Statkraft AS: Results for the fourth quarter of 2014
A strengthened Statkraft
(Oslo, 5 February 2015) In the fourth quarter of 2014, Statkraft achieved an underlying operating profit before depreciation (EBITDA) of NOK 3486 million, compared with NOK 3843 million in the corresponding period in 2013. Substantial currency effects resulted in a net loss of NOK 3097 million, compared with a profit of NOK 2354 million in the fourth quarter of 2013.
The average Nordic power price was 30.7 EUR/MWh in the fourth quarter. This is EUR 5.2 lower than in the corresponding quarter in 2013. The group's power production totalled 15.4 TWh, compared to 16.3 TWh during the same period in 2013.
"In a quarter where the market was still dominated by lower power prices, Statkraft delivered a solid result. The underlying operating profit (EBITDA) amounted to NOK 3486 million. This shows the robustness of Statkraft's strategy," says President and CEO Christian Rynning-Tønnesen.
The quarterly result was influenced by negative currency effects in the financial items due to a weaker NOK against EUR. The currency effects are fully offset by positive currency translation effects in equity, and the overall increase in equity in the quarter was NOK 11.5 billion, including a NOK 5 billion equity injection from the owner. The net loss ended at NOK 3097 billion, a decline of NOK 5451 billion compared with the fourth quarter of 2013.
"We are very pleased with the Storting's unanimous decision before Christmas to give Statkraft NOK 5 billion in increased equity. The Norwegian state will also reduce its dividends over the next three years by NOK 5 billion. This will enable further growth within renewable energy in Norway and internationally," says Christian Rynning-Tønnesen.
Statkraft completed the Ögonfägnaden wind farm and a large part of the Björkhöjden wind farm in Sweden. A selldown from 50 to 40 per cent was carried out in the Sheringham Shoal offshore wind farm outside the UK to help finance new projects. Statkraft will still be the operator of the wind farm. The new district heating plant in Sandefjord also started operations.
For 2014 overall, the underlying EBITDA ended at NOK 12 132 million, compared with NOK 12 444 million in 2013. Recorded net profit is characterised by large unrealised currency effects and amounted to NOK 3892 million. The currency changes are fully offset by positive currency translation effects in equity, which increased by NOK 17 billion during the year. The equity is NOK 88 billion at year-end.
Statkraft is a leading company in hydropower internationally and Europe's largest generator of renewable energy. The Group produces hydropower, wind power, gas power and district heating and is a global player in energy market operations. Statkraft has 3700 employees in more than 20 countries.
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 Adjusted for unrealised changes in value and material non-recurring items