Statkraft AS: Result for the fourth quarter of 2015
Robust operations and impairment
(Oslo, 4 February 2016) In the fourth quarter of 2015, Statkraft achieved an underlying operating profit before depreciation (EBITDA) of NOK 2846 million, a decrease of NOK 640 million compared with the corresponding period in 2014. The quarterly net result ended at NOK -70 million.
The average Nordic power prices were 22.0 EUR/MWh in the fourth quarter, a decrease of 29 % compared with 30.7 EUR/MWh in the corresponding quarter in 2014. Total production was 15.4 TWh which is on a level with the same period last year. Reduced hydropower production in Norway was counterbalanced by increased production from new international hydropower and wind assets.
- The underlying operations are robust in a challenging market. Statkraft's strategy for long term contracts and increased revenues from international activites contributes to offset the decline in Nordic power prices, says President & CEO Christian Rynning-Tønnesen.
The fourth quarter is influenced by an impairment and the result ended at NOK -70 million. This is an increase of NOK 3027 million from the fourth quarter of 2014 which had large negative currency effects. The equity increased by NOK 3 billion in the quarter.
The security situation in South-East Turkey has resulted in increased risk related to the Cetin project, and there have been major challenges related to project execution. Statkraft has therefore decided to suspend the majority of the construction works. This has led to an impairment and related costs of NOK 2086 million. Going forward, Statkraft will assess different alternatives for the project.
Statkraft has completed the last phase of the Björkhöjden wind farm and thus finalized all its Swedish wind farms. Statkraft also divested Småkraft AS.
Statkraft's investment capacity has been reduced as a result of a revised dividend policy from the Norwegian State.
- As a consequence of the reduced investment capacity, Statkraft will no longer invest in new offshore wind projects. Some international hydropower projects will also be postponed, says Rynning-Tønnesen.
For 2015 overall, the underlying EBITDA ended at NOK 10 169 million, compared with NOK 12 132 million in 2014. Recorded net result is characterised by large currency effects and impairments, and ended at NOK -2369 million. The currency changes for the year are fully offset by positive currency translation effects in equity.
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 4200 employees in more than 20 countries.
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 Adjusted for unrealised changes in value and material non-recurring items