Statkraft - fourth quarter and preliminary annual result for 2010
Strong result driven by unusual cold winter
(Oslo, 17 February 2011) Historically cold winter weather with high power prices and efficient management of the water reservoirs yielded an underlying1 EBITDA of NOK 5401 million for Statkraft in the fourth quarter of 2010, compared with NOK 4484 million during the same period in 2009. The underlying profit before tax amounted to NOK 5371 million, up from NOK 3986 million in the fourth quarter of 2009.
For the full year 2010, the underlying EBITDA amounted to NOK 15 030 million, compared with NOK 12 582 million in 2009. The underlying profit before tax amounted to NOK 13 861 million, compared with NOK 10 654 million in the preceding year. The results are characterised by 2010 being the coldest year in 70 years and lower than normal inflow, according to official measurements. The power market was also influenced by Swedish nuclear plants operating with reduced capacity for extended periods.
"Statkraft has contributed high energy generation in periods with high demand. Following two unusual cold winters in a row, combined with lower inflow than normal to the water reservoirs, Statkraft expects lower hydropower generation in 2011," says CEO Christian Rynning-Tønnesen.
In the fourth quarter, the average system price in the Nordic market was 62.0 EUR/MWh (36.6). The prices in 2010 were considerably higher compared with 2009, and ended at 53.1 EUR/MWh (35.0). In the German market, the average spot price on EEX was 51.4 EUR/MWh (38.7) in the fourth quarter, and 44.6 EUR/MWh (38.9) for the year.
"Statkraft achieved several important milestones in 2010, and is well positioned for stronger growth within environmental friendly and flexible energy generation. The equity injection of NOK 14 billion in December shows that the owner stands firmly behind Statkraft's strategy," says Rynning-Tønnesen.
The Group's total power generation for the fourth quarter was 18.0 TWh (17.8 TWh). Hydropower generation was somewhat higher than in the fourth quarter of 2009, while gas power generation was somewhat lower. In 2010, Statkraft generated a total of 57.4 TWh, which is in line with the preceding year of 57.0 TWh. There were major monthly variations during the year, with Statkraft producing considerably more than normal in January, February and December. At the end of the year, the overall reservoir water levels in the Nordic region were 36 per cent below normal, according to the Norwegian Water Resources and Energy Directorate.
Statkraft had gross operating revenues of NOK 8939 million (NOK 8157 million) in the fourth quarter, and NOK 29 252 million (NOK 25 675 million) in 2010. The reported accounts are influenced by significant non-recurring items and unrealised changes in value, and the accounting net profit for 2010 was NOK 7451 million (NOK 7716 million).
1) Adjusted for unrealised changes in value and significant non-recurring items
Statkraft is Europe's leader in 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
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.