Statkraft AS: Results for the third quarter of 2014
Solid financial performance in the quarter
(Oslo, 6 November 2014) In the third quarter of 2014, Statkraft achieved an underlying operating profit before depreciation (EBITDA) of NOK 2282 million, compared with NOK 1867 million in the corresponding period in 2013. Major currency effects and non-recurring items resulted in a net profit after taxes of NOK 4151 million, compared with a loss of NOK 1681 million in the third quarter of 2013.
The average Nordic power price was 31.8 EUR/MWh. This is 11 per cent lower than in the third quarter of 2013. The Group's power production totalled 12.2 TWh, an increase of 9 per cent compared with the same quarter in 2013.
"Statkraft's underlying operating profit (EBITDA) for the third quarter ended at NOK 2282 million, which is an improvement of 22 per cent compared with the corresponding quarter in 2013. Long-term power contracts and higher hydropower production in the Nordic countries offset the impact of the low power prices. The results from market activities were also better than in the third quarter of last year. The financial performance in the quarter is solid and shows the robustness of Statkraft's activities," says CEO Christian Rynning-Tønnesen.
Major positive currency effects as a result of a stronger NOK against the EUR, and overall gains totalling NOK 2276 million from the sale of power plants in Finland and ownership interests in wind power plants in the UK, had a positive impact on the quarterly results. Impairment on a project in Turkey contributed negatively with NOK 1050 million. Net profit after taxes ended at NOK 4151 million, an improvement of NOK 5832 million compared with the third quarter of 2013, which was a quarter with significant negative currency effects. The currency effects are offset by translation effects in equity.
The Statkraft Group has substantial investment activity within renewable energy. The Kjensvatn power plant in Norway officially opened in September. Hydropower plants in Norway are being refurbished and several international hydropower projects are currently under construction. The building of a new wind farm in Sweden and start-up of the Dudgeon offshore wind power project in the UK are going as planned. It is also being developed district heating in Sandefjord and Moss in Norway.
"The completed transactions and ongoing investments will help strengthen Statkraft both in Norway and internationally," says Rynning-Tønnesen.
Statkraft is a leading company in hydropower internationally and Europe's largest generator of renewable energy. The Group produces hydropower, wind power, gas-fired power and district heating and is a global player in energy market operations. Statkraft has 3600 employees in more than 20 countries.
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 Adjusted for unrealised changes in value and material non-recurring items