-recurring items

Statkraft is Europe's leader within renewable energy. The Group develops and generates hydropower, wind power, gas 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: 
CFO Stein Dale, tel.:  +47 24 06 72 11 / +47 450 02 111
Spokesperson Knut Fjerdingstad, tel.: +47 24 06 71 61 /  +47 901 86 310
Investor Relations Johan Ailo Kalstad, tel.: +47 24 06 84 81 / +47 952 45 568
or www.statkraft.no