Statkraft AS - result for the third quarter of 2011
Result from operations holds steady
(Oslo, 10 November 2011) In the third quarter, Statkraft achieved an underlying1 operating profit before depreciation (EBITDA) of NOK 1751 million, compared with NOK 1830 million in the corresponding quarter last year. The underlying operating profit after depreciation (EBIT) of NOK 1188 million was on a par with last year. As a result of unrealised changes in value and write-downs, the posted result after tax was a loss of NOK 1583 million, compared with a profit of NOK 1163 million in the third quarter of 2010.
The quarterly result was characterised by high inflow and lower Nordic power prices, but the decline in revenues was offset by somewhat higher production, higher revenues from industrial power agreements and somewhat lower operating costs. Overall, this caused only a minor decline in the result from the underlying operations compared with the third quarter of 2010.
Statkraft recognises its shareholding in E.ON AG at market price, and additional write-down of the shareholding as well as unrealised currency losses resulted in a negative posted result for the quarter, both before and after tax.
"The result from the operations is satisfactory in a market with low Nordic power prices towards the end of the period. Also in the third quarter, Statkraft has made new important decisions as regards the further development of the Group. We have made major investment decisions regarding hydropower plants in Turkey and Panama, wind farms in Sweden and an agreement to purchase an energy company in Brazil," says President and CEO Christian Rynning-Tønnesen.
Overall for first nine months of the year, the underlying EBITDA amounted to NOK 7823 million compared with NOK 9475 million in the corresponding period in 2010. In spite of somewhat higher energy production in the third quarter, the tight resource situation in the first six months of the year resulted in a considerably lower Nordic hydropower production for the Group overall. The profit after tax was NOK 712 million, compared with NOK 6759 million during the same period last year, where the decline is primarily due to write-down of shares in E.ON as well as unrealised changes in currency value.
The Group's consolidated power production for the third quarter was 10.9 TWh, compared with 10.6 TWh during the same period last year. For the first nine months of the year, the production totalled 35.7 TWh, compared to 39.4 TWh in 2010. The resource situation has improved quickly, and at the end of the third quarter the total reservoir water level in the Nordic region was 102 per cent of normal.
In the third quarter, the average system price in the Nordic market was 36.0 EUR/MWh (45.9), while it was 51.5 EUR/MWh (50.2) for the first nine months. The average spot price on the German energy exchange EEX was 49.2 EUR/MWh (43.8) for the third quarter and 51.5 EUR/MWh (42.3) for the first nine months.
In connection with the preparation of the accounts for the third quarter, an error was discovered in the reported financial statement for the second quarter. The accounts were erroneously charged with NOK 415 million. A more detailed statement and corrected interim accounts for the second quarter can be found in Note 9 to the financial accounts for the third quarter.
1 Adjusted for unrealised changes in value and significant non-recurring items
Statkraft is a European leader within renewable energy. The Group develops and produces hydropower, wind power, gas power and district heating, and is a major player on the European energy exchanges. Statkraft has more than 3300 employees in more than 20 countries.
For additional information:
Executive vice president/CFO Jens Bjørn Staff, tel.: +47 24 06 72 11 / 907 81 345
VP Investor Relations Yngve Frøshaug, tel.: +47 24 06 78 76 /+47 900 23 021
Press spokesperson Knut Fjerdingstad, tel.: +47 24 06 71 61 /+47 901 86 310